Traders'' positions are unfavorable to gold and silver for short term

Section:

GATA wishes that we'd have to make this stuff up.

* * *

First silver ETF filed;
Barclays trust would be based on gold ETF model

By John Spence
CBSMarketWatch
Monday, June 20, 2005

http://www.marketwatch.com/news/story.asp?guid=%7B5E1370AE-59DC-4FBF-
9A56-75B69A7907BD%7D&siteid=mkwt

BOSTON -- Barclays Global Investors filed an initial prospectus for
the first exchange-traded fund to reflect the price of silver
bullion.

If approved by the Securities and Exchange Commission, the ETF's
shares would trade on the American Stock Exchange under the
symbol "SLV."

Each share of the ETF would be equivalent to 10 ounces of silver,
according to the filing made late Friday by Barclays.

The ETF is structured as a trust and not an investment company
registered under the Investment Company Act of 1940.

The silver held by the ETF would be valued on the basis of that
day's announced London Fix, the price per ounce set by three market-
making members of the London Bullion Market Association at
approximately noon, London time, each day.

On Friday, the London Fix for silver was $7.37 an ounce.

Bank of New York is named as the trustee for the silver ETF and the
London branch of J.P. Morgan Chase Bank is the custodian, according
to the Barclays filing.

The sponsor's fee is 0.5% of the adjusted net asset value of the
trust, according to the filing. The trust may sell of some of its
silver to cover expenses, meaning the amount of silver per share may
vary over time.

The silver ETF appears structured similarly to two existing gold
ETFs -- StreetTracks Gold Trust (GLD) and iShares Comex Gold Trust
(IAU). Shares of the gold ETFs represent ownership in fractions of
ounces of gold bullion held in a vault.

In recent weeks, market observers have said anticipation of the
first silver ETF filing may have been pushing price of the metal
higher.

"Gold has been strong the past few weeks, but quite often silver has
been leading the charge," said Ross Norman, a director at
TheBullionDesk.com in London. "The tail has been wagging the dog,
and the rationale is that there is some buying ahead of the silver
ETF."

"Silver is such a small, tight, relatively illiquid market that a
successful innovation in the way for individuals and mutual funds to
own silver, without the hassles of storage costs and steep premiums
to spot, could have a pronounced effect on the silver price," wrote
Todd Stein and Steven McIntyre of the Texas Hedge Report in recent
commentary.

The introduction of StreetTracks Gold Trust, the first gold ETF, in
November was one of the most successful mutual-fund launches of
2004, as the ETF gathered about $550 million in its first day of
trading.

It now has roughly $2.5 billion assets, compared with $175 million
for the iShares Comex Gold Trust, which began trading in January.

Like the gold funds, the silver ETF launch could tap pent-up demand
from institutional investors that cannot hold silver directly.

"The real question is if there will be ongoing demand after the
launch," said Norman at TheBullionDesk.com. "The gold ETFs saw
phenomenal demand initially that petered out later."

Similar to investing in gold ETFs, silver is classified as
a "collectible" by the IRS -- if held for more than one year, gains
are taxed at a 28% rate, compared with the 15% rate applicable to
most other long-term capital gains.

----------------------------------------------------

To subscribe to GATA's dispatches, send an e-mail to:

gata-subscribe@yahoogroups.com

To unsubscribe, send an e-mail to:

gata-unsubscribe@yahoogroups.com

----------------------------------------------------

RECOMMENDED INTERNET SITES
FOR DAILY MONITORING OF GOLD
AND PRECIOUS METALS
NEWS AND ANALYSIS

Free sites:

http://www.jsmineset.com

http://www.cbs.marketwatch.com

http://www.mineweb.com/

http://www.gold-eagle.com/

http://www.kitco.com/

http://www.usagold.com/

http://www.usagold.com/amk/usagoldmarketupdate.html

http://www.GoldSeek.com/

http://www.GoldReview.com/

http://www.capitalupdates.com/

http://www.DailyReckoning.com

http://www.goldenbar.com/

http://www.silver-investor.com

http://www.thebulliondesk.com/

http://www.sharelynx.com/

http://www.mininglife.com/

http://www.financialsense.com

http://www.goldensextant.com

http://www.goldismoney.info/index.html

http://www.howestreet.com

http://www.depression2.tv

http://www.moneyfiles.org/

http://www.howestreet.com

http://www.minersmanual.com/minernews.html

http://www.a1-guide-to-gold-investments.com/euro-vs-dollar.html

http://www.goldcolony.com

http://www.miningstocks.com

http://www.mineralstox.com

http://www.freemarketnews.com

http://www.321gold.com

http://www.SilverSeek.com

http://www.investmentrarities.com

http://www.kereport.com
(Korelin Business Report -- audio)

http://www.plata.com.mx/plata/home.htm
(In Spanish)
http://www.plata.com.mx/plata/plata/english.htm
(In English)

http://www.resourceinvestor.com

http://www.miningmx.com

http://www.prudentbear.com

http://www.dollarcollapse.com

http://www.kitcocasey.com

http://000999.forumactif.com/

http://www.golddrivers.com/

http://www.goldpennystocks.com/

Subscription sites:

http://www.lemetropolecafe.com/

http://www.goldinsider.com/

http://www.hsletter.com

http://www.interventionalanalysis.com

http://www.investmentindicators.com/

Eagle Ranch discussion site:

http://os2eagle.net/checksum.htm

Ted Butler silver commentary archive:

http://www.investmentrarities.com/

----------------------------------------------------

COIN AND PRECIOUS METALS DEALERS
WHO HAVE SUPPORTED GATA
AND BEEN RECOMMENDED
BY OUR MEMBERS

Blanchard & Co. Inc.
909 Poydras St., Suite 1900
New Orleans, Louisiana 70112
888-413-4653
http://www.blanchardonline.com

Centennial Precious Metals
3033 East First Ave., Suite 807
Denver, Colorado 80206
1-800-869-5115
http://www.USAGOLD.com
Michael Kosares, Proprietor
cpm@usagold.com

Colorado Gold
222 South 5th St.
Montrose, Colorado 81401
http://www.ColoradoGold.com
Don Stott, Proprietor
1-888-786-8822
Gold@gwe.net

El Dorado Discount Gold
Box 11296
Glendale, Arizona 85316
http://www.eldoradogold.net
Harvey Gordin, President
Office: 623-434-3322
Mobile: 602-228-8203
harvey@eldoradogold.net

Gold & Silver Investments Ltd.
Mespil House
37 Adelaide Rd
Dublin 2
Ireland
+353 1 2315260/6
Fax: +353 1 2315202
http://www.goldinvestments.org
info@gold.ie

Investment Rarities Inc.
7850 Metro Parkway
Minneapolis, Minnesota 55425
http://www.gloomdoom.com
Greg Westgaard, Sales Manager
1-800-328-1860, Ext. 8889
gwestgaard@investmentrarities.com

Kitco
178 West Service Road
Champlain, N.Y. 12919
Toll Free:1-877-775-4826
Fax: 518-298-3457
and
620 Cathcart, Suite 900
Montreal, Quebec H3B 1M1
Canada
Toll-free:1-800-363-7053
Fax: 514-875-6484
http://www.kitco.com

Lee Certified Coins
P.O. Box 1045
454 Daniel Webster Highway
Merrimack, New Hampshire 03054
http://www.certifiedcoins.com
Ed Lee, Proprietor
1-800-835-6000
leecoins@aol.com

Lone Star Silver Exchange
1702 S. Highway 121
Suite 607-111
Lewisville, Texas 75067
214-632-8869
http://www.discountsilverclub.com

Miles Franklin Ltd.
3015 Ottawa Ave. South
St. Louis Park, Minn. 55416
1-800-822-8080 / 952-929-1129
fax: 952-925-0143
http://www.milesfranklin.com
Contacts: David Schectman,
Andy Schectman, and Bob Sichel

Missouri Coin Co.
11742 Manchester Road
St. Louis, MO 63131-4614
info@mocoin.com
314-965-9797
1-800-280-9797
http://www.mocoin.com

Resource Consultants Inc.
6139 South Rural Road
Suite 103
Tempe, Arizona 85283-2929
Pat Gorman, Proprietor
1-800-494-4149, 480-820-5877
Metalguys@aol.com

Swiss America Trading Corp.
15018 North Tatum Blvd.
Phoenix, Arizona 85032
http://www.swissamerica.com
Dr. Fred I. Goldstein, Senior Broker
1-800-BUY-COIN
FiGoldstein@swissamerica.com

The Moneychanger
Box 178
Westpoint, Tennessee 38486
http://www.the-moneychanger.com
Franklin Sanders
1-888-218-9226, 931-766-6066

----------------------------------------------------

HOW TO HELP GATA

If you benefit from GATA's dispatches, please
consider making a financial contribution to
GATA. We welcome contributions as follows.

By check:

Gold Anti-Trust Action Committee Inc.
c/o Chris Powell, Secretary/Treasurer
7 Villa Louisa Road
Manchester, CT 06043-7541
USA

By credit card (MasterCard, Visa, and
Discover) over the Internet:

http://www.gata.org/creditcard.html

By GoldMoney:

http://www.GoldMoney.com
Gold Anti-Trust Action Committee Inc.
Holding number 50-08-58-L

Donors of $1,000 or more will, upon request,
be sent a print of Alain Despert's colorful
painting symbolizing our cause, titled GATA.

Donors of $200 or more will receive copies
of "The ABCs of Gold Investing" by Michael
Kosares, proprietor of Centennial Precious
Metals in Denver, Colorado, and "The Coming
Collapse of the Dollar" by James Turk and
John Rubino.

GATA is a civil rights and educational
organization under the U.S. Internal Revenue
Code and contributions to it are tax-deductible
in the United States.