A Good Day at BlackRock?

Posted by on February 16th 2012 in Bailout, CFTC, China, Federal Reserve, General Economy, Gold, India, JPMorgan, Monetary Policy, Short Sellers, Silver, Ted Butler, Wall Street | Be the first to comment!

A December article by Ted Butler decried the naked short position in SLV, which at the time was in excess of 25 million shares, on its way to 26.6 million in mid-January. But as of Jan 31, reports Butler, “the short position in SLV plunged by more than 35%, or by more than 9.4 million shares, from 26.6 million to under 17.2 million. This is the lowest level of shares held short in SLV in almost a year.”

Butler sees one possible explanation being pressure put on SLV’ custodian BlackRock, following his December article.  And if so, “it’s only fair for a tip of the hat in BlackRock’s direction for any possible involvement by them in the reduction in the SLV short position.”  This as a “London source” tells King World News that Asian investors have “decided to buy SLV with the intention to take physical delivery of silver directly from that ETF. It would reflect badly on BlackRock if in fact SLV did not contain the physical silver to back up the shares, so the Asians will be successful in draining physical silver directly from SLV.”

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