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View Full Version : Silver ETFS, Funds, Spot Pricing



grimsogrim
3rd January 2011, 02:47
Hi all. I've recently joined this forum to learn a bit about how the silver market pulsates and why it does so. I'm a physical silver stacker looking to learn about the paper side (ETFs, spot price fluxuations, funds, etc).

Right now it's my understanding that spot price is based around the COMEX:SI futures trade. However I'm also aware ETF's such as AQG and funds such as SLW exist. Basically I'm looking to understand how all of these fit in together and affect each other. For instance here is a current list of some silver stock prices:

['Silver Stock Prices (01:36:53 CST)', 'SIL:27.13', 'SLW:39.04', 'SLV:30.18', 'PSLV:14.07', 'AGQ:158.59']

While the current spot price as of 1:41 CST is 30.93.

I have the puzzle pieces I'm just not sure how they fit in together just yet.

saltydog
3rd January 2011, 05:57
I think you have to delve into the individual paper products to understand their underlying character. As they say "The Devil is in the details".

And then I'd decide if you want a paper investment or a paper trade. I've used AGQ several times for a place to park cash for very short term trades.

jimha
3rd January 2011, 12:45
Hi all. I've recently joined this forum to learn a bit about how the silver market pulsates and why it does so. I'm a physical silver stacker looking to learn about the paper side (ETFs, spot price fluxuations, funds, etc).

Right now it's my understanding that spot price is based around the COMEX:SI futures trade. However I'm also aware ETF's such as AQG and funds such as SLW exist. Basically I'm looking to understand how all of these fit in together and affect each other. For instance here is a current list of some silver stock prices:

['Silver Stock Prices (01:36:53 CST)', 'SIL:27.13', 'SLW:39.04', 'SLV:30.18', 'PSLV:14.07', 'AGQ:158.59']

While the current spot price as of 1:41 CST is 30.93.

I have the puzzle pieces I'm just not sure how they fit in together just yet.

SIL - Group of silver mining stocks. Generally trades slightly higher than the physical paper price.
SLW - Silver mining stock. Has done much better than most others recently.
SLV - Paper ETF. The question is if the silver in their possession would ever be delivered to the shareholders. Avoid.
PSLV - I don't follow this one.
AGQ - Paper bull ETF. Trades twice the rate of paper price.

Also there is the Sprott physical fund PHS which is a secure form of physical. Problem is it is now trading way above its NAV.
CEF same as Sprott with half silver and half gold.

I hope this helps you a bit.

Matthew Shelley
3rd January 2011, 13:17
Hi all. I've recently joined this forum to learn a bit about how the silver market pulsates and why it does so. I'm a physical silver stacker looking to learn about the paper side (ETFs, spot price fluxuations, funds, etc).
Right now it's my understanding that spot price is based around the COMEX:SI futures trade. However I'm also aware ETF's such as AQG and funds such as SLW exist. Basically I'm looking to understand how all of these fit in together and affect each other. For instance here is a current list of some silver stock prices:
['Silver Stock Prices (01:36:53 CST)', 'SIL:27.13', 'SLW:39.04', 'SLV:30.18', 'PSLV:14.07', 'AGQ:158.59']
While the current spot price as of 1:41 CST is 30.93.
I have the puzzle pieces I'm just not sure how they fit in together just yet.

Professional arbitrageurs make sure all of the pieces fit together. If someone decides to put on a trade that moves any one of the pieces out of line, the arbitrageurs will step in and either bring that piece back into line with the rest, or shift the rest to keep up with it.

Matthew C. Shelley
Commodity Broker

As always: Trading in futures and options is very high risk investing. You can lose all or more of the money you invest. Only risk capital should be used.