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Sprott Physical Silver Trust ET Message Board

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  • brainpowerinuse brainpowerinuse Jan 26, 2012 6:26 PM Flag

    Paper PSLV?

    You are surely not trying to make the case that SLV maintains 100% silver backing for their shares. In the new COMEX accounting rules, a paper representation of silver is as good as the silver, itself. Ergo, Since according to the rules, paper = physical, SLV can make the claim that their shares are 100% backed by silver.

    Once Sprott receives the silver, supposedly in March sometime, the share price will shoot back up to par + premium. Based on his past actions and comments, it's a fair bet that he will not be paper settling with the COMEX. In fact, I would be surprised if he acquired his shares from the COMEX in any case; I think he went directly to the mines/fabricators.

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    • So what does the SLV have to do with the COMEX? These are two totally completely separate entities. They have nothing to do with each other. You are talking apples and oranges. From the ishares website this is the amount and the location where the SLV silver is stored:

      Vault..........................Vault Location.....................................Total Bars......Troy Ounces
      Brinks London............ London, United Kingdom......................89,251...........86,516,519.4
      Brinks London A......... London, United Kingdom......................31,238...........30,557,914.5
      Johnson Matthey UK... Royston London, United Kingdom........11,056...........10,861,359.8
      JPM London A............ London, United Kingdom.....................100,080..........99,302,865.1
      JPM London V............ London, United Kingdom......................80,694...........78,537,689.8
      https://ebts.jpmorgan.com/metalicsWebApp/ebts_downloads/BONY_SLV.pdf

      Do you understand the term allocated? Every single bar is separately accounted for. Every single bar has been physically audited. http://us.ishares.com/content/stream.jsp?url=/content/en_us/repository/resource/slv_vic_11_2011.pdf&mimeType=application/pdf

      This is where you can find the COMEX silver
      http://www.cmegroup.com/trading/energy/files/Silver_Stocks.xls

      • 2 Replies to silverbars
      • London, where there is infinity rehypothecation! Send me the link to the visitors center where the public can view their silver at any time. JPM knows nobody trusts them and yet doesn't seem to care. Just like the US Government doesn't seem to care that the public knows there is no gold in Fort Knox. What they SHOULD do is lie about the debt and show off all the gold & silver in a heavily guarded museum for the public to see. That would restore confidence and I would then take the blue pill. Nice try but this whole country is just one big MFGlobal waiting to happen!

      • ...apples and oranges? From where do you suppose SLV orders its silver? perhaps the COMEX?

        It's time for you to back to school. Class is in; I'll type slow so you can follow along easier.

        1. SLV is using the new (well, relatively new) accounting gimmick that allows them to settle COMEX orders in paper, yet still claim they have the physical silver on hand.
        2. That's a nice bar summary you provided; how much of that inventory has been leased or shorted out?
        3. You expose your naïveté (and your wallet) when you blindly trust reports from the big silver players.
        4. I understand the term "allocated"...allocated to whom? allocated how many times?
        5. Can you say hypothecation? England has VERY loose rules concerning hypothecation and rehypothecation. This is good for the bankers and bad for investors. Think MFGlobal.
        6. If you are investing in silver and aren't reading Harvey Organ's blog, let me thank you in advance for your donation to my retirement fund.

 
PSLV
5.71Jul 29 4:00 PMEDT