by Steve St. Angelo, SRSRocco Report:
Why did the iShares SLV ETF add so much silver to its inventories yesterday when the price of silver sold off? The iShares SLV ETF added more silver in one day than the combined 4-week net change of several of the other leading Silver ETFs. Also, why has Sprott’s PSLV ETF valued declined compared to the silver price?
These are all very interesting dynamics in the Silver Market that are just beginning to become one of the most important assets to own in the future. What I would like to do in this FREE MEMBER REPORT is to provide some interesting changes taking place and to dismiss some of the misguided assumptions about the Silver ETF market.
TRUTH LIVES on at https://sgtreport.tv/
SLV ETF Adds Stunning 7.2 Million Oz Of Silver To Its Inventories in ONE-DAY
First, the iShares SLV ETF added a stunning 7.2 million oz to its inventories in just one day. Now, many in the precious metals community would say this is PURE MANIPULATION. However, the Authorized Participants that can acquire “Basket of Shares in the SLV ETF,” must deliver silver to the JP Morgan vaults to get those shares. So, there is some method to the madness.
So, why would one or more Authorized Participants suddenly be interested in acquiring baskets of SLV ETF shares to the tune of 7.2 million oz of silver?? According to the data from Blackrock’s iShares SLV ETF website, since last Friday, the SLV ETF has added 7.8 million shares. Thus, the large increase in silver inventories on Monday.
Here is a chart comparing the ONE-DAY increase in the SLV ETF silver inventories versus the net change of the leading competitors over a 4-week period.
While the SLV ETF added 7.2 million oz of silver to its inventories on Monday, the ETF Securities added 4.1 million oz (Moz) over a 4-week period, followed by the iShares SVR ETF (2.4 Moz), Deutsche Bank (1.7 Moz), Sprott PSLV (1.6 Moz), and ZKB ZSIL ETF (0.8 Moz). So, these five leading Silver ETFs added 10.6 Moz of silver over the past month while the SLV ETF added 7.2 million in ONE DAY.
Of course, some subscribers and followers are going to say… MANIPULATION!! Really? Maybe, but if I was a large bank and one of the Authorized Participants, with clients that wanted exposure to silver, I would choose the SLV ETF because it can handle large amounts of silver and shares. The SLV ETF institutional ownership at $11 billion is 27 TIMES more than the Sprott PSLV of $400 million.
Sprott PSLV ETF Underperforming The Silver Price vs. Competitors
Secondly, the Sprott PSLV ETF share price compared to the silver price is seriously underperforming the SLV ETF and competitors. We don’t hear about this from the WallStreetSilver crowd, which only recommends the Sprott PSLV because they say it’s the only one they trust to hold the metal. Well, I got news for you, there is another one doing the exact same thing as the Sprott PSLV, and it’s in Canada. I will get to that in a minute.
Here is the Sprott PSLV vs. the Silver Price (Ratio) since the WallStreetSilver ShortSqueeze Campaign in February.
For whatever reason, the Sprott PLSV Ratio to the Silver Price is down 4% since February, while three leading competitors are very close to SPOT PRICE PREMIUM (ZERO). Here are three of the leading competitors below:
Since February, the iShares SLV ETF performance versus the silver price is at 0.05%, followed by the Aberdeen SIVR ETF at 0.14%, and the iShares SVR ETF at -0.08%. These three Silver ETF competitors are very close to the ZERO line in regards to the silver price, while the Sprott PSLV is a negative 4%.
I have no idea why, but the charts don’t lie. Maybe the Sprott PSLV value to silver will jump back higher over the next several months, but I do find this quite interesting.
Now… I’d imagine some of you are saying that all the other Silver ETFs are likely manipulating their inventories and data to keep their Premium to Silver much closer than the Sprott PLSV. Really? Well, did you know that Blackrock has another iShares Silver ETF in Toronto called the SVR ETF, which stores its metal at the Royal Canadian Mint… just like the Sprott PSLV??