Futures Market News
Investment house holding silver as collateral
Mar 25, 2011 07:27 AM
JPMorgan Chase, a high-flying New York-based investment house that accepts gold for collateral when trading securities, is a custodian for silver inventories belonging to Comex.
Bloomberg reports a spokesman for the exchange, also of New York, said JP Morgan Chase became a depository on March 17. March 22 exchange information indicates the investment house holds 30,844 ounces of silver, which more than doubled in value during the past year.
"This is further indication that gold and silver are being treated more like a currency," Matt Zeman, a market strategist at Kingsview Financial in Chicago, told Bloomberg.
At 9 a.m. on Friday, silver futures were even and valued at $37.375 per troy ounce.
The precious metal touched 31-year highs on Thursday when valued at $38.18 per troy ounce. Set in 1980, silver futures' top value is $50.35 per troy ounce.
JPMorgan Chase announced last month it soon will accept additional precious metals as collateral. The exchange spokesman said the investment house is authorized to use gold, platinum and palladium as collateral against contracts for precious metals traded on the Comex and Nymex.
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