New York, Jan 31, 2026, 07:02 EST — Market closed.
Shares of Sprott Physical Silver Trust (PSLV) plunged 27.2% to close at $26.41 on Friday, following a steep drop in silver-related assets. In after-hours trading, the trust was last seen at about $27.13.
The slide came after a swift reversal in rate-cut bets, triggered by Donald Trump naming Kevin Warsh as his pick to lead the Federal Reserve when Jerome Powell’s term ends in May, Reuters reported. A hotter-than-expected Producer Price Index boosted the dollar, while spot silver plunged 27.66% to roughly $84 an ounce—its biggest daily drop since at least 1982. Terry Sandven at U.S. Bank Asset Management described it as “an element of angst.” Rate traders weren’t pricing in better-than-even odds of a cut before June, according to CME Group’s FedWatch tool. Reuters
COMEX March silver futures closed at $78.531 an ounce on Friday, slipping 31.37%, per market data. This contract, which many funds use as a hedge, set the weekend’s tone.
Friday’s sharp sell-off looked like a classic position purge after a thin rally pushed prices to fresh highs. Tom Price from Panmure Liberum told Reuters the market sees Warsh as “rational” and unlikely to back aggressive cuts. Saxo Bank’s Ole Hansen weighed in, saying the metals surge left them “ripe for a correction.” Independent analyst Ross Norman didn’t mince words: “Precious metals have discovered gravity.” Meanwhile, Macquarie’s Alice Fox cautioned prices could remain “high and volatile,” pointing to China’s Lunar New Year on Feb. 16 as a looming trigger for more selling. Reuters
The trust’s own data highlights the impact of the move. On Jan. 30, Sprott’s website showed net asset value at $29.15 per unit, while the market closed at $26.41—a 9.41% discount. That means units were trading below the value of the silver backing each one. The trust held roughly 217.7 million ounces of fully allocated silver bars, stored at the Royal Canadian Mint. It carries a 0.57% management expense ratio and is overseen by Sprott Asset Management LP.
Other silver vehicles followed suit. iShares Silver Trust (SLV) closed Friday down 28.54%, with trading volume topping 510 million shares, per Investing.com data.
The abrdn Physical Silver Shares ETF (SIVR) ended the day sharply lower, dropping 28.55% to close at $79.20, data from Schwab shows.
Silver miners felt the pressure too, but their losses were less severe than silver’s plunge. Pan American Silver dropped 13.73%, ending Friday at $54.60, per price data.
When U.S. markets reopen Monday, eyes will be on silver-linked products to see if they can steady following a record swing. Investors will also watch for shifts in discounts on closed-end funds like PSLV—whether they narrow or widen. The next key event: the January jobs report, set for 8:30 a.m. ET Friday, Feb. 6, per the U.S. Bureau of Labor Statistics schedule.
