Trace Mayer

Short Squeeze in Silver - How to Profit

Thank goodness it is JP Morgan and not Morgan Stanley & Co. as JP Morgan is so much more trustworthy!

"For example, in June 2007 Morgan Stanley & Co. settled a class action lawsuit for $4.4 million where the complaint alleged ‘that Morgan Stanley told clients it was selling them precious metals that they would own in full and that the company would store. But Morgan Stanley either made no investment specifically on behalf of those clients, or it made entirely different investments of lesser value and security.’ While the efficacy of the claim may still be at issue the Better Business Bureau-like complaint from unsatisfied customers who initiated litigation does not inspire confidence for those seeking to reduce risk."

seekingalpha.com/artic...

Gold is an extremely transparent asset, it is either in your hand or not, but as GATA proves the gold market is the world's most opaque.

On Mar 20 08:28 PM Jason Hamlin wrote:

> Mike L,
>
> Thanks for the link and I was wrong, they do publish a bar list via
> JPMorgan, for what its worth. That still does not guarantee that
> the metal itself is not leased out or otherwise encumbered.
> Correct?

Short Squeeze in Silver - How to Profit

"Gold and silver occasionally slip into backwardation, but rarely for this long."

Good article. This sentence seems to be a little inaccurate so here is an example of a correction: "Gold and silver [very rarely] slip into backwardation, but [never] for this long."

With such long consecutive silver backwardation it will be interesting to see how this issue is resolved. With nickel the LME punished the longs. The resolution will likely be with serious pain and may be inflicted on the long investors who settle for either futures like Gumpwine asks about or SLV.

With the counter-party risk escalating because of the instability of the owner is it any wonder SLV may be on the market for sale? Make no mistake; SLV is not silver and it is silver that individuals want in their possession and are willing to pay a significant premium for (backwardation).

While markets can usually stay irrational longer than investors can remain liquid the physical commodities are different. Those that own completely and possess physical silver can stay liquid longer than those who are required by contract to deliver. I wonder if Congress will pass a silver bailout?