Skip to comments.Silver Bankers May Be Sitting on Big Derivatives Losses and the Fed May Be Funding Them
Posted on 02/21/2011 2:00:41 AM PST by Errant
My question is simple. What are bankers like J.P. Morgan and HSBC doing playing in such size in this market? What is the economic and productive benefit? Perhaps there is a good answer. The taxpaying public certainly deserves to know. The CFTC says they have looked into this, but the detailed results of their findings remain less than forthcoming.
IF this is legitimate hedging for producers then all well and good, but then there is no justification for secrecy. If these are trading positions held by the bank, or by the bank as agent for speculators, then there may be a greater reason for secrecy, but the magnitude of the shorts is far out of bounds in size. Ten years of production is not a short position, but the entire market and then some.
(Excerpt) Read more at jessescrossroadscafe.blogspot.com ...
These are simply rumors on the internet for which there is no evidence whatsoever. If you want to believe some blogger, that is your choice, but don’t be surprised if others don’t get as excited as you.
Denninger and others have been saying this for quite some time. The GATA guys have been on this for probably more than a decade. It’s been well known forever that just a few of these players are basically the entire short position in the silver market.
Do you have anything more than an ad hominem attack to offer?
A request for evidence for assertions is not an ad hominem attack.
However, I will say that the two institutions mentioned are primary broker-dealers. They own the casino, and get a cut of every bet their customers place. It’s a highly profitable business, and they have no need to place bets themselves.
The other argument is that internet rumor-mongers have been alleging this for years. If their allegations were true, huge losses would have showed up in the quarterly reporting by now, since commodity contracts are usually less than a year in duration. Since no such losses have been reported, it is safe to say that the rumors are likely to be wrong.
Knock yourself out and do your own research. I'm sure you'll eventually find a source you trust:
Google silver conspiracy
About 5,590,000 results (0.23 seconds).
Silver is a small but increasing significant part of my investment portfollio as its value tripled in the last few years. Hopefully you've done as well. ;)
Yes, and many have come forward with evidence presented to the CFTC.
I'd call the two sources below "somewhat" reliable? :)
Even so, one should diversify IMO.
“Denninger and others have been saying this for quite some time. The GATA guys have been on this for probably more than a decade. Its been well known forever that just a few of these players are basically the entire short position in the silver market.”
Well, I would imagine if you went to one of these major broker-dealers and asked: “Are these your positions?”, they would say, “No, sir, those belong to OptionsXPress, we just do the clearing for them”. If you went to OptionsXPress, and asked them, they would say “Yeah, these are the positions of the guys who open accounts and trade with us. Just so long as they put up enough cash for the margin requirements, we take their orders.” So things may not be as transparent as you think.
Sure glad I got my silver at -10. It’s all gravy.