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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Square_Dealings who wrote (59418)	4/25/2006 12:46:43 PM
From: patron_anejo_por_favor	Read Replies (3) \| Respond to of 110194

If they plan on going ahead with that little in storage, I suspect there will be tremendous pressure on silver futures once it starts trading. 15 million ounces is ludicrous, it should be ten times that to start. It may be an indicator of how tight supplies of physical silver already are....

To: Square_Dealings who wrote (59418)	4/25/2006 9:17:13 PM
From: aknahow	Read Replies (1) \| Respond to of 110194

It is possible that they wished to avoid roiling the market prior to final approval. Once shares are issued and trading the premium discount on shares will more effectively determine what amount needs to be purchased and more importantly the purchases will only be made when shares are trading at a sufficient premium to silver. The participants will supply shares to the market by selling shares short, (that are at a premium to silver), and buying silver at the same time. Thus participants will have no risk and be compensated for the trade by having captured the premium. But if they just buy silver now they not only potentially put at risk final approval by causing a major spike in silver, but they take the risk of having bought silver into the spike, and the risk of loss should silver decline.