Author Topic: The Silver ETF Conundrum  (Read 1335 times)

Offline EagleSteel

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The Silver ETF Conundrum
« on: July 12, 2013, 06:41:16 AM »
This is interesting! Silver is not leaving the trust like gold has been. Just more proof that illegal naked short selling is the reason silver is getting hammered.
Gold Hits Two-Week High; the Silver ETF Conundrum

By Ben Levisohn
Take a look at the performance of precious-metal exchange-traded funds and it sure looks like investors have soured far more on silver than gold. The SPDR Gold Trust (GLD) has dropped 25% this year through July 10, while the iShares Silver Trust (SLV) has fallen 37%.

But Deutsche Bank notices something odd: Silver isn’t leaving ETFs at nearly the same rate as gold. Grant Sporre notes:

ETF holdings in gold have fallen by the most in absolute tonnage terms and as a percentage of holdings since the 1st of January 2013 (-24%). This move is very consistent with the decline in price since the beginning of the year, down 26% and ties up with a number of high profile fund redemptions. By contrast, the outflows in silver are modest at only 1% of the holdings on the 1st of January, or just 0.3% of annual demand, especially when considering the 36% price decline.

Precious metals have gotten a big boost today from Fed Chairman Ben Bernanke’s remarks yesterday. The Wall Street Journal has the details:

Gold futures pushed to a two-week high, a day after Federal Reserve Chairman Ben Bernanke said the U.S. economy needs easy-money policies for the foreseeable future.

The most actively traded gold contract, for August delivery, rose $32.50, or 2.6%, to settle at $1,279.90 a troy ounce on the Comex division of the New York Mercantile Exchange. It was the highest settlement since June 21…Silver surged to a three-week intraday high before paring its gains. Futures for September delivery settled up 4.1% at $19.956 a troy ounce on the Comex.

GLD gained 2.7% to $124.25 today, SLV rose 5.3% to $19.46 and the ETFS Physical Platinum Shares (PPLT) jumped 3.3% to $138.03. The highly leveraged Direxion Daily Gold Miners Bull 3X Shares (NUGT) is ahead by 22%, while the Direxion Daily Gold Miners Bear 3X Shares (DUST) is down by 22%.

Offline Prodigy

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Re: The Silver ETF Conundrum
« Reply #1 on: July 12, 2013, 08:59:25 AM »
Interesting, indeed.  Can someone remind me again what actual value a majority of the financial sector provides?