Howdy folks, Please note that between Jan 8 and 15, they will be rebalancing commodity index funds and the POS will probably take a hit of 10-15%. This is ALL fixed rule programmed selling that has nothing to do with the market forces. Later in the month, the POS will revert to being driven by fundamentals. Silver normally makes up a certain percentage of the Bloomberg commodity index. Whelp, seeing silver went parabolic this past year, they have to rebalance. That means all the funds that track this index have to sell a bunch of silver. Be prepared and sit it out. This might be the best buying opportunity of our lifetimes. and so it goes, peace, rono
I don't mess with wallstreet so I never heard of this stuff. Sounds an aweful lot like rigging to me?
I believe this is the real deal . . . the funds try to maintain their targets, and if the commodity's share of the fund has grown outsized because of the increase in spot, re-establishing its target share (in dollars) involves selling some of it off.
Not a bad idea to do some rebalancing of our own holdings as well, I suppose, but it's more work with physical.
Sold my SLV position out near the days peak on Friday morning I’ll be back in after the rebalancing reset. My physical will just ride waves up and down.
Does rebalancing mean silver shorts can use the price drops to cover and, Walla, they're "geniuses" again?
I also sold all my SLV on Friday at $68.95 and will watch a while and yes all my coin/bullion will have to adjust to market. I also thought of dumping a bunch of lower grade Morgans Friday but LCS's weren't paying any where's near the $58.95 conversion so they'll collect dust too!
While rebalancing is a thing, I don't think this will drive the market down significantly. Too many folks are listening to AI on social media (Asian guy). If it were that easy everyone would sell before and rebuy.
If you are asking me, no. I own physical metals. I own several stocks and am a long-term investor. Timing the market is impossible. If I did own SLV I would not be selling prior to next week if I thought it would continue to go up. I've said it before, to ME, gold and silver are stores of value. The stock market it where you make money. Is it great that gold and silver have gone up so much, yes. Made much more money in the stock market - and btw, by NOT rebalancing. Why sell winners to buy losers? (I can manage my own risks because I know and follow what I invest in.)
Right and silver keeps bouncing just Under my target number. Interesting concept of rebalancing BUT who set the trigger number? Wouldn't that be a little higher to max or get a better ROI?
The ‘trigger number’ is the per cent of the index each holding is at. Usually the prospectus would dictate that %
So the index is Bloated and they are looking at rebalancing. Like loosing a few pounds after the New Year
