VIDEO: BlackRock Buys Physical Silver

Adds to PSLV

VBL

May 22, 2023

∙ Paid

What Actually is PSLV?

An ETF?....no

A Physical ETF?.. getting warmer

A rental unit for SEC regulated financial funds to warehouse Physical Silver offsite? ...Bingo

UPDATED: Video

Recently BlackRock announced it significantly added to its PSLV stake. Our weekly podcast for Arcadia Economics will cover it in depth on the SilverFix at 1 p.m. ET. Youtube Link HERE. Their timing is fortuitious and not coincidental.

If you miss it, we will get you a link in the GoldFixPM Post.

In the meantime, find below an outline and slides for that presentation. (BOA Silver report and more reattached at bottom)

BlackRock Buys Physical Silver

Bottom Line

Broader Institutional Acceptance
More investor interest
An increasing awareness of the advantages of physical over paper

Background

Not yet broadly held by institutions

Has no options attached to it

Has a decent size short float- tactical

Immediate Implications

PSLV may begin to command a larger premium to SLV due to the above factors
It’s beta as a Silver proxy will increase performing like a leveraged miner
Blackrock is most likely buying a call on their SLV portfolio. A kicker
Implications for SLV- JPM bank, etc default risk

Institutional Implications

Broader institutional interest will now be “permitted” to be had
The Sine curve model
1. Launch, Analyst pick up, Adoption, Maturity

Longer Term

If physical silver shortage awareness hits the mainstream, you could see the PSLV premium be similar to the premium of coins over spot.
Likelihood of pension, state, and international adoption of PMs grows
Price appreciation commensurate with its rarity and industrial use

Hot Takes

Adults are entering the room
This is solar and Net Zero Energy Based- Blackrock is Woke
They are not cannibalizing one ETF for the other
1. less than 10mm ounces
2. not worth it even if they wanted to
There will be new products coming along soon - To accommodate awareness