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.”
The Street: Gold prices eke out gain on hopes of Greek bond swap
Bloomberg: Gold futures rebound, silver pares loss after dollar weakens against euro
Jesse’s Café Américain: Early bear raid, metals bounce back
Yahoo! Finance: Louise Yamada: Gold, oil hold key support levels: Next move likely higher
The Gold Report: Roger Wiegand: Gold, silver heading up
Financial Times: China set to become biggest gold market
Bullion Vault: China’s gold imports - a worry for Beijing?
Zero Hedge: While you were sleeping, central banks flooded the world in liquidity
Mineweb: In endgame scenario, central banks will flood the system with paper
Telegraph: Single currency’s struggle takes its toll on Europe
CNBC: Dollar gets no respect despite economic gains
Wall St. Cheat Sheet: Will gold cleanse the world from dirty fiat currencies?
Gold Switzerland: John Embry: The current financial system will be totally destroyed
SafeHaven: Face the music