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 Replies: 25 / Views: 3,555 |
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Pillar of the Community
 United States
1285 Posts |
ayejay
To clarify -- I am referring to taking delivery via the slv etf NOT comex. This was written about 2 months back.
There is a lot of fine print in doing it that way.
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Pillar of the Community
United States
4008 Posts |
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As per the paper -- You can delivery of the physical via the slv. Not sure if it is 100K oz's or 1M oz's a pop. - Ceylon An interesting aspect of all this is that supposedly there is about $100 worth of paper silver or gold for every REAL $1's worth. So... what happens if EVERYONE (or even 2% of them) who holds paper PMs demands delivery? That fluttering sound you hear in the background could be the house-of-cards Paper-PM system tumbling down around their ears. Not sure how invested in metal the SLV really is but a quick look at their NAV divided by their total (and independently audited) silver holdings in ounces had better be REAL close to the daily price of silver. If it isn't, and clients really can demand silver from their vaults, look out below! |
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Pillar of the Community
United States
1285 Posts |
Each share of SLV is backed by 1 oz of physical silver in various vaults around the world. Each bar is assayed, registered, numbered etc. A lot of the big funds have taken delivery of the physical via the slv.
SLV is also used as a hedging tool by those who hold the physical as well (another topic).
It's best to do ones own DD as some of the info is misleading / incorrect.
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Pillar of the Community
United States
931 Posts |
I have been listening to pro gold / silver shortwave people like Alex Jones and Jim Cedarstrom for years, and I take most of what they say with a grain of salt. However they have indisputably been right on the money with their beliefs of the precious metal markets. If I had invested when I first started listening I wouldn't have to work anymore. One thing that is missing from their projections is the drying up of available gold and silver, and also the high premiums that they felt would be required to acquire gold and silver once the market took off. I am pro gold and silver and I am still accumulating some every week. If the market does go way higher the supply of easily available precious metals may dry up. At this point not only will the markets continue to climb due to a rarity of available material, but the premiums may rise sharply at some point as China, India, and the other nations are strengthening their currencies through precious metal acquisition. No one knows, but the time may be coming when you cannot just walk into your dealer and pick up ASE's for $6.00 over spot. Maybe that time is coming and maybe not. One thing is for sure and that is that these are very interesting times to be involved in this hobby. I would also like to say that the discussions on this forum are very civilized. I like the opinions of the bulls as well as the bears. |
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Valued Member
United States
309 Posts |
The price of Morgan's has seemed to stabalize a little. For a minute the premium on them was sharp but it seems that their premium hasn't risen as much as the ASE's premium. |
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Pillar of the Community
United States
4008 Posts |
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Each share of SLV is backed by 1 oz of physical silver in various vaults around the world. Each bar is assayed, registered, numbered etc. A lot of the big funds have taken delivery of the physical via the slv. I am curious about this assertion. I have read on various web sites that this is not the case and that some ETFs do not allow clients to receive physical gold or silver from their "vaults". Additionally, conditions may be applied to these accounts such that only large clients can take physical possession of these PMs. Have you read the SLV prospectus? I haven't because I am not an investor in it. I would be curious about what they say about delivery of physical silver and any conditions that may be imposed on that. |
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Pillar of the Community
United States
1285 Posts |
Yes, I read the prospectus a while back and some have taken of the physical delivery as I indicated earlier on in this post / thread. Can I take delivery of my shares..No.
I am only referring to SLV and not some other ETF (big difference).
Check Ishares, Morningstar, and Vanguard etc meaning investment related websites to see how the various etf are structured. Also, various publications once in a while put out special issues just covering ETF securities and they are worthwhile reference tools on the pros on cons.
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New Member
United States
45 Posts |
If you bought ASE's last week at a premium the price you paid is UNDER melt price now. |
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Pillar of the Community
United States
4008 Posts |
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Yes, I read the prospectus a while back and some have taken of the physical delivery as I indicated earlier on in this post / thread. Can I take delivery of my shares..No. OK, good. Then you know whereof you speak.  I agree that being able to take delivery of physical silver at your discretion from an ETF is important. If an ETF is structured this way, then they have to maintain a sufficient stock of silver to handle any withdrawal requests. It is possible for there to be a "run" on silver that is similar to the bank run of the 1930s. That would get pretty ugly for any ETF that could not deliver silver in quantity. Quote:
I am only referring to SLV and not some other ETF (big difference). Understood. There are numerous ways to structure an ETF, so there are several choices in this. Some even use derivatives for hedging, which is something I prefer to avoid whenever possible. Quote:
Check Ishares, Morningstar, and Vanguard etc meaning investment related websites to see how the various etf are structured. Also, various publications once in a while put out special issues just covering ETF securities and they are worthwhile reference tools on the pros on cons. I check those sites often and find a lot of their info quite useful. As a Vanguard client, I rolled my 401k plan money into an IRA with them. There have been a few glitches but it has worked well for the most part. If they had a low-cost brokerage option, they would be about as good as it gets. Since they don't, I use Scottrade for that. |
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Valued Member
Canada
497 Posts |
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Replies: 25 / Views: 3,555 |
First Page
Posted 04/21/2011 01:05 am
