“Silver could be setting for significant moves:” Andrew Chanin, CEO of PureFunds
By June 20, 2014– Published in on
Andrew Chanin: Certainly, PureFunds was founded in 2010 and it was formed to be a company who's goal was to bring about first mover ideas into the market, in the form of Exchange Traded Funds (ETF). I had started my career in finance on the floor of the American Stock Exchange with one of the largest ETF specialist trading firms and really got a strong understanding for the ETF space and became a full believer that the ETF industry is one that is growing with much more potential in the future as well, and wanted to figure out a way to best stake our claim in the industry. Being a market maker for ETFs for several years we started to have our own opinions on where that future for growth in the industry might be.
A common theme that we had noticed from our years in ETFs was that second to market products, being that if there was already a fund out there, trying to mimic that fund, it didn't tend to be that successful of a practice. However if you were able to identify an area where there wasn't yet an ETF but there would be market interest in that space, you could really have the ability to create something special in a fund. And the natural resource sector was one that we had been following for awhile and had some very strong beliefs and thought that it was one of those areas that was under served with financial product ingenuity in the form of Exchange Traded Funds.
Small Cap Power: So why did your company decide to launch a junior silver ETF?
Andrew Chanin: Exactly, so it came down to a lack of options, to put it simply. When the first junior mining ETFs just came out I was trading them since inception and really became interested in the space. And the more you spend time looking at the junior space and especially the precious metals space you may start to have a strong belief one way or the other about silver. It seems so interesting that, to me specifically, that there are so many funds for gold whether it's physical funds or futures-based funds or mining shares or junior mining shares. But for silver ETFs it wasn't that diverse, yes sure there were futures and physical funds but at the time when we were thinking about launching our fund, there was only one silver mining ETF out there. And there wasn't one that just focused on the junior mining space. So having spent so much time researching the junior space and the precious metals space it seemed to me that it was an area that really needed an Exchange Traded Fund.
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