First of all, silver ETF is a financial derivative product based on silver, which tracks the fluctuation of spot silver price. A large silver producer entrusts physical silver to a fund company, and then the fund company relies on this physical silver to publicly issue fund shares on the exchange and sell them to various investors. Commercial banks act as fund custodians and physical custodians respectively, and investors can freely redeem the funds during their existence. Its position is the fund position.

One of the most important factors affecting the trend of silver price is the relationship between supply and demand of silver, and the change of ETF silver position mainly affects the fluctuation of silver price through the relationship between supply and demand in the market. In the analysis of silver price, every analyst must pay attention to the position of silver ETF and its changes. To some extent, in the analysis of silver price, the analysis of ETF positions is equivalent to the analysis of exchange inventory of other commodities and the position structure of domestic futures market, which is essentially similar to the position structure and price analysis of institutional investors in the stock market.

The insiders believe that from the long-term silver price chart, every big change in silver price has a lot to do with the big throwing or inhalation of silver ETF. Whenever the position of silver ETF reaches a new high, the price of silver will also reach a new high. Silver ETF shows that the increase in silver selling volume will also greatly suppress the price of silver. So what impact does the change of silver ETF position have on silver price?

1. Self-factors. As the trading volume of ETF is relatively large, every increase or decrease in positions will have an impact on the supply and demand of silver in the current market. For example, Masukura is equivalent to increasing holdings, which will increase the confidence of silver investors and lead to price increases. Reducing positions is the opposite, which is not good for silver.

2. Many people will pay attention to the position of ETF. If they increase their positions, some people in the market will also increase their positions, which will have a certain collateral effect, leading to an increase in market buying, which is just the opposite of lightening their positions. It should be noted that ETF has increased or decreased its position when it announced the change of its position. At this time, the influence of the first factor has been digested, and we should pay attention to the operation behind ETF.