jim4silver
Silver Member
- Apr 15, 2008
- 3,662
- 495
Although I am impressed a bit with silver's recent strength, until I see it close above $20 I will not be too impressed. We have seen this recent type of action quite a bit, only to see the price get smashed once a few of the old silver bugs start to wake up. If we break $20 we will see $26 at least I believe.
PS One interesting story going around the silver sites is that JP Morgan has recently accumulated (depending on what article you read) 350 million ounces or so of silver as reported by Ted Butler. He also says that JP Morgan has been buying large amounts of ASE's and maybe even silver Maples, so they can later melt them into bars? Just for the record, Mr. Butler has been saying JP Morgan has been buying silver since at least early 2014 when he said they had between 100-200 million ounces (see below article). Although I always like reading Mr. Butler's articles because he is an apparent silver guy like me, I consider his writings to contain info that I can never substantiate anywhere else (on the web). Why would JP Morgan buy ASE's and Maples and pay a nice premium, only to melt them down into bars? I guess the idea is that silver is so scarce they can't get 1000 ounce bars elsewhere? I don't get it.
I believe that IF JP Morgan is acquiring large amounts of physical silver (I hope they are) it would mean one of two things, either they think silver is going way up in the future and want to hold the asset for profit, or perhaps if they are one of the "big shorts", then they could use that silver to deliver on their short positions if necessary. But if that is true, it would also mean silver is going to be allowed to move up in price from here, because why would JP Morgan use their silver to short heavy now since they would be selling/delivering the silver for less than they paid? Instead, perhaps they let silver ride up to higher levels, then short the crap out of it at the right level and have the cheaper physical metals on hand to deliver if necessary. So maybe both scenarios are true in that they (and other big players) could use the paper markets/derivatives to ride the silver price up, then when it is time to cap it and short silver, have the metals on hand to deliver if necessary. Although I have read a buyer in the futures can be forced to settle in cash if no physical silver were available (force majeure), the fact that a failure to deliver happened would alone send shock waves in the market. So the physical stash would be necessary to make sure all buyers who seek delivery can get it so there are no failures to deliver. I am just speculating here and there is no way to know for sure if any of this is even reality or not.
Feb 2014 article
http://www.marketoracle.co.uk/Article44278.html
current story
Ted Butler: The Biggest Silver Haul In History | Gold Silver Worlds
All my opinion.
Jim
PS One interesting story going around the silver sites is that JP Morgan has recently accumulated (depending on what article you read) 350 million ounces or so of silver as reported by Ted Butler. He also says that JP Morgan has been buying large amounts of ASE's and maybe even silver Maples, so they can later melt them into bars? Just for the record, Mr. Butler has been saying JP Morgan has been buying silver since at least early 2014 when he said they had between 100-200 million ounces (see below article). Although I always like reading Mr. Butler's articles because he is an apparent silver guy like me, I consider his writings to contain info that I can never substantiate anywhere else (on the web). Why would JP Morgan buy ASE's and Maples and pay a nice premium, only to melt them down into bars? I guess the idea is that silver is so scarce they can't get 1000 ounce bars elsewhere? I don't get it.
I believe that IF JP Morgan is acquiring large amounts of physical silver (I hope they are) it would mean one of two things, either they think silver is going way up in the future and want to hold the asset for profit, or perhaps if they are one of the "big shorts", then they could use that silver to deliver on their short positions if necessary. But if that is true, it would also mean silver is going to be allowed to move up in price from here, because why would JP Morgan use their silver to short heavy now since they would be selling/delivering the silver for less than they paid? Instead, perhaps they let silver ride up to higher levels, then short the crap out of it at the right level and have the cheaper physical metals on hand to deliver if necessary. So maybe both scenarios are true in that they (and other big players) could use the paper markets/derivatives to ride the silver price up, then when it is time to cap it and short silver, have the metals on hand to deliver if necessary. Although I have read a buyer in the futures can be forced to settle in cash if no physical silver were available (force majeure), the fact that a failure to deliver happened would alone send shock waves in the market. So the physical stash would be necessary to make sure all buyers who seek delivery can get it so there are no failures to deliver. I am just speculating here and there is no way to know for sure if any of this is even reality or not.
Feb 2014 article
http://www.marketoracle.co.uk/Article44278.html
current story
Ted Butler: The Biggest Silver Haul In History | Gold Silver Worlds
All my opinion.
Jim
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