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 Replies: 33 / Views: 1,678 |
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Bedrock of the Community
United States
11880 Posts |
THIS IS NOT INVESTMENT ADVICE NOR AN OFFER TO SELL ANYTHING NOR A SOLICITATION TO BUY AN INVESTMENT. IT IS MY ANALYSIS FOR WHY I PREFER AN INVESTMENT VEHICLE OVER OTHER WAYS TO BUY SILVER. Wanted to share some details about the vehicle that I prefer for trading and holding silver. PSLV is the ticker for the Sprott Physical Silver Trust. It holds itself out as 100% backed by physical silver, custodied in the vaults at the Royal Canadian Mint (The Royal Canadian Mint is the mint of Canada and a Crown corporation, operating under an act of parliament referred to as the Royal Canadian Mint Act.). The bars held by the Trust are fully allocated, unencumbered and audited. All bars are London Good Delivery (large standard 0.999 pure bars). They even provide the serial numbers of all the bars that they hold online. Sprott is an investment management firm in Toronto, Canada and PSLV trades in the Toronto Stock Exchange and the NYSE. The firm (Sprott) was started by Eric Sprott, a Canadian billionaire investor and advocate of silver investment who complains about manipulation in the silver market. In 2026 he has allocated 60/40 silver to gold. He believes that the gold/silver ratio will revert to 15/1. PSLV is a closed-end fund which means that its capital shares can trade at a premium or discount to the value of its underlying holdings of silver. As of yesterday, prior to today's 25.5% drop in the value of silver, their portfolio looked as follows: Net Asset Value per Share (NAV): $39.56 Market Price of PSLV at 1/29/26 end of day: $36.29 Shares of PSLV Outstanding: 637,772,285 Premium/Discount to NAV: -8.27% Total Net Asset Value: $25.23 Billion Total Oz. of Silver Held: 217,670,661 Market Value of Silver held by Trust: $25,183,973,082 Closing price of Silver on 1/29/26: $114.43 Amount of Silver claimed by 1 share of PSLV: 0.3413 oz of silver. Expenses charged: 0.57% of assets per year. As of today, after today's 25.5% drop in the value of silver, their portfolio looked as follows: Net Asset Value per Share (NAV): $29.15 [-$10.41, -26.31%] Market Price of PSLV at 1/30/26 end of day: $26.41 [-$9.88, -27.23%] Shares of PSLV Outstanding: 637,772,285 [0, 0%] Premium/Discount to NAV: -9.41% [-1.14, -12.11%] Total Net Asset Value: $18.59 Billion [-$6.64 billion, -26.32%] Total Oz. of Silver Held: 217,670,661 [0, 0%] Market Value of Silver held by Trust: $18,545,409,725 [-$6,638,563,357, -26.36%] Closing price of Silver on 1/30/26: $85.25 [-$29.18, 25.50%] Amount of Silver claimed by 1 share of PSLV: 0.3413 oz of silver. [0, 0%] Expenses charged: 0.57% of assets per year. Given the volatility of silver prices, hitting their all-time nominal high this week and dropping ~26% today, retailers are demanding steep discounts when buying and steep premiums when selling in order to limit their risk at the expense of their customers. PSLV offers a discounted price of over 9% when buying. You also receive a discount when selling at the moment, but it's the same whether you are buying or selling instead of going against you both ways, doubling the spread. Let me know your thoughts on this analysis and whether I have overlooked any risks in this vehicle for holding silver. Also, if you know of a better way of holding in silver, let me know what it is and why it is better. IN NECESSARIIS UNITAS - IN DUBIIS LIBERTAS - IN OMNIBUS CARITAS THE MAN IN THE ARENA, Theodore Roosevelt at the Sorbonne Paris on April 23, 1910: " It is not the critic who counts; not the man who points out how the strong man stumbles or where the doer of deeds could have done better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood, who strives valiantly, who errs and comes up short again and again, because there is no effort without error or shortcoming, but who knows the great enthusiasms, the great devotions, who spends himself in a worthy cause; who, at the best, knows, in the end, the triumph of high achievement, and who, at the worst, if he fails, at least he fails while daring greatly, so that his place shall never be with those cold and timid souls who knew neither victory nor defeat." My coin website: https://fairfaxcoins.comEdited by numismatic student
01/30/2026 8:24 pm
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Moderator
 United States
34393 Posts |
Quote:
if you know of a better way of holding in silver Uh, in your hand of course!  An interesting thought @ns. Other than the last 12 months, have you found that the annual fee is more than the appreciation or the other way around? "If you climb a good tree, you get a push."
-----Ghanaian proverb
"The danger we all now face is distinguishing between what is authentic and what is performed."
-----King Adz
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Bedrock of the Community
 United States
11880 Posts |
The annual fee is steep, especially if the price is flat or decreasing over long periods of time as was the case for most of the time that we have been alive. I have only held this while the price has been increasing steeply so the expenses have been negligible.
Holding in hand is ok, unless you start accumulating large amounts. Then storage and security become an issue. Don't want to become a target by keeping a lot of valuables at home. Also buying and selling become an issue if you don't want to break your back moving it every time you buy and sell. Silver, unlike gold, weighs a lot in any significant volume.
IN NECESSARIIS UNITAS - IN DUBIIS LIBERTAS - IN OMNIBUS CARITAS THE MAN IN THE ARENA, Theodore Roosevelt at the Sorbonne Paris on April 23, 1910: " It is not the critic who counts; not the man who points out how the strong man stumbles or where the doer of deeds could have done better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood, who strives valiantly, who errs and comes up short again and again, because there is no effort without error or shortcoming, but who knows the great enthusiasms, the great devotions, who spends himself in a worthy cause; who, at the best, knows, in the end, the triumph of high achievement, and who, at the worst, if he fails, at least he fails while daring greatly, so that his place shall never be with those cold and timid souls who knew neither victory nor defeat." My coin website: https://fairfaxcoins.com |
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Bedrock of the Community
United States
11880 Posts |
If you are buy and hold type, the 9.41% discount to the market value of the underlying silver is 16.5 years of annual expenses at 0.57% per annum. You can also wait until the discount turns into a premium to sell. Then you make money both ways on the round trip, independent of the price of silver.
IN NECESSARIIS UNITAS - IN DUBIIS LIBERTAS - IN OMNIBUS CARITAS THE MAN IN THE ARENA, Theodore Roosevelt at the Sorbonne Paris on April 23, 1910: " It is not the critic who counts; not the man who points out how the strong man stumbles or where the doer of deeds could have done better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood, who strives valiantly, who errs and comes up short again and again, because there is no effort without error or shortcoming, but who knows the great enthusiasms, the great devotions, who spends himself in a worthy cause; who, at the best, knows, in the end, the triumph of high achievement, and who, at the worst, if he fails, at least he fails while daring greatly, so that his place shall never be with those cold and timid souls who knew neither victory nor defeat." My coin website: https://fairfaxcoins.com |
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Pillar of the Community
 United States
5177 Posts |
I disagree. I think SLV is better if you are just interested in movement in the price of silver. If you want to hold it, go to a coin shop or coin show and buy coins.
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Bedrock of the Community
United States
11880 Posts |
SLV doesn't have a 9.41% discount buying if you're opening a position. What is the advantage of SLV?
IN NECESSARIIS UNITAS - IN DUBIIS LIBERTAS - IN OMNIBUS CARITAS THE MAN IN THE ARENA, Theodore Roosevelt at the Sorbonne Paris on April 23, 1910: " It is not the critic who counts; not the man who points out how the strong man stumbles or where the doer of deeds could have done better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood, who strives valiantly, who errs and comes up short again and again, because there is no effort without error or shortcoming, but who knows the great enthusiasms, the great devotions, who spends himself in a worthy cause; who, at the best, knows, in the end, the triumph of high achievement, and who, at the worst, if he fails, at least he fails while daring greatly, so that his place shall never be with those cold and timid souls who knew neither victory nor defeat." My coin website: https://fairfaxcoins.com |
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Pillar of the Community
United States
5177 Posts |
Options available, lower fee.
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Bedrock of the Community
United States
11880 Posts |
Options are a zero sum game if you execute perfectly with no friction. I don't need the headache of having to execute perfectly to at best have the expectation of losing money in fees in the long run.
The difference in fees is 0.07% per year. The 9.41% discount to NAV represents 134.43 years of the 7 basis pt fee differential.
IN NECESSARIIS UNITAS - IN DUBIIS LIBERTAS - IN OMNIBUS CARITAS THE MAN IN THE ARENA, Theodore Roosevelt at the Sorbonne Paris on April 23, 1910: " It is not the critic who counts; not the man who points out how the strong man stumbles or where the doer of deeds could have done better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood, who strives valiantly, who errs and comes up short again and again, because there is no effort without error or shortcoming, but who knows the great enthusiasms, the great devotions, who spends himself in a worthy cause; who, at the best, knows, in the end, the triumph of high achievement, and who, at the worst, if he fails, at least he fails while daring greatly, so that his place shall never be with those cold and timid souls who knew neither victory nor defeat." My coin website: https://fairfaxcoins.com |
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Pillar of the Community
United States
5177 Posts |
Why is PSLV trading at a discount.
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Bedrock of the Community
United States
36415 Posts |
If you don't hold it, you don't own it.
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Bedrock of the Community
United States
11880 Posts |
Quote:
Why is PSLV trading at a discount. Because people who wanted to sell out their position yesterday were willing to accept a lower price than the overall market price. Closed end funds don't have to match the value of their shares to the underlying value of their assets. For buyers, this presents an opportunity to buy the shares at a price lower than the value of the silver that the fund holds. IN NECESSARIIS UNITAS - IN DUBIIS LIBERTAS - IN OMNIBUS CARITAS THE MAN IN THE ARENA, Theodore Roosevelt at the Sorbonne Paris on April 23, 1910: " It is not the critic who counts; not the man who points out how the strong man stumbles or where the doer of deeds could have done better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood, who strives valiantly, who errs and comes up short again and again, because there is no effort without error or shortcoming, but who knows the great enthusiasms, the great devotions, who spends himself in a worthy cause; who, at the best, knows, in the end, the triumph of high achievement, and who, at the worst, if he fails, at least he fails while daring greatly, so that his place shall never be with those cold and timid souls who knew neither victory nor defeat." My coin website: https://fairfaxcoins.comEdited by numismatic student
01/31/2026 1:45 pm
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Bedrock of the Community
United States
11880 Posts |
Quote:
If you don't hold it, you don't own it. Legally, this is not true. By this logic, I don't own the stocks I hold in electronic form. Anything you own can be confiscated or stolen. Even if you hold it in your hand. IN NECESSARIIS UNITAS - IN DUBIIS LIBERTAS - IN OMNIBUS CARITAS THE MAN IN THE ARENA, Theodore Roosevelt at the Sorbonne Paris on April 23, 1910: " It is not the critic who counts; not the man who points out how the strong man stumbles or where the doer of deeds could have done better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood, who strives valiantly, who errs and comes up short again and again, because there is no effort without error or shortcoming, but who knows the great enthusiasms, the great devotions, who spends himself in a worthy cause; who, at the best, knows, in the end, the triumph of high achievement, and who, at the worst, if he fails, at least he fails while daring greatly, so that his place shall never be with those cold and timid souls who knew neither victory nor defeat." My coin website: https://fairfaxcoins.com |
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Pillar of the Community
United States
5177 Posts |
This may sound odd, but you legally do not own e.g. digital books bought on Amazon. |
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Bedrock of the Community
United States
11880 Posts |
When you buy a book or music, you are receiving limited rights to read it or listen to your purchased physical or digital copy privately. You don't own the right to sell copies of the book or music. You do not get distribution rights to the book or music. You also can't copy parts of it and call it your own because you don't own the underlying intellectual property. You just own a copy of the book or music for you to read or listen to privately.
Intellectual property rights are complicated and it can be difficult to understand what rights are being conveyed to you when you make a purchase. This area will become more complicated as the terms and conditions (T&C) that accompany many purchases attempt to strip you of many of your rights, betting that you are clicking "agree" mindlessly. Social media companies are notorious for these practices as content creators give up most of their rights getting onto content platforms.
IN NECESSARIIS UNITAS - IN DUBIIS LIBERTAS - IN OMNIBUS CARITAS THE MAN IN THE ARENA, Theodore Roosevelt at the Sorbonne Paris on April 23, 1910: " It is not the critic who counts; not the man who points out how the strong man stumbles or where the doer of deeds could have done better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood, who strives valiantly, who errs and comes up short again and again, because there is no effort without error or shortcoming, but who knows the great enthusiasms, the great devotions, who spends himself in a worthy cause; who, at the best, knows, in the end, the triumph of high achievement, and who, at the worst, if he fails, at least he fails while daring greatly, so that his place shall never be with those cold and timid souls who knew neither victory nor defeat." My coin website: https://fairfaxcoins.com |
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Bedrock of the Community
United States
11880 Posts |
Quote:
If you don't hold it, you don't own it. Another interesting counter example is a rental property. I purchase a real estate property and enter into a lease agreement with a tenant. I don't hold that real estate physically. I don't have physical possession of the property, my tenant does. I don't enjoy the shelter or commercial use that my rental property provides because I have assigned the use of my rental property to my tenant. Does this mean that I don't own my rental property? The multi-trillion dollar global residential and commercial rental markets could not exist if the adage that 'if I don't hold it, I don't own it' were true. IN NECESSARIIS UNITAS - IN DUBIIS LIBERTAS - IN OMNIBUS CARITAS THE MAN IN THE ARENA, Theodore Roosevelt at the Sorbonne Paris on April 23, 1910: " It is not the critic who counts; not the man who points out how the strong man stumbles or where the doer of deeds could have done better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood, who strives valiantly, who errs and comes up short again and again, because there is no effort without error or shortcoming, but who knows the great enthusiasms, the great devotions, who spends himself in a worthy cause; who, at the best, knows, in the end, the triumph of high achievement, and who, at the worst, if he fails, at least he fails while daring greatly, so that his place shall never be with those cold and timid souls who knew neither victory nor defeat." My coin website: https://fairfaxcoins.com |
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Pillar of the Community
United States
1747 Posts |
Quote:
Legally, this is not true. By this logic, I don't own the stocks I hold in electronic form. Anything you own can be confiscated or stolen. Even if you hold it in your hand. Yes and no. Ask Canadian truckers about their bank accounts. I would not touch Canada at the moment and maybe why there is a discount. Happy to trade stocks but have never ventured into metals stocks. To me there are lots of other opportunities that are not manipulated as much. |
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Replies: 33 / Views: 1,678 |
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Posted 01/30/2026 8:56 pm
