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Signed, Sealed, Delivered?

There are many positive recent developments in the silver market. The most noteworthy is the approval by the Securities and Exchange Commission (SEC) to the American Stock Exchange (AMEX) to list the silver ETF (Exchange Traded Fund). It appears that actual trading of the ETF is only a matter of time. Silver prices rose to new highs on the news.

To say I was surprised by the approval would be an understatement. In fact, I’ll only truly believe it when I see this ETF actually trading. Certainly, the news is good for silver prices and those who expect higher prices. I question the propriety of two decidedly non-commodity institutions, the SEC and the AMEX, passing judgment on a commodity issue, namely, how much silver is available for purchase. How the Commodity Futures Trading Commission, an agency authorized by Congress to oversee commodity matters, managed to sidestep the most important decision in silver history without uttering a single public word is disturbing.

My surprise at the approval stems from the fact of how bullish a silver ETF could be. If someone had asked me to devise a method, or scheme, that could propel silver prices sharply higher, I don’t think I could have dreamed up anything more potentially bullish than the Barclays ETF. (Not that the silver market needed a new major bullish development in order to climb in price).

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