[Speculative] position limits were fought by JPMorgan over the past five years because such an enactment would have been a disaster for the bank, which held a massively concentrated short position in COMEX silver during this time. If JPMorgan was forced to buy back its silver short positions in excess of proposed limits, or even if the bank were prevented from adding new shorts to cap the price, the price of silver would have soared. Now that JPMorgan no longer holds a massive concentrated short position in COMEX silver—as I hope I have conveyed—the enactment of position limits could very well benefit the bank (if I am anywhere near close on how much physical silver the bank has acquired).
A small excerpt from Ted Butler’s subscription letter on 12-03-14.
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