Grant Williams chimes in with another (first one is here) off the beaten path observation on the ongoing parabolic rise in silver (and for those confused no, silver is not tracking the CPI). "We have discussed at length in the various iterations of this publication going all"the way back to my BTIG days, the various ‘conspiracy theories’ surrounding alleged shorts in the silver futures market which are allegedly held by, amongst others, JP Morgan and HSBC. Initially, these theories were dismissed as the ramblings of the insane and, speaking as one who was called insane many times, even I have to admit that the stories were somewhat far-fetched. Far-fetched? Certainly. Impossible? Hardly. Implausible? Less so now. There have been all sorts of assertions about the fact that the short positions purported to be in place on the COMEX couldn’t, in fact, exist. These assertions, like the accusations which they attempt to answer, are all offered without proof - the general defence being along the lines of “it’s too preposterous to be true” which, to me at least, is an extremely weak offering. As silver has exploded higher, various estimates have been made at the potential losses being accumulated by those parties short of silver futures. The sums are astronomical. If we take JP Morgans alleged short position as an example, and we assume there is some truth to the assertions about the size of that position, a move to $50 could potentially cost JP Morgan upwards of $4 billion - or, as it’s still known, ‘real money’.
Full April 25 report:
Hmmm Apr 25 2011