Silver Wheaton Corp. Message Board

Yesterday's price action at the jobs numbers came as no surprise to me. The only unknown is whether this is the start of a more serious engineered price decline...or was what we saw during the Friday trading session, all there was. I would suspect that we'll get an answer to that on Sunday night when trading begins at 6:00 p.m. in New York, which is 7:00 a.m. in Tokyo, the first major market that opens in the Far East on Monday morning.

But that's not the pressing issue at the moment. It's the obscene, grotesque and utterly dangerous situation that exists in the silver market and, to a certain extent, that danger extends into the gold market as well.

Ted Butler says, and rightly so, that the short position held by the four largest traders in silver...JPMorgan specifically...has become a danger to all market participants, whether they be on the long side or short side. The situation has now become so extreme that disorderly markets in either [or both] directions is almost unavoidable going forward.

It's now past the point where anyone, whether it be the CME Group, the CFTC...or JPMorgan themselves can do anything about it, without blowing up the entire market...and heaven only knows what collateral damage there might be from that.

At one point during this past trading week...whether it was Wednesday or Thursday...JPMorgan was short seven times the allowable 5,000 contract position limit for all months in silver.

Do you remember Ted Butler's crusade for a position limit of 1,500 contacts [2,000 maximum] for any one market participant in Comex silver a few years back? A position limit this size in silver would be in line with the rest of the physical commodities that are traded on the Comex. This fact alone should indicate how dangerous the situation has become...and if that doesn't scare you half to death...I don't know what will.

You should be terrified of this market. I know I am.