Relevant:
- Butler: Silver Shorts Moving to SLV
- Silver Could Spike to $50 Based on Short Positions That Need To Be Bought Back
- Ted Butler: Massive Improvement in Silver, Gold Futures Structure
- The Truth About Silver and Inflation
- JPMorgan et al Rush to Cover Silver Short Positions: Is a Silver Price Explosion Imminent?
2012-04-12 — constantcontact.com
Excuse me, my instinct tells me that clients don't want their long silver positions hedged, or sold short. Why would a client with a long silver position want the bank to create an offsetting short position for the client? If you buy stock or shares in a company, do you want your brokerage firm to short the company you just bought to "protect" you from upside gains? This explanation makes no sense. A client with such a long and short position would also have to pay storage fees on the long silver position, and then lose all of any upside gains due to the short position. It makes no sense, in the way that Blythe is trying to get us to understand the words she is using.
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