There was another big (3.1 million oz) withdrawal from the big silver ETF, SLV week, as well as continued big redemptions from the gold ETF, GLD. The funny thing about the silver redemption is that it followed Wednesday’s sharp and higher trading volume rally, which implies net investor buying, not investor selling. GLD’s redemptions have followed very punk price action in which net investor liquidation would be expected. I have no doubt that the net result in both SLV and GLD is that JPMorgan is accumulating more physical material. It’s just that in the case of SLV, JPMorgan looks to have been the buyer on Wednesday’s rally and quickly converted purchased shares into metal for the purpose of avoiding SEC reporting requirements.
In fact, the big theme, as I see it, is JPMorgan becoming more aggressive in acquiring physical silver and gold, while at the same time reducing its COMEX short positions in each almost as aggressively. It’s hard to imagine a more bullish backdrop for future prices.
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