"PSLV holds physical silver bullion stored in Royal Canadian Mint vaults, with no futures contracts, no counterparty exposure, and no leverage. The fund charges 0.45% annual expense ratio and pays no dividends."
"Silver is more volatile than gold because its market is smaller and its demand is split between monetary and industrial uses. When risk sentiment shifts, both demand drivers can weaken simultaneously."
"A 20% drawdown requires a meaningful recovery just to break even, with zero income accruing while you wait."
"The problem for PSLV holders is structural. A bond fund absorbs rate shocks through coupon income. A dividend equity fund offers yield while you wait for recovery. PSLV generates nothing."
Sprott Physical Silver Trust (PSLV) has experienced a 20% drop over the past month, with a 15% decline in just one week. The fund holds physical silver bullion without futures contracts or leverage, charging a 0.45% annual expense ratio and offering no dividends. Investors use PSLV as a hedge against inflation and monetary uncertainty, but its structure makes it vulnerable to silver price fluctuations. The volatility of silver, driven by both monetary and industrial demand, leads to sharp drawdowns, leaving PSLV holders without income during downturns.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]