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« Silver Standard Resources Incorporated Up 9.35% today | Main | George Brack joins Silver Wheaton Corporation »
Saturday
Nov282009

Silver Bullion ETF in Switzerland: SIVR

With the overwhelming popularity of SLV as a physical silver bullion exchange traded fund and other precious metal ETFs and ETNs, another fund has set up which provides a similar function, albeit with one key difference.

Back in September, ETF Securities launched SIVR, a physical silver ETF like SLV except the silver is stored in vaults in Switzerland, unlike SLV where the gold is in the USA.

During the 1930's President Roosevelt issued an executive order banning American's from owning gold and making it illegal to own gold in the USA. Although a repeat of such an order is unlikely to happen again, it still remains a possibility and therefore a threat to anyone with gold or silver holdings in the USA.

Therefore it would be prudent to hold some silver outside of US borders, such as in Switzerland, just in case such an scenario should arise again and the US government made owning silver bullion illegal.

However despite a “safe” reputation, Switzerland still has a government and any government cannot be fully trusted. Therefore rather than place all your eggs in one basket, a better idea would be to hold a portion of SLV and a portion of SIVR, so to split your risk. Both ETFs trade on American exchanges, and although SLV is more liquid and has a much larger market cap, SIVR still has good enough volume for the retail investor.

We are simply putting SIVR up as an alternative, or even more a complement to SLV. Physical bullion ETF's still poise risks and would not work as well in an armageddon scenario as bullion under your bed so to speak!

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Reader Comments (6)

could the gov't not take same action to ban ownership of shares pertaining to gold/silver? all records/controls of shares on usa exchanges are within gov't
access/control. records of exchange for amts$ beyond $10K to foreign exchanges also.

November 29, 2009 | Unregistered Commenterfran

Hi Bob,
Below is another swiss etf that has been in existantce for some time.
They also have a gold and platinum etf.

ZKB SILVER ETF ACHF
(Swiss: ZSIL.SW)

November 29, 2009 | Unregistered CommenterT

From their website ( http://www.etfsecurities.com/us/faqs/etfs_faqs.asp#5 ):

The custodian for the ETFS Silver Trust is HSBC USA. The bullion held by the trust is stored in HSBCs vaults in London, England under maximum security.

The custodian for the ETFS Gold Trust is JPMorgan Chase Bank, N.A. The bullion held by the trust is stored in secure vaults in Zurich, Switzerland under maximum security.

November 29, 2009 | Unregistered CommenterDavid

Is SLV the same as SLVR? Easy to confuse SIVR with SLVR. There is also another PHSP. Whwere is this based . Is one more safe than another?

November 30, 2009 | Unregistered Commentersilver bug

Recent events (May 1, 2011) are causing many to beleive that SLV may not be solvant. A big development in the physical world of silver was the liquidation of silver from the big silver ETF, SLV. Over 40 million ounces has been redeemed from the Trust in just the first three weeks of May. Shareholders have sold in response to the 30% drive-by-shooting (questionable actions) of silver prices.
At the same time, the Paper Silver contracts associated with the 40 million ounces may not be directly accounted for. Besides dozens of law suits regarding fraud, the shortage of physical has raised premium percnets to new highs. If 1,000 ounce industrial silver has a 10 to 12 week delivery date.... the prices on SLV can hardly be regarded as "spot". E-Bay charts show double digit premium percents due to the physical silver shortage.
How can prices drop 30% during a shortage?
SVR Paper Silver Contracts have many questions to answer.
I pulled out of SVR months ago. In the past, I have had my money in banks that failed. Experts scoffed at the idea of a bank failure... until after it actually happened.
Unlike SVR (audited by one US company), SIVR has independent audits. Remember Auther Anderson? Singer auditors can be paid off. The idea of transparancy works in a free market. SVR has too many unknowns for me.

May 22, 2011 | Unregistered CommenterSilverProfit

SilverProfit,

When we put a number of questions to the people at GLD, we were non too impressed with the answers, a tad too much third party risk.

May 24, 2011 | Unregistered CommenterSilver Prices

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