Sprott Silver Trust Rises 5% (PSLV)

The Sprott Physical Silver

is going absolutely crazy on Friday along with silver futures. The PSLV, which holds physical silver in Canadian vaults, has risen 5% and is trading at an all-time high of $18.87. The PSLV has been lagging the iShares Silver Trust ETF

recently, because the Sprott trust trades at a significant premium to its NAV. This is due to the fact that investors are willing to pay more for the peace of mind that the PSLV is 100% backed by physical silver. While the SLV is ostensibly also fully backed by physical, enough questions have been raised about its silver inventory that some investors are opting to invest in the PSLV instead. The SLV has gained 2.64% on the day, compared to 5% on the PSLV, so the premium in the Sprott Trust is rising on Friday. COMEX silver futures breached the $40 level today and are trading at $40.755, a gain of 3%.