SLV’s prospective states that if they can’t get physical delivery, the NAV just diverges from spot silver. So tell me how that works? It doesn’t.
Silver Trust allow authorized participants to issue or redeem large blocks of shares, known as baskets. To create a basket of 50,000 shares, an authorized participant merely has to deliver the appropriate amount of silver — currently, about 46,450 ounces. Similarly, an authorized participant can deliver 50,000 shares to the trust and demand to receive the same corresponding amount of silver bullion in exchange.
In case you dont understand... arbitrage will soak up physicals in case of any divergence.