SLV / PSLV - Your Thoughts

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#1 Tue, Jun 14, 2011 - 11:51pm
ipreferPHYS
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SLV / PSLV - Your Thoughts

First, thanks to all the info here, great stuff. Second, to my question here. I'm not a knowledgeable investor, but I have a good high level understanding of what's going on in the Economy and share a believe of the inevitable collapse and the importance of investing in PM's and other Commodities, as well as the importance of having actual physical. I also understand the risks of SLV from comments here and elsewhere, but what about PSLV? When the gig is up with the CCC, is the general idea that PSLV is a safe? Anyone analyze the prospectus? Loopholes preventing the little guy from taking physical delivery from PSLV?

Edited by: ipreferPHYS on Nov 8, 2014 - 5:10am
Wed, Jun 15, 2011 - 12:09am
tread_w_care
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I've been in and currently

I've been in and currently out of PSLV. Read the prospectus, but I don't claim to understand all of it.

Waterline to take delivery is in the neighborhood of $250,000 holdings. So, the little guy, unlikely to be taking delivery (I'm definitely a little guy in that regard). I believe 100% they hold what they claim to hold, and I trust Sprott as much as you can trust any complete stranger to do business with in these days. 

What puzzles me is the premium to Nav (spot Comex price of Silver) that investors are willing to pay to hold PSLV over alternatives. Here's a good resource on the premiums for some of the metal ETFs and funds:

https://spreadsheets.google.com/ccc?key=0AsAy8x4Mq0aSdEsyeFFUTERtY2JHZ05...

Now, is that because Sprott really has the metal and doesn't leverage the ish out of it? Maybe so. I'd love to hear more knowledgeable opinion on this topic myself.

"When plunder becomes a way of life for a group of men in a society, over the course of time they create for themselves a legal system that authorizes it and a moral code that glorifies it." - Frederic Bastiat https://en.wikiquote.org/wiki/Fr%C3%A9d%C3%A9ric_Bastiat
Wed, Jun 15, 2011 - 12:12am
tread_w_care
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Oh a post script; I'm still

Oh a post script; I'm still 'playing both sides of the fence' and keep a 401K, as laughable as that may seem. Luckily we can control our 401K's completely and I can trade pretty much any equities in it, and some very limited options. But it's still sequestered fiat, so, got to do something with it, which is where I've held PSLV. Made a little bit of money on it when it reached it's 52 week high.

"When plunder becomes a way of life for a group of men in a society, over the course of time they create for themselves a legal system that authorizes it and a moral code that glorifies it." - Frederic Bastiat https://en.wikiquote.org/wiki/Fr%C3%A9d%C3%A9ric_Bastiat
Wed, Jun 15, 2011 - 12:15am
plunder
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If monkeying around with

If monkeying around with options is your thing... PSLV doesn't have them.

I'm sure some experts will be along shortly to detail PSLV being a closed-end fund vs. SLV being an ETF. I never figured out exactly what that means. In my case the SLV risk is mitigated by keeping it to very small short-term options positions. If SLV implodes on me it's a couple hundred dollars.

Sounds like you're looking at bigger, longer term positions if you're thinking about things like taking delivery. Good that you're doing your homework on it.

Thu, Jun 16, 2011 - 7:30pm
Tube
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You're

You're adopted....J/K...(inside joke)...

Thu, Jun 16, 2011 - 8:45pm
Marblesonac
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PSLV

I pay extra for the PSLV premium because...

A. in the short term I have as much phys as I want to keep around the house.

B. It is taxed at 15% if I keep it for a year, instead of 28% for phys

C. It is kept in Canada and hopefully out of reach from Wash DC.

D. It is more liquid than phys.

I won't touch SLV, but I would trade the options....I feel it is like buying options of futures..talk about a derivitive!

Thu, Jun 16, 2011 - 11:40pm (Reply to #6)
Captain Silver
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I second B,C, D above,

I second B,C, D above, especially C. 

The tax laws may change, but right now PSLV is the only way I know to pay long term gains rates on silver. I have used PSLV as a buy/hold investment, buying on dips while accumulating physical as well. Mainly I view it as a more liquid inflation hedge which will easily produce fiat if need be. It is subject to the volatility of the silver market, but given the options of ETFs with JPM as the custodian or PSLV, I'll take the latter to fill this portion of my portfolio. I also like PHYS, although as of late the volume has been very light.

I have mixed feelings about Options on SLV. It's a fairly well behaved market now, but subject to change at the drop of a pin in the vast empty vaults of the CRIMEX!

Our monetary system has been hijacked by morons! Abandon ship!!!!

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