It is not the latter that is for sure because PSLV would not meet the definition of a closed-end fund if a secondary offering were a possibility. So you can forget about the secondary and worry about other things. :)
Not really sure, but volume does seem a little slow when I look at the live tickers. In any case, after reading the following interview I will never be a seller. It's a tough read, but very informative, if not a little scary.
Concern about a secondary is what I'd say is the issue....20% premium wasn't going to hold after the March deliveries passed on the Comex. Shares issuance by CEF, and now Sprott....sure PSLV is next...people are selling PSLV and buying SLV....I'm surprised that CEF is so limp today...its premium is back down under 5% pretty near low historic range of late.