Silver "Longs" Near Record Highs As ETF Holdings Surge

Tyler Durden's picture

It's not just gold that has been in great demand. As Bloomberg notes, investors own the most silver in exchange-traded products in seven months, boosting holdings from a three-year low. The rebound comes as hedge funds and other money managers hold a near-record bet on further price gains.

 

Source: Bloomberg

The precious metal, which also has wide industrial uses, is up 11% this year.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
E.F. Mutton's picture

"I bought Silver, when Silver wasn't cool"

There's a great country song in there somewhere

El Oregonian's picture

As my hair physically changes to silver so goes the way of my investments. Silver linings are a good think in dark clouded days...

KnuckleDragger-X's picture

As a good little barbarian, I like silver because its shiny. As an engineer I like it as a very useful industrial metal. So two excuses to keep buying for the price of one.......

E.F. Mutton's picture

It's also how I celebrate diversity; Chinese Pandas, Mexican Libertads, Canadian Maple Leafs....

zeropain's picture

timber!   why do you buy when it is high? patience grasshoper.

BaBaBouy's picture

Come ON Now... Paper SILVER Is As Good As The Wood-Pulp Its Printed On...

Gold Pedant's picture

What is this "Wood-Pulp" of which you speak?

Everyone knows that silver is manifested by a magical aluminum arm which in turn has copper wound over and over again at its ends. Silver is created when the arm mystically changes the polarity of tiny little sections of a rapidly spinning glass platen covered in a mirrory metallic substance. The platen spins furiously at perhaps ten thousand revolutions per minute. Alternatively, such records of dollars may be kept in bricks of composites encased in aluminum. On the composites are tiny rectangles of glass-like silicon with cities of structures etched upon them, wells of charged particles, and occasionally even the trap created by endowing the silicon with a tiny gift of gold!

Gold begets silver! I swear!

Canadian Dirtlump's picture

here's a silver quarter I hoarded years ago, call someone who cares? Perhaps?

 

Either way this ETF bullshit. I love how they can seemingly add a quillion ounces overnight. We see the blackrock thing misreported making us all think, hey these guys are on the level, but then you look properly, then pan out to the rest of them and... nope. ETFs are just a hybrid paper / physical reservation to keep the ponzoid alive.

 

ali-ali-al-qomfri's picture

and if you play it backwards,

your canoe flips back over and your precious metals float, and they sell ammo at the local grocery store, and the new gun rack fits perfect in the back window, and ya caught your wife prepping. 

coulous's picture

BUY ONLY PHYSICAL SILVER NOT ETF PLEASE

 

abyssinian's picture

owning paper silver is a good way to get screw later and they will keep the price down by printing more

semperfi's picture

"investors own the most silver in exchange-traded products"

wrong - they own contracts, represented as ascii character and signed integer (signed, because can go negative) bits in a computer - sometimes even printed on a piece of paper if they opt-in for the optional "hard copy" statement

they don't own one oz of silver until they take delivery and they can hold it in their hands

RockRiver's picture

"investors own the most silver in exchange-traded products"

wrong - they own contracts, represented as ascii character and signed integer (signed, because can go negative) bits in a computer - sometimes even printed on a piece of paper if they opt-in for the optional "hard copy" statement

they don't own one oz of silver until they take delivery and they can hold it in their hands

 

 

 

Then it's no different than being long corn or oil futures?

cro_maat's picture

Nope not at all. With futures you can take delivery. With SLV only an AP (Authorized Participant) can create / redeem ETF shares. SLV and all ETFs trade in the secondary market and are shares of a trust. The price is determinged by buys and sells of the ETF and any "readjustment" by the AP's when there is an arbitrage opportunity for the APs.

SLV and GLD have a further complication (obscuration) which is that only a few major bullion dealers are allowed to be APs in these ETFs. They are the only ones who can buy gold or silver from the Comex, deliver them to the trust (State Street) and create new ETF shares. Being bullion dealers this means that they have a ready inventory of the shiny that they can steal borrow from any time they want for their own market manipulations.

RockRiver's picture

I personally own the physical.

 

I trade futures for a living and don't see the same attraction in ETF's.

 

Although futures are as rigged as anything is these days, I at least understand the charteristics of their movments better.....

 

Thanks for the explanation.

 

 

adanata's picture

 

 

 

 

Then it's no different than being long corn or oil futures?

On paper? Well, silver as paper will eventually turn to dust in your hands.  Physical silver is not only more rare, safer to hold and more valuable than gold, it too is money. Corn and oil futures are a gamble; an investment, whereas physical silver is a conversion from worthless paper to hard asset.

Eternal Optipess's picture

You could rationalize owning an equal amount of paper as you hold physical as a legitimate hedge, but for the life of me I could not understand why with silver trading at such a low price adjusted for inflation. I grow commodities and possession is everything. Like so many others on this site I must agree....if it isn't in your hands (or your safe) you own NOTHING.

GRDguy's picture

Paper targets for the manipulators.  

Break_the_Bank's picture

Paper silver, good as (paper) gold. 

MadMav's picture

They drained the lake I had my boating accident in.  Better go check on the cache.

 

JBilyj's picture

With the China deval around the corner, pushing the follar higher will push these lower, they are waiting for everyone to get on board first.

abyssinian's picture

Japan deva negative ratesl, Europe deval with negative rates, the entire world deval.... When will you think the Feds will do the same to save the day? While for the last 5 years, the entire world was expecting and priced in for rate hikes for PM.  Now that pipe dream is slowly fading........ negative rates and more QE coming

Consuelo's picture

 

 

And just how many more mouthfuls (or inches...) of China's deflation do you think the U.S. can handle before the Fed's knees buckle...?

 

Think...

 

 

adanata's picture

 

 

So you believe these guys have figured out how to create physical silver? Because when the cupboard is bare they won't have any way to fill it up.... the cupboard is very low and getting lower very quickly. End game. Go ahead, get onboard; it's the only boat that floats.

The Real Tony's picture

I had silver slated as the best bet for 2016 at the very start of the year.

youngman's picture

I too think silver is the better PM right now....

graspAU's picture

Those kilo Libertads are stunning on paper, even more so than holding in one's hand /sarcasm

A82EBA's picture

I buy physical and Eric Sprott's PSLV and PHYS. Even Jim Willie recommends it.

Deathrips's picture

Careful..it may not be sprott..but canada who nationalizes sprotts physical reserves. See buffets problem with silver delivery.

 

RIPS

Seasmoke's picture

And yet Silver can't even get a sniff of $20. I sold mine. It's a total waste of time. Until physical decoupled from paper. It's just like owning a penny stock.

Cloud9.5's picture

You are confusing insurance with an investment.  Two totally different things.  Never buy pms with money you need.

wanderer9641's picture

If you are going to sell it then just ask here - someone will gladly match the dealers price for buying.

adanata's picture

 

 

 "It's just like owning a penny stock."

ha... more like a piggy bank for the watchful who know this tiny market very well.

Son of Loki's picture

Will we see $150 silver? John Williams predicted such a few years ago.

Anopheles's picture

Yep, we will see $150 silver.   About the same time minimum wage is $100/hr.  

Bopper09's picture

Comparing metal to a failing fraud fiat currency is irrelevant.  100 years ago an oz of gold bought a steer, today an oz of gold buys a steer, and 100 years from now an oz of gold will buy a steer......   I collect silver more than gold right now because of the historically high ratio to gold close to 80:1, and will trade it for gold when that ratio comes down to hopefully 30-40:1.  I use fiat for bills and stupid shit currently because people are stupid enough to accept it. 

But one big enough solar flare....  I'm sure 10 oz of silver will buy a steer.

eeaton's picture

Bought my first monster box yesterday and it sure is heavy!

Amalgamated Tang's picture

Rule of thumb: the weight of your sliver holdings should outweigh you.

I just invented that. I like it. It's a good goal.

Seb's picture

I'll have to lose some weight then.

wanderer9641's picture

its cheaper to gain silver than to pay to lose weight. 

Budnacho's picture

soooooooo..

..68K in silver eh?

 

Note: need to lose weight

 

plata pura's picture

SLW, AG .999 Ag bars. Hold one rotation around our star and yo shittin in tall cotton. I am Plata pura the wise and powerful.

Theonewhoknows's picture
Theonewhoknows (not verified) Mar 15, 2016 12:13 PM
RawPawg's picture

i don't buy all my shiny silver with all those pretty little designs on them because i like them

if i had my choice,i'd buy nothing but PLAIN SILVER BARS AND ROUNDS

the plan is...when it all goes south,and i need sumptin...cashin in ASAP

PLAIN AND SIMPLE,Y'all

Trubador's picture

I missed the lower end-of-2015 silver price of $14.30, but I did make my very first precious metals purchase at the end of day yesterday - in Silver. With the Silver/Gold ratio being 80:1 right now when it's normally 30-40:1. And knowing that Gold will soon be heading back towards it's $1800 peak and beyond. Plus, with Gold being out of the average person's price range, even if you're buying 1/10th of an ounce at a time, each 1/10th is $125 per (and will go higher), how do you even fraction that out for purchasing and bartering if/when the economy is in such an economic and financial mess? Add to that the fact that Gold in 1/10th pieces have a much higher above-spot purchase price.

Silver has always been another stable metal for coinage. So I looked at Silver in 1 oz bars and rounds and got a nice deal from a very reputable location. The above-spot cost was decent since I bought them in lots of 20. Factoring in the free shipping brought that above-spot cost down some more.

If/when Gold goes to $2000 and the S/G ratio goes to 40:1 or 30:1 my investment will have tripled or even quadrupled.

 

P.S. Since Jan 1, 2000, Gold and Silver have outperformed the S&P500. Gold was $288.50, Silver was $5.34, and the S&P was at 1425. Today's levels of each are Gold $1230.50, Silver is $15.26, S&P is at 2013. That means the S&P gained 41% these last 16 years. Silver gained 286% and Gold gained $427%. The S&P out performed them up until the year 2000, but not since then. Gee, dot com bubble, 9/11, two wars, government overspending, housing bubble, TARP, ZIRP, QEs, bailouts of banks and auto industry, stagnant economy, lowest employment participation rate since the Carter years, and a national debt approaching $20 trillion by the time BO leaves office. It ain't rocket science if you just pay a little attention to things.

GotGalt's picture

LOL @ silver ETFs. These people have no clue.

Just took delivery of a monster box of 2016 silver eagles. Now looking for the nearest body of water to store it in.