Silver ETFs outshining gold in 2010


Markets are CLOSED: December 05, 2010 12:01 PM ET – MarketWatch Databased News

BOSTON (MarketWatch) — Silver isn’t just good as gold — it’s doing even better.

Exchange-traded funds tracking silver have outperformed gold ETFs in 2010 with gains topping 70%, even though the yellow metal tends to hoard the headlines.

Gold may be far more expensive by the ounce, but in percentage terms, silver prices have jumped more than twice as much so far this year.

The iShares Silver Trust rallied last week and is up more than 70% for year-to-date. The ETF holds nearly $10 billion in assets, according to manager Blackrock Inc. .

The largest gold ETF, SPDR Gold Shares, has gained about 28% thus far in 2010.

"Silver is more volatile than gold," said William Rhind, strategic director at ETF Securities. "When metals prices rise, silver outperforms gold because it has more volatility to the upside."

Following a virtually uninterrupted march higher since the summer, silver prices bounced around within a wide range last month. Since the beginning of November, iShares Silver Trust has traded between $24 and almost $29 a share.

After the November correction, the latest leg higher has revived concerns that gold and silver are in a bubble. See Commodities Corner on the rally in gold and other metals.

The ProShares Ultra Silver has rocketed more than 150% so far this year, although the leveraged ETF is designed for trading rather than buy and hold. It aims for 200% of the return of silver prices, but on a daily basis.

Silver is a "hybrid" metal that has store-of-value appeal like gold combined with industrial applications, said Rhind at ETF Securities, which oversees the nearly $400 million ETFS Physical Silver Shares .

Despite the recent spike, silver prices are still well below the nominal record high of almost $50 an ounce seen in 1980 when the Hunt brothers tried to corner the market.

The list of top ETF performers in 2010 is dominated by silver products. Other options include PowerShares DB Silver Fund, Global X Silver Miners ETF , UBS E-TRACS CMCI Silver Total Return and Sprott Physical Silver Trust.

Meanwhile, ProShares UltraShort Silver is a leveraged ETF designed to profit when silver prices fall. These supercharged ETFs can see huge swings tracking what is already an extremely volatile commodity in silver.

Some of the precious-metals products are structured as exchange-traded notes, which carry issuer credit risk. Within ETFs, some hold the physical metal, while others invest in futures contracts or in the equity markets through miner stocks. These differences can affect how capital gains are taxed.

The proliferation of metals ETFs has made it much easier for individuals and funds to invest in these markets, although it’s difficult to pinpoint how much ETFs have fueled the rally.

A mutual-fund manager in China recently said it has been the first to be cleared to invest in foreign gold ETFs. See full story on China and gold ETFs.

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Published in: on May 11, 2011 at 1:08 am  Leave a Comment  

GAO Backs $1 Coin to Replace $1 Bill




Replace the $1 bill with a $1 coin and the U.S. government could save $5.5 billion over 30 years. That’s what the Government Accountability Office reported March 4. It’s a recommendation the GAO has made four times over the past 20 years. Back in 2000, it estimated a $522 million annual savings if the coin became the financial vehicle of choice.

The U.S. government already has $1 coins available for the public to use. It’s just that folks haven’t really taken a liking to them.
There are five different $1 coin designs in circulation: the Eisenhower coin, the Susan B. Anthony coin, the Sacagawea coin, the Presidential series and the Native American series.

From 1979-2009, 4.213 billion of the $1 coins have been placed in circulation, according to the GAO report. And about 1.1 billion $1 coins are held in storage by the Federal Reserve banks because of the limited public demand, according to Federal Reserve officials.
Governments favor replacing bank notes with coins because of lower production costs. The Canadian government estimated it saved $450 million between 1987 and 1991 by replacing notes with coins. However, the latest survey conducted by the GAO shows that 64 percent of Americans prefer the $1 note to the $1 coin.
“We have previously recommended to Congress replacement of the $1 note with a $1 coin and, in view of the ongoing significant estimated federal financial benefit, continue to support this prior recommendation,” the report concludes.

Published in: on March 19, 2011 at 2:16 am  Leave a Comment  

US Mint Product Notification

2011 Medal of Honor Commemorative Coin Program

Celebrate the legacy and heritage of the Medal of Honor with the impressive 2011 Medal of Honor Commemorative Coins.

Honor the distinguished men and woman who have so courageously and selflessly gone above and beyond the call of duty. Your coin purchase is a great way to make a difference.

A surcharge from each coin sold is authorized to be paid to the Congressional Medal of Honor Foundation to help finance its education, scholarship and outreach programs.

For more information from the US Mint click here.


Published in: on February 26, 2011 at 3:41 am  Leave a Comment  

Product Notification


2011 United States Mint
Presidential $1 Coin Proof Set

Bring history to life with the 2011 United States Mint Presidential $1 Coin Proof Set! Each stunning coin features incredibly detailed artwork and edge-incused inscriptions. The four-coin set features coins in proof condition honoring Presidents Andrew Johnson, Ulysses S. Grant, Rutherford B. Hayes and James Garfield. The obverse of each coin features a bold portrait of the President and the reverse features a dramatic rendition of the Statue of Liberty. Order now and celebrate our Nation’s rich history.

Published in: on February 24, 2011 at 4:28 am  Leave a Comment  

Coin Vault Blog I now online


For the past several years we have sold our Coin Vault database software both on EBay and through our website CDP Information Systems.

We also create software for Police Officers and smaller agencies.  Last year we started Blogging law enforcement news and information through our blog at BlogSpot.Com

This blog has been well received from our friends and customers so we decided to do the same for our coin collector friends, as well

As time permits we will publishing news, information and links for the coin hobby.

We will also be publishing a set of EBooks delving into coin issues including the value, mintage, grading, types, and history.

Subscribe to our blog and obtain the latest news from around the world.  

Published in: on February 24, 2011 at 4:09 am  Leave a Comment