‘PSLV’ Still a Powerful Idea Today
PSLV is a closed-end fund that lets investors redeem large blocks of shares in exchange for delivery of silver bullion.
The Sprott Physical Silver Trust often trades at a premium to net asset value (NAV). Closed-end funds can see large premiums and discounts, while exchange traded funds (ETFs) have an arbitrage feature that tends to keep prices in line.
“Samuelson believes silver remains undervalued relative to gold by 10% to 30%. With gold in the $1,825 to $1,875 an ounce range, silver should be trading at $30 to $35, he says,” according to
Barron’s.
PSLV “offers a potential tax advantage for certain non-corporate U.S. investors. Gains realized on the sale of the Trust’s units can be taxed at a capital gains rate of 15%/20% versus the 28% collectibles rate applied to most precious metals ETFs, coins and bars,” adds Sprott.
February 3, 2021
Silver and the related exchange traded funds are garnering attention amid speculation and short squeeze targeting by WallStreetBets traders.
The squeeze didn’t pan out too well on Tuesday, as silver funds tumbled, but that doesn’t mean investors should ignore the
With PSLV and other silver funds, it’s important to remember that it’s harder to affect a short squeeze in a single commodity than it is with an individual stock. That could be a sign that when the WallStreetBets commotion dies down, investors will return to assessing silver on its fundamentals.
“Goldman Sachs strategists said retail investors would not be able to force a short squeeze in silver,” reports Patti Domm for CNBC. “Goldman global commodities head Jeff Currie and other strategists said a short squeeze would be “unattainable” and that regulations have made it nearly impossible for someone to corner the market. They noted that during the infamous squeeze in 1980, the Hunt br
Eric Sprott Cautions Investors To Fear The Financial System (GLD, SLV, PHYS, IAU, PSLV)
JT Long: The dire economic situation that persists globally despite the best efforts of central planners to make things seem normal leads Sprott Inc.’s legendary Chairman Eric Sprott to broadcast a loud message of caution: “Fear the financial system.” In this exclusive interview with
The Gold Report, Sprott says it’s time for people to take matters into their own hands and that means pushing further and further into precious metals equities as well as physical gold and silver. With 80% of his own portfolio in that arena, he certainly puts his money where his mouth is.
February 2, 2021
With silver now the target of Reddit’s notorious batch of WallSteetBets traders, silver exchange traded funds are getting another moment to shine.
That includes the
Sprott Physical Silver Trust (NYSEArca: PSLV), but PSLV isn’t an ETF. Investors considering the trust as a way of playing along with WallStreetBets should understand how the product works before jumping in.
PSLV “currently holds 93,208,680 ounces of silver (as of Feb 1). PSLV provides investors with exposure to physical silver at a time when demand is high, causing excessive premiums for coins and bars,” according to Sprott.
ETFs Versus Closed-End Funds
PSLV is a closed-end fund that lets investors redeem large blocks of shares in exchange for delivery of silver bullion.
Pop up search form
Silver Manipulation: The iShares Silver ETF And J.P. Morgan’s Conflict Of Interest? (SLV, PSLV, AGQ, ZSL, GLD)
Jeff Nielson: JP Morgan (NYSE:JPM) is the largest silver short-seller in the history of the world. JP Morgan is the “custodian” for the largest “long” silver fund in the history of the world, making this one of the largest conflicts of interest in all of history.
If the unit-holders of the iShares Silver Trust (NYSE:SLV) make a small amount of profit on their holdings (per unit), JP Morgan suffers massive losses on its “short” position in the futures market – and then at least