An article from Murray Coleman from Barrons:
With regulators circling and analysts crying foul, J.P. Morgan (JPM) has apparently cut its short positions in futures markets betting against further rises in silver.
The Financial Times is reporting that JPM is denying that any outside pressures are behind any of its metals moves. At the same time, the bank also wouldn’t comment on specific positions.
But traders and analysts have been openly critical of J.P. Morgan as well as other banks, which seem to be taking rather outsized short positions in order to hedge growing long positions in silver.
The iShares Silver ETF (SLV), which is trading down early this morning by 0.7%, has been on a tear this year. So far heading into today, it was up 74.5% in 2010.
That’s even better than the SPDR Gold (GLD), which had gained 26.8% on the year, according to Morningstar data.
An unwinding in silver shorts by big banks could provide another catalyst for even more growth by SLV in the future.
Another article from Reuters:
JPMorgan cuts silver short;denys 90% copper data