The top of this chart is the ratio of PSLV price to XAGUSD (Silver spot price). PSLV holds 0.361 Ozs of silver per share/unit.
- Lines are drawn for P/NAV=1, and at 1 and 2% premium levels.
- Since PSLV is a closed end fund, it may trade at a premium.
- However, PSLV has a shelf offer allowing them to add shares/silver, which they have been doing.
- By viewing the data in this form, you can guess at when they are adding shares (price drops due to the new supply)
- If adding PSLV, chart can be used to find good times to buy (when shares are being added), and avoid paying high premiums.
- High volumes for PSLV correlated with a premium decrease on the top chart generally indicate shares/silver are being added
- Growing volume indicates a growing market preference for PSLV over SLV
- Chart is an EMA - the periods of the EMA can be changed to provide more or less smoothing
- EMA is used rather than an MA to reduce lag
Transaction en cours:
To tell the full story, this chart needs the inflows into PSLV. The days with inflows correspond to higher volume, and a drop in the premium. The larger the inflow, the larger the drop in premium. 29 Jan, for example had 6.4M Ozs added.