"All SLV does is to buy physical silver, thus pushing up the price of commodity ... that is silver, so making itself more valuable and desired, attracting people with surplus savings and excess capital, and able to buy still more physical silver. The entire schema is a not so convoluted virtuous and closed loop of a wealth machination. 10,000 hedge funds ought to make the work of two earlier brothers seem like getting a massage while sleeping."
It's even better than the above and your blog comments. SLV does not even decide to buy or sell silver, nor does it buy or sell. It is only a warehouse that others, the authorized participants deliver silver to and take silver from.
Even the participants need have no viewpoint on silver to profit from their actions or services. When SLV ETF shares are at a sufficient premium to SPOT, (not the London Fix), shares are sold short and silver bought for delivery. When shares of SLV are at a sufficient discount to produce a profit the authorized participants take their silver back, sell it and buy shares all at the same time.
The premium apparently sufficient to produce a profit for GLD participants is around 9 basis points. Expect it to be more for silver. Again, this is the premium/discount to spot, not the London fix.
Movements into and out of GLD usually have had a value of $50 million dollars and have been mostly around 3.1 tons or multiples of that.
Appears it will not be possible to track activity at SLV since not as much data appears to be released.
BTW great pictures, on your blog. |
