/biz/ - Business & Finance

Wanna know why this occured?
JPM is covering their huge short positions as they don't wanna be on the short (lul) side of the stick. You see, open interests on silver just reached sky high levels last week, 24.3K added contracts (122Moz), a position so large even JPM isn't comfortable trading against. To be more precise, the total contracts on open interests for the 2 month roll period isn't out of the ordinary, it's even on the low side, what is very unusual is the positions surged only 15 days before first notice. I.e. not long before the holders have to decide if they want to close or roll over until next month.
To make it easier to understand, lets say you are long silver because you believe the price will surge in the near future, normally you'd ask for as much time as possible before your position have to be closed, because you don't exactly now when the surge in price will occur.
But here, imagine some unknown guys/entities, showing up at the last minute and buying for hundreds millions of paper silver just 2 weeks before the contract have to be settled. This doesn't give them a big time margin to be right to say the least... And this is especially intriguing considering the price ALREADY went up big time for the entire month prior to them opening this position.
I'm not smart or knowledgeable enough to know the intentions behind this move, but we can imagine several scenarii. Could it be to fuck over JPM's constant naked shorts (they always maintain what's called a contrarian position)? Are they expecting a news in the coming weeks who will prop up silver to new highs (like a new battery tech requiring silver)? More banks' failures?...
Time will tell.

Just yesterday, JPM added a huge 2.3Moz to their eligible vaults, something they very rarely do. And each time JPM (now sole custodian of Blackrock's SLV) added some rocks to the vaults, the spot surged dramatically. This time wasn't different. On top of that, they reclassified over a million oz in eligible.