Tuesday, September 13, 2011

4 Large US Banks Increased Silver Short Positions by 4.05 Million Ounces in August

The September CFTC Bank Participation report indicates that four large US banks increased their silver shorts by 809 contracts in August from 23,775 to 24,584. 
This is an increase of 4.05 Million ounces to the manipulative short position in silver in a single month.
These large US banks (discovered by Ted Butler to likely be JP Morgan and HSBC) have slowly but surely rebuilt their silver short position almost entirely back to the 25,412 contract position held prior to the massive short squeeze in April. 
We have previously documented that April's run in silver from $40 to $50 was not a bubble as CNBC and Bob Moriarty would have you believe, but was rather a massive short squeeze, during which the two above mentioned banks likely covered 24 million ounces of their naked short silver position at a massive loss.
At the time Ted Butler and others speculated that JP Morgan may have been attempting to end their manipulation of silver- or at least cease increasing the size of their naked short position.
Clearly this was not the case.

A look through the past 6 month's CFTC Bank Participation reports clearly reveals that the 4 large US banks have been steadily increasing their short positions in a massive way ever since the end of April's short squeeze. 
Apparently the cartel has no intentions of letting the silver manipulation end quite that easily.
Also notice that the 4 large US banks' long positions have decreased by 1688 contracts in 2 months (8.5 Million ounces), and are now below levels seen prior to April's short squeeze- the lowest level of longs held by the 4 US banks in over 6 months.
While it is clearly an outrage that the CFTC refuses to enforce the Frank-Dodd bankster reform act and enact position limits in silver, this is actually great news for those long silver with the intent of accumulating even more at manipulated and artificially low prices. 
While in a world of hurt, clearly those parties naked short silver to the tune of 123 Million ounces as of 9/6/11 desire to continue the subsidy for those wishing to extricate themselves from fiat dollar positions.

                     BANK                   LONG              SHORT          OPEN INTEREST
09/06/11 CMX SILVER 
               U.S.                   725  0.6      24,584 21.7     113,449
           NON U.S.                 3,096  2.7       2,781  2.5

08/02/11 CMX SILVER U.S.                    1,040  0.9        23,775 19.7         120,385
                NON U.S.                    2,796  2.3         3,573  3.0
07/05/11 CMX SILVER U.S.                    2,413  2.2        23,084 20.7         111,251
                    NON U.S.                2,565  2.3        3,216  2.9

06/07/11 CMX SILVER  U.S.                   2,302  1.9        22,628 18.7         121,191
                     NON U.S.               2,946  2.4        2,880  2.4

05/03/11 CMX SILVER  U.S.          4        1,783  1.4        20,613 15.6        131,907
                     NON U.S.     12        2,873  2.2        6,481  4.9
04/05/11 CMX SILVER  U.S.                     825  0.6        25,412 17.8        143,013
                     NON U.S.               2,882  2.0         7,647  5.3