posted on Feb, 25 2009 @ 12:42 AM
With respect to GLD, I'm not aware of a 'cap' on HSBC' custodial liability. Current inventory is listed at just over 33MM oz.
Around the beginning of 07, JPM changed its SLV custodial liability from 1BB oz..to..264,550,265oz. At the same time, all references to the term
'Bullion' were dropped from the original prospectus.
Initially: The Trust is designed to provide a vehicle for investors to own interest in silver bullion.
Today: The iShares are intended to constitute a simple and cost-effective means of making an investment similar to an investment in silver.
Are SLV shares backed by actual bullion...or a combination of bullion/derivatives? Questions still abound regarding the integrity of SLV/GLD