On my show, Keiser Report, I recently invited Michael Krieger, a regular contributor of Zero Hedge (the WikiLeaks of finance). We posited that if 5% of the world\’s population each bought a one-ounce coin of silver, JP Morgan would be forced to cover their shorts – an estimated $1.5tn liability – against their market capital of $150bn, and the company would therefore go bankrupt.
Umm, silver is about $30 an ounce.
So a 3 billion ounce position (which itself sounds rather large for the silver market) is a $90 billion dollar position.
Now, yes, it is true that potential losses from a short position are unlimited: but I can\’t really see how anyone is going to lose $1.5 trillion on a $90 billion position. That would seem to be implying that silver would go to $450 an ounce…..and that JP Morgan would be riding that short position all the way to that top.
Then again, Max Keiser currently presents an investment show on Press TV, that Iranian Government sponsored station. Not entirely where I would get my investment advice from it has to be said.