A growing chorus of market observers are wagering that silver and assets such as the Sprott Physical Silver Trust (NYSEArca: PSLV) are poised for more upside following a disappointing first quarter.
PSLV is a closed-end fund that lets investors redeem large blocks of shares in exchange for delivery of silver bullion.
The Trust often trades at a premium to net asset value (NAV). Closed-end funds can see large premiums and discounts, while exchange traded funds have an arbitrage feature that tends to keep prices in line. PSLV does possess some unique benefits however, and silver is gaining momentum as long-term idea.