Listen to me folks. Read carefully, here is what is going on
I believe you are correct BUT.....ETF's will ultimately collapse like housing prices. In between then and now they will skyrocket because it is playing the price of a commodity instead of the price of a stock. ETF's have insufficient financial controls to know what they really have and there is no way to know if the shares they issue are really going into the commodities they say they are tracking. It's this ability to issue unlimited shares that has me concerned. Also the potential and likely eventual collapse of the comex gold and silver exchanges, where leverage has been said to be as much as 100:1 (every 100 onces of paper contracts is backed up by a single ounce of the metal) makes me think I could buy AGQ at 350 one day and wake up the next day seeing it trading at twenty cents. That would be a portfolio hit from which I could not recover. At least with a company, you (supposedly) have financial controls and a company that cannot issue stock willy nilly. But, no company will give the kind of performance (up 600 percent in a year) that AGQ has given and probably will continue to give - my guess is up to 500 to 1000 dollars a share. But that's based on my gut. Good luck to you ETF guys. Me I'll keep selling Covered calls against SLW.
The miners may seem to have limitations vis a vi the ETF's right now. I can live with that. But what entities have the metal? The miners have the metal either in hand or in the ground.
Let's say the COMEX does crash. Miners can actually become the only entities outside of the scrapers and possibly governments that can deliver. There is nothing that says the miners can not begin to hoard metal and distribute it to employees and share holders. They can also sell it directly to industrial end users through refining agreements.
I am sure that the mining executives are not all clueless idiots. They see the game that is currently going on. I am sure they are talking all this out. Does anyone think they are going to allow themselves to be screwed out of their hard earned product? There is nothing stopping SLW from stock piling their silver and gold.
This topic need to be discussed more. Other thought are welcome.
This is a good thread and asks a lot of very important questions.