PSLV Premium/Discount To NAV

Another indicator I will look for, to determine when the metals bull will be due for a significant break, and to take some profits off the table, will come when the discount to NAV on the PSLV etf is closed. The Sprott Physical Silver fund currently trades at a 3.1% discount to its NAV, and in all major tops since it came into existence, it closed the discount and at times even went to a premium. This occurs as a result of an overheated market, and tells me to take some bets off the table. I recently had a long term chart to post here, but it now shows a broken link, so one can follow the NAV discount on Sprott’s own page for the etf here. By the way, this is the ONLY physical metals etf I would purchase, in fact we already own a good sized position, since they own the physical silver bars and report their serial numbers frequently.

The best chart I can find of the history of PSLV’s discount to NAV is courtesy of Ycharts, and can be seen here.