Message:

<p>[QUOTE=&quot;Cloudsweeper99, post: 1155368, member: 3011&quot;]JPM is not THE market maker in silver.&nbsp; They are A market maker in silver.&nbsp; The point I think is missed about them is that by the CFTC&#039;s own rules, the function of the futures market is price discovery and not to set the price, which is the definition of market manipulation, and is illegal.&nbsp; As a market maker, JPM has the responsibility to own or have access to the physical silver to back the short positions they take.&nbsp; And it is incorrect to say that they HAVE to sell short.&nbsp; This is entirely voluntary.&nbsp; They could choose to let the price rise as long as there are sellers at some price, and are only required to step in when there is a shortage of liquidity in the marketplace that makes it freeze up.&nbsp; This is not the case, and it is NOT JPM&#039;s responsibility to fill all market orders at or near the current price level.&nbsp;&nbsp; The do this as part of their own proprietary trading and not as a market maker.</p><p><br /></p><p>In JPM&#039;s defense, I&#039;ll say that nobody knows whether or not they are a naked short seller.&nbsp; I&#039;ve read that the government of China is a client of JPM, they own a lot of silver, and they may be basis trading through JPM to earn income from their silver holdings.&nbsp; It is impossible for any analyst to know whether or not this is the case.</p><p><br /></p><p>There is a lot of speculation out there about JPM, both positive and negative.&nbsp; Maybe someday we will know the true story, or maybe not.[/QUOTE]</p><p><br /></p>

Your name or email address:

Do you already have an account?

• No, create an account now.
• Yes, my password is:
• Forgot your password?

Stay logged in