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ETFs’ silver holdings up titled a recent article about ETF silver holdings thusly:

London-Listed Silver ETF Unloading Holdings

A title with a negative connotation. However, the article itself was rather bullish on silver.

On reading the article, you will learn that although the small London-based ETF had about 3.5 million ounces (99 tons) worth of silver redemptions from February, the larger U.S.-based iShares saw an increase in holdings of 563 tons since February, for a net increase of 464 tons (nearly 15 million ounces). While the smaller ETF now holds a mere 285 tons, iShares holds 5,928 tons.

I found it interesting that in choosing the title for the article, the writer emphasized the action in the smaller fund. The writer also chose to quote two industry players who have negative outlooks for silver.

However, to his credit, the writer let Jeffrey Christian, CEO of CPM Group, counter. Christian said he did not agree with this contention that silver’s fundamentals are turning bearish.

In its 2008 Silver Yearbook, CPM Group predicted a third consecutive year of net buying by investors, with them buying a projected 74.9 million ounces of silver. In 2008, total supply is projected to increase 3.9% to 815.1 million ounces, while fabrication demand will rise 2.2% to 740.2 million ounces.

The difference between the 815.1 million-ounce supply and the 740.2 million-ounce industrial demand will be picked up, according to CPM Group, by investors. If investors buy more than 74.9 million ounces, we have upward pressure on the price of silver.

Additionally, the article discusses the differences in thinking about silver between Europeans and peoples in other part of the world. Europeans are not big fans of silver; however, North Americans, Indians, Chinese and Middle Easterners are.

All in all, the article’s an informative read about silver. Still, I wonder why writers so often attempt negative spins on silver when the fundamentals for investing in silver are so positive. For an example, see my April 30 post Reuters attempts hatchet job on silver.