The point is that JP Morgan engaged in large scale price manipulation of silver and it blew up in their face. That's the point.
Is your information reliable about JP ? I doubt it unless you had the previlege of gleaning through their entire order book. Keep in mind what the public is allowed see is not necessarily their true position.
Shagi you are missing the story here You are late to the dinner table Many months ago information was leaked that JP morgan has been suppressing silver prices for years by naked short selling. When this information got to Max Kaiser he raised a hell about it and for a very good reason. Now everything is done and finished. One of the reasons Silver is so high in price is because JP Morgan already covered and for all we knew was helped with the loses by The Fed.
Can one of you tinfoil guys explain to me how JPM can sell "20-50 ounces" against every 1 ounce of long silver?
Did you all miss this? So how are short futures positions, that are hedges for long physical/otc trades, thus termed naked?
It's naked short at COMEX because the long position is at a different exchange or market but as far as JPM order book is concerned its a covered position. Thats what I meant - don't look at the aboviuos and think that is a true position. Who really knows they could also have bought the physical right from source for next to nothing - a mine in Africa!!! By a naked short postion at COMEX its provides ammunition to agressively go long physical at another exchange/market and hold huge position not possible if outright long. Thats how those with unlimited funding play the game when they are accumulating a stock or commodity and who are up against. But whatever they do to hide their true positions and deceive its not really difficult to know their true intentions.
JPM clears internally only. Exchange to exchange doesn't matter when they are their own clearing house. Silver trades OTC in the US, UK, and Switzerland. It trades financially in US, Japan, Dubai, India, and Russia. All in different currencies. If they're short silver in USD then they're long silver in Rupees/Yen/Rubles. They trade NOTHING "naked."
That massive short position must have been hedged pretty well. http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=abkSqAO6ZMCM