i emailed the ishares trust with this for a laugh ...
" Hi, I notice that there are very few (if any at all) pictures from the so called “silver bullion storage warehouses” on the internet. Is there any possibility you could provide me with some pictures of your silver bullion vaults.
or is there any possibility to arrange a visit to them ? "
and got this in response...
" Dear Dominic, Thank you for contacting iShares. We do not have pictures or facilitate tours to the vaults. Kind regards,
iShares Feedback.'
wow now that's a surprise lol !!
Like we all keep saying if you don't hold it you don't own it!
Sounds just like Fort Knox!
you pretty much asked them "Hi, can i come and look at millions of dollars worth of metal? " I would not say yes to you! that would raise the cost of having the metals and people likeyou knowing the location of the metals. there was a show on cnbc that showed a news person going to the gld vault and they had him in the back of a car with no windows so he couldn't even see where they were driving.
Since the name starts with an "i", I doubt ishares even has a warehouse let alone a vault with bullion in it.
I think the "i" stands for imaginary haha !
Just to clarify, SLV has 5 vaults in or around London. 2 are run by the morgue, 2 are run by brinks and 1 is run by Johnson Matthey. These are audited twice per year and the reports are published. Keep in mind, ordinary people can't redeem their shares for bars. Also, I am reminded of the video of a GLD vault (to prove that there is real gold in there). One bar is held up to the camera and the serial number was clearly visible... and not on the list of bars registered to GLD.
I don't doubt that there is real metal backing SLV and GLD. I'm not putting my money there though, and I'm more doubting that the shares are all held free and clear (not naked shorted).
As the "Custodian"....JPM is in charge of all the vaulting for the SLV. The fact that different companies are doing warehousing is nothing more than a sub-contracting arrangement (meaning...JPM can enter into sub-custodian arrangements with other parties to release themselves from obligations). Don't forget....a couple years ago when JPM's prop trading desk got downsized with a number of "layoffs" and separation packages prompting the spotlight focusing on Blythe....where she did damage control and announced to her minions "not to panic"....was the same time JPM was taking over the RBS Sempra in a merger/buyout....and they were also picking up a "fresh asset" in the Henry Bath warehousing operation.
Read the prospectus. JPM is only "on the hook" for losses realized by the "Trustee" (which is the Bank of New York Mellon). Since the SLV is a fractional reserve model....the bonified participants are the only parties recognized under the Custodian's agreement with the Trustee....and to become "bonified"....is to purchase a basket (50k shares....which is the only way a player can accept delivery of silver).
The SLV Trust can be terminated on a "whim"....as long as 75% of the holders of shares deem it necessary and notify the Trustee of their desire to 'terminate'....so yeah, I doubt it will make it the 40 years from inception (2046) as per the Trust Agreement for the scheduled date of termination.
Aside from a NYSE market "emergencies" which allows for the suspension of basket redemption (ie. you have 50k shares...but we can't deliver the metal at this time).....one could simply look into the prospectus and see the carefully worded excuses lined up in order to discharge themselves from future liabilities....should "things" not go according to plans.
(Start on page 30 to get a view of JPM's role......page 31 is my favorite)
Nevermind that JPM is not under obligation to assay and guarantee the purity of the silver.....acts of God, terrorism, insurrections....you'd really be surprised at all the excuses they'll have at their disposal to "worm" outta any type of responsibility.
The SLV is an "accident" waiting to happen.....perfect for the sucker that views themself as an "investor"
Become your own bank..."Stash n Stockpile Weapons of Stack Construction!"