It looks like there are a lot of different ways that you could get exposure to the price of silver. There are a number of opinions regarding the relative importance of owning real silver versus purchasing silver ETFs. When it comes to silver ETFs, most investors focus on buying PSLV because SLV is compromised and manipulated by JP Morgan.
Sprott Physical Silver Trust (PSLV) is managed by Eric Sprott, a well-known and highly esteemed billionaire investor in precious metals. Sprott is well regarded in the industry. He has a strong reputation in the metals and silver markets.
PSLV operates in a manner similar to that of stock and can be acquired through a variety of brokers in order to gain exposure to the price of silver. All the ETF’s assets are held in the form of silver bullion at the Royal Canadian Mint (custodian). All of PSLV’s silver is held in segregated, allocated accounts to prevent unauthorized access. It indicates that the PSLV account owner has the ability to withdraw (take delivery) any and all of their silver bullion whenever they choose. There is no way for any outside parties to stake a claim to any of the metal that is held in the trust’s account because all of it legally belongs to the PSLV trust. You are eligible to request delivery of physical silver if you have at least 10,000 ounces of silver in PSLV in your account. At the current price of silver, which is about $20, this equates to a total of $200,000 worth of PSLV shares.
The best thing about PSLV for investors (especially for traders) is it is simple to trade on the market (long or short). The trusts are traded on the New York Stock Exchange (NYSE) and the Toronto Stock Exchange (TSX) in the same manner that every equity is traded. PSLV has a market capitalization of $3.26 billion and a high daily trading volume, which makes it a very liquid investment for traders.
Many people are concerned that investing in silver ETFs or PSLV would just serve to expand the paper silver market and will not contribute to the reduction of the amount of bullion in circulation. But there are also many investors believe PSLV is trustworthy, and every “paper silver” (PSLV share) you buy will expand their silver reserve.
