Well if they go to hell in a handbasket you are. Better chance of losing money on paper promises than physical silver. Although easier to trade. But always that risk of not being backed by physical when needed and of the shares going to shit regardless of whether they are or not. Company collapse, government intervention are dangers.
Not an expert, but I hold the Sprott trust ETFs because they are allegedly backed by actual metal (1 for 1) that is held by and audited by the Royal Canadian Mint (and maybe some other vaults). In a world where the other ETFs and COMEX are based on the promise of actually having metal, I choose Sprott as the best alternative if/when the paper markets collapse due to lack of actual metal. Short of physically holding, it seems like the safest choice these days even if the returns and liquidity may be a little lower. Supposedly, large fish like Rick Rule use these funds as near-physical equivalents with liquidity. Just my view.
Maybe Vince will provide some knowledge/insight here for us amateurs at some point since he posed the question...or talk about it in the morning session. :) Vince Rules!
I had the same question after seeing an 8% difference on the silver rise today. ChatGPT suggests a lot of selling by large entities drove the price down today regardless of the NAV and it should try to balance itself out. Here's hoping! Maybe this was Rick Rule selling huge chunks again?
They certainly manage their inventory differently than SLV. Note the change in inventory since Jan 1, SLV is down from 528M oz to 513M oz and PSLV is up from 210M oz to 217M oz
It is kind of crazy that on Sprott's website it shows PSLV at a 10% discount. Surely that is a buying opportunity if you think that silver can hold at this level for a week or two with the hope that PSLV catches up? Or is that what you talked about, Vince and PSLV is becoming a closed fund?
OK, don't hate on me, but the best info I have found all day concerning the now 10.6% discount on PSLV is from an Asian AI Guy (yes, I know, shoot me now) 7 days ago when the discount was about 4%. Even if the video turns out to be BS, it does make me feel better about holding a large long position in PSLV for now...lol. Now I can sleep tonight.
The persistent discount of **PSLV** (Sprott Physical Silver Trust) relative to **SLV** (iShares Silver Trust) on U.S. exchanges is primarily due to **The persistent discount of **PSLV** (Sprott Physical Silver Trust) relative to **SLV** (iShares Silver Trust) on U.S. exchanges is primarily due to **structural, tax, and liquidity differences**—not because the underlying silver holdings differ in value. Both hold physical silver, but how they’re structured affects their market pricing.
Here’s why PSLV often trades at a discount to SLV:
---
### 1. **Different Legal Structures → Different Tax Treatment**
- **SLV** is structured as a **grantor trust** (under U.S. tax code).
- U.S. investors receive a **Form 1099** (like a stock).
- Capital gains are taxed at standard rates (short- or long-term).
- Familiar and tax-efficient for U.S. retail investors.
- **PSLV** is a **Canadian closed-end trust**.
- U.S. investors may receive a **K-1 form** (though Sprott has worked to avoid this).
- More complex tax reporting; potential for **unrelated business taxable income (UBTI)** concerns for tax-exempt accounts.
- Less attractive to U.S.-based institutional and retirement accounts.
👉 *Result*: Lower demand from U.S. investors → persistent discount.
---
### 2. **Closed-End vs. Open-End Structure**
- **SLV is open-ended**: Authorized Participants (APs) can create/redeem shares daily in exchange for physical silver. This arbitrage mechanism keeps SLV’s price **very close to NAV** (typically within 0.1–0.3%).
- **PSLV is closed-end**:
- No continuous creation/redemption mechanism on U.S. exchanges.
- Shares trade based on **supply and demand** in the secondary market.
- While Sprott offers **monthly redemption in physical silver**, this is only available to large holders (typically 50,000+ units) and involves logistics/costs.
👉 *Result*: PSLV can (and often does) trade at a **discount or premium to NAV**, depending on sentiment. Historically, it has traded at a **discount** due to lower liquidity and tax friction.
---
### 3. **Liquidity and Trading Volume**
- **SLV** is one of the most liquid ETFs globally:
- Average daily volume: **20–50 million shares**.
- Tight bid-ask spreads.
- **PSLV** (traded on NYSE Arca) has much lower volume:
- Average daily volume: **~200,000–500,000 shares**.
- **SLV** is seen as the “default” silver ETF for traders and institutions.
- **PSLV** is marketed toward investors who want **physical redemption optionality** (e.g., those concerned about systemic risk or counterparty exposure).
- This niche appeal limits its investor base in the U.S.
---
### Important Note: The Discount Is Relative to NAV—Not Directly to SLV
Technically, you should compare **PSLV’s market price to its own NAV**, not to SLV’s price. However, since both hold physical silver, their NAVs track closely. So when people say “PSLV trades at a discount to SLV,” they usually mean:
> *“PSLV’s market price is further below its NAV than SLV’s is.”*
In fact, **SLV almost never trades at a meaningful discount**, while **PSLV has historically traded at discounts of 2–8%** (sometimes more during stress periods).
You can check PSLV’s current premium/discount here:
PSLV filed something that updates their "At-the-Market" Equity Program. Hopefully Vince can explain it to us in AM. I tried and it is quite confusing to my novice eyes. I'm guessing they stopped updates till that is resolved.
I had been holding SIVR, also backed by allocated silver. Tracks silver much closer than PSLV. No problems there but sold it today to rotate into miners.
Am I losing money by holding PSLV instead of SLV?
No
Well if they go to hell in a handbasket you are. Better chance of losing money on paper promises than physical silver. Although easier to trade. But always that risk of not being backed by physical when needed and of the shares going to shit regardless of whether they are or not. Company collapse, government intervention are dangers.
Not an expert, but I hold the Sprott trust ETFs because they are allegedly backed by actual metal (1 for 1) that is held by and audited by the Royal Canadian Mint (and maybe some other vaults). In a world where the other ETFs and COMEX are based on the promise of actually having metal, I choose Sprott as the best alternative if/when the paper markets collapse due to lack of actual metal. Short of physically holding, it seems like the safest choice these days even if the returns and liquidity may be a little lower. Supposedly, large fish like Rick Rule use these funds as near-physical equivalents with liquidity. Just my view.
Ditto, i have read and come to understand that as well regarding the holdings in both.
Maybe Vince will provide some knowledge/insight here for us amateurs at some point since he posed the question...or talk about it in the morning session. :) Vince Rules!
The discount was -5.88% on Friday, but it has since become -1.65% as of yesterday.
But today some seems wrong.
Previously I'd decide silver futures price / pslv price and would get 3.05 to 3.09.
But when picking any price within the last two hours before market close I am now getting 3.19 to 3.28.
I also notice pslv didn't rally like silver did into the close.
Can someone double check this?
*divide (not decide)
https://www.tradingview.com/x/Zxz7AmVp/
I had the same question after seeing an 8% difference on the silver rise today. ChatGPT suggests a lot of selling by large entities drove the price down today regardless of the NAV and it should try to balance itself out. Here's hoping! Maybe this was Rick Rule selling huge chunks again?
They certainly manage their inventory differently than SLV. Note the change in inventory since Jan 1, SLV is down from 528M oz to 513M oz and PSLV is up from 210M oz to 217M oz
https://app.screencast.com/nTRShX2qHXj9i
https://app.screencast.com/vLkdt5frLQsGa
https://app.screencast.com/zriJGLCNWEI6b
It is kind of crazy that on Sprott's website it shows PSLV at a 10% discount. Surely that is a buying opportunity if you think that silver can hold at this level for a week or two with the hope that PSLV catches up? Or is that what you talked about, Vince and PSLV is becoming a closed fund?
Sorry folks. It's all my fault. PSLV is my largest position.
If you want leverage AGQ. Forget SLV. If you want to track spot then PSLV.
On my trading platform, your can..only SELL-..PSLV NOT Buy....!!
because it is ..missing a key KID (key information doc )
has been like this for 1 year +... = ONLY for Pro klients...?? WTF...
so...Miners are better anyway....
I think yesterdays zig zig, flushed out the weak hands in miners
Q4 / 25 earnings coming up....) ) )) )) )) )) ) + )
I'm looking forward to Vince discussing specific miners that interest him.
OK, don't hate on me, but the best info I have found all day concerning the now 10.6% discount on PSLV is from an Asian AI Guy (yes, I know, shoot me now) 7 days ago when the discount was about 4%. Even if the video turns out to be BS, it does make me feel better about holding a large long position in PSLV for now...lol. Now I can sleep tonight.
https://www.youtube.com/watch?v=oo5otwtRc3M
(SILVER RALLY AT $95: PSLV's -4% DISCOUNT PROVES WE'RE STILL EARLY)
My AI. Best explanation I've heard, honestly. :
The persistent discount of **PSLV** (Sprott Physical Silver Trust) relative to **SLV** (iShares Silver Trust) on U.S. exchanges is primarily due to **The persistent discount of **PSLV** (Sprott Physical Silver Trust) relative to **SLV** (iShares Silver Trust) on U.S. exchanges is primarily due to **structural, tax, and liquidity differences**—not because the underlying silver holdings differ in value. Both hold physical silver, but how they’re structured affects their market pricing.
Here’s why PSLV often trades at a discount to SLV:
---
### 1. **Different Legal Structures → Different Tax Treatment**
- **SLV** is structured as a **grantor trust** (under U.S. tax code).
- U.S. investors receive a **Form 1099** (like a stock).
- Capital gains are taxed at standard rates (short- or long-term).
- Familiar and tax-efficient for U.S. retail investors.
- **PSLV** is a **Canadian closed-end trust**.
- U.S. investors may receive a **K-1 form** (though Sprott has worked to avoid this).
- More complex tax reporting; potential for **unrelated business taxable income (UBTI)** concerns for tax-exempt accounts.
- Less attractive to U.S.-based institutional and retirement accounts.
👉 *Result*: Lower demand from U.S. investors → persistent discount.
---
### 2. **Closed-End vs. Open-End Structure**
- **SLV is open-ended**: Authorized Participants (APs) can create/redeem shares daily in exchange for physical silver. This arbitrage mechanism keeps SLV’s price **very close to NAV** (typically within 0.1–0.3%).
- **PSLV is closed-end**:
- No continuous creation/redemption mechanism on U.S. exchanges.
- Shares trade based on **supply and demand** in the secondary market.
- While Sprott offers **monthly redemption in physical silver**, this is only available to large holders (typically 50,000+ units) and involves logistics/costs.
👉 *Result*: PSLV can (and often does) trade at a **discount or premium to NAV**, depending on sentiment. Historically, it has traded at a **discount** due to lower liquidity and tax friction.
---
### 3. **Liquidity and Trading Volume**
- **SLV** is one of the most liquid ETFs globally:
- Average daily volume: **20–50 million shares**.
- Tight bid-ask spreads.
- **PSLV** (traded on NYSE Arca) has much lower volume:
- Average daily volume: **~200,000–500,000 shares**.
- Wider spreads, less efficient price discovery.
👉 *Result*: Lower liquidity → higher transaction costs → reduced investor demand → discount.
---
### 4. **Market Perception and Use Case**
- **SLV** is seen as the “default” silver ETF for traders and institutions.
- **PSLV** is marketed toward investors who want **physical redemption optionality** (e.g., those concerned about systemic risk or counterparty exposure).
- This niche appeal limits its investor base in the U.S.
---
### Important Note: The Discount Is Relative to NAV—Not Directly to SLV
Technically, you should compare **PSLV’s market price to its own NAV**, not to SLV’s price. However, since both hold physical silver, their NAVs track closely. So when people say “PSLV trades at a discount to SLV,” they usually mean:
> *“PSLV’s market price is further below its NAV than SLV’s is.”*
In fact, **SLV almost never trades at a meaningful discount**, while **PSLV has historically traded at discounts of 2–8%** (sometimes more during stress periods).
You can check PSLV’s current premium/discount here:
🔗 [https://www.sprott.com/investments/physical-commodities/pslv/](https://www.sprott.com/investments/physical-commodities/pslv/)
---
### Summary
| Factor | SLV | PSLV |
|--------|-----|------|
| Structure | U.S. Grantor Trust | Canadian Closed-End Trust |
| Tax Reporting | 1099 (simple) | Potentially complex (K-1/UBTI risk) |
| Creation/Redemption | Daily, in-kind | Monthly, physical only (large blocks) |
| Liquidity | Very high | Moderate |
| Typical Premium/Discount | ~0% | Often -2% to -8% |
So the discount isn’t about the silver—it’s about **structure, taxes, and market mechanics**.
Let me know if you’d like data on historical PSLV discounts or how this compares to PHYS vs. GLD.
PSLV filed something that updates their "At-the-Market" Equity Program. Hopefully Vince can explain it to us in AM. I tried and it is quite confusing to my novice eyes. I'm guessing they stopped updates till that is resolved.
I had been holding SIVR, also backed by allocated silver. Tracks silver much closer than PSLV. No problems there but sold it today to rotate into miners.