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SLV: "Authorized Participants May Be Unable to Acquire Sufficient Silver..."

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by Vince Lanci
Sunday, Feb 14, 2021 - 17:33

As of this writing, SLV tokenized futures are up 1.24% Sunday night. trading $25.72 after settling $27.31 on Friday.

We saw this on Twitter tonight via GATA

It was linked in a twitter post by James Turk here.

We went to  the source document and took a look. Here is what we found on first pass, adding to what James Turk posted: Emphaisis and "hot takes" ours

We do not know if this is new in the prospectus or has been there since inception. It would not surprise us if it was there since inception. As professional traders know, the Comex itself does not have to stand for delivery on its futures contracts if  there is a squeeze. It is also known that to suspend \delivery on a futures contract is to kill it  and the reputation of the exchange that lists it. So We assume much of this was already there, but will look into the previous version to verify. For now we just thought it good to get this out there.

Special thanks to Daniela Cambone for drawing attention to this tonight

Here is the phrase that generated the headline:

It is possible that Authorized Participants may be unable to acquire sufficient silver that is acceptable for delivery to the Trust for the issuance of new Baskets due to a limited then-available supply coupled with a surge in demand for the Shares. In such circumstances, the Trust may suspend or restrict the issuance of Baskets. Such occurrence may lead to further volatility in Share price and deviations, which may be significant, in the market price of the Shares relative to the NAV.

That's it. Good Luck

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