SILVER: Very Interesting BPR Report
Some very interesting changes in Silver on the CFTC's May Bank Participation Report. Here's the link to the report:
http://www.cftc.gov/dea/bank/deaMay11f.htm
As expected the net short position has been significantly lowered but not to the extent that I thought it would given the size and scope of the Silver Slam.
US Banks
April Long: 825 May Long: 1,783
April Short: 25,412 May Short: 20,613
So the net result is a covering of 5,757 contracts or 28,785,000 ounces. Not bad for a months worth of market rigging.
But here's the real interesting part of the report. A while back JP Morgan complained to the CFTC that by listing the number of US Banks in the report the CFTC is revealing where the concentration lies because there were only 2 banks on the short side. This, JPM claimed, was illegal and the CFTC changed their reporting format to keep JPM happy. Now when there is less than 4 banks they will not report the number of banks at all. They leave it blank. But once the number of reporting banks hits 4 they will list the number again.
Voila! The April report has no number listed but the May report lists 4 banks in the US Bank category.
Here's what I think this means...
First you must understand that the rigging of the silver market is part of the entire Banking Cabal's rigging system and not just a JP Morgan operation. The silver "Hot Potato" is the concentrated silver short that must be maintained and managed to rig the price of silver. Aig had it then pawned it off to Bear Stearns and then it landed in the lap of JP Morgan. With the recent announcement of potential silver Position Limits JPM was way off-sides with a 25,000 short contracts concentrated position as the limits were being suggested in the range of 7,000-8,000 contracts. So JPM needed to either cover around 17,000 contracts OR they had to transfer these positions out of their account to other members of the banking cabal.
That's where I think the new 4 bank revelation came from. The Banking Cabal used the massive volatility in the latest Silver Slam to both cover 5,757 short contracts as well as TRANSFER 13,000-15,000 contracts to other US Banks who are in on the manipulation.
Now JP Morgan may be below the position limits required by the new CFTC Laws.
Going forward the Banking Cabal will have to continue to coordinate between each other to manage the Silver Hot Potato but that's nothing new with these crooks.
Do I think this will allow them to rig the markets FOREVER?
No. At any moment the Good Guys can take them down by taking delivery of physical silver.
"When?" is the only question we have left to discover.
The battles continue.
Bix Weir
