Silver ETF hits critical mass

    /24-7PressRelease/ - SPOKANE WA, May 13, 2006 - Silver ETF hits critical mass and most in the financial world don't even know it. Silver expert David Morgan of silver-investor.com has just released news that is critical to silver investors worldwide.

"Authorized Participants that wish to redeem a Basket of Shares will receive the Basket Silver Amount in exchange for each Basket surrendered. JP Morgan Chase Bank, N.A., London Branch will be the custodian for the Trust and responsible for safekeeping the silver." Followed by footnote 29.

Footnote 29 states: "If the total value of the Trust's silver held by the Custodian exceeds $1 billion, then the Custodian will be under no obligation to accept additional silver deliveries. In such a case, the Trustee will retain an additional custodian."

At this point in time May 11, 2006 the Silver ETF has 58 million ounces of silver in trust and is selling at a 4.5% premium. The Silver ETF has a current value of approximately $877 million which means we are already about 88 percent of the level that JP Morgan will be "under no obligation to accept additional silver deliveries" emphasis ours.

What will this mean for the silver market? What if physical demand continues at the current pace? The amount of physical silver put into trust from Silver ETFs first day of trading to present time is nearly 60 million ounces of silver. This is in ten days of trading.

Many have commented that it is nearly impossible to deliver the amounts of physical silver into the vaults without the silver already resting in place. Berkshire Hathaway's silver was in London and Barclays Silver ETF is in London, is it the same silver?

Mr. Morgan is a contributor to Mining Industry Review an e-TV program available at FreeMarketNews.com He also hosts a weekly Metals Wrap up each week on the Financial Sense News Hour. Mr. Morgan and has written numerous articles, his e-mail newsletter, The Morgan Report, is issued on a monthly basis and includes economic news, overall financial health of the global economy, currency problems ahead and the reason why people need to be invested in the precious metals. His website is silver-investor.com. His book "Get the Skinny on Silver Investing" should be available shortly.

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