"SLV" is an investment fund, they do a sort of "fractional reserve funding" in physical silver. They supposedly have a warehouse where they have, for the sake of instruction, "100" bars of silver. You invest at "spot" price on the COMEX, at say $30 an ounce. They send you a piece of paper saying you have ownership of 3.3 oz of silver, redeemable in silver OR cash. Actually, in their syllabus I think they have removed the word "silver" and replaced it with some euphemism. Anyway, this is then pimped out as "silver investing" and especially by JP Morgan whose various investment firms invest at a rate that exceeds 10000 ounces. Got that? For every bar the SLV warehouse claims to hold, JP Morgan claims ownership of 100. It is the "short" position they hold. It is only legal because the presumption is not everyone will want to get bullion at once, and they can buy out of the market if they need to. BUT, they are near or maybe at the point where even the PHYSICAL market does not have that much silver available. If JP Morgan actually got called out on all their short positions, they would have to drain the industrial market of silver. If you don't think that would affect you, you can start with kissing that computer in front of you goodbye and don't reach for a cell phone to call someone to cry about it.
There has been a relentless effort to expose this fraud, led by GATA and championed by Max Keiser. If you really want to catch up, go to their websites. In apparent response to their increasing risk of exposure, both in the market and in the media, JP appears to have made a big move to close out those shorts.
This is the article that got my posting privileges revoked: