- Bullion Banks Sell Even More Silver: Do They Have It?
by Clint Siegner, https://silverseek.com/
Anyone with a naked short in the silver futures market risks getting squeezed by physical buying. Demand for delivery of COMEX silver bars is rising, even as the paper price of the metal fell more than 4.5% last week. Silver shorts sold contracts representing a whole lot more silver than they have available to deliver again last week.
The disconnect between paper prices and physical demand is getting more ridiculous by the day. It is also getting more dangerous for COMEX market participants – long and short. The COMEX functions on confidence, which can vanish suddenly.
It will happen when long contract holders discover, en masse, the paper they bought cannot be redeemed for the actual metal as expected. Instead, they get cash settled or, in the event of an outright default, they get nothing at all from insolvent counterparties.