Hi Scruffy!

One thing I forgot to mention is that the margin increase is the third one in succession over a period of about a month. Yet during this same time, silver lease rates have remained negative. Should that not be worth noting? The bullion banks are literally paying people to borrow silver, and yet the COMEX feels they need to restrain speculation and increase margins? Something there does not add up.

Also, retail bullion outlets are selling out again for small bars, the US mint is reporting record sales for silver eagles this year, there are documented drawdowns in bullion inventory levels, and yet SLV was able to report a magic addition of many millions of ounces of silver this month to its holdings. I do not think any rational person can believe that real bullion has been accumulated at the SLV warehouses to match the pace of the increase it is reported inflows. Yet some people still believe that JPM is able to 'hedge' its short at the COMEX with SLV holdings. And those same people do not find it odd that JPM is the custodian of SLV.

That is what I will be posting to the Cafe today.

cheers!

mike