iShares SLV to issue more Shares

We are a little late in reporting this but we just found a report over at miningmx.com

that says iShares will be issuing 15.2 million more shares of it’s iShares Silver Trust which holds pure silver to value the trust. Symbol SLV on the AMEX.

The fund was started with 16.8 million shares back in April which would mean this move would double the amount investors had to work with. With that, a Barclays spokeswoman said that even though they are going to issue the shares it doesn’t mean they are going to “automatically” buy additional metal.

In theory that would mean the price of SLV would decrease making it easier and more affordable for investors to purchase larger quantities of the turst. Right now the price sits at around $130 which as you can see by the ticket in the upper right hand corner comes out to about 1 share for 10 ounces of silver.

Now being an exchange traded fund the price doesn’t always exactly follow the value of the fund but we hope with this move to make more shares of SLV available to investors, they’ll be able to increase their holdings before iShares decides to increase it’s physical silver holdings.

technorati tags:SLV, Silver, Precious, Metals, Investing, Money