Not entirely accurate on PSLV. Yes, it's an ETF, but it's not paper silver.
In effect, you are paying Sprott to buy physical silver in LBMA Good Delivery form at COMEX prices and vault it for you.
Unlike other ETFs, each share is fully backed by the metal, and you can take physical delivery if you choose- within their physical redemption rules (IIRC, at least $250k in holdings and in 1000oz increments). Sprott is even looking into matching shares with a serial on a bar in the vault.
Every month, Sprott publishes how much they took "off the market" and physically vaulted, it's not just an annotation on a spreadsheet like other ETFs.
Because as a small buyer you don’t have the opportunity to audit “your” silver, nor to verify anyone else’s audit. So your ownership is on paper; your experience owning it is on paper; when you buy it the transaction is on paper; when you sell it it is on paper. You never touch it and you just have to trust that those responsible are trustworthy.
Furthermore if there is a regime change or if our government decides to confiscate it for wrongdoing or if there is a technological breakdown, good fucking luck getting your silver.
Not entirely accurate on PSLV. Yes, it's an ETF, but it's not paper silver. In effect, you are paying Sprott to buy physical silver in LBMA Good Delivery form at COMEX prices and vault it for you.
Unlike other ETFs, each share is fully backed by the metal, and you can take physical delivery if you choose- within their physical redemption rules (IIRC, at least $250k in holdings and in 1000oz increments). Sprott is even looking into matching shares with a serial on a bar in the vault.
Every month, Sprott publishes how much they took "off the market" and physically vaulted, it's not just an annotation on a spreadsheet like other ETFs.
Great synopsis Pede !
I didn’t say it was an etf
I said it was custodial ownership
as in
someone else buys it and acts as custodian
exactly what you just said
but in effect it IS paper silver
Why?
Because as a small buyer you don’t have the opportunity to audit “your” silver, nor to verify anyone else’s audit. So your ownership is on paper; your experience owning it is on paper; when you buy it the transaction is on paper; when you sell it it is on paper. You never touch it and you just have to trust that those responsible are trustworthy.
Furthermore if there is a regime change or if our government decides to confiscate it for wrongdoing or if there is a technological breakdown, good fucking luck getting your silver.