The transition in the Silver market has been relatively well managed, considering how enormous and unbalanced those short positions were. Yes we have seen strong upside price movement but it could have been much more chaotic than it has been.  It is pretty clear that the largest short had been JP Morgan and now that they have flipped to being long, they are apparently now, the largest long.  However a recent “Asian Guy” video claims they are being forced by the FED(more likely the Trump Administration, since it was the first Trump Administration  who previously  prosecuted them for manipulating the precious metals market)  to eliminate  their entire long position.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                If they are being forced to disgorge their huge long silver position, it should play out in two distinct ways.  First, it will accommodate a relatively smooth transition for the four or so large foreign banks that are still largely short, to cover those positions with much smaller losses than if an outright squeeze was allowed to be orchestrated.  This is likely why silver is only around $85 currently, and not already over $100.  If the supposedly leaked info is correct, JP Morgan has to close out the process of eliminating their large long positions by the end of this month, Jan.31st.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  If that ends up being accurate, then prices for silver should temporarily top out, by later this week.  While I don’t buy the size of the long position that Asian Guy states, nor the supposed prices that the liquidation would bring silver down to, I do believe it will lead to a pullback that could provide an excellent buying opportunity, before silver resumes it’s climb to whatever ultimate new high price, awaits it.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Even if Asian Guy’s estimate of how much physical Silver JP Morgan has accumulated is accurate, I don’t believe the government is going to force them to dump it in the market to drive down the price. The government is more concerned with removing the systemic risk presented by the large banks who are short, possibly losing so much money they collapse and trigger a derivative dominoes collapse.  Also, the US government would rather buy some of the physical Silver for strategic reserves and for the defense contractors that need the physical Silver to keep the production of missiles and other weapon systems going.                                                                                                                                                                                                                                                                                                                                                                                                                                                                    So, if JP Morgan has to eliminate their long Silver holdings, it is very unlikely it will just be dumped, all at once, causing a huge price collapse.  It will facilitate a healthy pullback that creates the next entry point, while helping to allieviate the dangerous instability of banks being naked short and defense and other industrial users, not having enough Silver to produce their products.