Replies to post #16402 on iShares Silver Trust (SLV)

[The GidDy uP Kid]

One reason might be to keep the price suppressed so more are discouraged from taking delivery and encouraged to roll over the contract or take the loss and move on... but maybe this doesnt have as much bearing as I think... Apparently its hard for the average investor to take delivery... they add all kinds of restrictions, loopholes, fees etc to discourage it...

I took delivery of a COMEX silver contract recently, and encourage others to do the same. I wanted to relay me experience to the forum.

I emailed by broker at Lind-Waldock a couple of days before first-notice day. I was required to have sufficient money in my account on first notice day to take delivery. A couple of days after first-notice day, I received an email instructing me to contact a person at the Scotia Mocatta depository. I contacted the warehouse and they faxed me a computer record reflecting a warehouse receipt which identified the serial numbers and weights of the 5 bars. The warehouse person also gave me phone numbers for couriers, including Brinks, Dunbar, and IBI.

I was required to pay a $100 fee to Lind-Waldock, and $136 to Scotia Mocatta for the privilege of taking delivery.

I contacted the couriers. Brinks refused to provide me a quote, stating that they do not deal with individuals. IBI stated that they would not be cost-competitive for a single contract, and did not provide a quote. Dunbar was easy to work with, and quoted just under $1000. I also contacted another courier, who quoted $1650 and a futures dealer who helps folks take delivery, fortwealth.com, who quoted $2000. I chose Dunbar (212.382.1177 x102).

Scotia Mocatta required that I send them a notarized letter releasing my product to Dunbar. I paid Dunbar using a credit card. The New York Dunbar representative obtained permission from the Dunbar office in a city nearby me to allow me to pick up my bars from their office. I was reluctant to draw attention to the delivery by meeting an armored carrier at my place of business, and the carriers will not deliver to residences, so this was a plus. The other day, I drove to the Dunbar office and a guard loaded five 1000-oz. bars into my trunk.

By the way, there was no delay in receiving information about "my" bars, and the serial numbers of the bars I received matched the numbers originally documented in the information sent to me. The depository seemed to respond in a timely manner throughout the process.

Now, if we can just get about 50,000 more people to take delivery of a contract or two, it will be interesting to determine when the warehouses run out of product and what happens to the shorts.

- Bobster

http://www.goldismoney2.com/showthread.php?4856-Delivery-of-a-COMEX-silver-contract-My-experience