Sprott Physical Silver-U (PSLV) Soars 3.14% Amid Macroeconomic Shifts, Structural Advantages

Sprott Physical Silver-U (PSLV) surged 3.14% on October 15, 2025, reaching its highest level since October 2025, with intraday gains hitting 3.20%. The rally reflects renewed investor appetite for physical silver amid macroeconomic shifts and structural advantages inherent to the trust’s design.

The trust’s net asset value (NAV) has grown to $10 billion, driven by strong demand for silver as a hedge against inflation and currency devaluation. PSLV’s structure—backed by 202.6 million ounces of unencumbered London Good Delivery bars—ensures liquidity and transparency, making it a preferred vehicle for investors seeking direct exposure to physical silver without logistical challenges.

Macroeconomic factors, including accommodative monetary policies and geopolitical tensions, have amplified silver’s appeal. Low interest rates reduce the opportunity cost of holding non-yielding assets, while industrial demand in renewable energy and green technologies strengthens long-term price fundamentals. Supply constraints in mining and refining further support silver’s strategic value.

PSLV’s 0.57% expense ratio and $14.27 NAV per unit highlight its cost efficiency, though negative quarterly earnings underscore the importance of monitoring macroeconomic indicators. The recent launch of PSLV options on the Bourse de Montreal adds hedging flexibility, enhancing liquidity for traders and institutional investors.

Analysts caution that volatility remains tied to external risks, such as central bank policy shifts or reduced industrial demand. However, PSLV’s alignment with Sprott Inc.’s expertise in precious metals positions it to capitalize on sustained commodity strength. Strategic investors are advised to balance optimism with disciplined risk management amid evolving market dynamics.