Sprott Physical Silver Trust

PSLV

Market cap $11.8B

Is now the time to consider hopping back into silver investing? Sure, the precious metal may tend to be a bit more volatile than gold, but it is certainly offering a compelling value proposition for the months to come.

Sprott Physical Silver Trust USD is reiterated as a Strong Buy due to its unusually deep 7.68% NAV discount and oversold technicals. Recent hawkish Fed sentiment may be overblown; inflation data discrepancies suggest rate hikes are less likely, favoring precious metals. PSLV's current discount historically precedes strong two-month returns, with technical and seasonal factors supporting a bullish stance.

The global push, particularly in Western nations, towards advanced technology in the defense sector is amplifying the realization that critical supply chains run through China. For defense strategists, this reliance becomes a roadblock on the path to critical mineral independence.

In September 2020, JP Morgan paid a landmark $920 million settlement to resolve charges of “spoofing” – placing and cancelling fake buy or sell orders – to manipulate the silver market.

Silver extended its decline for a third consecutive session on Monday, with XAG/USD trading around $74.20 per troy ounce during Asian hours. Investors reacted to India's surprise restrictions on silver imports, rising expectations of another Federal Reserve rate hike and weaker investment demand projections from UBS.

Contrary to conventional wisdom, not all commodity futures markets operate the same way.

Silver has done something this year that gold-obsessed portfolios were not built for.

While gold has proved to be a hot commodity for the last few months, some naysayers have looked at March's short-term volatility as a reason to stay away from the precious metal for now.

In recent months, there has been a lot of discussion about the importance of amplifying the domestic production and supply chains for rare earths in the United States. Given that China maintains a significant hold over the global market, the U.S. looking to increase its own rare earths presence makes a good deal of sense.

The Amplify Junior Silver Miners ETF has outperformed silver futures during the recent correction, reflecting strong speculative and investment interest. Silver's technical breakout above its 1980 high established critical support, with prices remaining over $10 above that level despite a near 50% correction. SILJ boasts A+ Seeking Alpha grades for momentum, dividend, and liquidity but is marked down for risk and expenses due to sector volatility.