Since inception in 2006, SLV and GLD have been perfect tracking ETFs for silver and gold. GLD has 'liquidated' both GLD shares and physical gold as investor demand for shares declined (recently). When investor demand for shares rises, shares are created and physical bullion is purchased. No futures contracts are needed or used for these ETFs (unlike most commodity ETFs like USO for oil or UNG for natural gas). I'm not sure why silver and gold bugs don't recognize SLV and GLD for what they are - except for the fact that most silver and gold bugs start with the assumption that paper currency and paper futures contracts and paper ETF shares are all the same - they're paper and only physical metal is real. Lets forget that these ETF shares are backed by physical metal in the vault because its just paper.
SLV and GLD are probably owned & run by TBTF [and to jail] banks, [Barclays in case of SLV?] which have proven themselves to be extremely deceitful [Libor, etc.], are still lacking meaningful oversight.
If they only pretended to have physical, backing up their paper 100%, would that be a surprise?
Weak longs [esp. those on margin] just got their clocks cleaned by the big shorts, thus able to cover [!] at massive gains. Is this likely to happen again, [or] at the end of the short-covering rally?
What a mouthful! Did you ever read the SLV Trust prospectus? If you did then you didn't understand it. SLV is mirage metal & synthetic storage scheme. Its a closed loop system comprised of unknown approved agents/dealers/brokers. Its shares are not redeemable for silver to shareholders. SLV is not regulated nor subject to audits because it is NOT a Commodity Pool.
isn't Silver a Commodity? Wake up and stop spreading false information.