I have posted this before but am creating a new thread so everyone can keep up with it at their leisure.
http://www.occ.treas.gov/ftp/release/2010-33a.pdfSee page 20 and following on precious metals derivatives increases!
This is text of article from GATA:
The gold derivatives of all maturities declined 1.3 percent to $99.9 billion, which was due to a decline in JPMorgan Chase (JPM) holdings of 1 percent to $82.1 billion and a decline in HSBC holdings of 11.2 percent to $16.2 billion.
But the real shocker is in silver. The precious metals (silver) derivatives of all maturities increased by a mind-boggling 37 percent, from $9.29 billion to $12.8 billion. This came principally from increases in the less-than-one-year maturities where the JPM holdings increased 34 percent to $6.76 billion and HSBC holdings increased 58 percent to $4.7 billion. (Despite the radically different percentage increases, interestingly the increases at JPM and HSBC were identical in dollar amounts at $1.7 billion.)
This increase in notional value of silver derivatives represents approximately 220 million ounces, which is 125 percent of the global production of silver during the quarter -- and that is only the increase. The entire notional value represents 106 percent of annual global production.
What possible legitimate purpose could such a monstrous derivative position be serving with a maturity of less than one year?
The only purpose I can think of is for manipulation of the silver market. I am not a regulator but I can't think of any "mitigating factors" for that.
http://www.occ.treas.gov/ftp/release/2010-33a.pdfhttp://www.occ.treas.gov/ftp/release/2010-33a.pdf
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