Premium Coming Out Of Sprott Physical Silver Trust (PSLV, SLV)

Silver opened significantly lower this morning, but has been rising throughout the trading session. Currently, COMEX silver futures are up 3% at $36.135. Following the trend in the futures is the iShares Silver Trust ETF SLV, which has risen 2.27% to $35.14. Interestingly, the Sprott Physical Silver Trust PSLV, is very slightly negative on the session.

This is 100% due to the large premium in the PSLV decreasing. At one point, the PSLV traded as much as 20% above its NAV. The reason that some investors are willing to pay more for PSLV is a fear that the SLV ETF does not have all of the silver that they claim. It will be interesting to see if the PSLV's premium continues to compress in the coming days.