"So according to this story both JPM and Chineese are shorting. So who is buying all that silver and why is the price entrenched above 29 for days now. Should it not drop down like a rock if everyone is shorting?"
So, according to this story, JPM is not and never has been(really) shorting. They are hedging, (selling short paper contracts which are backed by physical), acting as an agent, for a customer.
The customer is Chinese.
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