HOUSTON (ResourceInvestor.com) -- Silver metal holdings for Barclay's iShares Silver Trust [AMEX:SLV] have increased substantially since June 14, which was one day after the spot price of the metal touched $9.48, its most recent turning low.
On June 13, the trust reported silver holdings amounting to 2,082.9 tonnes of silver bars held by a custodian in London for SLV investors. By yesterday (6/28) metal holdings had ramped up to 2,580.1 tonnes, an increase of 497.2 tonnes or 23.9% over 12 trading days. Meanwhile, silver eased higher for the period, closing Wednesday in New York at $10.23. SLV showed a last trade Wednesday of $102.45.
The trust is a continuous offering exchange traded fund designed to track closely with the price of silver. Each share of SLV approximates 10 ounces of silver metal. The amount of metal holdings and the number of shares of the trust fluctuate according to the price of, and demand for the shares relative to the price of silver. The trading vehicle only invests in silver metal and does not use futures, options or derivatives.
The price of silver peaked May 11 at $15.21 and then began a sharp retrace. At its recent nadir silver had given back 37.7% from the May 11 peak.
From June 14 through yesterday SLV has added new silver at a pace of 41.4 tonnes of silver per trading day. Each metric tonne contains 32,150.75 ounces or roughly 32 average 1,000 ounce good-delivery bars. 2,580.1 tonnes, worth $860.7 million Wednesday, represents about 82,563 of the heavy pure (minimum .999 fine) silver blocks.
A noted: "The recent sharp plunge in silver price has apparently triggered increased interest and a return to positive money flow in (Barclay's) silver exchange traded fund from bargain minded investors and speculators."
Since that June 18 report it seems that positive money flow into SLV has continued at a remarkable pace.