C.H. said:
They actually are increasing their short positions to dump the price. They can do it almost indefinitely because they use "fractional" silver (they issue multiple short positions for each 5000 oz they hold) and also game is rigged beyond repair I believe.
The only thing that can stop their evil game is physical delivery.
Yes they do have a couple of aces up their sleeve: raise COMEX margins and speculators will be forced to sell silver an masse, enforce the rules about no single player holding vast positions, but that means JPM among them.
As a last resort they could settle all contracts in fiat to save their face, but that would mean game over.
Even single big player (China, Russia, Bill Gates) could end the game by asking for considerable physical delivery.
They won't do it for a while, because this means they won't be able to buy any more physical for a reasonable/low price.
Ultimately I think that's how the paper silver game is gonna end: either single player or just huge demand for physical from everybody. Remember every time you buy physical this increases demand mints and refineries put on physical delivery.
Actually, all that happens is that the demand side, which has for silver futures always a net long total position, dump their longs, and since a contract requires two sides (seller and buyer), the short position is closed too (named 'covered').
So it's the opposite, the amount shorts drops since the amount longs dropped.
And in the end, short positions are a hedge against the potential of a dropping price, and since people buy long positions only to draw out money from the market, if those long positions are abandoned, the potential of a dropping price decreases, and thus the supply sides hedge can suffice with a lower amount short positions too.
And Comex margins have no effect on people owning silver outside Comex depositories.
Those margins only affect those that bought silver but actually didnt want it (at least not at that price), only other peoples free dollars.
So what difference to margins then make to the delivered side of the market? None. In the end, the paperrepresented demand was bogus anyway, and if it wasn't margins that forced some to sell or away from taking a position, then it would have been their position-dumps for profit later on.
