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Friday, September 28, 2012

Are JPMs COMEX Silver Positions Only A Hedge Against Physical in the Warehouse?

Are JPMs COMEX Silver Positions Only A Hedge Against Physical in the Warehouse?

 Bix Weir checks in

My take: NOT A CHANCE IN THE WORLD for the following reasons:
1) There were over 100 BILLION ounces of COMEX silver shorts sold in 2011 according to the CME data. How much silver was physically purchased to counter these shorts when JPM controls over 30% of the short according to CFTC's own data? Is David R. saying that JPM bought 30B ounces of physical in 2011?! Utterly ridiculous.
2) David R. claims that he can show the physical silver in JP Morgan's vaults. But wait...JP Morgan is the custodian of SLV which is supposed to hold 322M ounces of the physical silver in Trust for the ETF. If JPM is using the SLV inventory to justify their shorts it's the biggest fraud in history.
3) If there are grand warehouses of silver stockpiles...who owns them? How many times have they been "rehypothicated"? Is it leased-in silver that must be paid back? Are they part of a silver storage program? Are they "Moly-Bars"

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