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Gold/Mining/Energy : Silver prices -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (7322)	4/29/2006 9:33:29 AM
From: IngotWeTrust	Read Replies (5) \| Respond to of 8010

My take on SLV: 1) There will be a precipitious drop in PoSilver shortly --no later than end of quarter if even THAT long--which will make SLV ETF shorters wealthy and SLV long holders sick by the ferocity and size of the drop. 2) SLV will then--and soon--assume its normal position of a discount to the spot price of 10oz of silver itself, due to the wasting asset nature of this ETF as ResourceInvestor.com Tom Szabo explained ystdy to those who don't understand. For the majority of its future existence, SLV will trade at said discount---> as a norm. 3) The relative rarity of Gold to Silver has not been repealed nor will it ever be. 4) There has been no consumptive nor fabricated new usage for silver that will ever put it into the permanently "unprecedented demand" backwardation needed to sustain these current nor higher physical silver prices. 5) The law of "higher prices increases mined supply" has not been repealed. This is bearish. 6) When the term "shortage of silver" comes up in relation to COMEX stocks, etc., please PULEEEEZE remember the giddy are speaking ONLY of "good delivery specs bars" of physical silver and not the above and below ground supply of silver available to be rendered into Good Delivery Specs BAR in what equates to a "10Day just-in-time" delivery and fulfillment of same to alleviate any short term condition in the silver mkt. 10 Days was all it took the last time to alleviate the perceived shortage of "Good Delivery Specs Silver Bars" the last time the old canard of "silver is in short supply" was trotted out, frustrating the pundits and the excitable silver fish as Canuck Dave self-labels. These are points for silverbulls to ponder re: SLV's current Darling du jour premium phenom.

To: TobagoJack who wrote (7322)	4/29/2006 11:27:42 AM
From: aknahow	Read Replies (2) \| Respond to of 8010

"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.

To: TobagoJack who wrote (7322)	4/29/2006 2:54:39 PM
From: Canuck Dave	Read Replies (1) \| Respond to of 8010

Hi Jay, I love it when you talk dirty like that... And I couldn't agree more on the new Hunt Brothers. Incidentally, you ever see any photographs of Lamarr and Bunker? Grosss... I'm overloaded with junior silver mining shares and have a lot of cash in the wings waiting for that magic day when... "Houston, we have ignition." (The H. reference is an obvious pun on the fact the Hunt Brothers were based there.) There's fabulous looting in the offing thanks to our friends in the SUA for holding the price down for so long. I must remember to send a Christmas card to Kodak via Sir Paul... CD