Gartman Dismisses Nonsense Rumour About Silver ETF
Gartman Dismisses Nonsense Rumour About Silver ETF March 07 2006 - Australasian Investment Review – (AIR)
Gold already has an Exchange Traded Fund (ETF), so in the view of many market commentators such as Dennis Gartman it is only a matter of time before a silver ETF is also established.
In Gartman’s view the ETF is likely to prove very popular, which may have implications for the silver market given above ground supplies of the metal are limited.
Despite this, he suggests one rumour regarding the establishment of the ETF is utter nonsense. The rumour is the ETF cannot be established until 130 million ounces of silver have been accumulated, which is coincidentally the same amount of silver reportedly held in storage by Warren Buffet.
Connecting the dots, there is speculation the silver ETF is being promoted primarily as a way to get Buffet out of his silver position without damaging the market too much.
Gartman counters this by noting to establish the ETF only 1.5 million ounces of silver will be required, though more silver is likely to be acquired as investors add to their positions.
Like gold, silver has enjoyed a good run over the past few months and is currently trading at above US$10/oz.
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