Thread by @profitsplusid

The Silver ETF #SLV is getting more perplexing.

On Friday 8.8 million shares outstanding were created, the fund went to a premium to NAV of 2.79%. This means the market value of each share were worth more than the fund's assets per share (silver plus any cash).

What was really odd was that on September 16 there were 477,738,959.20 Ounces in the trust. On that day 8.8 million shares were created. Supposedly silver is delivered in lieu of shares being created, However, the net ounces in the fund dropped as of Sept. 18, 2022 Bar list

From the prospectus: "The Trust issues and redeems Baskets on a continuous basis. Baskets are only issued or redeemed in exchange for an amount of silver determined by the Trustee on each day that
NYSE Arca is open for regular trading."

prospectus cont'd
"No Shares are issued unless the Custodian has allocated to the Trust’s account (except for an unallocated amount of silver not in excess of
1,100 ounces), the corresponding amount of silver."

Again, it was reported this morning there were 469,631,731.9 ounces accounted for in the SLV depositories. About a 1.7% drop from what was reported the prior day.

How can SLV issue net new shares while reducing the net amount of silver at the same time?

At the same time the borrowing fee to short SLV shares remains at the highs of the year. Even after 8.8 million new shares created.

Can anyone explain this activity? Please retweet this, I would sincerely like an explanation from any of the Authorized Participants.

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