As you may know, we are as BULLISH as they come on SILVER and the best way to get exposure on the ASX is via units in ETPMAG.
ETPMAG is an exchange traded fund which owns allocated SILVER bullion that is located in a vault in London. Unit owners are also entitled to redeem their SILVER bullion from the fund which is a good feature.
Investors need to be reminded that ETPMAG moves up and down based on the price in Aussie dollar SILVER and not the USD price which you see quoted on the TV or most financial websites.
How does ETF securities which administers ETPMAG get paid?
Every unit comes with an entitlement to an amount of physical bullion. This amount is currently 0.936335879 and will be reduced daily by a management fee of 0.49% per annum.
How to reconcile the price of ETPMAG traded on the ASX?
Current price of SILVER in AUD multiplied by the metal entitlement.
$30.74 x 0.936335879
=$28.78 (which is very close to price at the time of writing this article)