The silver ETFs suffered losses of more than 20% last week as the metal’s price dropped sharply. Last week, iShares Silver Trust saw redemptions of about $1 billion, following outflows of roughly $500 million the week before.
The ETF’s bullion holdings have also fallen, although it still holds more than 10,000 metric tons of silver, or about 340 million ounces.
“The ETF holds only silver bullion,” said Clemonds at iShares. “Silver bullion moves in or out [of the ETF]based on creations or redemptions. It literally holds bars of silver, no futures.”
Some metals ETFs hold physical bullion, while others may invest in futures contracts or mining shares.
iShares Silver Trust
Full disclosure: Tom Lydon’s clients own SLV.