PSLV ETF Review: Is Sprott Physical Silver Worth Buying?

Sprott Physical Silver Trust stores fully allocated silver bars at the Royal Canadian Mint with physical redemption rights, offering the same sovereign-custody advantages as PHYS for investors who want silver exposure without commercial bank counterparty risk.

What Is PSLV?

Sprott Physical Silver Trust holds physical silver bullion stored in secure vaults in Canada and the US. Unlike ETFs that use derivatives or futures, PSLV owns actual silver bars that investors can redeem for physical metal. Sprott Asset Management has managed the trust since 2010, tracking the silver spot price while giving investors liquid access to physical precious metals.

The trust charges a 0.51% management fee, holds $16.8 billion in assets under management, and trades on both NYSE and TSX.

Current Snapshot

Why It Matters for Real Asset Investors

PSLV serves as portfolio insurance against currency debasement and financial system stress. Silver historically outperforms during periods when paper currencies lose purchasing power, making it a hedge against central bank money printing and sovereign debt crises. While gold gets the headlines, silver often amplifies precious metals moves due to its smaller market size and dual role as both monetary metal and industrial commodity.

The physical backing distinguishes PSLV from silver futures ETFs that can face contango drag or settlement risk. During market stress, physical-backed trusts have maintained tighter spreads to net asset value compared to futures-based alternatives. This structure matters because precious metals serve as catastrophe hedges—when you need them most, you want exposure to actual metal, not financial engineering.

Silver's industrial demand creates unique dynamics absent in gold. Solar panel manufacturing, electronics, and medical applications create baseline demand that supports prices during economic downturns. This industrial floor combined with monetary properties makes silver particularly interesting during stagflationary periods when industrial activity persists but currency concerns intensify.

Top Holdings

PSLV holds only physical silver bullion stored in segregated accounts. The trust doesn't publish specific bar serial numbers for security reasons, but independent audits verify holdings quarterly. Current inventory includes approximately 165 million ounces stored across facilities operated by the Royal Canadian Mint and Delaware Depository Service Company.

Unlike mining stocks or silver streaming companies, PSLV provides pure precious metals exposure without operational, geopolitical, or management risks. The trust's structure allows qualified investors to redeem units for physical silver delivery, ensuring the premium to net asset value stays contained during normal market conditions.

How It Fits the Portfolio

PSLV works best as portfolio insurance rather than a core holding, typically 2-5% of total allocation depending on macro conditions. Silver's volatility exceeds most real assets, making position sizing critical. The trust performs particularly well when paired with other real assets like energy infrastructure or gold, as precious metals often hedge risks that commodity producers cannot.

I'm watching for opportunities when PSLV trades at significant discounts to net asset value, which typically coincides with broad precious metals pessimism. The trust occasionally trades below the value of underlying silver during forced selling periods, creating asymmetric risk/reward opportunities for patient investors.

Regime Signals

PSLV outperforms during periods of currency weakness, particularly US dollar declines against major trading partners. Rising inflation expectations boost silver more than nominal rate increases hurt it, especially when real rates remain negative. Fiscal stress in developed economies creates tailwinds as investors seek alternatives to government bonds and bank deposits.

The trust struggles during periods of US dollar strength combined with falling inflation expectations. Rising real rates above 2% typically pressure all precious metals, while deflationary environments favor cash and bonds over real assets. Strong economic growth with stable currencies removes silver's monetary premium, leaving only industrial demand to support prices.

Related Research

• Alabama Power Grid Risk Assessment
• Exxon Mobil (XOM) Tollbooth Analysis
• PHYS: Sprott Physical Gold Trust
• SLV: iShares Silver Trust
• SILJ: ETFMG Prime Junior Silver Miners

Frequently Asked Questions

What makes PSLV different from SLV?

PSLV stores silver at the Royal Canadian Mint (a sovereign facility) rather than JPMorgan's commercial vaults. Large unitholders can redeem for physical silver delivery. As a closed-end trust, PSLV can trade at a premium or discount to NAV, unlike SLV which closely tracks spot silver through its ETF creation/redemption mechanism. PSLV appeals to investors who prioritize custody security over perfect price tracking.

Can you take physical delivery of silver from PSLV?

Yes, holders of sufficient units can request physical silver delivery from the Royal Canadian Mint. The minimum redemption is typically 10 London Good Delivery bars (roughly 10,000 troy ounces). This is primarily relevant for institutional investors and high-net-worth individuals, but the mechanism provides a floor on discount to NAV since arbitrageurs can redeem if the discount widens too far.

What is the expense ratio of PSLV?

PSLV charges a 0.62% annual management fee, higher than SLV's 0.50%. The premium reflects sovereign mint storage costs and the closed-end trust structure. For investors who value the Royal Canadian Mint custody and physical redemption rights, the additional cost is a form of insurance against custodial counterparty risk.

Does PSLV trade at a premium or discount?

PSLV frequently trades at a small premium or discount to its net asset value. During the 2021 silver squeeze, PSLV traded at premiums exceeding 3% as retail investors piled in. Typically it hovers near NAV. Savvy investors can enhance returns by accumulating during discount periods and monitoring the premium as a sentiment indicator for physical silver demand.

For our complete allocation framework across real assets, infrastructure, and income strategies, see The Blackout Fortune Playbook.

Last updated: February 1, 2026 | Data: Yahoo Finance, Sprott Asset Management filings