SLV About to Skyrocket, and That’s Why You Should Buy Physical Silver Instead

SLV About to Skyrocket, and That’s Why You Should Buy Physical Silver Instead

The comments below are an edited and abridged synopsis of an article by Austrolib

• On February 3, the iShares Silver ETF (SLV) amended its prospectus to warn of the risk of restricting the issuance of new shares due to a lack of physical silver.
• If this happens, a premium on SLV relative to the Comex silver futures contract it tracks would form, risking an SLV squeeze, as detailed explicitly in the prospectus amendment.
• Premiums on physical silver would go even higher, and the three silver markets—physical, ETF and Comex futures—would chase one another in a spiral.
• This would constitute an existential threat to the US dollar as a monetary reserve.
• Since retail investors cannot redeem SLV for physical silver, they would be left with dollars that aren’t worth much anymore.
• Conclusion—buy physical silver, not SLV.

Up for discussion: If SLV runs out of silver, the ETF skyrockets; what happens if a premium of SLV forms over silver futures; there’s no way to close the gap; avoid SLV precisely because it will rocket higher; conclusion—time to get physical.