The author made a reasonable case that the price of silver has been artificially depressed for the last 20 years due to the large short position. He claims that this cannot last indefinitely, and seems to imply that the price will rise dramatically over the next few years. Perhaps he is right. I certainly have no reason to dispute his assertion, and in fact, since I have invested in silver, it's clear that I agree with him to a certain extent. However, the nagging question that keeps troubling me is, if silver has been held down to unreasonably low levels for the last 20 years, who's to say that "they" can't do it for another 20? If demand has outstripped supply for some time now, where is the metal coming from?
that was some major selling in the SLV yesterday ARCA and perhaps other ECNS would at times cross the market ( i.e. offer lower than the bid ) and the AMEX would back off or not have much buying interest esp as the silver futures which SLV is arb'd to got whacked
SethArb, if you can find a reasonably good buy in level/time, then IMO you'll do just fine. A sell-off in silver, so what? That was to be expected, it will be expected until the time silver breaks out and starts establishing long term trend, which to some people has started already, not me personally, I am more of a believer, still.
its all relative ... the level you buy SLV if you scale in every time SLV drops $10 or so a small portion of your portfolio and sell the rallies then you will do fine however if you go "all in" on a drop of $10 and the drop continues for another $10-20-30 etc you might get margined called out for a big loss and not have money or desire to get back in again and miss the "big one" I noticed there was big volume friday in SLV maybe the selling will end way before your "critical levels" a few $$$ below the close
one of the largest uses for silver was for x-ray film. now that is going digitally too a major consumer of silver is dropping away.... Maria
there has been a pattern in recent days silver tries to rally overnight but then gets whacked in the US timezone hours ... I guess the ETF really has added extra "umpth" both to the upside and downside this yr in silver price
Pension funds now can trade silver, when before they couldn't do so via futures, I believe US retirement funds handle billions of $
This may not be the proper place to post this, but tax issues regarding the SLV ETF for Canadian residents is confusing. For the personal (non-corporate) investment account of a Canadian resident/citizen, are gains in the US exchange-listed bullion ETF (ie. SLV, GLD, IAU) securities taxed as capital gains (ie. 50% inclusion rate)?? The reason I'm asking is because these funds are not registered investment companies, but are structured as "grantor trusts" instead. I know that other US and foreign equity ETFs are legally recognized as "registered investment companies" and are thus exempt from the "foreign investment entity" legislation which could otherwise cause for onerous taxes; so ETFs and closed-end funds which are registered investment companies benefit from the same tax treatment as Canadian stocks with respect to dispositions (ie. simple capital gains w/ 50% inclusion rate). But do these "Grantor trust" strutured metal ETFs (ie. GLD/SLV) also benefit from the same favorable tax treatment (50% inclusion rate of realized capital gains and nothing else)? Thanks