2025 Lunatic Fringe - Market and Trade Chat

Goldhedge said:

Process as explained by
@SilverHaas

JPM "quant" fund borrows 50.000 shares, sell them short
JPM metals desk buys 50.000 shares at that same exact time from their "quant" fund
JPM metals desk redeems said 50.000 shares for PHYSICAL METAL
JPM metals desk borrows 50.000 shares and sell them short
JPM "quant" fund buys 50.000 shares at that same exact time from their metals desk, covers short.
End result is what matters:
Same amount of shares in SLV fund
JPM took silver out
JPM has a short

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68camaro said:

Well, I still don't understand, but that's ok. The Trust can buy an unlimited amount of silver, it is not limited, and it can and does issue new units of the trust periodically. Quoting one of their prospectus documents, emphasis mine:

I don't know why someone would be trying to manipulate the Trust to prevent it from buying silver, when they can issue new units and then buy more silver any time they want. Maybe someone is trying to manipulate the Trust to gain buy and sell advantages for day trading - that could be possible.

While I noticed that there was a slight premium as of end of last month, the trust has had very few instances of significant premium, and has had no significant long-term premium that I can observe (on a plot) to NAV since early in its history (2010-2012).

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