in colloids, the color results from scattering visible light by colloidal particles. the color appears when the size of the particles is comparable to the wavelength of visible light. if you do something to significantly change the particle size, the color will disappear. it is hard to say what exactly pva does in your solution, but it can, for example, bind a large fraction of water molecules via h-bonding. this could cause the particles to aggregate, i.e., grow in size.