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March Comex Default? Plus Silver Fallacies by David Morgan
http://sherriequestioningall.blogspot.com/2011/02/silver-fallacies-by-david-morgan-comex.html
David Morgan of Silver-Investor, wrote an article about “Silver Fallacies” what people think compared to what is of the Comex market of shorts versus longs. The article is below.
First information about what is going on in the Silver Futures and Comex this week.
The CME (Chicago Mercantile Exchange) due to the rising price of metals the last couple of days, especially silver has to try and stop it in what ever way they can. JP Morgan (thus the government) is in trouble with all the orders at this moment standing for silver delivery for March. The CME yesterday raised the margin amounts needed for longs to 50%, effective immediately! So, if someone wants to put a long order down for Silver or Gold they have to have 50% up front, to do so. They are doing the work for JP Morgan because obviously the amount of shorts JPM has on silver has not been working to suppress the price. It definitely has not been working to scare off longs either.
More longs are standing for March delivery at this moment, than ever before. Considering there are suppose to be more longs standing than, Comex’s own inventory, which numbers stand around 42 million. The default would be heard and experienced around the world by a violent rise of silver and the whole Comex would crack! The question is….will those longs stand and place 100% of the money by the 28th of February for delivery?
Another question is…. is the information real, of all those funds that wrote a letter to JPM, letting them know they are going to stand for delivery for March, if not just to be paid off with a huge premium from JPM instead of physical?
It seems everyone in the financial business have caught on to JP Morgan’s comex game. Those financial entities who want to make a huge percentage from their investment in a short amount of time put longs on for silver. From my understanding they are more than happy to put up 100% of their money to stand for silver, when they don’t plan on taking physical! Why?
Because JP Morgan will then pay them off due to the amount of shorts they have on the Comex with a nice premium! So those funds will walk away by making instant money at a percentage they could not make elsewhere! Eventually, JP Morgan will get drained (except they have the U.S. government and The Federal Reserve to keep bailing them out). But it will keep hurting their bottom line! They are going to lose who knows how many billions by having to pay off the longs who stand. This is another way of breaking the Comex, imo. Imagine as more and more funds learn the way to make fast money…… JP Morgan will become JP Morgue and the instant pay off for those who like fast returns!
David Morgan, wrote “Silver Fallacies” in 2008. I am inserting it here as I believe it now applies more than ever. He was ahead of his time in thinking (but that is why people subscribe to him) about what will happen in the silver market. Also, I just listened to his subscriber only update, where he discusses what is currently happening as it happens with charts, etc. In his update, he explained “The Three day trading rule”. He showed silver breaking through it’s last high and said his Three Day trading rule is it is actually a break out and not a fake out, if it continues staying above the last high of $31.21. He then explained his way of trading if it does stay above that high. **** as a note – Thursday was the start of above that high, Friday continued it – We now only have Monday to go, to see if it stays*****
Here is the “Silver Fallacies” article David Morgan wrote in 2008, I am bringing back up for everyone’s attention – It completely applies to right now!
