Sprott Physical Silver-U Dives 0.58% as NAV Hits $10 Billion Milestone Amid Silver Demand Surge

The share price of Sprott Physical Silver-U (PSLV) fell to its lowest level since October 2025 on October 14, 2025, with an intraday decline of 3.53%. The 0.58% drop highlights renewed pressure on the physical silver trust, which has seen its Net Asset Value (NAV) surge to $10 billion, a milestone signaling growing investor demand for tangible silver exposure amid macroeconomic uncertainty. The trust’s structure—directly tied to physical silver holdings—makes it highly sensitive to shifts in market sentiment and asset valuation.

The NAV reaching $10 billion reflects a significant expansion in the trust’s asset base, driven by sustained inflows from investors seeking inflation hedges and portfolio diversification. A higher NAV typically enhances liquidity and institutional appeal, as larger, more stable vehicles are preferred in volatile markets. However, the recent price weakness suggests short-term profit-taking or strategic rebalancing by investors, despite the trust’s long-term fundamentals remaining robust. PSLV’s year-to-date return of 78.03% and 170.13% over three years underscores its outperformance relative to broader equity markets, including the S&P 500.

Structurally, PSLV’s premium to the spot price of silver—encompassing storage, insurance, and management costs—offers a buffer against price swings, though this premium has historically been narrower than peers. The trust’s liquidity and accessibility further differentiate it in a market where physical silver ownership is logistically complex. Yet, risks persist: a decline in silver prices could erode NAV, while narrowing premiums could reduce its competitive edge. Broader factors such as interest rate adjustments and geopolitical tensions also loom, though their direct impact on PSLV remains indirect without explicit data.

Investors should closely monitor the trust’s NAV trajectory and silver market dynamics, as these remain the primary drivers of PSLV’s valuation. While the $10 billion threshold highlights its growing prominence, the recent volatility underscores the need for caution in a sector prone to rapid shifts in sentiment.