Gold and Silver Juniors, Mid-tiers and Producers Message Board

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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers

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To: koan who wrote (38247)	4/14/2007 3:28:58 PM
From: aknahow	of 78417

Deliveries and or withdrawals are determined by the ability of the authorized participants to profit on the premium or discount to silver. If shares are selling at a premium the probability of a delivery exist. If they are at a discount to silver then a short on the physical and a redemption of shares to cover the silver short is more probable. Since SLV reports the premium/discount as based on the London fix instead of the spot price the data is meaningless. Yes, I know you know all that and I admit I have posted it countless times before. But it interesting that the price of silver nor the direction of the price nor management of the the ETF determine if silver will be bought and delivered or sold and withdrawn. I really wish I had the statistical background to analyze the GLD and SLV premium/discount data in relation to deposits/withdrawals. IMO there are several reasons premiums predominate and will do so even in bear markets, leading to unexpected purchases and deliveries and a drag on the bearish tendencies. The reverse is true in bull markets.

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