Loading ...Hi BG,
When I first heard of JPM acquiring a large (very large) hoard of Ag, I thought to myself “uh-oh” – they will figure out a way to use this hoard to control the price. always in their favor – they will make money as they drive the price up and down.
My guess is that they use the futures (paper) to bomb the price down. the hoard is used to back up any contracts that dare to demand physical.
If necessary they will collude with their Bullion buddys and shuffle piles of physical back and forth. controlling the price and always keeping the physical inside their club.
Just a guess on my part.