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what is the difference between buying silver bars vs silver ETF?
- Thread starter IronFist
- Start date
Quote from IronFist:
If you hold a silver contract to expiration do you take delivery of 5,000oz of silver?
Not with IB - Physical delivery is not allowed [sans currencies] -- auto liquidation
http://www.interactivebrokers.com/en/p.php?f=deliveryExerciseActions
Quote from IronFist:
If you hold a silver contract to expiration do you take delivery of 5,000oz of silver?
Not with IB - Physical delivery is not allowed [sans currencies] -- auto liquidation
http://www.interactivebrokers.com/en/p.php?f=deliveryExerciseActions
Thread on physical delivery
http://www.elitetrader.com/vb/showthread.php?threadid=232495
Quote from surfer25:
One thing to consider is that you can never really be sure the metals represented by the ETFs are there. The likelihood is that only a portion are actually available to the ETFs. If this is proven beyond a reasonable doubt, the prices of the ETFs would probably plummet overnight. Research this further if you really want to know about it.
I'm not sure I understand why that's an issue.
Quote from mr double:
WHY IS THE TRUTH SO HARD FOR FOLKS TO ACCEPT? â Each of us set up what we think as reality through our belief systems....
Hey capt. Caps, I said "what" because your post made no sense.
This one also makes no sense. What does one's reality have to do with buying physical silver pushing up the prices?
I posted this in another thread, you may consider browsing through Seeking Alpha Articles regarding the various Metals ETF articles... and research Contango - I only posted upper level links, requires a bit of drilling down...
[I referenced Gold, but the same applies to Silver and a few other commodities...]
You will find that many ETF's like GLD, SLV, UNG, USO, VXX are extremely inefficient [i.e flawed]
Compare the various ETF's performance to their respective futures contracts: UNG/NG -- USO/CL, VXX/VIXX, etc...
[Doubt you will want to buy long term any of them...]
[I referenced Gold, but the same applies to Silver and a few other commodities...]
You will find that many ETF's like GLD, SLV, UNG, USO, VXX are extremely inefficient [i.e flawed]
Compare the various ETF's performance to their respective futures contracts: UNG/NG -- USO/CL, VXX/VIXX, etc...
[Doubt you will want to buy long term any of them...]
Quote from Realistic:
I prefer Futures and Gold Miners ETF
GC - Futures - Volatile "spread and slippage can be costly if scalping",
I like it for position trades and occasionally momentum scalping when near my S/R levels
Gold - Miners
GLD - can be tricky, due to contango / backwardization and fund capital gains treatment
Perform your due diligence -- As a starting point
http://seekingalpha.com/symbol/gld?source=search_general&s=gld
http://seekingalpha.com/symbol/gold?source=search_general&s=gold
http://seekingalpha.com/article/366091-gld-capital-gains-need-careful-tax-planning
http://www.investopedia.com/terms/c/contango.asp#axzz1xTN7dqSn
http://etfdb.com/
Quote from IronFist:If you hold a silver contract to expiration do you take delivery of 5,000oz of silver?
Short answer - yes.
I have never bought a silver contract in my life but a good friend trades crude and a few metals and he says that the COMEX starts calling bugging him a few weeks before expiration pretty much telling you to roll over your contract or there will be a hefty invoice sent to you in order for you to receive the physical.
So if you are willing to pay for the freight and delivery then yes, your contract will expire and you will eventually own the physical.
Quote from WinstonTJ:
Short answer - yes.
I have never bought a silver contract in my life but a good friend trades crude and a few metals and he says that the COMEX starts calling bugging him a few weeks before expiration pretty much telling you to roll over your contract or there will be a hefty invoice sent to you in order for you to receive the physical.
So if you are willing to pay for the freight and delivery then yes, your contract will expire and you will eventually own the physical.
Lol seriously? How much would shipping be on all that?
Dumb question: who ends up with all the contracts if everyone sells them before they expire? There has to be a buyer right? All these people aren't taking delivery on silver, barrels of oil and frozen orange juice.