Last year I exposed that Citibank had taken over the role of HSBC as the Silver Rigging Trading Partner for JP Morgan with their sudden increase from $44M to $9B in silver derivatives as reported in the OCC Quarterly Reports for Q1 2012. That position has stayed just about the same until the 1st quarter 2013 when it jumped to almost $12B.
The latest report for the 2nd quarter 2013 that was just released shows a shocking reversal of Citibank’s silver derivative position shedding $8B to come in at only $4B. This huge reversal is as of June 30th 2013 as the OCC publishes these reports 3 months after the close of the prior quarter.
All the data is here:
bix weir
Notice that the overall bank silver derivative position has also shrunk from $41B to $28B over that same time frame clearly showing that the Commercial Banks are RUNNING FOR THE HILLS when it comes to silver derivatives (noted as “PREC METALS” on page 36).
I expect the 3rd quarter will come in lower again when it is published in December.
Here was my alert about this situation last year for Private Road Members:
Silver Short Hot Potato Being Passed Again!
What does it all mean? Who knows but judging from all the announcements this year that banks are shedding metal storage facilities and getting out of trading commodities one can assume that they got the word at the beginning of the year that their game would soon be OVER!
NOTE: Keep an eye out for a non-regulated hedge fund like BlackRock to try to take over the silver rigging controls. Otherwise the sky is the limit for the price of silver.
May the Road you choose be the Right Road.
Bix Weir