Monday should be another 'interesting day' for the paper Silver market in the US.
Margins on futures contracts have been hiked to 60%, the usual COMEX gambit to suppress price and flush out the weak hands holding contracts.
But there's much more to it this time.
Once upon a time when it was still pretended that regulators were 'regulating' the CME's COMEX, the saying went "He who sells what isn't his'n, must pay it back or go to prison."
That no longer applies in this market of rehypothecated (sold many times over) paper futures derivatives. The 'managed' price of paper Silver has to be controlled to prevent a daisy-chain of derivative failures in the system which (like LEH...Lehman) requires yuge paper fiat money printing.
Consider:
COMEX pending Silver paper contract deliveries in March = 450m oz of Silver.
COMEX deliverable Silver physical inventory = 120m oz.
The Banks in the West no longer hold the physical Silver to cover all the paper claim checks they've written for Silver.
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