As Ted Butler has shown recently, JPMorgan appears to be discontinuing its most important methods of accumulating silver. For several months they have laid off purchasing coins from the Mint and now so far in May, they have stopped taking delivery on the COMEX. This must mean they have reached some sort of limit. It’s either lack of availability, pressure from regulators or too much bad publicity that’s shutting down their purchases.
Consequently, if they can’t or won’t buy more they have no reason to keep a lid on the price. In fact, it’s highly advantageous for them to let the price go. A number of things point to this being the turning point. Mr. Butler writes about a colossal 15 million ounce turnover of silver going in and out of the COMEX warehouse one week in late April. This indicates an enormous demand for physical silver. The same week 5 million ounces went into the SLV for the likely purpose of covering short sales. Things are brewing and bubbling in the silver market like never before. The open interest on the COMEX is greater than it ever has been. Seven banks hold record concentrated short positions in silver that opens them to the possibility of enormous financial loss.
Mr. Butler insists that the coming price rise in silver will be sudden and violent with prices soaring to shockingly high levels. If he is right, the time to own silver is now. Not later when the price has skyrocketed. He insists that silver is ridiculously cheap now, but it won’t be that way forever. His advice is to buy as much silver as you can afford. Do what JPMorgan has done and profit along with them.