Zero Hedge reports that further analysis of
the latest quarterly report of the U.S. Office of the Comptroller
of the Currency discloses
- that precious metals derivatives,..... excluding gold,
- held by Citigroup
- have exploded
- and that the investment bank likely.... has cornered the
silver market,
which likely explains the metal's failure to respond to the
international financial turmoil, just as gold has failed to respond
to it.
Is this related to what Andrew Maguire is talking about on KWN,
that open interest contracts in silver have spiked this year from
150 to 200K, and that
swap dealers have transferred this
massive naked short position onto "managed money or hot money
funds"?
"GOOD LORD!...One
needs to give ones head a shake if one can't see Gold and Silver
are at absolute bargain prices here and now" A Maguire
they never take on directional trades of any meaning or
consequence.
Why? because if they are wrong then it would result in a
collapse of the institution and therefore it wouldn't be permitted
in the risk management rules of the company.
After working for the largest investment bank I know that
statement is false. Banks take directional bets all the time..
All they care about is "VAR" Value at Risk
They have many different groups taking directional bets, some
wind up hedging..but they protect themselves ultimately through
keeping VAR under control.
thats why in 08, many needed the bailout as the moves were quite
dramatic. I was at JPM Investment Bank and recall the many VAR
meetings we had on a hourly basis.
Zero Hedge reports that further
Posted by saturn6 on 8th of Jul 2015 at 03:27 am
Zero Hedge reports that further analysis of the latest quarterly report of the U.S. Office of the Comptroller of the Currency discloses
- that precious metals derivatives,..... excluding gold,
- held by Citigroup
- have exploded
- and that the investment bank likely.... has cornered the silver market,
which likely explains the metal's failure to respond to the international financial turmoil, just as gold has failed to respond to it.
Http://www.zerohedge.com/news/2015-07-04/why-did-citigroups-precious-metals-derivative-exposure-just-soar-1260
The big question, Zero Hedge notes, is:..... Who is Citigroup's counterparty?
Here's betting the U.S. Treasury Department and Federal Reserve know but won't be telling.
1260% increase in Precious Metals derivative holdings in the past quarter, from just $3.9 billion to $53 billion! EXCLUDING GOLD...
JPM Passing on these huge Silver shorts onto someone else...
Posted by saturn6 on 8th of Jul 2015 at 03:35 am
Is this related to what Andrew Maguire is talking about on KWN, that open interest contracts in silver have spiked this year from 150 to 200K, and that swap dealers have transferred this massive naked short position onto "managed money or hot money funds"?
"GOOD LORD!...One needs to give ones head a shake if one can't see Gold and Silver are at absolute bargain prices here and now" A Maguire
http://kingworldnews.com/andrew-maguire-7-4-15/
Sight & Vision...
Posted by saturn6 on 8th of Jul 2015 at 10:08 am
Some confuse sight and vision...Having sight doesn't guarantee you will have the capacity to interpret and to understand (Vision)
Or putting it more simply cannot see the wood for the trees.
It bears noting again that
Posted by caddpro123 on 8th of Jul 2015 at 08:15 am
It bears noting again that JP Morgan is offloading paper while it has stock piled over 55 Million ounces of physical silver.
Anyone working in these large banks knows that this is misinformation becasue
Posted by torvix on 8th of Jul 2015 at 08:17 am
they never take on directional trades of any meaning or consequence.
Why? because if they are wrong then it would result in a collapse of the institution and therefore it wouldn't be permitted in the risk management rules of the company.
Remember Blythe Masters? confirmed huge directional trade
Posted by wowten on 8th of Jul 2015 at 09:48 am
Remember Blythe Masters?
confirmed huge directional trade "for clients"
I would argue a totally different regulatory regime
Posted by torvix on 8th of Jul 2015 at 09:57 am
I remain sceptical of the story as prices continue to fall...
Yeah...the London whale was market
Posted by a_l_ on 8th of Jul 2015 at 09:46 am
Yeah...the London whale was market neutral.
After working for the largest
Posted by jdaswani on 8th of Jul 2015 at 09:28 am
After working for the largest investment bank I know that statement is false. Banks take directional bets all the time..
All they care about is "VAR" Value at Risk
They have many different groups taking directional bets, some wind up hedging..but they protect themselves ultimately through keeping VAR under control.
thats why in 08, many needed the bailout as the moves were quite dramatic. I was at JPM Investment Bank and recall the many VAR meetings we had on a hourly basis.
No bank would take a massive directional trade in silver
Posted by torvix on 8th of Jul 2015 at 09:44 am
putting the whole bank at risk. The article is misinformation fro the bulls.
yip, that's why we had to bail them out!
Posted by tsurplus on 8th of Jul 2015 at 09:37 am