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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: aknahow who wrote (48476)	3/23/2006 1:32:51 AM
From: regli	Read Replies (2) \| Respond to of 116555

An interesting post at Kitco. Any comments? Date: Wed Mar 22 2006 15:45 AU_NB (Silver and Gold ETFs) ID#115232: Copyright © 2002 AU_NB/Kitco Inc. All rights reserved I think that the Silver and Gold ETFs are the greatest security arrangement...... for the Depositors of the Metal that is to back each iShare: 1. The Depositor no longer has to pay storage fees because they are shifted to Trust and the owners of the the iShares as Trust expenses. 2. The Depositor effectively is able to obtain 100% of the value of his deposit in from the iShareholder, and he may use the funds for whatever he desires. 3. With the cash received from ths sale of the iShares making up each basket, the Depositor may short the futures market market and fully hedge his deposit, and perhaps, even have liquidity left over. 4. With effectively full liquidity, the Depositor using his "hedging" activity could even possibly effect the bullion price in the futures market, thus allowing him to repurchase iShares at a lower price than they were sold. This then also would allow the Depositor to exchange a basket of Ishares for redemption his own or equivalent metal. 5. The Depositor, by using his own metal, does not even have to borrow the phsical metal from a Bullion Bank ( thus avoiding leasing costs ) but may use his own physical accumulation to continue this lucrative arrangement. Could be a the closest thing to a "perpetual motion'" machine. Not bad. fwiw jmho ICBW dyodd