Short Silver

Discussion in 'Commodity Futures' started by consomme, Aug 15, 2005.

  1. not sure an ETF will do much since it's been so widely known,...

    It may lead to some bizarre arbitrage that will make the COT reports more or less a non event....

    like the gold ETF is causing a long GLD : short XAU or HUI trading pair......

    no other reason the gold equities aren't moving....

    watch out what you wish for....................
     
    #11     Nov 27, 2005
  2. synchro

    synchro

    I bought 500 Silver Eagles last week -- i tell you -- it's a bear to carry 500oz of coins -- the postman was asking me what the heck was in the package. I of course lied that it was an auto body part.

    Anyway, buying that many silver eagles-- that's probably either the most idiotic thing I did, or the smartest thing I did -- I guess I will find out in 5 yrs -- when either the U.S. Dollar has gone to hell (in which case I'd look smart), or the Dow is at 20,000 (in which case i'd look like an idiot).

    The U.S. Mint pacakges 500 1 oz. Silver Eagles into a green plastic box. The box would contain 25 tubes of coins. Each tube contains 20 Silver Eagles.

    It does fell a little weird handling something "real" like silver in your hands -- all those shining metal silver coins.

    I also started to go long e-mini Silver eCBOT futures in October fully collateralized, which is not too onerous considering the contract spec is 1,000oz per contract.

    Still, the drawback w/ futures contracts as a way to replicate an ETF is that the unit is just too big -- even w/ a single e-mini Silver contract, it's in excess of $8,000. Advantage is low-cost -- It's only $3.22 round trip every time you roll the near-by to the next.
     
    #12     Nov 28, 2005
  3. why not buy a bag of 90 % silver coins
    ( pre 1964 ) instead of the bullion ?

    is it because it is easier to sell them bit by bit
    rather than trying to time selling a whole bag
    of coins ?

    :)
     
    #13     Nov 28, 2005
  4. not sure why you'd buy Eagles, unless you need one to buy a loaf of bread or a gallon of gas during "the end time"...

    plus you pay a hefty premium...

    silver rounds can be had for much less over spot if you buy volume
     
    #14     Nov 28, 2005
  5. #15     Nov 28, 2005
  6. tomcole

    tomcole

    If you take physical delivery of a silver bar, you should check to see if you need to submit it for assaying before it can go back on warrant for re-delivery.
     
    #16     Nov 28, 2005
  7. cakulev

    cakulev

    If US dollar goes to hell, DOW may be 100,000. Except 100,000 will have less purchasing power than 10,000 today. :)
     
    #17     Nov 28, 2005
  8. -Silver spikes to 18-1/2-year high on fund buying-

    rumors of the silver ETF still in the works ?

    or silver playing catchup to the yellow metal ?
     
    #18     Jan 25, 2006
  9. http://www.platts.com/Metals/Resources/

    London (Platts)--25Jan2006

    The Barclays Global Investors silver trust fund has entered the final
    furlong of its approval process but has not yet been fully approved, a source
    close to the company told Platts Wednesday.
    "The [US] Securities and Exchange Commission has approved it for
    filing--this means that there is roughly a three-week period where they'll
    look at it further and then either approve it or not, as the case may be," the
    source said.
    On the SEC website the Jan 17 filing reads: "Pursuant to Section 19(b)(1)
    of the Securities Exchange Act of 1934 ('Act')1 and Rule 19b-4 thereunder,2
    notice is hereby given that on June 30, 2005, the American Stock Exchange LLC
    ('Amex' or 'Exchange') filed with the Securities and Exchange Commission
    ('Commission') the proposed rule change as described in Items I, II, and III
    below, which Items have been prepared by the Amex. On September 15, 2005, the
    Exchange submitted Amendment No. 1 to the proposed rule change.3 The
    Commission is publishing this notice to solicit comments on the proposed rule
    change, as amended, from interested persons."
    The filing continues: "The Exchange proposes to list and trade the
    iShares Silver Trust (the 'Silver Trust' or 'Trust') shares that represent
    beneficial ownership interests in the net assets of the Trust consisting
    primarily of silver bullion ('silver'). The Exchange states that the Trust
    will not be actively managed, and therefore, a holder of Silver Shares will
    not be hedged to protect against the price volatility of the underlying
    silver."
    The SEC also noted that the timeline for the final decision was as
    follows: "Within 35 days of the date of publication of this notice in the
    Federal Register or within such longer period (i) as the Commission may
    designate up to 90 days of such date if it finds such longer period to be
    appropriate and publishes its reasons for so finding, or (ii) as to which the
    Amex consents, the Commission will: A. by order approve such proposed rule
    change, as amended; or B. institute proceedings to determine whether the
    proposed rule change, as amended, should be disapproved."
    Silver shot higher in whippy London trade Tuesday, several traders told
    Platts, on the back of rumors that the iShares silver trust had been given
    final approval by the SEC. Silver was bid at 937cts/oz at 1008 GMT, up on its
    daily fix Tuesday at 900cts/oz.
     
    #19     Jan 25, 2006
  10. I'm long the SIH06 futures. Entered a long time ago and have rolled the position many times. Bumpy ride!
     
    #20     Jan 25, 2006