If you don't have it, then you don't own it.
What happens if a big silver ETF client demands delivery and the ETF can't meet the demand?
If you don't have it, then you don't own it.
What happens if a big silver ETF client demands delivery and the ETF can't meet the demand?
They liquidate their positions at a "fair market price"
that basically says to me that the underlying asset of the ETF doesn't exist.
ur mum m8
You misunderstood me.
I have no plans in owning paper silver or paper gold.
What I'm talking about is why I would choose physical silver over physical gold as someone who is worth 6-digit nearing 7-digit.
Just to jnvest $6000, it's either 10 KILOGRAMS of silver (which sounds like a huge hassle to mail in when I want to cash in), or 10x 100gram gold bars (which are all pretty small and very convenient).
Also silver looks like any other metal while gold is very distinctive looking.
Along with my points here Why would I ever choose gold
>The only real reason I see people at /pmg/ choose it over gold is that it seems they're too poor to buy gold.
This is a big reason you see it shilled on biz, since everyone here has no money and is a shitcoin gambler.
However, you need to remember that in order to provided liquidity, they introduced certificates and ETFs to make trading simple and easy. However this system has allowed lots of fuckery. Metals are illiquid, but not as much as real estate. Insured shipping exists, and anyone trying to buy it from you would be able to pay for that. Its not like you don't get taxed when you sell silver to a bullion company now anyway. And liquidity issues could be solved in the future by combining block chain with secured vaults getting daily audits.
The question about whether to buy gold or silver is when you want to exchange it out for something else. The only reasons to manipulate the price down, WHILE buying it up would be because you intend to stop depressing the price and sell it in the future, or because you're doing it for a governmental backer. Unless you forsee silver going 110 times less valuable than gold, you're at minimum preserving your ability to buy the same amount of gold today (if the ratios don't change), or more gold in the future (if the ratio narrows)
>Why would I ever choose gold
I meant, why would I ever choose silver
Oh no no, I never had any intention to buying paper metals.
I understand printing and fractional reserves, I have zero interest in it.
I was referring mainly to why silver over gold
It just seems unwieldy when you start getting into high 5-digit to 6-digit amounts.
There's even a table of contents
>Just to jnvest $6000, it's either 10 KILOGRAMS of silver (which sounds like a huge hassle to mail in when I want to cash in), or 10x 100gram gold bars (which are all pretty small and very convenient).
I think that's the problem with metals. I own a few grand in physical gold, but if I ever want to implement some sort of "Austrian Investing" [1] scheme where I periodically rebalance to 25% gold holdings, then that simply can't be done physically. If you're approaching $1m, that's ~5kg of gold (about $250k) that you would have to schlepp around every quarter or so. Aside from the impracticability of that, it's also dangerous.
Thank god there's now the technology to hold the hardest asset in human history physically and it costs only a few cents worth of paper and a laptop to do so.
[1] "Austrian School for Investors: Austrian Investing between Inflation and Deflation, 2nd Edition"; Rahim Taghizadegan et.al.