I posted my last reply just as TTBit posted their's, so let me comment...
It would be a lot of managing work. I considered doing this a while ago, but thought it would be a lot of work for no money and a lot of risk.
Yes, I agree with this.
Overall suggestions:
* Shares should trade at silver price, not with shipping. If you ship to warehouse, it is on you. If you xfer shares for silver, you must pay for shipping. Otherwise, you lose the economies of scale for transporting large amounts.
* Don't have a expiration date. More like an ETF with delivery.
* 1 share = 1/20 oz. Redeem/Issue in 20 share lots per oz.
* 1 oz bullion rounds and bars only.
* Need to have recent updates on silver proof of inventory
* Need a slush account to handle redemption and issues.
Yes, I'm beginning to think that the "Futures without expiration" or "ETF w/ delivery" idea may be the way to go. It seems like people may use this more to speculate on the price of silver rather than as a way to purchase bullion (which I thought would be the other way around). The great thing about GLBSE is that the listing rates are very reasonable so I could try a few different variations of these contracts and see what works the best.