Sprott Physical Silver-U (PSLV) Surges 2.30% to 2025 High on Renewed Investor Appetite for Tangible Assets

Sprott Physical Silver-U (PSLV) surged 2.30% on Tuesday, marking its highest level since October 2025, with intraday gains reaching 2.80%. The rally reflects renewed investor appetite for tangible assets amid macroeconomic uncertainties.

The trust’s net assets ballooned by 33% to $6.9 billion as of June 2025, driven by a 6.1% expansion in physical silver holdings to 191.6 million ounces. This growth was fueled by a 34.9 million-unit issuance via an at-the-market program, raising $393.1 million in gross proceeds—a sharp increase from $51.2 million in the same period in 2024. The aggressive capital-raising strategy underscores investor confidence in PSLV as a direct exposure vehicle to silver bullion.

Market efficiency improved, with the average discount to net asset value narrowing to 2.8% in the first half of 2025 from 4.0% in the prior year. Enhanced liquidity and institutional acceptance of the trust’s passive structure contributed to tighter spreads, reinforcing its appeal as a cost-effective proxy for physical silver. However, tracking performance lagged slightly, with PSLV’s returns trailing the spot silver price by 0.7% in the six months ended June 2025, up from 0.4% in 2024. This widening gap, attributed to higher management fees and underwriting costs, highlights ongoing challenges in aligning returns with the benchmark.

Despite these hurdles, PSLV’s low expense ratios—maintained at 0.57% in Q2 2025—remained a key competitive advantage. Operational leverage allowed the trust to scale efficiently, though rising management and underwriting expenses signaled potential headwinds. The trust’s strategic positioning as a scalable, liquid vehicle for silver exposure appears intact, provided tracking discrepancies are addressed to preserve its market role.