New York, Feb 1, 2026, 05:46 EST — Market closed
Sprott Physical Silver Trust (PSLV) plunged 27.2% to close Friday at $26.41, dragged down by a sharp sell-off in silver that battered bullion-backed funds. Trading volume surged, with over 82 million units changing hands, data show. (Investing)
The trust is a closed-end fund that owns physical silver bars, and its units can trade at a premium or discount to the metal’s actual value. According to Sprott’s latest data, the net asset value per unit stands at $29.15. That puts PSLV roughly 9.4% below its NAV, with the market price trailing the worth of its silver holdings. (Sprott)
Silver took a sharp tumble. Spot silver plunged 27.7% to $83.99 an ounce late Friday, after soaring to a record $121.64 the previous day, even dropping as low as $77.72 during the session. Meanwhile, the dollar index rose 0.7%. “The market was due for a correction,” said Suki Cooper, head of commodities research at Standard Chartered Bank. Nicky Shiels, strategist at MKS PAMP SA, described January as “the most volatile month in precious metals history.” (Reuters)
The selloff hit U.S.-listed silver products hard. iShares Silver Trust plunged 28.5% to $75.44 on Friday. At the same time, abrdn Physical Silver Shares ETF tumbled roughly 28.6%, closing at $79.20, data showed. (Investing)
Analysts pointed to profit-taking and a stronger dollar following Donald Trump’s announcement that Kevin Warsh will lead the Federal Reserve. “Generalist investors … are taking profits,” noted Panmure Liberum’s Tom Price. Saxo Bank’s Ole Hansen added that gold and silver look “ripe for a correction” after their recent speculative surge. (Reuters)
The whipsaw has shifted focus to plumbing. Since PSLV is a closed-end fund, its units don’t always track net asset value, or NAV — the per-unit silver value — and discounts can deepen when sellers flood the market.
When North American markets reopen, traders will be watching closely for steadier action after a week where thin liquidity magnified small trades into sharp moves. For PSLV, the key signal will be whether the trust’s discount tightens as silver stabilizes.
But a rebound isn’t assured. Should the dollar hold steady or margin-driven selling continue, bullion-linked funds might stay volatile, with discounts widening and exposing holders to swings that outpace the metal itself.
The next key report arrives Friday, Feb. 6, as the Bureau of Labor Statistics plans to release the January jobs data at 8:30 a.m. ET. However, the agency has cautioned that this schedule might change due to a potential government shutdown. (Bls)
