Question for all you guys on silver and the silver ETF SLV

[PeacePlan]

I sent this email to Bill Murphy of GATA and would like your thoughts on if this makes sense?

Hi Bill:

I have been reading that someone (maybe Chinese) have asked for their silver from SLV ETF. It looks like no one knows for sure who, but someone walked away with a lot of silver. I have been thinking about this and it makes the most sense to me that it very well could be JP Morgan and HSBC who have the huge short positions took that silver.

I thought something was not right with it when Barclays started it? I was asking myself way back then why would Barclays be starting an ETF in silver as it would take away silver from the market?

Now I think I know why. They used the SLV to buy the silver they needed to cover the shorts held by their brothren JP Morgan and HSBC. They knew that at some point they would need to cover. These guys are not stupid and have a plan to be able to get out. The bullish part is! If this is what is happening they will cover and go long and the market will explode soon.

 

[pmbug]

Whether it's JPM/HSBC or China/Asia doesn't really matter. The significant point is that "buyers of size" can't get large quantities of silver anywhere. Get physical while you still can.

 

[PeacePlan]

Whether it's JPM/HSBC or China/Asia doesn't really matter. The significant point is that "buyers of size" can't get large quantities of silver anywhere. Get physical while you still can.

I understand that I just was trying to figure out how JP Mprgan would or could cover. They will not be caught in a major default after all the investigations as it would also say that the CTFC did not do their job. I am just trying to figure when they will cover to make sure I am 100% in and long. I trade the mining stocks with my IRA and go in and out - I hold my metal and do not trade that.

 

[pmbug]

I'm sure JPM will raid SLV if they have to. They will settle contracts with cash (and a hefty premium) where possible too. The news about miners selling forward (hedging future production) is likely also JPM/HSBC trying to secure future deliveries. We won't know the details for sure until the curtain pulls back.

Either way though, physical in the hand is worth twice as much paper in the exchange (so to speak).