Inquiring minds are reading of rumors about JP Morgan in a naked option squeeze. It appears JP Morgan may have sold more silver than there is in the entire world:
By selling massive amounts of paper silver in the futures market, JPM has been able to suppress the price of the precious metal. It is believed that these short positions are naked (i.e. they are not backed by any physical silver). In fact, reports indicate that JPM is short more paper silver than physically exists in the world.
An article by Max Keiser which appeared in the Guardian on December 2, 2010 claims that the size of the short position is 3.3 billion ounces of silver.
In recent days, rumors have been swirling on the internet that JPM’s massive short position is about to blow up in their face in the form of an almighty short squeeze and potential COMEX default as large traders demand physical delivery of silver that COMEX does not have in their vaults.
If this is true, the important question very well might be how many more scandals can Wall Street…and the country, take before the system begins a meltdown?
Reading the entire article is highly reccommended.
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