Gold and Silver DROP!!!

[Dr.3D]

The ETFs could lie about their holdings. I do not feel they do. Occam's razor states the simplest answer is usually the correct answer. It seems more simple to say that the ETFs were heavy on short positions that are jumping ship to get on board the dollar rally. Imaging something insidious going on with precious metal ETFs seems more complicated to me.

Then please tell me why if I have four thousand ounces of silver bought in an ETF, when I call them and tell them to deliver, they say they have a six month waiting period because they have to "manufacture" the silver? All they need to do is go to the vault they are storing the silver in and grab four one thousand ounce bars and ship them. After all, what is in the vault is one thousand ounce bars and there should be no need to manufacture anything.

 

[Bruno]

Then please tell me why if I have four thousand ounces of silver bought in an ETF, when I call them and tell them to deliver, they say they have a six month waiting period because they have to "manufacture" the silver? All they need to do is go to the vault they are storing the silver in and grab four one thousand ounce bars and ship them. After all, what is in the vault is one thousand ounce bars and there should be no need to manufacture anything.

That is scary enough to deter me from ETF's. Now imagine what it would be like to get your silver when times are really tough and everyone is calling for delivery.

 

[Dr.3D]

That is scary enough to deter me from ETF's. Now imagine what it would be like to get your silver when times are really tough and everyone is calling for delivery.

This is why I took delivery and have stayed out of the ETF's ever since. When it is on paper, you don't really have anything but paper. Just like the fiat dollar.

 

[Shinerxx]

Then please tell me why if I have four thousand ounces of silver bought in an ETF, when I call them and tell them to deliver, they say they have a six month waiting period because they have to "manufacture" the silver?

I know nothing about silver ETFs. I prefer to hold the element in my hand. I do know something about how the human mind works. When my wife and I go out to eat on a Friday night the restaurants are always packed with people. The hostess will usually be teenage girl and will inform us of our wait time. Nice times out of ten the wait time far exceeds our actual wait time. The grossly over exaggerated wait time had two benefits for the hostess. If our actual wait time was under the estimate my wife and I were happy so the hostess does not have disgruntled guests. Also, the estimated wait time encouraged my wife and I to reconsider our restaurant choice. Sometimes the wait time is so ridiculous we might even leave and either try our luck somewhere else or skip the dinner out and eat at home. If my wife and I leave, the restaurant does lose our purchase however the hostess is the person that gave the estimate. She benefits because now she does not have to deal with us. The hostess already had two dozen tables on wait.

It seems easier for me to imagine the ridiculous 6 month wait time to have two benefits for the ETF. First, if they get you the silver in less than 6 months you would be happy. Second, it discourages a client from taking delivery altogether. The ETF wants to keep your silver.

My wife got food poisoning from a restaurant we went to about 3 months ago. The restaurant also happens to be one of my favorite places. We have not been back since she got sick because she no longer trusts the restaurant. I say if someone does not trust the ETF then sell or take delivery and wait your agreed upon wait time. Find a place for your money that you trust and you may sleep better at night.

 

[Dr.3D]

I know nothing about silver ETFs. I prefer to hold the element in my hand. I do know something about how the human mind works. When my wife and I go out to eat on a Friday night the restaurants are always packed with people. The hostess will usually be teenage girl and will inform us of our wait time. Nice times out of ten the wait time far exceeds our actual wait time. The grossly over exaggerated wait time had two benefits for the hostess. If our actual wait time was under the estimate my wife and I were happy so the hostess does not have disgruntled guests. Also, the estimated wait time encouraged my wife and I to reconsider our restaurant choice. Sometimes the wait time is so ridiculous we might even leave and either try our luck somewhere else or skip the dinner out and eat at home. If my wife and I leave, the restaurant does lose our purchase however the hostess is the person that gave the estimate. She benefits because now she does not have to deal with us. The hostess already had two dozen tables on wait.

It seems easier for me to imagine the ridiculous 6 month wait time to have two benefits for the ETF. First, if they get you the silver in less than 6 months you would be happy. Second, it discourages a client from taking delivery altogether. The ETF wants to keep your silver.

My wife got food poisoning from a restaurant we went to about 3 months ago. The restaurant also happens to be one of my favorite places. We have not been back since she got sick because she no longer trusts the restaurant. I say if someone does not trust the ETF then sell or take delivery and wait your agreed upon wait time. Find a place for your money that you trust and you may sleep better at night.

So much for fast food. I'll take my sausage to go.

 

[Johnnybags]

The SLV etf will only redeem baskets 50,000 shares

in exchange for bullion, any less shares are bought and sold in the open market only. If you have 50k shares they will redeem it.

I think that was before the 10/1 split too so you need 500k new shares of slv to ask for a redemption.

 

[Dr.3D]

in exchange for bullion, any less shares are bought and sold in the open market only. If you have 50k shares they will redeem it.

I think that was before the 10/1 split too so you need 500k new shares of slv to ask for a redemption.

I guess a mere 400 shares doesn't cut it anymore. Sigh....
500k shares would be 5 million ounces of silver. That sir is a lot of silver.

 

[danberkeley]

I guess a mere 400 shares doesn't cut it anymore. Sigh....
500k shares would be 5 million ounces of silver. That sir is a lot of silver.

Each share is one ounce of silver, therefore, 500K shares = 500K ounces = approx. $6,350,000

 

[Bruno]

Swiss America says August is a time to buy and this has happened the last six years.

1. 2003 - Gold at $382 dropped to $319 (-16%)
2. 2004 - Gold at $425 dropped to $375 (-13%)
3. 2005 - Gold at $536 dropped to $489 (-9%)
4. 2006 - Gold at $725 dropped to $560 (-22%)
5. 2007 - Gold at $841 dropped to $778 (-8%)
6. 2008 – Gold hit $1002 on Mar 17 then dropped to $786 on Aug 15 (-21.5%)

 

[Dr.3D]

Each share is one ounce of silver, therefore, 500K shares = 500K ounces = approx. $6,350,000

When did they change a share of SLV from 10 ounces of silver to one ounce of silver?

 

[voytechs]

Swiss America says August is a time to buy and this has happened the last six years.

1. 2003 - Gold at $382 dropped to $319 (-16%)
2. 2004 - Gold at $425 dropped to $375 (-13%)
3. 2005 - Gold at $536 dropped to $489 (-9%)
4. 2006 - Gold at $725 dropped to $560 (-22%)
5. 2007 - Gold at $841 dropped to $778 (-8%)
6. 2008 – Gold hit $1002 on Mar 17 then dropped to $786 on Aug 15 (-21.5%)

Interesting.

 

[axiomata]

Swiss America says August is a time to buy and this has happened the last six years.

1. 2003 - Gold at $382 dropped to $319 (-16%)
2. 2004 - Gold at $425 dropped to $375 (-13%)
3. 2005 - Gold at $536 dropped to $489 (-9%)
4. 2006 - Gold at $725 dropped to $560 (-22%)
5. 2007 - Gold at $841 dropped to $778 (-8%)
6. 2008 – Gold hit $1002 on Mar 17 then dropped to $786 on Aug 15 (-21.5%)

Wish I would have known that in July.

 

[Bruno]

Wish I would have known that in July.

You're not alone on that wish.

 

[tmosley]

Yeah, that's good info to have.

What is the cause of this cycle?