What stock has market makers (or as you call them arbitragers) keeping an orderly market in their own shares, and issueing more share when demand increases and removing shares when demand falls
The market makers for the SLV are I assume blackrock, they issue share and destroy shares as the demand dictates, quite a lot of the SLV etf that was sold off after the silver crash would have ended up with the marketmakers, that would have destroyed shares therefore releasing silver, so as I said in my first post, (that is the flaw with the etfs themselves), violent upwards and downwards demand movements dont allow the market makers time to sell or buy (the physical) metal at the price the etf holder sold (their SLV ETS holdings) to them at, and either having to buy into a rising market or sell into a falling market, the only way I can see of removing some of this risk would be the use of derivitives (futures), it might be just short term, but the act as you described of physically taking silver to a vault and the ETF would issue shares to you, doesnt seem right, in theory maybe, in practice maybe not.
cheers grant
the above is opinion only and written without prejudice
