Silver Spikes Post JP Morgan Short Covering News

ZeroHedge.com by Tyler Durden

The Asian sharks are smelling the aforementioned blood. As of a minute ago, silver has jumped to far above intraday highs and is three nickels away from $30. At the same time gold is flying too, moving well north of the $1,400 barrier, as JPM silver’s short is nothing compared to its gold paper shorts. And if the firm is capitulating on one, it is a certainty it is doing so with not only gold, but all positions it may have margins calls in. Look for a spike in GC repo paper rates tomorrow as the tri-party system manager tries to take advantage of its monopoly status as the big dog in the repo market (that just happened costing Lehman its liquidity line).