Is It Too Late to Buy Sprott Physical Silver Trust (PSLV) Stock?

Alex Smith
·3 min read

Palm Valley Capital recently released its Q1 2021 Investor Letter, a copy of which you can download here. The fund posted a return of 3.60% for the quarter, underperforming its benchmark, the S&P Small Cap 600 Index which returned 18.23% in the same quarter. You should check out Palm Valley Capital's top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.

In the Q4 2020 Investor Letter, the fund highlighted a few stocks and Sprott Physical Silver Trust (NYSE:PSLV) is one of them. Sprott Physical Silver Trust (NYSE:PSLV) is a closed-end mutual fund trust, created to invest and hold substantially all of its assets in physical silver bullion. Here is what the fund said:

"The Fund has owned the Sprott Physical Silver Trust (ticker: PSLV) since before it became the poster child for the #SilverSqueeze. Once the aforementioned Reddit traders moved on from GameStop, they tried the same play with silver, a much bigger asset to conquer. The goal was to exploit the disconnect between paper and physical silver prices. Many financial products that track silver, including the largest silver ETF, may utilize bullion bank IOUs in addition to, or instead of, their own segregated physical silver. A run on physical silver could present a problem for market participants if they are unable to source and deliver the metal. In contrast, the Sprott Physical Gold and Silver Trusts owned by the Fund are supported by dedicated ounces held at the Royal Canadian Mint. Longer-term shareholders may remember that we owned the iShares Silver Trust (ticker: SLV) a year ago and converted our position to the Sprott Physical Silver Trust in the second quarter of 2020. This switch was initially done for arcane tax reasons relating to open-end mutual funds. However, the more we learned about the Sprott Trust, we felt it probably was the superior vehicle for us to express our views on silver."

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Our calculations showed that Sprott Physical Silver Trust (NYSE:PSLV) isn't ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds' poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

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