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.