Ag And Jpm - Coin Community Forum

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Author	Replies: 4 / Views: 1,406
Ceylon62 Pillar of the Community United States 1285 Posts	Posted 12/15/2010 06:55 am JPM (JP Morgan) is / has been unwinding their position in the silver market over the last few weeks. They (JPM) in essence had the market locked up so to say in the past and going forward will not be either on the long or short side with a massive position. JPM was NET short with about 40% of the market. UBS has / had a sizeable position as well. My thoughts are that it would be volatile with an upward bias as they will not be shorting (artificial supply) into any upward movement and will not have to cover on any sell off. Let's try and keep politics, fiscal policy, currency movements out of this as this has more to do with supply and demand as most "believe" the supply was "artificial" (meaning paper vs available physical metal). What impact would it have on prices? Dyodd and be hedged as always. Mods / admins, If this is not appropriate please delete. Thanks. Report this Post to the Staff

monkeyman67 Valued Member United States 439 Posts	Posted 12/15/2010 2:45 pm If that is true I would have to say that prices will be rising while JPM unwinds their short position. If it is as large as you say, 40% of the market, then silver will continue to go up. Of course they could have been doing this for months now sending silver from $22 to $30, creating demand. You are correct that there will be less liquidity on the sell side which would allow prices to rise if there is the demand being there isn't a huge seller out there. I quess we will have to see. I believe it is all going to depend on what the dollar does. Weak dollar high silver. Strong dollar low silver. Report this Post to the Staff
arsave Valued Member United States 225 Posts	Posted 12/15/2010 3:56 pm Sound similar to the 1980's Report this Post to the Staff
nohope587 Pillar of the Community United States 5953 Posts	Posted 12/15/2010 4:04 pm Silver at least in my area is in fairly short supply The last couple of shows I was at they wanted a fair premium over spot for bullion and the table were nowhere near as full as they have been in the past. The main coin dealers in town are also paying a slightly higher percentage of melt for bullion than they have in the past both these factors tell me demand is higher than supply. I have no problems selling for spot or higher.. Report this Post to the Staff
Ceylon62 Pillar of the Community United States 1285 Posts	Posted 12/16/2010 07:07 am This is a "physical Metal" issue. Yes, quite a few positions have to have been closed out on "paper" for Ag to have made this move. Also, there is a "distinct" diff between "physical" and "paper" silver. Nohope, apparently some dealers did NOT restock as the price moved up as they were hoping for a pull back in prices. Ergo, the light inventory so to say. Premium on certain bars with "name recognition" (Engelhard, JM, older bars etc) is sought after by some. Report this Post to the Staff
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