Quote:
Originally Posted by davew
How does SLV turn into buying silver? There are not people arbitraging between this and silver futures?
I see JP Morgan is holding their silver bullion.
If people keep buying, could there be spikes near expirations of the silver futures?
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supposedly, and i use that word with caution, SLV has to buy or sell physical silver based on the open interest of their shares. you will find the same thing with GLD as well ... i believe the GLD and SLV has to back their paper asset with 70% of it in physical. GLD owns 40 million ounces of gold, while SLV owns 325 million ounces of silver..
i understand where you are coming from with the question. if these retail traders buy SLV and run it, will there be enough silver in the world to cover what they bought? now that one is a good question, i have no answer for it!
i would say, this government will never let these guys run silver. i don't think they are going to let them keep running the stocks that they have run as well.
