So, let’s see if I understand. JPM is JP Morgan? By buying the contracts and getting an 80% extra payoff, these ex-employees are making Blythe Masters look bad because JPM will have to pay COMEX the 80% premium for handling this mess?? Any idea how many of these 5,000 oz contracts the long guys were holding?
Yes, JPM is JP Morgan, or The JP Morgue as many like to say. They’re not just making Blythe look bad, they’re making JPM face hundreds of millions of dollars in losses for every dollar silver trades higher. I think Wynter calculated that if silver gets to $70 or $80 or so, JPM would be insolvent, just from silver losses (arising from an enormous short position). JPM isn’t paying COMEX the premium, they’re paying it to Wynter’s traders for agreeing to take fiat instead of silver, for their contracts that they bought and paid for fair and square. (Again, so the story goes.) I think they held something like a few thousand contracts, which by the way at $35 silver cost $175 grand each.