Gene Arensberg analyzes the big banks in silver futures

Section:

4:36p ET Sunday, November 7, 2010

Dear Friend of GATA and Gold (and Silver):

Gene Arensberg of the Got Gold Report today published a detailed analysis of the U.S. silver futures market and concluded that the two biggest commercial traders are so big that they indeed are likely manipulating the market at strategic moments, even as he doubts that they are "naked short" silver. Rather, Arensberg thinks the commercial traders that are short in the U.S. futures market are hedged in some way, with "offsetting corresponding net long derivatives in other markets or inventory, or future production/cash flows, or hedging more complex financial derivatives, or perhaps hedging something we have not thought of."

Of course hedging with derivatives might be a form a naked shorting, depending on the derivatives and their issuer. Maybe all this will be illuminated by the recent class-action lawsuits filed in U.S. District Court for the Southern District of New York accusing J.P. Morgan Chase and HSBC of manipulating the silver market.

Arensberg's analysis is titled "U.S. Banks in Silver Futures" and you can find it at the Got Gold Report's Internet site here:

http://www.gotgoldreport.com/2010/11/us-banks-in-silver-futures.html

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.



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