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http://bobchapman.blogspot.com/

Saturday, April 23, 2011
JP Morgan and HSBC are short silver 45 to one (HBSC is a major Anglo-Chinese bank)

ShareBob Chapman - Sovereign Economist - 04-20-2011 :

Bob Chapman was tracking the markets for 52 years and he was a trader for 25 years ,
our government is desperate to keep gold and silver down and they can’t do it says>>>>
Bob Chapman of the International Forecaster ,
Gold is going to break out here and is going to go to $1600 , $1650 ,
silver is another situation , the unusual situation is that JP Morgan Chase and HSBC are short 45 to 1 ,>>>>
that means for every contract they have in silver they sold 45 and there is thousands of them ,
they’re naked short they can’t get out they can’t buy back into silver which keeps on going up ,
3 things can happen here ,
they either can tell their clients we do not have silver and we are going to pay you 25 cents on the dollar
or they can default in complete in other words what is called a force majeure or>>>
the federal reserve can step in and cover their losses ....at 46 dollars a share their losses are about 90 billion dollars

I just listened to the interview and am wondering how much this rumor is circulating- I am not familiar with Bob Chapman so can’t know whether he’s a credible guy, but this is a helluva story, if it’s true.

I’ve been watching SLV closely in the last 4-5 weeks and it’s nuts.

I’ll go read up on Chapman now.

Oh God. I am old enough to remember the 20 times face value paid for silver coins go around form the early 80’s. People were being told it was going to go to 40 times so buy silver coins. Then it crashed.

If it sounds too good to be true; it probably is.

PS: One is born every minute aren’t they...

I heard that one group claimed they got an “80% profit” in order to give up their contract. There is no indication that this is an 80% premium over the current price. It seems more likely that it’s someone who bought a couple months ago at $20, and now they realise that the group doesn’t have any silver, and they want to get out, and the group offered them an “80% profit” to give up. Which if they bought at $20, would mean they got paid like $36 on a contract that theoretically was worth $46.

In fact, the entire tape seems to suggest that this is a horrid inside-job kind of payout, because when the reality becomes known, people who bought this unbacked paper were only likely to get 20-30% on the dollar. So this was an unethical move to keep the problem quiet by paying a higher but still not full payout.

I would note that in many of these types of arrangements, the person issuing the paper has the right under law to terminate them at any time by delivering the cash equivalent of the current price. So there would be no reason to have to pay more than the current price to get people out; it makes more sense to interpret this as a “profit” on a prior investment that is still less of a payout than the current price.

The tape also seems to suggest that the market will collapse at some point once all the speculators are driven out by the knowledge that people are selling worthless paper as if they have the physical assets.

Note: I have no idea if the claims are true, that the paper is worthless, I’m simply saying that the video doesn’t say that people are getting paid more than the current value of the silver.