tag:blogger.com,1999:blog-6089228851855763774.post7426633128310005191..comments2024-03-29T07:10:06.022+08:00Comments on Gold Chat: SLV and Jeff NielsonBron Sucheckihttp://www.blogger.com/profile/00530576934994289879noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-6089228851855763774.post-66387881564841703932009-10-09T17:37:29.706+08:002009-10-09T17:37:29.706+08:00Thanks for the heads up, Alan, I've left a res...Thanks for the heads up, Alan, I've left a response at Zero Hedge.<br /><br />Nickname, you are right about the silver storage, I couldn't find publically available info to support 0.5% for silver like I could for gold so that's all I had to go with.<br /><br />Silver is bulky, but offsetting that is the fact that its bulk makes it less of a theft risk, so insurance costs are lower. In fact, one could argue that if silver is stored in the same vault as gold its insurance cost should be zero because who is going to steal 20t of silver instead of 20t of gold if you have a choice.<br /><br />Anyway, at 0.5% I'd be happy to store all SLV's silver - a vault is ultimately just a big concrete box so one off fixed cost with ongoing 0.5% every year.Bron Sucheckihttps://www.blogger.com/profile/00530576934994289879noreply@blogger.comtag:blogger.com,1999:blog-6089228851855763774.post-65193696374577268782009-10-09T11:29:41.679+08:002009-10-09T11:29:41.679+08:00Bron,
Thank you again for demystifying the precio...Bron,<br /><br />Thank you again for demystifying the precious metal industry and above all for the level-headedness of your commentary.<br /><br />There is one weakness in your arguments above, which is assessing the reasonableness of silver storage costs by comparison with gold storage costs. Silver takes up way more space for a given value that gold does, so logically it should cost more to store for a given value than gold does. <br /><br />I can't find a reference on this, but I seem to remember that Bullionvault, your example of low storage costs, was reluctant to be in the silver business because of the higher storage expenses.<br /><br />That said, I haven't a clue whether 0.5%/yr is reasonable for silver in large quantities, so I'll sit back and listen to people with some industry knowledge.Unknownhttps://www.blogger.com/profile/11628478698219061504noreply@blogger.comtag:blogger.com,1999:blog-6089228851855763774.post-16984759676885929012009-10-08T00:46:27.307+08:002009-10-08T00:46:27.307+08:00off topic heads up:
US Mint suspends gold Eagle ag...off topic heads up:<br />US Mint suspends gold Eagle again<br />http://www.zerohedge.com/article/us-mint-suspends-production-american-eagle-gold-and-silver-bullion-coins-due-unprecedented-dalan vonaltendorfhttp://www.cwsx.orgnoreply@blogger.com