Someone I know who is a (very) successful senior trader sent me this in reply to the “Reddit ready to short squeeze silver” story. My question to him was: “Is this article legit?” His answer:
“NO. JP Morgan has 6m oz. of physical in the vault and a massive short position offsetting it, they will let these “youngsters” run a little, then turn around and crush them. There seems to be no silver coins offered today ex some @ $80. Remember Morgan IS the FED they can print all the paper shorts they want to offset these green horns. Gary Gensler, a former Obama goon, is in charge of SEC, they can raise margin requirements to 100% to buy silver or just shut down Reddit if they want to. They can get away with this on some stocks, but never silver, the FED won’t allow it. Remember when the Hunt brothers tried to corner the silver market in 1980? ….. they got crushed. Also Warren Buffet tried in 2011 and the big boys told him to sell if he wanted to stay in the club. If you want you could take a small position in SLV or PSLV, but don’t get greedy, hold til silver is around $50, then sell it. I’ve seen this movie too many times before. I did the same paper play in 2011, made $200k and got out at $48, before they crushed silver back to $10. The crooks can’t and will not let gold and silver rise as they are the ultimate inflation barometers, they are also gonna go after SHIT-COIN and try and shut it down, then they can issue their own digital currency and we are are screwed. I will keep all my physical, but I might go short SLV once it runs up to $60-$80 while the longs eat it. Remember Matt, these are “virtual” markets, and have nothing to do with price discovery. Morgan accumulated those 6m ounces for this very reason, worst case is they have to sell some, then they short it and buy it back even cheaper. None of these kids understand the silver market, they will get crushed. Well, at least these kids understand who their true enemy is, in order to take them down they need sovereign like China, China is playing for time and doesn’t want to crush the dollar yet.”
Just posting this for your thoughts.
Some do, but most don't.
And yes, I think some, maybe many are going to get crushed and lose some $.
And then what? Are they going to come after people to take some of their money?
We'll see.
The one thing the Reddit Raiders have is their small numbers. The power and influence the FED and other NGOs have over others only exists when there is large money at play by a single player.
Small players with small holdings cannot be touched as was found with GameStop.
As far as JP Morgan having any physical Silver holdings, who cares?? The shorts sells are without physical Silver, and that is the point of this entire situation. It matters not JPM’s holdings, it is that there are far more naked shorts than ounces held by anyone.