Here’s How Sprott Physical Silver (PSLV) Reacted to Fiscal and Monetary Policies

Palm Valley Capital Management, an investment management firm, has released the “Palm Valley Capital Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here.  In the fourth quarter, Palm Valley Capital Fund appreciated 0.66% compared to a 1.70% gain for the S&P SmallCap 600 and a 3.12% rise in the Morningstar Small Cap Total Return Index. At the beginning of the quarter, the Fund allocated 74.1% to Treasury bills and increased to 76.3% by the end of the quarter. The equity holdings of the Fund rose by 1.12% over the past three months (excluding the effects of fund operating expenses). The performance of equities was positively influenced by the investments in precious metals, particularly as silver has been the Fund’s largest allocation for the past few years. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Palm Valley Capital Fund highlighted stocks such as Sprott Physical Silver Trust (NYSEAMERICAN:PSLV). Sprott Physical Silver Trust (NYSEAMERICAN:PSLV) is a closed-end trust that allows investors to invest in physical silver. On January 6, 2026, Sprott Physical Silver Trust (NYSEAMERICAN:PSLV) stock closed at $26.87 per share compared to the previous close of $25.34. Sprott Physical Silver Trust (NYSEAMERICAN:PSLV) has a market capitalization of $15.609 billion.

Palm Valley Capital Fund stated the following regarding Sprott Physical Silver Trust (NYSEAMERICAN:PSLV) in its fourth quarter 2025 investor letter:

“We sold the Sprott Physical Silver Trust (NYSEAMERICAN:PSLV) in Q4. Two other top contributors to the Fund’s fourth quarter performance were silver and gold (Sprott Physical Silver and Gold Trusts, tickers PSLV and PHYS), which have finally responded in a big way to the nation’s desperate fiscal and monetary policies. Physical silver shortages catapulted prices higher in Q4. Although we assess price levels for the metals relative to their mining costs, we don’t have strict valuations for them like we do for our other holdings. The feverish price action in Q4 sent silver and gold to record levels, which, while possibly justified by years of asset inflation, made us feel they may have moved too far, too fast. As a result, we completely sold our position in the Sprott Silver Trust near the end of the quarter (a clear violation of the window dressing playbook!). These portfolio moves meaningfully curtail our reliance on the metals as a hedge for our high cash position, which we hope to replace using other asset-based holdings.”

In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.