Katchum's  Instablog

Send Message
Albert Sung is the author of the Katchum Macro-Economic Blog, monitoring breaking economic news from a day to day basis. He started investing in 2008 because of the economic crisis and holds a masters degree in chemical engineering. Previously, he worked several years as a process engineer at... More
My blog:
Katchum's Macro-economic blog
  • Monitoring The Decoupling In Paper Silver Versus Physical Silver 2 comments
    Nov 5, 2012 3:36 PM | about stocks: SLV, PSLV

    With the current suppression of silver I think it's time to monitor the premium to see if a real shortage is actually building up.

    One of the best ways is to use the Engelhard bullion price, which can be found here:


    Table 1: Engelhard Industrial Bullion Prices

    I have subtracted the Engelhard silver bullion price by the spot silver price and then divided the result by the spot silver price to get a percentage. I have bad news. The premium is trending down. This means there isn't really a problem with supply or any sign of decoupling.

    (click to enlarge)

    Chart 1: Silver Premium Engelhard bullion to spot silver

    If there were a problem with supply or a decoupling between physical and paper silver, the chart would be more like this:

    Chart 2: Spot Silver Premium

    I'll continue monitoring this so that investors can have the breaking news when the premium starts going up.

    Disclosure: I am long PSLV.

    Stocks: SLV, PSLV
Back To Katchum's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (2)
Track new comments
  • waikikigigi
    , contributor
    Comments (13) | Send Message
    can you please advise if PSLV orSLV is a best buy right now?
    5 Nov 2012, 05:19 PM Reply Like
  • Katchum
    , contributor
    Comments (613) | Send Message
    Author’s reply » PSLV has a pretty low premium of 4% right now, so I don't see a problem to buy PSLV. The premium is worth it, considering the risk of paper silver.
    5 Nov 2012, 05:26 PM Reply Like
Full index of posts »
Latest Followers


More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.