e-Silver with NSEL is Safe?

#1
Hi guys, it has been a very long time. it is just that I have stopped trading for good and not following much. However I have got about 10 units of silver with nsel that is 1 kg. Off late I have heard and seen in news that NSEL is in trouble. Are my units safe with them. shall I sell them off or hold? Please advise.
 

Alchemist

Administrator
Staff member
#2
I don't have an answer.

After all that has happened in last few days, it is difficult to say how reliable this product is.

The silver that backs e-Silver is supposed to be in "exchange-designated vaults/warehouses".

What really exists in these vaults/warehouses is anybody's guess.

According to latest media reports, trading in e-series contracts has been banned too. Thus, even if you want, you can't exit now.

The government on Monday tightened the screws on the National Spot Exchange by banning e-series contracts. The exchange also cannot launch any new e series products without prior permission from the ministry of consumer affairs.
Govt puts NSEL in a spot | Business Standard
 
#4
But is there a way that you can take delivery of e-silver as it was originally designed?

I am holding e-silver and am not sure how to take delivery (don't know even if silver exists for us to take delivery).

Any directions on this?
 
#6
I have heard that the e-series products has not been affected by the NSEL crisis.

However,I heard that they do not have a delivery centre in Bangalore for silver.

I am playing the wait and watch game for now.
 

magnet

Active member
#7
I have heard that the e-series products has not been affected by the NSEL crisis.

However,I heard that they do not have a delivery centre in Bangalore for silver.

I am playing the wait and watch game for now.
NSEL itself as an entity is in doubt.

If you still wait for waiting game the person who ask for his money might be the first to settle.

Also chances are your product can be used to pay others just like a PONZI scheme.

No point of waiting ask for delivery. Don't wait any long before it's declared defunct. At least small trader is getting payment now. When the broker starts crying bad even that will stop.
 
#9
e-series investors can redeem gold | Business Line.

The e-series investors of troubled National Spot Exchange will get to redeem their gold and silver investment in cash by expressing intention to do so between October 3 and 9.

NSEL will announce the gold price on its Web site at 3.30 p.m. and silver price at 4.45 p.m. on the redemption days. The existing request for redemption will be cancelled and units will transferred back to investors.

Investors with the assistance of their brokers have to transfer their units to member's pool account for opting the financial settlement. They will receive the payment in their registered bank account.
 
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