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.



http://blogs.barrons.com/focusonfunds/2013/07/11/gold-hits-two-week-high-the-silver-etf-conundrum/?mod=yahoobarrons
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?