Why did the iShares SLV ETF add so much silver to its inventories yesterday when the price of silver sold off? The iShares SLV ETF added more silver in one day than the combined 4-week net change of several of the other leading Silver ETFs. Also, why has Sprott’s PSLV ETF valued declined compared to the silver price?
These are all very interesting dynamics in the Silver Market that are just beginning to become one of the most important assets to own in the future. What I would like to do in this FREE MEMBER REPORT is to provide some interesting changes taking place and to dismiss some of the misguided assumptions about the Silver ETF market.
SLV ETF Adds Stunning 7.2 Million Oz Of Silver To Its Inventories in ONE-DAY
First, the iShares SLV ETF added a stunning 7.2 million oz to its inventories in just one day. Now, many in the precious metals community would say this is PURE MANIPULATION. However, the Authorized Participants that can acquire “Basket of Shares in the SLV ETF,” must deliver silver to the JP Morgan vaults to get those shares. So, there is some method to the madness.
So, why would one or more Authorized Participants suddenly be interested in acquiring baskets of SLV ETF shares to the tune of 7.2 million oz of silver?? According to the data from Blackrock’s iShares SLV ETF website, since last Friday, the SLV ETF has added 7.8 million shares. Thus, the large increase in silver inventories on Monday.
Here is a chart comparing the ONE-DAY increase in the SLV ETF silver inventories versus the net change of the leading competitors over a 4-week period.
While the SLV ETF added 7.2 million oz of silver to its inventories on Monday, the ETF Securities added 4.1 million oz (Moz) over a 4-week period, followed by the iShares SVR ETF (2.4 Moz), Deutsche Bank (1.7 Moz), Sprott PSLV (1.6 Moz), and ZKB ZSIL ETF (0.8 Moz). So, these five leading Silver ETFs added 10.6 Moz of silver over the past month while the SLV ETF added 7.2 million in ONE DAY.
Of course, some subscribers and followers are going to say… MANIPULATION!! Really? Maybe, but if I was a large bank and one of the Authorized Participants, with clients that wanted exposure to silver, I would choose the SLV ETF because it can handle large amounts of silver and shares. The SLV ETF institutional ownership at $11 billion is 27 TIMES more than the Sprott PSLV of $400 million.
Sprott PSLV ETF Underperforming The Silver Price vs. Competitors
Secondly, the Sprott PSLV ETF share price compared to the silver price is seriously underperforming the SLV ETF and competitors. We don’t hear about this from the WallStreetSilver crowd, which only recommends the Sprott PSLV because they say it’s the only one they trust to hold the metal. Well, I got news for you, there is another one doing the exact same thing as the Sprott PSLV, and it’s in Canada. I will get to that in a minute.
Here is the Sprott PSLV vs. the Silver Price (Ratio) since the WallStreetSilver ShortSqueeze Campaign in February.
For whatever reason, the Sprott PLSV Ratio to the Silver Price is down 4% since February, while three leading competitors are very close to SPOT PRICE PREMIUM (ZERO). Here are three of the leading competitors below:
Since February, the iShares SLV ETF performance versus the silver price is at 0.05%, followed by the Aberdeen SIVR ETF at 0.14%, and the iShares SVR ETF at -0.08%. These three Silver ETF competitors are very close to the ZERO line in regards to the silver price, while the Sprott PSLV is a negative 4%.
I have no idea why, but the charts don’t lie. Maybe the Sprott PSLV value to silver will jump back higher over the next several months, but I do find this quite interesting.
Now… I’d imagine some of you are saying that all the other Silver ETFs are likely manipulating their inventories and data to keep their Premium to Silver much closer than the Sprott PLSV. Really? Well, did you know that Blackrock has another iShares Silver ETF in Toronto called the SVR ETF, which stores its metal at the Royal Canadian Mint… just like the Sprott PSLV??
Blackrock’s iShares SVR ETF, Like The Sprott PSLV ETF, Store Metal Allocated At The Royal Canadian Mint
The Blackrock iShares SVR is called “The Silver Bullion ETF,” and here is the first page of its Silver Bar list, which shows the Royal Canadian Mint as its vaulting service. In the MBS Account Number, you will see the abbreviation “SLV,” but that is not the SLV ETF, but rather used as an abbreviation for SILVER. You will also notice that the SVR is using an “ALLOCATED STORAGE SYSTEM.”
So, if you thought Sprott’s PSLV ETF was the only one with high-quality allocated storage at the Royal Canadian Mint… I give you the iSHARES SVR ETF.
For my subscribers and followers, we need to look at the Silver ETF Market with fewer CONSPIRACY THEORY GLASSES and more with logic and common sense. Of course, I am not saying that there isn’t some manipulation going on, but who is to say that can’t happen with the Sprott PSLV ETF either?? I just don’t know.
While I do like the Sprott PSLV ETF as a way to get exposure to silver without buying and store the metal yourself, I do believe the competitors do a good job of it as well. And, it’s not really economical or easy for large institutions to do what these ETFs have already set up. So, institutions are using these Silver ETFs to gain exposure to the Silver Market, which will TAKE OFF in the future.
If we look at this Global Silver Depository Chart from GoldChartsRUs.com, we can see how much silver was added to the SLV ETF in one day compared to the competitors over the past month.
While it’s true that the net 4-week change for the SLV ETF inventories is a minus 3.2 Moz of silver, it’s still amazing to see that much silver move into the inventories in one day. One or more Authorized Participants decided over the weekend to get more exposure to silver on Monday. But why? Who knows… but over time, I see many institutions and high-net-worth individuals getting exposure to silver. This is just the beginning.
I believe there are many MISGUIDED assumptions about the Silver ETF Market. While I agree that holding one’s own physical silver metal is a smart thing to do, Institutions need a much different scenario. Buying physical silver from dealers or even wholesalers includes a commission. This could be 2-5+% depending on the type of silver bars. However, buying one of the Silver ETFs provides large institutions with silver exposure and no issues with paying commissions or headaches with storing the metal.
There will be FIREWORKS in the Silver Market, and one of the major players will be the Silver ETFs. We shouldn’t discourage, but rather, welcome institutional, high-net-worth, and retail investor demand in the Silver ETF MARKET. It will only assist in pushing the future silver price to all-time highs.
UPDATE 4 PM MST
Well, it looks like EASY COME… EASY GO. In check the iShares SLV ETF website, they just updated their outstanding shares and inventory. After adding 7.2 million oz of silver on Monday and 7.8 more shares, on Tuesday, this went in the opposite direction. The iShares SLV ETF silver inventories fell 4.1 Moz while the outstanding shares declined by 4.5 million. Crazy volatility.
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