That is the general idea hence the formation of the slv by the bankers back in 2006. If the silver is not available slv is forced to due something. So it seems they allow shorting of shares to accomadate buyers.
Lar I was always of the opnion slv was formed by the crooks as another vehicle to manipulate the price.
Big difference between a physically back etf and a paper stock certificate. The questions still remains is it legal and what would of happened to the price if slv had to buy 8 million ozs of physical silver. Opposed to selling short to give the illusion the shares are available and backed. You can't lend out or short what you don't own that would be criminal I would think. Meaning owning the physical metal.
Yes I again am aware of the vault stored. Let me put it this way. If slv had to go out and purchase 8 million ozs of physical silver in the market place over the past few weeks rather then lend out 8 million unbacked shares. What do you suppose would of happened to the spot price, see what I'm getting at. To skirt around driving the price up slv lends out unbacked shares to to provide a seller for every buyer. So how many claims are on my silver, how many times has it been lend out.
I understand the share shorting process. Do the brokerage firms have the physical metal on hand to back the shares they lend out. What happens if xyz brokerage firm lends out 50,000 shares and I as an investor want those shares and the metal that is.supppse to back it. Once again how to you lend out unbacked shares, is that even legal.
I am aware of the prospectus and basket of 50,000 share withdrawal. Please address the 67% spike in shares shorted and the 20 million share total short position. How is it you can short a physically back etf. So are investors to assume slv is owned 20 million ozs of silver
The question must be asked why is slv unable.to acquire physical silver and must resort to shorting of shares
Does this confirm a wholesale 1000 oz bar shortage. As slv is unable to obtain silver for buyers of slv shares and.must resort to shorting to supply the buy side with shares.
Since my drivel has been dead on probably a while now. Please get out of your mothers basement and stop reading the silver to the moon drivel from KWN, silverdoctors, Morgan and Butler to name a few.
The difference between you and me is I believe silver in the near future will be worth more than most people can imagine. That being said this price suppression game could go on for another 3-5 years. As for the price over the past few years and last six months one can easily read charts and follow the weekly COT reports to see the massive shorting going on in the paper markets. The problem most silver investors and so called guru's make, is they believe physical buying or shortage will change that. That's why these so experts have been dead wrong. The only thing that will change is if the big commercials stops shorting hundreds or millions of paper silver. People just don't grasp how the silver price setting mechanism works. Counting retail silver sales on some site which sells silver is not a sound method to determine price setting. When the crooks allow the price to break free that is when silver will rise rapidly not until. Perfect example the mint stops selling silver eagles and the price continues down. This all the while sellers of bullion jack premiums up to screw silver investors. Paying 15-25% over spot silver price is plan stupid and not wise investing. Only people getting rich are futures traders and bullion wholesalers and silver sites peddling their commentary on silver to the moon garbage. Mean while stackers get hammered in premiums and propaganda by so called silver guru's. Simple math tells one if you pay $20 for silver and it goes to $10. A drop of 50% means you need a increase of 100% just to get even. Of course you can play the cost average game over the past four plus years. But don't worry the crash is coming and so is $100 silver as soon as cars run on water.
selling into the silver manipulation price setting futures rigged game. Investors should not waste their hard earned money investing in miners.
Selling into the crooked game and markets. Investors should not waste their hard earned money on miners.
I have been informing silver investors since the middle of Feb when silver failed at $18.50. Now that $15.50 is soundly behind us. Support again comes in at $13.50 which was last seen in 2009. After that its $12.50 and if that occurs sub $10 silver is very likely. That would basically retrace all of the bull market move from 9 or so to 50.
By the looks of things there are a great deal of unsold vehicles. The trend is not always up and in the not so distance future layoffs will pick up as many have happened already in the last year. There are only some many cats and dogs with no credit that can get a car loan.
With a glut of alum. and stockpiles of cars from automakers through out the mid west and china. How long can the auto industry keep producing cars at the current pace. Which inturn will effect AA.
says in a article up on their site. 9th quarter in a row they have book over 100 million in restructuring charges.
accepting orders for awhile.
Yes we have 20 years of silver left in the ground. Currently the price to get it out of the ground is about $16 and some change all in cost. That is down from about $23 a ounce a year or so ago. Which was down from $30 a couple years ago. I will admit $15-$16 is probably rock bottom. Yes costs will rise in the future but usages may also drop in the future.
Well as is always the case the shorts win and keep pushing the price down, now going on 4 plus years. Problem is many people say that's great I will buy more. Only problem is where is the bottom. Also when and if a bottom is put in what does it do trade sideways for 20 years. Also if ones collective investment needs to triple or more just to get even that is not sound investing. I don't care what you invest in.
I agree myself and some fellow investors have been waiting on the sidelines for a few months until the shorts get their way and they will get their way, they always do. The shorts have never lost money on a trade its 100% in the last 7 years.