Guest post on Silver and Elliot Wave type fractals

David brought up this symbol PSLV for physical silver and I asked him about it.  Quite the answer, good enough to have its own fresh post.


I use silver futures for "spot price", as when buying physical it is always linked to futures price.    I haven't noticed a divergence between SLV and GLD and their related spot prices.

Apparently, besides the fact that hold SLV mean little more than holding a fleeting electron, they also charge you for "storage fees" for those electrons, even though they pretend and tell you they are storing real physical in your behalf.    Yeah right.

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david christoph has left a new comment on your post "Silver from BPT and TNX/VIX an old favorite":
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PSLV is a silver trust started by Eric Sprott. Sprott is a physical bull who is concerned that data of silver (and gold) holdings is misstated and hiding a pressing shortage of deliverable silver for investment and industry.

http://www.youtube.com/watch?v=262NPWpzBnE

http://www.youtube.com/watch?v=RrMTzYvGEr4

"But if you buy shares in a gold ETF like the GLD, for example, which is the largest gold ETF in the world, do you actually own gold? The answer is no." http://www.youtube.com/watch?v=l36wa9fZEZk
more details in the "about" tab on the Youtube page:
from the prospectus: "Gold held in the Trust's unallocated gold account and any Authorized
Participant's unallocated gold account will not be segregated from the
Custodian's assets. If the Custodian becomes insolvent, its assets may
not be adequate to satisfy a claim by the Trust or any Authorized
Participant."

it is strongly suspected that SLV does not hold the silver they have promised, nor will they deliver it on demand.
http://www.youtube.com/watch?v=pt1wNi4SZ68
apparently, paying storage fees does not entitle you to any ownership of the item you have been paying to store!?

http://www.itulip.com/forums/showthread.php/19126-Is-SLV-real-physical-Silver

https://www.kitcomm.com/showthread.php?t=71030

Does iShares SLV ETF Really Hold Silver? http://seekingalpha.com/article/265085-does-ishares-slv-etf-really-hold-silver

Want to Own Silver? Forget About SLV http://seekingalpha.com/article/161973-want-to-own-silver-forget-about-slv

hence, the price action of physical diverges from SLV

physical silver market decoupling from SLV? https://bitcointalk.org/index.php?topic=54862.0

however, since the data is spotty and disputed (and appears to be guarded by secrecy) the amount of premium that should be paid to own physical is uncertain. like any uncertain quantity or price in the free market, it is subject to waves of social mood alternating between fear and complacency. and it is to track the waves of social mood and resultant price changes that technical analysis is studied.