Silver ETF Hits Critical Mass
May 13 2006 - 11:30AM
PR Newswire (US)
SPOKANE, Wash., May 13 /PRNewswire/ -- Silver ETF hits critical
mass and most in the financial world don't even know it. Silver
expert David Morgan of silver-investor.com has just released news
that is critical to silver investors worldwide. "Authorized
Participants that wish to redeem a Basket of Shares will receive
the Basket Silver Amount in exchange for each Basket surrendered.
JP Morgan Chase Bank, N.A., London Branch will be the custodian for
the Trust and responsible for safekeeping the silver." Followed by
footnote 29. Footnote 29 states: "If the total value of the Trust's
silver held by the Custodian exceeds $1 billion, then the Custodian
will be under no obligation to accept additional silver deliveries.
In such a case, the Trustee will retain an additional custodian."
At this point in time, May 11, 2006, the Silver ETF has 58 million
ounces of silver in trust and is selling at a 4.5% premium. The
Silver ETF has a current value of approximately $877 million which
means we are already about 88 percent of the level that JP Morgan
will be "under no obligation to accept additional silver
deliveries" emphasis ours. What will this mean for the silver
market? What if physical demand continues at the current pace? The
amount of physical silver put into trust from Silver ETFs first day
of trading to present time is nearly 60 million ounces of silver.
This is in ten days of trading. Many have commented that it is
nearly impossible to deliver the amounts of physical silver into
the vaults without the silver already resting in place. Berkshire
Hathaway's silver was in London and Barclays Silver ETF is in
London, is it the same silver? Mr. Morgan is a contributor to
Mining Industry Review an e-TV program available at
FreeMarketNews.com. He also hosts a weekly Metals Wrap up each week
on the Financial Sense News Hour. Mr. Morgan and has written
numerous articles, his e-mail newsletter, The Morgan Report, is
issued on a monthly basis and includes economic news, overall
financial health of the global economy, currency problems ahead and
the reason why people need to be invested in the precious metals.
His website is silver-investor.com. His book "Get the Skinny on
Silver Investing" should be available shortly. DATASOURCE: Stone
Investment CONTACT: David Morgan of Stone Investment,
+1-509-464-1651, or fax, +1-509-931-6000, or
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