NEW YORK, December 29, 2025, 15:05 ET — Regular session
- Sprott Physical Silver Trust (PSLV) fell 7.6% to $24.05 in afternoon trading, after swinging between $25.32 and $23.41.
- Spot silver slid 9.5% after hitting a record $83.62 an ounce earlier in the session, Reuters reported. 1
- Traders are watching higher metals margins and Tuesday’s Fed minutes for the next volatility trigger. 2
Units of Sprott Physical Silver Trust fell 7.6% to $24.05 in afternoon trading on Monday, tracking a sharp pullback in silver. The units swung between $25.32 and $23.41, with volume above 26 million.
The move matters because silver’s outsized 2025 rally has turned bullion-linked funds into a high-beta macro trade heading into year-end. A fast reversal can prompt quick de-risking across products tied to the metal.
An increase in margin requirements on U.S. metals futures added to the pressure. Margins are the cash deposits needed to hold leveraged futures positions, and higher requirements can force traders to cut exposure when prices lurch.
Spot silver fell 9.5% to $71.66 an ounce after touching a record $83.62 earlier in the session, Reuters reported. “We are seeing profit-taking pullbacks off of those spectacularly high levels,” said David Meger, director of metals trading at High Ridge Futures. Silver was up about 147% in 2025 before Monday’s drop, and Reuters said profit-taking and easing geopolitical tensions helped drive the reversal. 1
Sprott says PSLV is a closed-end trust backed by fully allocated silver bars. Because closed-end funds issue a fixed pool of units, they can trade above or below the value of their holdings; Sprott’s website showed PSLV at about a 3% discount to its intraday indicative value — an estimate of per-unit bullion value — in mid-afternoon. 3
Other silver vehicles moved in tandem. iShares Silver Trust fell 8.1% and abrdn Physical Silver Shares dropped 8.1%.
The Chicago Mercantile Exchange raised margin requirements on gold, silver and other metals amid the recent volatility, the Associated Press reported, citing a CME notice. CME said the new rates would take effect after the close of business on Monday. 2
Margin hikes often bite short-term, leveraged positions first. When traders must post more cash, some trim or close positions, which can deepen intraday moves.
Holiday-thinned trading and year-end positioning can amplify swings in metals, where liquidity is uneven across venues. That can show up as wider gaps between futures, spot and exchange-traded pricing.
Traders now look to the Federal Reserve’s minutes from its Dec. 9–10 policy meeting, due Tuesday at 2 p.m. ET, for clues on the path for interest rates into 2026. 4
For PSLV holders, the near-term focus is whether silver stabilizes after Monday’s reversal and whether the trust’s discount narrows as volatility cools. Until then, bullion prices — not company-specific news — are likely to set the tone.
