RE: Silver bullion-ETF close to DEFAULT?Very interesting
I was seeing the amount of Comex silver inventory drop about 20 million ounces over the last 6 months. (From 140m to 120M) yet the price remains in the dog house. No other industrial metal has reacted this way in the past. As inventoy decreases the commidity price increases and vice versa.
So why is Silver worth less today then a year ago when there is less in Comex inventory?
Regarding SLV and 6 million less Oz, can't comment on that as not aware of the numbers but could part of that be timing issues. As for investors nto concerned about this topic, they shoud be especially fi they buy and hold and forget about thier holdings. Many US banks have failed as the mortgages were were less than the declining home equity.
Put in another way , what happens if Silver doubles overnight and the SLV ETF only has 75% of the ETF covered in true bullion and for simplicity no paper silver back-up? Will the SLV be worth double the value that it shoud be worth or will it rise just 75% Not an expert on this but it is important to know what the weakness if any of the investment.
https://www.runtogold.com/2008/12/a-problem-with-gld-and-slv-etfs/\
Found a link that spells out a few things.