October Bank Report—Two U.S. banks are short 38,375 Silver Contracts. This is 29.1% of all Commercial Short Positions (91,723). Total Contracts: 131,801. Why does this matter?
- Traders are supposed to be limited to 6,000 total positions in the futures market. Even if you divide the contracts evenly, both banks (which, of course, remain unnamed by COMEX) would be short 19,000+ or more than three times the position that "normal" traders can possess. That gives these two banks three times the clout that you or I could possibly possess.
- Short position is 191 Moz of Silver sold short. That is almost a third of the entire YEARLY world production of silver sold short by two U.S. banks. You decide what kind of an effect that would have on prices.
- Total Contracts cover 659 Moz of Silver. World Production last year was 670 Moz.
- Commercial Short Position of 91,723 is 458 Moz. Commercial Shorts were 82.4% of all short positions in the COMEX. If that doesn't represent manipulation, I'm not sure what does.
- The Bank Participation Report is an increase of 8500 contracts short in just 30 days. That's 42 Moz of Silver sold short at a time when Silver went from $16/oz to 17.63. I think that would qualify as applying the brakes on prices.