Last week we posted claims made by ‘bullion insider’ David R, who claimed that JPM was not intentionally manipulating the silver market, but is merely arbitraging paper vs. physical, and is net long physical silver.
Gold expert, and cartel whistle-blower Andrew Maguire has released a point-by-point rebuttal to David R’s claims, which Maguire states include some glaring inaccuracies and leave out crucial information.
The market dynamics discussed in the above commentary leads perfectly into some good member questions arising from an article posted last week on Miles Franklin blog titled The Cartel And Hedgies Are Short Paper, But Long Physical Gold
The article needs dissecting as it is accurate in just enough respects to appear credible but the author ends up both oversimplifying and misrepresenting the complex business of bullion banking. Considering the source of the information claims to be a specialist precious metals trader, there are some glaring inaccuracies which draw into question either his qualifications or his motives.
Fact, the bullion banks are indeed long a good deal of physical and it is also true that bullion prices are set to rise, but the article is net very misleading. By only looking at a very small piece of a much larger overall picture, it leaves one with the impression that the bullion banks main source of income is arbitraging contango. This could not be further from the truth. Perhaps it is best to take a paragraph at a time and break down where the inaccuracies lay and what is crucially left out.