Claymore Files Prospectus For Silver Bullion ETF

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June 12, 2009 10:27am ETF BASIC NEWS NYSE:GLD

silver-bars“Investors will soon have a pure play on physical silver bullion, following the filing of a preliminary prospectus by the Claymore Silver Bullion Trust in connection with its initial public offering. The offering price of the Units is $10 with a firm $200 million cap, according to a press release issued today by Claymore Investments Inc. The management fee is 0.6%,” Jonathan Chevreau Reports. 


“Since silver billion is priced in American dollars, Claymore intends to hedge back into the Canadian dollar. The fund will be converted automatically into an exchange-traded fund (ETF) if the fund units trade  at a discount to net asset value six months after  the closing of the offering,” Jonathan Chevreau Reports.

About The New Fund:

The Fund’s investment objective is to replicate the performance of the price of silver bullion, less the Fund’s expenses and fees. This objective will be accomplished by the Fund investing the net proceeds of the Offering in holdings of unencumbered silver bullion. This strategy will provide investors with the ability to invest in silver bullion in a convenient, tradable and secure manner without the associated inconvenience and high transaction, handling, storage, insurance and other costs typical of direct silver bullion investment.

ETF DAILY NEWS TAKE:  This new Silver fund will be similar to the SPDR Gold Shares Trust (GLD), which it will hold a stake in the physical metal.  This new fund will provide a great alternative to iShares Silver Trust (SLV) which does not provide the exact equivalent of an investment in silver.

Full Story: HERE


 

We ran these two ETF’s through the market club software and found the following results from their chart analysis program:

SPDR GOLD TRUST ETF (PACF:GLD)
Smart Scan Chart Analysis indicates a counter trend rally is underway The current up-trend could be changing and moving into a trading range Sidelines Mode.Based on a pre-defined weighted trend formula for chart analysis, GLD scored +55 on a scale from -100 (strong downtrend) to +100 (strong uptrend):
     
-10 Last Hour Close Below 5 hour Moving Average
-15 New 3 Day Low on Friday
-20 Last Price Below 20 Day Moving Average
+25 New 3 Week High, Week Ending June 6th
+30 New 3 Month High in June
+55 Total Score

 

iShares SILVER TRUST ETF (PACF:SLV)
Smart Scan Chart Analysis indicates a counter trend rally is underway The current up-trend could be changing and moving into a trading range Sidelines Mode.Based on a pre-defined weighted trend formula for chart analysis, SLV scored +55 on a scale from -100 (strong downtrend) to +100 (strong uptrend):
     
-10 Last Hour Close Below 5 hour Moving Average
-15 New 3 Day Low on Friday
-20 Last Price Below 20 Day Moving Average
+25 New 3 Week High, Week Ending June 6th
+30 New 3 Month High in June
+55 Total Score

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