Near record prices not slowing demand for silver, the iShares Silver Trust (SLV) registers to...


Near record prices not slowing demand for silver, the iShares Silver Trust (SLV) registers to sell an additional 50M shares, using the proceeds to buy more of the metal. As reference, there are currently 364M shares outstanding, so the offering increases the float by about 14%.

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Comments (4)
  • youngman442002
    , contributor
    Comments (5123) | Send Message
     
    to buy more...its more like to buy some...
    28 Apr 2011, 08:50 AM Reply Like
  • Lakeaffect
    , contributor
    Comments (1448) | Send Message
     
    SLV reduced it's holdings between Tuesday and Wednesday by 199 tons, from 11,252 to 11,053. The reduction is a function of silver prices rising faster than the increase in outstanding shares of SLV - on Wednesday. If the bullion price declines and outstanding SLV shares stays the same, then the trust needs to add to it's holdings of bullion. If bullion price stays the same, but SLV shares outstanding increases, they have to buy more bullion.

     

    Anybody - Have I got this right? Please ignore for the moment the question of whether they actully have the bullion. I'm trying to understand the mechanism as it's described in the prospectus.

     

    The registration for 50M additional shares will have no impact or dilution of SLV's value. They'll only get sold if demand is there, and would be backed by additional purchases of bullion, as necessary.

     

    28 Apr 2011, 09:18 AM Reply Like
  • radtired
    , contributor
    Comment (1) | Send Message
     
    I'd just like to know why SLV tracks about $1 below the silver spot,
    while SIVR is almost dad on the spot price ?
    28 Apr 2011, 02:42 PM Reply Like
  • nlvnumbersman
    , contributor
    Comments (13) | Send Message
     
    They keep about 1-2% cash on hand to pay expenses.
    28 Apr 2011, 11:21 PM Reply Like
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