Comment: Joshua Gibbons' own words

(See in situ)

In reply to comment: 10.5 million shares of SLV (see in situ)

Joshua Gibbons' own words

Hi Ed,

"You'll probably be hearing all about this soon, but the new SLV short position was just released. It went down by 17,866,500 to 7,297,500, a drop of 10,569,000 shares (about 10,219,000 oz)."

"My suspicion is that JPM had shorted exactly 10 Moz of SLV shares, to use while collecting 10 Moz of silver in their new New York vault (they deposited 10,000,998.7 oz. in that vault at the time of the 18.4 Moz SLV deposit in January), and the other 219,000 oz. of SLV short covering was just normal SLV short activity. So over time they accumulated a 10 Moz SLV short position, and also accumulated 10 Moz of silver in New York, and last month deposited the 10 Moz of silver with SLV to create 10 Moz worth of SLV shares to close out their SLV short position (still leaving 7.2 Moz worth of SLV short, some of which could belong to JPM as well)."

"It does come very, very close to proving that JPM had a 10 Moz short position in SLV (and that it either was backed by silver, or they were in the process of backing it by silver). However, it does not explain the other 8.4 Moz of silver that was deposited that day, nor the 8.9 Moz of silver that was substituted (the 8.9 Moz of SLV silver in the Johnson Matthey vault was removed, and replaced with a different 8.9 Moz of silver in a different vault as part of the 18.4 Moz deposit). And 8.4 Moz deposit by itself would have qualified as one of the largest SLV deposits in several years, so there is still a part of the mystery yet to be solved. - JG"