Saw on another thread that there were going to be strong limits imposed on the size of short positions in silver, and that the date for compliance was 8 weeks from date of posting. (a week ago) This was going to come from one of the ruling bodies in PM regulation, can't remember which...(I'm as yet unable to find the thread, but will keep looking.)
While searching this morning it looks like the "reformers" have backed off under pressure and we may not see the end results that you'd hope for.
There was a well thought out dissection of the scenario by another HC poster, involving JP having to manufacture volatility in the physical market in order to get COMEX to raise margins a few times.
This would then be used as a "shake out, and grab the pieces" happy hour at JP, busily covering shorts. The problem would be that there still would not be enough long positions to shake out if this all went to plan, so they will have to sucker in some dummy lemmings into futures by JP telling the world silver is finally going up.
The sucker punch would slam in as just enough longs were bought by over leveraged traders... pick up pieces, wait a few weeks, do it again.
PLEASE BE AWARE: This is only my spotty recall of a well thought out post, and the rules of engagement have changed completely if the regulators are actually backing off...
I will keep looking for the thread and post asap.
I stand to be corrected by anyone that has more info! If there's more to it, and you can help, let us all know...
Zoltan
AYN Price at posting:
5.7¢ Sentiment: Hold Disclosure: Held
