@psuman08 said:
And before everyone claims you may not get physical silver from COMEX that is also not true:
_The delivery of silver futures can be cash-settled upon expiration for E-mini contracts, while full-sized contracts may involve physical delivery of silver meeting a fineness standard of at least 999.
"[M]ay involve physical delivery...." Not "must involve physical delivery." I could be totally misremembering things but my recollection of the Hunt brothers' cornering of the silver market is that the federal government stepped in and allowed the Hunts' counterparties on silver futures contracts to pay the cash price of the future and not have to deliver silver bullion. The Hunt brothers were insisting on delivery during the entire run-up and that was a major reason why the silver price soared as it did.
Once the government allowed the Hunts' counterparties to break the terms of the contract without penalty, the silver bubble broke and the Hunt brothers were wiped out.
Last I checked the SLV was paying out at 100%. No lowball offers, just click click. RGDS!
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No, SLV is not "100%" . It currently trades at $42.91 per share. At inception, one share of SLV was worth the same as one troy ounce of silver. But now, SLV is worth only 90% of "spot" (a 10% NEGATIVE premium).
A long-term holding of SLV has had 10% of the silver evaporate. For this reason, I am opposed to SLV on principle.
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You are referring to the 1/2% annual management fee which since the 2007 inception resulted in the 10% discount for troy ounce.
SLV began on 1/11/2007 with an opening price of $14.18. if one wanted to make a meaningful investment at that time of say $3,000, one could have bought 200 shares or 13 pounds of silver bars. Coins would have weighted more.
It's a a little cumbersome to store a large amount of silver as opposed to the simplicity of owning shares,
What could become an issue in the future is this current 1/2% fee when silver is at $40-50. $0.25 sounds low for an annual fee, but if silver falls back to say the $25 range in the future, that $0.25 charge now looks like 1% discount over physical silver.
I think there will be another “Great Silver Melt” under way. Once they melt as much as they can into 1000 ounce COMEX bars Junk or constitutional will bounce back. A year ago the premiums were insane. Silver was intentionally depressed for so long that a lot of people are cashing out. I’m still holding and will continue to hold and add when I see a deal I like. Here’s the big question : is gold and silver really going up or is the value of our Fiat currency going down? I think the later.
JMHO,
Mike
@Mike59 said:
I think there will be another “Great Silver Melt” under way. Once they melt as much as they can into 1000 ounce COMEX bars Junk or constitutional will bounce back. A year ago the premiums were insane. Silver was intentionally depressed for so long that a lot of people are cashing out. I’m still holding and will continue to hold and add when I see a deal I like. Here’s the big question : is gold and silver really going up or is the value of our Fiat currency going down? I think the later.
junk silver is being melted in huge amounts right now
at least for 6pm yesterday to now, the dollar index has been rising
So it appears there is no point in trying to time a sale at a peak or watching the markets and thinking you will actually net that price, if there is no practical support with cash flow for the new level. I would think a climbing price would be easier to sell into than a falling one, but here we are. How long does the spot price have to be stable before there is street level trading confidence to tighten up the spread?
@WildIdea said:
So it appears there is no point in trying to time a sale at a peak or watching the markets and thinking you will actually net that price, if there is no practical support with cash flow for the new level. I would think a climbing price would be easier to sell into than a falling one, but here we are. How long does the spot price have to be stable before there is street level trading confidence to tighten up the spread?
When she blows past $50 and doesn't look back retail demand will probably increase. If the glut at the refineries is actually moving offshore and continues to do so who knows where the price will go. It will eventually gain attention and many more will be chasing it at higher prices. CRZY WRLD!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Wooooha! Did someone just say it's officially "TACO™" Tuesday????
So it appears there is no point in trying to time a sale at a peak or watching the markets and thinking you will actually net that price, if there is no practical support with cash flow for the new level. I would think a climbing price would be easier to sell into than a falling one, but here we are. How long does the spot price have to be stable before there is street level trading confidence to tighten up the spread?
I would expect high volatility and wider buy/sell spreads as long as the silver market is rising quickly. It could be years before this market quiets down and becomes boring enough to tighten up the spread.
Q: Are You Printing Money? Bernanke: Not Literally
Comments
I stand corrected, apologies to jmski52.
From the prospectus, “Baskets” can be redeemed, and only by Authorized Participants (APs).
"[M]ay involve physical delivery...." Not "must involve physical delivery." I could be totally misremembering things but my recollection of the Hunt brothers' cornering of the silver market is that the federal government stepped in and allowed the Hunts' counterparties on silver futures contracts to pay the cash price of the future and not have to deliver silver bullion. The Hunt brothers were insisting on delivery during the entire run-up and that was a major reason why the silver price soared as it did.
Once the government allowed the Hunts' counterparties to break the terms of the contract without penalty, the silver bubble broke and the Hunt brothers were wiped out.
You are referring to the 1/2% annual management fee which since the 2007 inception resulted in the 10% discount for troy ounce.
SLV began on 1/11/2007 with an opening price of $14.18. if one wanted to make a meaningful investment at that time of say $3,000, one could have bought 200 shares or 13 pounds of silver bars. Coins would have weighted more.
It's a a little cumbersome to store a large amount of silver as opposed to the simplicity of owning shares,
What could become an issue in the future is this current 1/2% fee when silver is at $40-50. $0.25 sounds low for an annual fee, but if silver falls back to say the $25 range in the future, that $0.25 charge now looks like 1% discount over physical silver.
I think there will be another “Great Silver Melt” under way. Once they melt as much as they can into 1000 ounce COMEX bars Junk or constitutional will bounce back. A year ago the premiums were insane. Silver was intentionally depressed for so long that a lot of people are cashing out. I’m still holding and will continue to hold and add when I see a deal I like. Here’s the big question : is gold and silver really going up or is the value of our Fiat currency going down? I think the later.
JMHO,
Mike
MIKE B.
junk silver is being melted in huge amounts right now
at least for 6pm yesterday to now, the dollar index has been rising
So it appears there is no point in trying to time a sale at a peak or watching the markets and thinking you will actually net that price, if there is no practical support with cash flow for the new level. I would think a climbing price would be easier to sell into than a falling one, but here we are. How long does the spot price have to be stable before there is street level trading confidence to tighten up the spread?
When she blows past $50 and doesn't look back retail demand will probably increase. If the glut at the refineries is actually moving offshore and continues to do so who knows where the price will go. It will eventually gain attention and many more will be chasing it at higher prices. CRZY WRLD!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Wooooha! Did someone just say it's officially "TACO™" Tuesday????
So it appears there is no point in trying to time a sale at a peak or watching the markets and thinking you will actually net that price, if there is no practical support with cash flow for the new level. I would think a climbing price would be easier to sell into than a falling one, but here we are. How long does the spot price have to be stable before there is street level trading confidence to tighten up the spread?
I would expect high volatility and wider buy/sell spreads as long as the silver market is rising quickly. It could be years before this market quiets down and becomes boring enough to tighten up the spread.
I knew it would happen.