Crush JPM by buying Silver goes MSM in US: SF Chronicle on the squeeze

[Kadriana]

Re: Crush JPM by buying Silver goes MSM in US: SF Chronicle on the squeeze

Couldn't agree more. This story of JPM's short position has received a lot of attention lately, but yet their stock price has been rising for the last week or so, which suggests that few think this will be any more than a hiccup for them. Admittedly, sometimes the few are right...

OK, say JPM doesn't have a lot of shorts or is hedged. From my understanding, someone has a lot of shorts and will get burned but no one knows for sure who it is and if they've got some sort of back-up plan. Now, buying silver is being pushed pretty heavily by a lot of sites out there. What are the consequences of places, like Apmex, running out of silver. What is the end game? Will people move on to something else in a couple months? Are we going to see 6+ delays in silver shipments for retain investors? Do you think the public will catch on to this idea and people will go for anything silver? Is it going to go parabolic or will world wide governments, since it is a global movement, be able to put in laws to stop the run? At what price are people going to be willing to part with their silver?

[jpatter666]

Re: Crush JPM by buying Silver goes MSM in US: SF Chronicle on the squeeze

OK, say JPM doesn't have a lot of shorts or is hedged. From my understanding, someone has a lot of shorts and will get burned but no one knows for sure who it is and if they've got some sort of back-up plan. Now, buying silver is being pushed pretty heavily by a lot of sites out there. What are the consequences of places, like Apmex, running out of silver. What is the end game? Will people move on to something else in a couple months? Are we going to see 6+ delays in silver shipments for retain investors? Do you think the public will catch on to this idea and people will go for anything silver? Is it going to go parabolic or will world wide governments, since it is a global movement, be able to put in laws to stop the run? At what price are people going to be willing to part with their silver?

Shrug. Who knows?

I do think the current silver run is overextended. When you've got a "herd" movement, I'm wary. Lots of novices out there and TPTB will rip them a new one at some point.

Of course, I could be wrong -- that's what makes all this interesting.

[shiny!]

Re: Crush JPM by buying Silver goes MSM in US: SF Chronicle on the squeeze

It just seems like everything is so manipulated you just don't know what can take a huge dive tomorrow. I don't care about getting rich, I just don't want to go broke.

I couldn't agree with you more!

[c1ue]

Re: Crush JPM by buying Silver goes MSM in US: SF Chronicle on the squeeze

It would not be $90 Billion if JPM had to actually come up with that much silver in short order.

In a short squeeze, the price rises inversely with the remaining stock available for sale.

If you're short more than all that physically exists (as claimed above), and if you're forced to cover, then the price goes to infinity. No amount of money in the world can purchase that which isn't.

That is the correct theoretical behavior, but it assumes a number of things:

1) that the shorts are all concentrated in a relatively few short term contracts (as opposed to spaced out over years or even decades)

2) that the exchanges won't activate some obscure provision that allows a cash settlement (referenced with regard to the gold short squeeze in 2009)

3) That JPM actually has the massive short position - as opposed to holding it for someone else

On the other hand, whoever does own the shorts - and the volume of shorted silver is quite high - does represent a significant counterparty risk.