"the mystery of the silver etf", page-4

silver bugs don't despair over dross's article Hi,

In his article "The Mystery of the Silver ETF", Dross has put forward a very thoughtful proposal regarding the silver shortage, and I have no problem accepting the basic thrust as reasonable.

However, Dross seems to suggest that a potentially rocketing price of silver will be averted, with bugs left to enjoy only a 20% increase in price because of the removal of the 20% discount currently applied due to the 'overhang' of Buffet's holding.

Dross's whole argument seems based on the proposed ETF being the driver for silver's upward trend.

It is not.

It is just one of the factors listed countless times in many articles (especially by Butler, Hommel and Morgan) that are driving silver - and it is a very recent one at that.

I believe the 20% increase he suggests over the next 12 months is additional to the increase arising from the silver deficit.

ETF silver will play no part in reducing that deficit since it is held for investment, not for sale to industry. It has been thought to date that the establishment of the ETF would be since the Fund would have to buy silver bullion on the open market. If Dross is correct, the Silver ETF will simply play no part, either way, in the deficit's continual growth.)

Buy some more, eh.

dub