April 23, 2024

iShares Silver Trust Holdings Reach Record High As Gold and Silver Hit New Highs

April 7, 2011 by Leave a Comment

Silver holdings of the iShares Silver Trust (SLV) jumped to another new record high this week while holdings of the SPDR Gold Shares Trust (GLD) dropped slightly.

The SLV holdings increased by 22.93 tonnes to surpass last week’s record high.  Holdings of the SLV now total 11,162.45 tonnes or 358.9 million ounces of silver valued at $14.2 billion.  Since silver began its nonstop advance in late January, holdings of the SLV have increased by a substantial 757.28 tonnes.

GLD and SLV Holdings (metric tonnes)

6-April-2011 Weekly Change YTD Change
GLD 1,205.47 -6.37 -75.25
SLV 11,162.45 +22.93 +240.88

The London Fix Price for silver increased by $2.10 (5.6%) over the past week, closing today just below $40 at $39.63.  The price of silver has now reached levels last seen 31 years ago in 1980.  Patient silver investors who took the opportunity to increase holdings when the metal was below $10 per ounce are now enjoying the profit of patience.

The astonishing rally in silver prices since late last August has resulted in a gain of 114% for the SLV.  Profits from owning the ProShares Ultra Silver ETF (which does not hold physical silver) have been even more dramatic for silver bulls with a gain of over 400% since last August.

Despite the large price gains in silver since late January, we have not yet witnessed a large volume price spike as was seen in early November 2010 which lead to a 3 month price consolidation.  The next logical resistance level for silver would be on its approach to $50.  Besides the psychological resistance of round numbers, the all time high of silver is $48.70 reached in January 1980.

SLV - COURTESY STOCKCHARTS.COM

Holdings of the GLD declined by 6.37 tonnes on the week, bringing the decline in gold bullion holdings to 75.25 tonnes since the beginning of the year.  The all time record holdings of the GLD reached 1,320.47 tonnes on June 29, 2010.  The SPDR Gold Shares Trust (GLD) now holds a total of 38.8 million ounces of gold valued at $56.6 billion.

The price of gold, as measured by the closing London PM Fix Price hit an all time high today of $1,461.50 and has now broken through resistance at the $1,450 level.  Many analysts are now targeting $1,500 as their next price objective.  Fundamentals favoring the gold market continue to be strong, especially as the U.S. continues inexorably towards a debt crisis at some point in the future (see Gold and Silver Soar As Budget Fiasco Sends Wrong Message to U.S. Creditors).

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iShares Silver Trust Holdings Hit All Time High

March 30, 2011 by 2 Comments

The holdings of the iShares Silver Trust (SLV) soared to an all time high this week, while the holdings of the SPDR Gold Shares Trust (GLD) declined slightly.

The SLV saw holdings increased by 179.13 tonnes from the previous week to an all time high of 11,139.52 tonnes of silver.  The previous record high holdings of the SLV was on March 10 at 10,974.06 tonnes.

The holdings of the SLV have increased significantly as the price of silver moved up strongly from the correction low of late January.   Holdings of the SLV have increased by 217.95 tonnes since the beginning of the year and by a massive 734.35 tonnes since February 1st.

GLD and SLV Holdings (metric tonnes)

30-March-11 Weekly Change YTD Change
GLD 1,211.84 -3.03 -68.88
SLV 11,139.52 +179.13 +217.95

The SLV has gained over 38% since the January lows to close today at $36.53.  The total net assets of the SLV now total $13.4 billion, an astonishing 5,095%  increase from $263.5 million at the Trust’s inception in April 2006.

SLV - COURTESY YAHOO FINANCE

Gold holdings in the GLD were down slightly by 3.03 tonnes as the price of gold continues to consolidate in the low $1400 range.  The GLD has seen a year to date decline of 68.88 tonnes since the first of the year and a decline of 108.63 tonnes from all time high holdings on June 29, 2010.

The value of the gold held by the GLD totals $55.5 billion.  By comparison the market cap of Barrick Gold Corp, the world’s largest gold producers, is $51.5 billion.

Gold has had strong seasonal price trends over the last decade with strong rallies occurring after July into the end of the year.  Based on this tendency, gold may continue to consolidate over the short term before entering its next phase up.  Gold was up 30% in 2010 – a similar move in 2011 would bring gold’s price into the $1,850 range.

The GLD ended up $.46 on the day to close at $138.67, slightly below its 52 week high of $141.28.

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iShares Silver Trust Holdings Continue Higher, as SPDR Gold Shares Trust Holdings Decline

March 24, 2011 by Leave a Comment

The holdings of the iShares Silver Trust (SLV) increased on the week while holdings of the SPDR Gold Shares Trust (GLD) declined slightly.

Holdings in the SLV increased by 15.18 tonnes from the previous week.  Since March 1st, the Silver Trust has seen a net increase in holdings of 266.71 tonnes and a year to date increase of 38.82 tonnes.  The SLV now holds 352.4 million ounces of silver valued at $12.9 billion.

Silver hit a 31 year price high today, continuing a strong rally that began in late January.  In recent trading, silver was $37.34 per ounce.

At the inception of the iShares Silver Trust in April 2006, the SLV held 653.17 tonnes of silver valued at $263.5 million.  The SLV has been extremely popular with investors as the price of silver has steadily increased since 2006.  In addition, the establishment of the SLV has attracted many investors who would otherwise be disinclined to own silver considering the inconvenience and costs of taking physical delivery.

GLD and SLV Holdings (metric tonnes)

23-March-11 Weekly Change YTD Change
GLD 1,214.87 -2.43 -65.85
SLV 10,960.39 +15.18 +38.82

The price of the SLV hit a new all time high yesterday closing at $36.47, up $.93 on the day.  The move upward continued today in early trading, before a pull back erased the day’s gains. The SLV has gained over $10 since late January providing silver investors with a solid 38% gain.  Since the inception of the Silver Trust in 2006, the SLV has almost tripled.

Holdings of the SPDR Gold Shares Trust (GLD) declined modestly on the week by 2.43 tonnes.  The GLD has seen a year to date decline in its holdings of 65.85 tonnes.  The GLD currently holds 39.1 million ounces of gold valued at $56.2 billion.

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iShares Silver Trust Hits New All Time High

March 23, 2011 by Leave a Comment

During Wednesday trading, the iShares Silver Trust (SLV) reached an all time high price.  At the time of this post, shares were trading up 78 cents to $36.32, which exceeds the previous high of $35.27 reached in early March.

The SLV saw a month long correction in January with the price declining from $30 to $26, which brought the SLV below its 50 day moving average.  The losses on the brief pullback in January were quickly regained and the SLV powered on to new highs by mid February.  The SLV has now jumped more than $10 from its January low, for a gain of over 38% in less than two months.

SLV - COURTESY STOCKCHARTS.COM

Ownership of the SLV gives an investor an undivided, fractional ownership in the physical silver held by the iShares Silver Trust.  The price of the SLV is structured to reflect the underlying price movement in silver.  The gain or loss on the SLV should very closely track the price of one ounce of silver. Over 97% of the Trust’s net asset value is based on physical silver held by the Trust.

The Silver Trust currently holds over 352 million ounces of silver worth $12.7 billion.   Assets of the SLV have grown steadily since the inception of the Trust in April 2006.  The SLV has become extremely popular with investors seeking to establish a position in silver without the costs and risks of taking physical possession of the metal.  Due to the manner in which the Trust is structured, premiums and discounts to the net asset value during the trading day are typically less than 1%.

Investors have seen huge returns on their investment in the iShares Silver Trust.   Last year the SLV rose 79.4%.  Year to date the SLV is up 18.6%.  Since inception of the Silver Trust in April 2006, the net asset value of the SLV has almost tripled from its initial price of  $12.55.   A $5,000 investment in the SLV in April of 2006 is now valued at $14,455.

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iShares Silver Trust Holdings Decline, SPDR Gold Shares Trust Holdings Unchanged

March 16, 2011 by Leave a Comment

Holdings of silver in the iShares Silver Trust (SLV) declined slightly on the week, while holdings in the SPDR  Gold Shares Trust (GLD) remained unchanged.

Silver holdings declined by a modest 28.85 tonnes since last week, after seeing increases of 209.54 tonnes and 189.29 tonnes in the previous two weeks.  The year to date holdings in the SLV have increased by 23.64 tonnes.  The value of silver held is valued now $12.22 billion based on holdings of 351.9 million ounces of silver.

Despite collapsing stock markets, a devastating earthquake in Japan, increased turmoil in the Middle East and a wild escalation of money printing by the Bank of Japan, gold and silver moved lower over the past week calling into question the safe haven status of precious metals.

After a huge run up in the price of silver over the past year, it is not unusual to see a correction in prices.  Since consolidating in January, silver prices had run up almost 40% over the past two months from $26 to $36 per ounce.  Aside from normal profit taking after such a huge increase, some of the selling pressure in silver may be due to margin calls.  Investors who have leveraged positions in the market may be liquidating positions to reduce overall exposure until markets stabilize.

Another factor that has ironically made the precious metals markets more volatile is the manner in which the SLV and GLD are structured.   Fast rising prices of gold and silver attract speculators who do not have a long term commitment.  The SLV and GLD allow effective ownership of the metals without the cost and inconvenience of taking physical positions.  Although speculative purchases help to push prices up, the opposite will occur when the fast money crowd decides to take profits at the first sign of price weakness.  Since last week, the price of silver based on the London Fix price, has declined by $1.44 or 4%.

SLV - courtesy yahoo finance

Asian stock futures are down virtually across the board as the situation in Japan deteriorates and spot gold and silver prices are also showing declines.

GLD and SLV Holdings (metric tonnes)

16-March-11 Weekly Change YTD Change
GLD 1,217.30 +0.00 -63.42
SLV 10,945.21 -28.85 +23.64

Holdings in the SPDR  Gold Shares Trust (GLD) remained unchanged from the prior week at 1,217.30 tonnes with a year to date decline of 63.42 tonnes. The GLD currently holds 39.14 million ounces of gold valued at $54.86 billion.

Gold has been unable to mount a strong rally since hitting an all time intraday price of $1,440 in early March.  It may be just a question of time before gold resumes rallying based on continued weakness in the U.S. dollar and virtually unlimited money printing operations by central banks worldwide.  The supply of currencies can be increased with virtually no limit as sovereign governments bump up against the limits of debt expansion.  The supply of gold and silver is limited and will always hold intrinsic value without counter party risk.  The choice will become apparent to more investors as economic conditions continue to deteriorate.

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iShares Silver Trust Holdings Continue to Skyrocket

March 9, 2011 by Leave a Comment

Silver holdings in the iShares Silver Trust (SLV) continued to skyrocket, while holdings of gold in the SPDR Gold Shares Trust (GLD) experienced a modest increase.

The iShares Silver Trust (SLV) holdings increased by 209.54 tonnes in the latest week.  The prior two weeks have seen increases of 189.29 tonnes and 164 tonnes.  Total holdings of the SLV are now 52.49 tonnes higher than at the beginning of the year.  The SLV holds 352.8 million ounces of silver valued at $12.76 billion.

The holdings of silver in the iShares Silver Trust have now exceeded peak holdings reached at the beginning of the year.  Silver has moved relentlessly higher in price since last August.  After a brief price correction in January which brought silver down to the $26 level, silver prices have exploded to more than $36 per ounce, a gain of 38% in less than two months.

Given the huge run up in the price of silver, it is not surprising to see holdings of the SLV increase dramatically.  The SLV is a proxy for investors who chose to invest in silver without the cost and inconvenience of holding physical silver.  Purchasing the SLV allows an investor to take an immediate position in silver and without the markups associated with physically purchasing bars or coins.

The annual expense ratio of the SLV is only 0.5% compared to common markups of 5% to 10% when purchasing physical bullion or coins from a dealer.  The SLV has been wildly popular with investors since it was launched and has provided huge returns to patient investors.   The SLV has risen from below $10 in October 2008 to its closing price today of $35.27 for a gain of over 250%.  A purchase of a thousand shares of the SLV at the low of $9.13 in October 2008 would have resulted in profits of $26,140.

SLV - Yahoo Finance

It has been over 30 years since silver hit its all time high price of $48.70 in January 1980.  Huge investment and industrial demand as well as physical shortages of silver are all factors that could easily push silver to a new all time high.  Silver has been making up for lost time and has dramatically outperformed the price movement in gold.  A reversion to the centuries old gold silver ratio could easily push silver prices towards the $100 per ounce level.

GLD and SLV Holdings (metric tonnes)

9-March-11 Weekly Change YTD Change
GLD 1,217.30 +6.34 -63.42
SLV 10,974.06 +209.54 +52.49

Holdings in the SPDR Gold Shares Trust (GLD) saw a jump in holdings of nearly 7 tonnes on Monday of this week, which is the largest increase in daily holdings seen in the past two months.  The GLD increased holdings by over 6 tonnes for the week after modest declines in the previous two weeks.   Total GLD holdings are still lower than the beginning of the year by 63.42 tonnes.  The GLD currently holds 39.14 million ounces of gold valued at almost $56 billion.

Since its launch in November 2004 when gold was trading at $445 per ounce, the GLD has been an extremely profitable investment.  As the price of silver broke out and hit new highs, gold has still not decisively broken through its trading range in the low $1400’s.   Gold made a strong move up from $1150 last August and has been consolidating sideways since breaching the $1400 level.

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iShares Silver Trust Holdings Increase Sharply

March 3, 2011 by 1 Comment

The iShares Silver Trust (SLV) continued to add large amounts of silver to its holdings while the SPDR Gold Shares Trust (GLD) experienced another small decline in holdings.

Holdings in the GLD declined by 7.28 tonnes compared to a decline of 5.77 tonnes in the previous week.  Total holdings have declined by 5.5% or 69.76 tonnes since the start of the year.  The GLD currently holds 1,210.96 tonnes or 38.93 million ounces of gold valued at $55.9 billion.

The price of the GLD has traded as low as $128 since last October after running up from approximately $110 from the start of 2010.   The GLD hit new highs yesterday at $140.55 before closing at $139.92 reflecting the new all time high in gold prices.  Gold settled at $1437.20 for March delivery on the Comex division of the New York Mercantile Exchange.

GLD - COURTESY STOCKCHARTS.COM

The GLD is structured to allow investors a means of investing in gold without taking physical delivery and to buy or sell that interest by trading the GLD shares on a regulated stock exchange.  The GLD has been wildly successful since its start by allowing widespread beneficial ownership of gold bullion without the costs involved in physical delivery such as insurance and storage.  The GLD has facilitated gold ownership by both large and small investors by supplying liquidity to the market and ease of ownership.

GLD and SLV Holdings (metric tonnes)

2-March-11 Weekly Change YTD Change
GLD 1,210.96 -7.28 -69.76
SLV 10,764.52 +189.29 -157.05

Holdings in the iShares Silver Trust (SLV) increased by 189.29 tonnes over the past week compared to an increase in the previous week of 164.0  tonnes.  The year to date decline of 157.05 tonnes represents a 1.4% drop in silver holdings since the beginning of the year.  The value of the SLV and GLD are structured to reflect the underlying price of gold and silver but an increase in precious metal prices may not necessarily result in greater gold or silver holdings by the Trusts.

The price of SLV hit an all time high yesterday as March silver prices reached a 31-year high of $34.93 per ounce.  As the credit worthiness of many sovereign nations continues to decline, investors continue to see gold and silver as a viable alternative to currencies as a store of value.

The all time high for silver was $48.70 reached in January 1980.

Since last August, silver has dramatically outperformed gold in price appreciation.  Silver has soared over 92% since last August while the price of gold has increased by only 22%.  This dramatic out performance of silver over gold has resulted in the gold silver ratio declining from a multi decade average of 60 to the current level of 41.  Some observers see the decline in the gold silver ratio as an omen for a price pullback in silver while others view it as a fundamental demand shift indicating further sustained price gains for silver.

SLV - COURTESY YAHOO FINANCE

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Silver ETF Holdings Soar as Gold ETF Holdings Decline

February 24, 2011 by Leave a Comment

The SPDR Gold Shares Trust (GLD) holdings declined slightly on the week, while the iShares Silver Trust (SLV) increased its holdings by a substantial 164 metric tonnes

Holdings in the GLD declined by 5.77 tonnes compared to a decline of 2.43 tonnes in the previous week.  Total holdings have declined by 4.9% or 62.48 tonnes since the start of the year.  The GLD currently holds 1,218.24 tonnes or 39.17 million ounces of gold valued at $55.2 billion.

The price of the GLD has traded between $128 and $139 since last October after running up from approximately $110 from the start of 2010.   The GLD was originally launched in November 2004 when the price of gold was trading at $445 per ounce.

GLD - COURTESY STOCKCHARTS.COM

GLD and SLV Holdings (metric tonnes)

23-Feb-11 Weekly Change YTD Change
GLD 1,218.24 -5.77 -62.48
SLV 10,575.23 +164.00 -346.34

Silver holdings in the iShares Silver Trust (SLV) increased by 164 tonnes over the past week compared to an increase in the previous week of 41.01 tonnes.  The year to date decline of 346.34 tonnes represents a 3.2% drop in silver holdings since the beginning of the year.

The Trust is structured so that the value of the iShares will reflect the price of silver owned by the trust.  The price of an iShare should closely track the price of one ounce of silver, less the Trust’s expenses.  However, the price of the SLV will fluctuate during the day as traders buy and sell shares.  If there are many buyers purchasing SLV, the price can rise to a premium over the underlying value of silver as seen in the chart below comparing silver to the SLV.

The amount of silver held by the SLV will vary due to the mechanism by which shares are created or redeemed by the Trust via Authorized Participants.   Authorized Participants are typically large Wall Street Investment firms that will either deliver or take silver from the SLV as they arbitrage to take advantage of premiums or discounts of physical silver to the value of the SLV.  The GLD operates similarly to the SLV which is why an increase in the price of gold and the price of the GLD may not necessarily result in greater gold holdings by the GLD.

SILVER/SLV - COURTESY STOCKCHARTS.COM

The SLV’s closing price of $32.71 on February 23th is 9.2% above last weeks closing price on February 16th and reflects silvers large price increase over the past week as prices broke out to new highs.  Since 2010, the price of silver has more than doubled from the $16 range to the current price of $33.70.

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Gold ETF Holdings Stable As Silver ETF Holdings Increase

February 17, 2011 by Leave a Comment

The SPDR Gold Shares Trust (GLD) holdings declined marginally on the week, while the iShares Silver Trust (SLV) increased its holdings by over 41 metric tonnes.   As both gold and silver prices consolidate in a tight price range, both the GLD and the SLV have experienced a decline in bullion holdings since the beginning of the year.

Holdings in the GLD declined by 2.43 tonnes compared to a decline of .71 tonnes in the previous week.  Total holdings have declined by 4.4% or 56.71 tonnes since the start of the new year.  The GLD currently holds 1,224.01 tonnes or 39.35 million ounces of gold valued at $53.9 billion.

The price of the GLD has traded between $128 and $139 since last October after running up from approximately $110 from the start of 2010.   The GLD was originally launched in November 2004 when the price of gold was trading at $445 per ounce.

GLD and SLV Holdings (metric tonnes)

16-Feb-11 Weekly Change YTD Change
GLD 1,224.01 -2.43 -56.71
SLV 10,411.23 41.01 -510.34

Silver holdings in the iShares Silver Trust (SLV) increased by 41.01 tonnes over the past week compared to a decline in the previous week of 38.38 tonnes.  The year to date decline of 551.35 tonnes represents a 5% drop in silver holdings.

There is no direct correlation between SLV holdings and the price of the SLV due to the mechanism by which shares are created or redeemed by the Trust via Authorized Participants.  The Trust is structured so that the value of the iShares reflects the price of silver owned by the trust.  The price of an iShare should closely track the price of one ounce of silver, less the Trust’s expenses.

The SLV’s closing price of $29.96 on February 16th is only slightly below the all time high of $30.40 reached at the beginning of the year.  Since 2010, the price of silver almost doubled from the $16 range to the current price of $30.67.

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GLD Gold Holdings Sixth Largest In The World, SLV Holdings Show Small Decline

February 10, 2011 by Leave a Comment

The SPDR Gold Shares Trust (GLD) and the iShares Silver Trust (SLV) both registered small declines over the past week as the price of gold and silver recovered some ground.

Holdings in the GLD declined by .71 tonnes compared to a decline of 2.43 tonnes in the previous week.  Total holdings have now declined by 4.2% or 54.28 tonnes since the start of the new year.  The GLD currently holds 1,226.44 tonnes or 39.4 million ounces of gold valued at $53.8 billion.

Since launching in November 2004, the Gold Shares Trust has grown very rapidly and is now one of the largest gold holders in the world.  The latest stats show the GLD holding 172.34 more tonnes of gold than China at 1,054.1 tonnes.  From zero at its inception, the GLD has become the world’s sixth largest holder of gold in less than seven years.

World Gold Holdings January 2011 - source: World Gold Council

The GLD came into existence at a very auspicious moment in financial history.  As the worst financial crisis since the Depression unfolded, some of the country’s largest banks failed. The entire financial system seemed to be heading for collapse.  Trillions of dollars in government aid stabilized the banking industry but there were plenty of nervous investors who viewed gold as the last monetary refuge.

Gold does not have the inherent counter-party risk that exists with paper financial assets.  An investor purchasing gold does not have to worry about being bailed out of a gold investment.  Gold and silver have intrinsic value that rapacious governments cannot destroy.

The SPDR Gold Share Trust opened the market to a flood of new buyers who were enticed by a very easy and low cost purchase process. Prior to the GLD, it took a dedicated gold buyer to search for a dealer, check credentials, physically drive to the dealer to pick up a gold purchase, followed by another trip to the safe deposit box.  Commissions on the GLD were minimal compared to the markup at dealers.  The GLD made buying gold simple with low markups and little transaction friction.  Investors, many of whom had never before owned gold, rushed into the GLD which became the fastest growing ETF in history.

The GLD launched in November 2004 when gold was trading at approximately $445 per ounce.  Shortly afterward, gold entered a long term rise concurrent with the geometric increase in GLD gold holdings.  The price of bullion tripled to the current level of $1361.

GLD and SLV Holdings (metric tonnes)

9-Feb-11 Weekly Change YTD Change
GLD 1,226.44 -0.71 -54.28
SLV 10,370.22 -30.38 -551.35

Silver holdings in the iShares Silver Trust (SLV) declined by 30.38 tonnes over the past week compared to a decline in the previous week of 47.10 tonnes.  The year to date decline of 551.35 tonnes represents a 5% drop in silver holdings.    The SLV has declined by a very modest 2.5% from its high of $30.40 at the beginning of the year.  After a huge gain of 67% in the price of silver since late last year, it is normal to see price consolidation before another advance.

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