To The Moon

The rumor says a major bank collapsed on a silver margin call at 2:47 AM December 28.

I cannot verify that.

$iShares Silver Trust(SLV)$  

$UBS Group AG(UBS)$  

What I can verify is more interesting.

JPMorgan filed an 8K on December 27 disclosing 4.875 billion dollars in unrealized silver losses. They flipped from 200 million ounces short to 750 million ounces long physical. The largest position reversal in the history of the silver market happened in the last 30 days and nobody on financial television said a word.

The rumor claims 34 billion in emergency Fed repos. Official data shows routine operations under 7 billion. Either the data is lagged or the rumor is wrong.

But here is what nobody is asking.

Why did JPMorgan suddenly need to own three quarters of a billion ounces of physical silver after spending 15 years on the short side. What did they see coming that made them eat a 5 billion dollar loss just to get positioned the other way.

The collapse story might be fiction.

The position flip is filed with the SEC.

One of those facts will matter more in 90 days than the other.

Stop chasing the rumor. Start asking why the smartest bank in commodities just switched sides at the worst possible price and seems fine with it.​​​​​​​​​​​​​​​

The eight banks trapped in the silver squeeze (and

$gold),are:

Watch them closely

1. JPMorgan Chase

2.HSBC Holdings

3. Scotiabank

4.BNP Paribas

5.UBS Group

6.Deutsche Bank

7.Citigroup (Citibank)

8. Goldman Sachs

Silver hit $50 in 1980 and then the Hunt Brothers got the margin call of the century.

Back then, the thesis was inflation + tight supply. 

Today, the same setup is showing up again: sticky deficits, monetary distrust and a market that can go vertical fast.

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