taking possession of a silver futures contract

cartermurph

Does anyone know if this is even possible. I seem to remember a thread that someone mentioned the delivery aspect was very expensive. Anyone out there with experience in this, I would appreciate some help.

cinman14

google is your friend....

here ya go

cartermurph

Has anyone on the forum ever done this. What is the minimum contract?

cinman14

The trustee has an authorized custodian that oversees the SLV fund. You have to redeem through the custodian.

You will have to take delivery of a min. 5000 ounces. If you don't hold that amount you will need to wait until there
are 5000 ounces that the custodian can redeem

SLV's are nothing more than an I.O.U.. With no intentions of ever paying out in physical product....

tincup

<< <i>The trustee has an authorized custodian that oversees the SLV fund. You have to redeem through the custodian.

You will have to take delivery of a min. 5000 ounces. If you don't hold that amount you will need to wait until there
are 5000 ounces that the custodian can redeem

SLV's are nothing more than an I.O.U.. With no intentions of ever paying out in physical product.... >>




I think you may be off by a factor of 10. From what I can see, iShares are bought and sold in blocks of 50,000 iShares, called a 'Basket'. And only registered broker/dealers that become authorized participants by entering into a contract with the sponsor and the trustee can purchase or redeem Baskets.

And it is not even that easy for the authorized participant to obtain delivery. When you check out the Statement of Additional Information, etc., if some one wants to take delivery, they must give 7? days of notice. On top of that, they have to take delivery where the fund tells them to. So, the authorized participant may have to fly to Austria or some place to take delivery. If I recall, (it's been awhile since I read those statements) there are also some other fine print where delivery can be held up; for example, circumstances beyond their control, if market conditions cause undue hardships or problems, etc. (but since SLV supposedly have physical silver on hand for each share, I wonder why the have those loopholes in there??? I think I know why.....!!!)

Good luck to anyone who wants to try to take delivery. When you own SLV, you do NOT own silver. You own paper.

cinman14

<< <i>

<< <i>The trustee has an authorized custodian that oversees the SLV fund. You have to redeem through the custodian.

You will have to take delivery of a min. 5000 ounces. If you don't hold that amount you will need to wait until there
are 5000 ounces that the custodian can redeem

SLV's are nothing more than an I.O.U.. With no intentions of ever paying out in physical product.... >>




I think you may be off by a factor of 10. From what I can see, iShares are bought and sold in blocks of 50,000 iShares, called a 'Basket'. And only registered broker/dealers that become authorized participants by entering into a contract with the sponsor and the trustee can purchase or redeem Baskets.

And it is not even that easy for the authorized participant to obtain delivery. When you check out the Statement of Additional Information, etc., if some one wants to take delivery, they must give 7? days of notice. On top of that, they have to take delivery where the fund tells them to. So, the authorized participant may have to fly to Austria or some place to take delivery. If I recall, (it's been awhile since I read those statements) there are also some other fine print where delivery can be held up; for example, circumstances beyond their control, if market conditions cause undue hardships or problems, etc. (but since SLV supposedly have physical silver on hand for each share, I wonder why the have those loopholes in there??? I think I know why.....!!!)

Good luck to anyone who wants to try to take delivery. When you own SLV, you do NOT own silver. You own paper. >>



I was going of the COMEX silver contracts..
Grade and Quality Specifications

In fulfillment of each contract, the seller must deliver 5,000 troy ounces (±6%) of refined silver, assaying not less than .999 fineness, in cast bars weighing 1,000 or 1,100 troy ounces each and bearing a serial number and identifying stamp of a refiner approved and listed by the Exchange. A list of approved refiners and assayers is available from the Exchange upon request.

cinman14

comex

tincup

Sorry about that.... looks like I got off on a wrong track with SLV...... lol....

coynclecter

JIm Sinclair has a guy who will tell you how to take delivery.

jmski52

If you go onto Jim Sinclair's website, he has discussed taking delivery, and as Coyn says, he refers people to a guy who does that sort of thing.

secondrepublic

I would guess one of the larger bullion dealers like Apmex could probably tell you how it's done or help you with it (for a fee, of course). I could be wrong about that, but I would be pretty surprised if they didn't at least know how it's done.

roadrunner

Comex makes it very hard to want to follow through on delivery. I have Sinclair's site linked below. There were detailed articles on doing this in the past 1-2 months.

roadrunner

percyb

I use to work on the Chicago Board of Trade where silver was traded years ago. People would take delivery....you'd see trucks outsided with silver bars...I think they delivered them in groups of 5000 oz. You hold a contract that expires and you take delivery. There's a fee for that though. Call the exchange...they'll tell you.