Wednesday, January 18, 2012

Precious Metals: NAV Update: PSLV

Last week I spent some time discussing the NAV in certain precious metal funds.  I specifically focused in on the PSLV (Sprott's Physical Silver Trust), which purchases and holds exclusively physical silver.

The trust last week reached a record high 32% premium over the spot price of silver.  I threw up the caution flag, noting that investors should look at other options such as the Central Fund Of Canada, which at the time had a premium of less than 1% (has moved up to a 3.6% premium as of this writing).

After announcing his next silver purchase this week, the PSLV's premium has fallen to only 12%, and the fund is down close to 9% today.  While Sprott's massive silver purchase (estimated at close to $300 million) is great for silver investors in general, it hurt those in the PSLV (in the short term) as the premium fell significantly.

I will do my best moving forward to continue watching these funds and helping you navigate how to move your capital to receive the best return.

As I always mention, for new investors, I believe it is best to begin your precious metal purchases with a foundation in physical precious metals.  The best option, and one I personally use, is Goldmoney.  You can open an account in just a few minutes by following the link below:

GoldMoney. The best way to buy gold & silver

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