It is not a trade for the faint of heart. Investors with smaller baskets must wait until their redemption orders are combined with others to reach the 50,000 unit minimum, exposing them to price changes. I will be looking for a run up to $60.00. I recently read a post from someone who talked about the Sprott Physical Silver ETF. I believe this we will soon see the final stages of the silver paper market. Is there any other possible financial reason that contract holders would take the trouble to deposit funds into their Comex account to fully prepay silver delivery and then just accept a cash settlement? Market efficiency depends on correct and timely information. Each unit represents one-half of one ounce of silver and is redeemable for physical silver. Anyone with a brokerage account can invest in silver indirectly through mining stocks and mutual funds. The Comex should welcome the recognition of the shortage as it would drive the price up. I studied this ETF and was very impressed with Eric Sprott. Investors wanting to redeem less than 10 bars must wait until their redemption orders are combined with others to reach the 10-bar minimum, exposing them to fluctuations in silver prices.
The fact that I believe this continues to be a problem suggests to me that it is a big problem. CME Group describes ETFs as investments that allow participants to trade benchmark indexes like a stock.
The PSLV (Polar Satellite Launch Vehicle) and GSLV (Geosynchronous Satellite Launch Vehicle) are two rocket launch systems developed by the Indian Space Research Organization, or ISRO, to launch satellites into orbit.
PSLV (which stands for Polar Satellite Launch Vehicle), GSLV (which stands for Geosynchronous Satellite Launch Vehicle) and ASLV (Augmented Satellite Launch Vehicle) are expendable satellite launch systems … [Click all to enlarge] A look at these charts will show that during the last move in silver, both ETFs acted in an identical fashion. Although units are redeemable for physical silver, redemption can be made only in minimum basket sizes of 100,000 units. With an inception year of 2006, SLV is the oldest ETF containing physical silver. For July, 2,397 contracts stood for delivery. After my study, I am convinced of two things. Only price discovery can alleviate the shortage – that is the free market way of allocating scarce resources. Owning physical is cumbersome and dangerous. A look at these charts will show that during the last move in silver, both ETFs acted in an identical fashion. The fact that so many people are taking the cash route so early in July leads me to conclude that a hefty premium is being paid to compensate contract holders to give up delivery rights. The silver market is not intended to be an OTC Pink Sheet marketplace, yet it is behaving like one. SLV is passively managed, with an annual expense ratio of 0.50 percent of net asset value. Find the latest Sprott Physical Silver Trust ET (PSLV) stock quote, history, news and other vital information to help you with your stock trading and investing. It is real and it is undeniable.
Paper transactions are only as good as the faith investors put in them and that faith is the confidence that reserve creators (Comex) will not get overextended. Each unit represents one ounce of silver. PSLV is backed with physical silver held at the Royal Canadian Mint in Ottawa, Ontario. Described by CME Group as a market condition where futures prices are lower in succeeding delivery months, backwardation can inflate ETF returns beyond that of physical silver prices. PSLV (which stands for Polar Satellite Launch Vehicle), GSLV (which stands for Geosynchronous Satellite Launch Vehicle) and ASLV (Augmented Satellite Launch Vehicle) are expendable satellite launch systems operated by the Indian Space Research Organisation (ISRO). If these speculators are indeed obtaining a cash premium in the futures market, then the premium is the actual price of silver. As you recall, in the first week of May, silver cratered from $50.00 an ounce to $32.00 an ounce in one week. For example: In case of ASLV with vehicle weight of 41 tons, can launch payloads of 150 kgs into space upto an orbit of 400 kms. As long as the Comex refuses to acknowledge the shortage and allow free market price discovery to correct the price, the divergence between paper and physical price will continue. I do so because I feel more comfortable knowing that the ETF is truly supported by the underlying asset. Please see the charts of SLV and PSLV below. These ETFs provide direct exposure to silver without the risks of futures or the headaches of physical ownership. There is a divergence in the real price of silver and the published price -- and if called to do so, SLV would not be able to produce the underlying silver it purports to be representing. Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in PSLV over the next 72 hours. Is there any other possible financial reason that contract holders would take the trouble to.
Alternatively, contango is a market condition where futures prices are higher in the succeeding delivery months and erodes ETF returns from that of physical silver prices. Because of whispers that SLV might not have the silver it purports to own, I have been very reluctant to re-open a position in it. Investors wanting funds backed by physical silver should read prospectuses carefully, as some use futures and options to track the price of silver. SLV that stands for Satellite Launch Vehicle, was a project started by the Indian Space Research Organisation (ISRO) and was headed by APJ Abdul Kalam in the early 1970s, to develop the technology needed to launch satellites. I do so because I feel more comfortable knowing that the ETF is truly supported by the underlying asset. Last January I bought the SLV and profited from the parabolic move when I sold out the last week in April. These speculators, as much as they are dismissed as greedy and evil, are performing a simple task that all markets are supposed to feature: Price discovery. PSLV vs GSLV. Although several ETFs track the price of silver, only three are backed by physical silver. It boasts an average daily trading volume of more than 11 million shares and is backed with physical silver held by a third party in New York and London. The price had fallen so sharply during that first week that there were probably more than a few who had contract strikes in the $40s.
But the marketplace itself is supposed to weed out these disparities in a concerted effort to level the playing field. Not all silver ETFs are the same.
funds into their Comex account to fully prepay silver delivery and then just accept a cash settlement?
The difference between all three systems lies in the difference in their payload capabilities. But that changed with the 2006 advent of exchange-traded funds that hold physical silver. The average daily volume exceeds 1 million shares. ETF Securities manages the Physical Silver ETF (symbol SIVR), which has seen silver's price fluctuate widely since its start in 2007. The PSLV is the older of the two and the GSLV even inherits some of the technologies of the former in its design. The price of silver going into July has been pretty steady, though volatile. It is real and it is undeniable. Going back to May, 2,166 contracts stood for delivery in the silver futures market. He has 35 years of working in the arena of precious metals and, equally important, if called upon to do so, he could readily produce the silver that the underlying ETF purports to own. Transactions are supposed to occur in the light of the marketplace, not as private deals between parties. The fund charges an annual expense ratio of 0.45 percent of net asset value, plus an annual administrative fee of 0.20 percent of NAV.
A look at these charts will show that during the last move in silver, both ETFs acted in an identical fashion. Investors who wanted direct exposure to the precious metal used to be limited to futures contracts and physical metal.
Yet, after May’s price action, it has not. The Comex only has about 29 million ounces available for delivery to serve those 2,397 contracts, representing about 12 million ounces, so there is no doubt that it has every incentive to induce cash settlement. While in case of PSLV with vehicle load about 295-320 tons, can launch payloads upto 1678 kgs in sun synchronous orbit of 622 kms. The fact that so many people are taking the cash route so early in July leads me to conclude that a hefty premium is being paid to compensate contract holders to give up delivery rights. However, my sixth sense told me that there was something wrong and a study of the Comex bore out my fears. I believe that I missed the bottom at $32.50, but in light of what I see ahead, I don’t think missing the bottom by a few dollars will make a great deal of difference. With an inception year of 2006, SLV is the oldest ETF containing physical silver. Please see the charts of SLV and PSLV below. To report a factual error in this article.
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