The silver action was simply stunning. It was on fire. While gold sold off with silver, it held much of its early gains. Had gold remained on fire, silver might be approaching $25 right now. There is no telling what silver could do on the upside now on any given day. If the cash market firms from here, how does JP Morgan get out of their massive short position?
Just in from Bix,,,
Hi Bill -
Rumors persist that the JP Morgan Queen of Silver Derivatives, Blythe Masters, is in high stress mode because her commodity book is blowing up.
Wouldn't you be a little stressed if your 150M oz COMEX silver short position had lost over $900M in 60 days on a mark-to-market basis?! Mind you, this is ONLY their COMEX short and not all the other silver derivatives that I'm sure they call legitimate hedges.
But it sure is fun to think about how they plan to close these out these COMEX shorts as we approach the 6 month position limit implementation deadline.
Bix
PS - Bart Chilton has gone silent on me. My take, the CFTC is going to wait for the silver (and gold) rockets to take off before they put the hammer down on JPM.
Any day now!
