The one thing you can count on is that the bull market in commodities is still far from over. With at least five years left to it according to the shortest bull market in commodities ever recorded, and ten years left till the average length of bull market run ends, you have not missed out on silver’s run yet.
Now is the time to acquire it in one of its many forms while these amazing
opportunities to grow wealthy with silver still abound.
Silver ETFs in the Digital Age
Another way to benefit from silver price appreciation is through buying silver
Exchange Traded Funds (ETFs) like SLV. ETFs trade on major world public stock
exchanges. SLV is found on the AMEX stock market exchange right here in
America. It represents the first of the different silver ETFs that came out back in 2006.
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The Silver Fortune Formula - How to Make Extraordinary Profits from the Silver Bull Market The beauty of ETFs like SLV and others lies in their trading like shares that are easily bought and sold in a familiar stock market exchange environment. The
shares of silver exchange traded funds actually represent silver assets, namely
silver in the actual physical form stored in vaults. While SLV only acquires actual physical silver bullion, different silver ETFs invest in other silver related assets.
Some exchange traded funds buy stock shares in silver mining companies. Others
buy stock shares in companies that actually refine silver. Nowadays, there are
silver ETFs that invest in literally all steps of the exploring, mining, and production processes for creating physical silver. If you are interested in these various
different aspects of producing silver, then one of these may be for you.
For most investors interested in pure price appreciation possibilities for silver, SLV is the exchange traded fund to pursue. SLV shares represent an underlying one ounce ownership in silver ounces itself. You can not take delivery of the silver by owning SLV, so it is not a substitute for owning physical silver. Instead, it is a vehicle for tracking the price of silver.
The goal of the ETF is to mirror the silver price performance on any given day.
The way that the custodians of SLV accomplish this is by equalizing their holdings of silver as the holders of the shares buy or sell more of them. When the supply and demand pressure on SLV threatens the ETF with breaking away from the
underlying metal price, the managers step into the market to acquire or liquidate physical silver holdings.
For example, if the stock market traders buy up SLV shares and bid the price up
faster than the metal is moving, the custodians will issue more shares to control the price and use the cash proceeds to buy more silver ounces. If on the other hand, SLV shares are being sold at a greater rate than silver itself is, the custodians purchase back SLV shares by selling a portion of their actual silver bullion
holdings.
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The Silver Fortune Formula - How to Make Extraordinary Profits from the Silver Bull Market In this way, they keep the price of the SLV shares consistent with that of actual silver ounces itself. This means in general that the price of SLV and silver itself are approximately the same.
Another advantage to owning shares in the SLV ETF vehicle for those who are not
interested in having physical silver in their holdings lies in the use of margin and leverage. Because SLV trades like a stock, most brokerages will allow you to buy more SLV shares than you actually have funds for in your account.
Assuming that you meet their margin requirements, you can buy as much as two
times the amount of SLV as you have dollars. For example, with the SLV trading at $22 per share, you might acquire 100 shares, representing 100 ounces, for $2,200.
If you had authority to trade margin in the account, you could benefit from the two to one leverage provided by it.
This means that you would be able to purchase 200 shares, representing $4,400,
worth of the SLV, even though you only had $2,200 in the account. The advantage
to this is that while silver is moving up, your investment is growing twice as fast with the leverage as it would be without it. For every one dollar increase in the price of SLV, your account value will gain $200 instead of only $100.
Leverage and margin can be powerful tools to significantly increase your buying
power of SLV and the underlying silver with it but they entail some risk.
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The Silver Fortune Formula - How to Make Extraordinary Profits from the Silver Bull Market Building Wealth
With Silver
How to Make Extraordinary Profits