New York, Jan 12, 2026, 11:28 ET — Regular session.
- Sprott Physical Silver Trust (PSLV) jumped roughly 7% following silver’s new record high.
- Silver funds SLV and SIVR both surged about 7%, with several silver mining stocks also gaining ground.
- Traders have their eyes on Tuesday’s U.S. CPI report and the Fed’s upcoming meeting in late January.
Sprott Physical Silver Trust shares jumped on Monday, following a surge in silver prices that pushed the metal to fresh highs. By 11:15 a.m. ET, PSLV had risen 6.8% to $28.26.
This matters because PSLV offers a popular single-ticker option for silver exposure—no need to operate a mine or hold physical bars. When silver prices jump sharply, traders often flock to the trust to place their bets.
This week is turning into one of those key junctures. Safe-haven demand is clashing with a packed macroeconomic schedule, while the upcoming inflation data could shift rate outlooks—crucial for metals that don’t yield interest.
Silver-linked products followed suit. iShares Silver Trust climbed 7.2%, abrdn Physical Silver Shares ETF added 7.3%, and First Majestic Silver surged 8.7% in New York.
Spot silver surged to a record $85.75 an ounce, climbing almost 7% by late morning as investors flocked to precious metals amid growing uncertainty tied to a Trump-era criminal probe involving Federal Reserve Chair Jerome Powell. “Elevated uncertainty plays directly into the gold market,” noted Michael Haigh, global head of commodities research at Societe Generale. Jupiter fund manager Ned Naylor-Leyland added, “when silver captures flow, (it) really runs.” (Reuters)
The political battle is spilling over into markets, stirring doubts about the Fed’s freedom to steer policy without interference and what might unfold when Powell’s term expires in May. Goldman Sachs chief economist Jan Hatzius warned that “Fed independence is going to be under the gun.” (Reuters)
Rate forecasts are changing. J.P. Morgan now sees the Fed’s next move as a hike in 2027. Goldman, Barclays, and Morgan Stanley have pushed their expected rate cuts back to mid-to-late 2026, citing strong wage growth and a lower unemployment rate. Goldman added in a separate note that “the FOMC will likely shift from risk management mode to normalization mode.” (Reuters)
PSLV operates as a closed-end trust, so its shares can trade at prices different from the silver’s net asset value (NAV). According to Sprott, the trust’s silver holdings consist of fully allocated London Good Delivery bars, kept at the Royal Canadian Mint. On Monday, its website indicated the units were trading at about a 4% discount to their estimated value. (Sprott)
For investors, that discount can be just as crucial as the metal itself during volatile stretches. It tightens fast when demand surges, but can also widen sharply if buyers pull back.
Silver has shown a tendency for sudden swings, and Monday’s surge largely reflects a risk-off mood and bets tied to interest rates. If the Fed situation calms down, yields spike unexpectedly, or inflation numbers come in hotter, the rally could fizzle, pushing silver funds to surrender recent gains.
The next key event on the calendar is the U.S. Consumer Price Index for December 2025, set for release Tuesday at 8:30 a.m. ET. The Federal Reserve’s meeting on January 27–28 will follow later this month. (Bureau of Labor Statistics)
