A theory for JPM’s massive silver short

Posted | 22/11/2013 / Views | 1780
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Someone has speculated on why JPM are so long gold but so short silver in futures.  Whilst they managed (in April/May and June) to turn their massive gold short to long by slamming down prices there simply wasn’t enough silver in existence to do the same for their silver position.  Note too that whilst gold ETF holdings plummeted silver didn’t.   JPM are also the custodian of the largest silver ETF (SLV) and the prospectus allows them to take the silver and pay out in cash.  The theory is that JPM have bought all the panicked silver ETF sales this year and now effectively sit on enough silver to be effectively long silver as well as gold.  And of course this doesn’t stop them also orchestrating the sort of price take down we saw Wednesday night to cover some more at low silver prices either.  We discuss Wednesday night’s action in today’s radio also.