The Goldman Sack Blows The Whistle On The JP Morgue Silver Manipulation Scheme

Tyler Durden's picture

The Xtranormal bubble is now bigger even than Netflix. And all who have been waiting to understand the JP Morgue silver manipulation scheme explained by cartoon bears, here it is. Also, The Ben Bernank makes a cameo appearance. We recommend having some blood in your alcoholstream before watching this.

 

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gwar5's picture

Gamed thought of that, too... but think it would only make it worse for them. No?

It would trigger a panic for the rest of the world to immediately hoard, mines/output nationalized? 

Prices skyrocket? Opposite of desired result?  Confiscations would do the same thing. 

 

Calculated_Risk's picture

Force Majeure does not cover criminal acts.

This is a criminal act on several levels -> RICO.

tmosley's picture

Force majeure IS the end of the silver scam.  That is the definition of a default.  Whether or not they are allowed to continue operations afterwards is another matter.

NOTHING can stop the advance of silver prices, any more than anything could stop the decline of housing prices.

blindman's picture

wow, i had that same inverse relationship flop around

in my dog's breakfast,  it must be true.

i must make another order immediately. 

i will let the the whims decide. ......................................................

Goldenballs's picture

J.P.Morgan purchase £1 Billion of Copper on LME,50 - 80%  of Copper reserves held yesterday.So totally in the shit,trying to corner the Copper market to counterbalance ? See the Telegraph website for story.

 

 

American investment bank bought up more than half the copper on the London Metal Exchange, pushing the spot price to its highest level since the financial crisis in October 2008.

THEY ARE IN SO MUCH TROUBLE THEY ARE CORNERING THE COPPER MARKET TO TRY AND GET OUT OF IT.

TheGoodDoctor's picture

Well let's raise the margin rates on them then.

ViewfromUndertheBridge's picture

I see it as tit for tat...Asian traders thru London (China) buying physical silver...JP Morgan (USA) buys copper...trade war!

Goldenballs's picture

Seeing as China has been stockpiling copper for years,is it not conceivable that if China started to release Copper onto the markets that could also take down J.P.Morgan ?

Rudeger's picture

http://catalog.usmint.gov/webapp/wcs/stores/servlet/CategoryDisplay?cata...

 

American Eagle Silver Uncirculated Coin

Production of United States Mint American Eagle Silver Uncirculated Coins continues to be temporarily suspended because of unprecedented demand for American Eagle Silver Bullion Coins. Until recently, all available silver bullion blanks were being allocated to the American Eagle Silver Bullion Coin Program, as the United States Mint is required by Public Law 99-61 to produce these coins “in quantities sufficient to meet public demand . . . .”

Although the demand for precious metal coins remains high, the increase in supply of planchets—coupled with a lower demand for bullion orders in August and September—allowed the United States Mint to meet public demand and shift some capacity to produce numismatic versions of the American Eagle One Ounce Silver Proof Coin.

However, because of the continued demand for American Eagle Silver Bullion Coins, 2010-dated American Eagle Silver Uncirculated Coins will not be produced.

The United States Mint will resume production of American Eagle Silver Uncirculated Coins once sufficient inventories of silver bullion blanks can be acquired to meet market demand for all three American Eagle Silver Coin products.

ElGuappo's picture

Since I bought my siver  ( about 1K ounces in assortments of rounds and bars)Between $10-12 an ounce I'm set. If they tank it ?

Hopefully it will just be another buying opportunity for me. I also have about 500lbs of sterling picked up from all over the past few yrs.

GetZeeGold's picture

 

Hi......I'm Jon Nadler......welcome to Walmart.

Crisismode's picture

Hi, I'm Jon Nadler.

 

I will say whatever my Kitco bosses tell me to say.

 

Always and forever yours,

 

Jon

tpbeta's picture

Now JPM are trying to corner the copper market. Smells of desperation.

 

http://www.telegraph.co.uk/finance/newsbysector/industry/8180304/JP-Morg...

tradewithdave's picture

We first started blogging about the situation in the precious metals market back in April 2010.  We have posted a series of links to blog entries for folks who want to gain some background on the CFTC, Andrew Maguire, etc.  There are a few things to consider for those who are motivated by what we're calling "Two Bears Attempt A Physical Short Squeeze On Goldilocks" video above.  First, ratios work in two directions.  Not only have there been huge swings in the ratio of gold/silver, a decline in the price of gold also results in a move towards the historical 16:1.  Secondly central banks are not allowed to hold silver on their balance sheets so although it is a great store of value the biggest, baddest players in the game won't be accumulators but they might be co-conspirators in sabotaging the short squeeze for the benefit of their partner "short P. J.'s" as we have come to know the Fed's preferred partner.  Thirdly, although there is consistent history of gold confiscation by the government, there's nothing to say that the same could not be applied to silver.  Times are different now and the net effect would probably drive up the price, but knowing who owns silver would not be hard for the government to uncover.  Outlawing its use in commerce would be cake for this administration.  Fourthly, as is always the problem with precious metals, we describe them as similar to cats and security guards... nice to have around, but expensive to keep and non-producers.  In practical terms they don't possess the trading ability for goods and services as say a gallon of gasoline, a load of copper piping or a warehouse full of fertilizer. 

It would seem to me that the key driver behind the price of gold is governments and central banks.  If the dollar was being debased, which we believe will happen eventually then why aren't other commodities reflecting comparable values to gold.  Is the global economy so bad that we have excess basic commodities.  How much of the current price of gold and how much of the "two bears physical short squeeze silver strategy" is driven by requirements placed on central banks, fear, and general populist rage at banks like J. P. Morgan and Goldman Sachs. 

For what it's worth, we're predicting $5,000 as the target price for gold in conjunction with the implementation of a new basket of reserve currencies along the line of SDR's.  What we aren't predicting is when such a mechanism may become reality.  It could be a generation, or it could be next year.  Max Keiser's "Crash JP Morgan/Buy Silver" meme is no doubt rising in the global consciousness.  As a weapon of economic challenge to the establishment it is indeed a brilliant and non-violent approach to an otherwise "greased-watermelon in the swimming pool" of a problem.  It does so much more than breaking glass windows in the fronts of bank buildings.  As an investment strategy it is not without significant risk.  As a political movement it is genius.  The more successful it is politically, the more likely that the price will eventually collapse through a global effort to emasculate the silver bullet.

For a link to a serious of what's happened in this movement over the past seven months click here:  First story April 2010: http://tradewithdave.com/?p=341

Series of follow-up posts on gold and silver: http://tradewithdave.com/?s=maguire

Caveat emptor,

Dave Harrison

www.tradewithdave.com

DollarDive's picture

Here's a chart showing the spread between Silver Futures (contin contr) and Silver ETF - SLV.  It's interesting to note the widening of the spread over the last 180 days, notably in November.  This market is starting to become unstable.

 

http://displacedema.blogspot.com/2010/12/widening-spread-between-silver-etfs-and.html

boooyaaaah's picture

Interesting you mention hunt brothers.
They were doing the opposite of JPM

They were buying physical silver to corner the market.

This caused the market price to rocket to 45
When gold was at 800. The ratio 20:1

Because silver is so small a market, this can be done
.
So now Tyler and friends, how do we know if the panda
Bear cartoon makers are not trying to corner the silver market.

JonNadler's picture

Wait, wait, are you going to believe a little cartoon bear over an experienced analyst like me? Silver is going back to 4. Didn't the Warren Buffet secretly sell all his silver at 8?

UNless you believe the tin foil hat crowd that he was secretley blackmailed by the government?

 

http://www.roadtoroota.com/public/223.cfm

 

 

3) Why did Warren Buffett sell all of his physical silver holdings in the 1st quarter 2006?

a) He thought silver was overvalued and wanted to lock in a profit

b) He did not think the future of silver was bright

c) He swapped it to buy gold

d) He handed it over to the banking cabal when they blackmailed him.

ANSWER: d) He handed it over to the banking cabal when they blackmailed him.

In 2005 the world's most famous investor was in very hot water due to illegal transactions with AIG in his giant re-insurance company General Re.

http://www.slate.com/id/2116167/

Then in May 2006 Buffett announced that he had gotten rid of his silver:

http://www.resourceinvestor.com/News/2006/5/Pages/Warren-Buffett-Sells-the-Family-Silver.aspx

As coincidence may have it...in May 2006 the silver ETF (SLV) opened it's doors and quickly ran to 130M oz (the exact amount of silver estimated to be sold by Warren Buffett.)

Although the CEO of AIG, Hank Greenberg, got the book thrown at him Buffett was able to escape prosecution after meeting with the "investigators" just prior to his silver divestment.

Did Buffett trade his silver for his freedom? You make the call.

 

cosmictrainwreck's picture

Thanks, Big Jon. I'd forgot all about that litle "coincidence". Just  confirms what ZH's have said prior regarding the Buff-man's so-called wisdom or character.

Goolie's picture

On YouTube, the poster of this video says the following in his comments:

"....The COMEX offered dollars instead of physical metal on December 1st silver deliveries. GAME OVER."

Over the last few weeks I decided to move a significant portion of my net worth into Dec Silver.  Part of the reason was I have lost confidence in our dollar, another is the silver chart  looks set up for a parabolic move, and thirdly, I wanted to see how long it would take for delivery past the 11/30 first notice date.

 

Well,  I don't want to disappoint anyone, but on 11/30 I was notified that most of my contracts were being delivered.  By Friday, all of them had been delivered.  No fuss, no muss.  No offers of premium cash payments by Dimon, the Bernak or Comex.

I guess premium cash payments in lieu of physical delivery is just urban legend.

 

G

Clint Liquor's picture

Now that you have delivery of a COMEX warehouse receipt, try to have your Silver delivered to an off-site storage facility. You will find that exercise much more interesting.

GoingLoonie's picture

I would check it.  We are talking about the US Government and its proxies.  Be careful.

GoingLoonie's picture

I would check it.  We are talking about the US Government and its proxies.  Be careful.

Defenestrate's picture

Putting my tinfoil hat on for this comment:

Any chance the run-up in silver prices is also being maneuvered in time for the just-just announced release of new silver bullion coins by the US Mint December 6?

http://www.usmint.gov/pressroom/index.cfm?action=press_release&id=1182

You know, double the price, then release the coins in time for Christmas, Keiser buying, and general mania?

(Removing tinfoil hat now.)

kragsquest's picture

Buy silver!  $666 is too much for 20 Silver Eagles.  That's $33.30 each.  Apmex or Gainesville are even cheaper, I think, and I pay less than Apmex.  Supply is very limited now. 

No there is no US treasury manipulation here.  They don't know enough about hard assets to manipulate it, but you can be sure that the big boys at hedge funds like Goldman do!

kaiserhoff's picture

Me likey.  Unless Traitor Ben can shit silver bars, he's got a problem here.  If JPM goes down hard, 100 Trillion of derivatives go down with it.  In any case, it's hard to argue against holding more silver.

Silver futures options are pretty rich, but a simple bull spread in the March calls will produce better than a two for one return, if silver holds at these levels or higher.  Makes more sense than playing the Chipotle Fart Factory;)

 

Downtoolong's picture

Funnier than an episode of South Park. But, seriously folks, how can any market where one participant holds 40% of the open positions (net long or short) be called a fair market? Practically speaking, any entity trying to manage a net position that large can’t avoid price manipulation even if they wanted to. No one, especially not an exempt dealer or market makerlike JPM, should be allowed to hold a net position in any commodity market of more than 1-2% of the open interest for more than a few days. If the CFTC can’t see, accept, and enforce this basic characteristic of efficient markets, then nothing else they do matters either.

Ye Ye's picture

This trade is getting uncomfortably crowded.

kaiserhoff's picture

Agreed, but that's in the nature of a short squeeze.  Lots of piling on, on both sides.  Jamie has set himself up for this.  He should know better. 

10044's picture

Yes get the hell out please

spartan117's picture

Raising rates won't work.  Debt financing would consume 150% of all tax revenue and the Federal Gov defaults.  That's sovereign nation suicide. 

High Plains Drifter's picture

http://www.guardian.co.uk/commentisfree/2010/dec/02/jp-morgan-silver-sho...

what's that you say? Zerohedge is the Wikileaks of finance? Well I never.

RonnieColeman's picture

not nearly as funny as the other videos like this

ThisIsBob's picture

Apparently the players are not yet concerned about JPM . Short interest remains stable, stock jumped last couple of days.

Crisismode's picture

Apparently, you are wrong.

ThisIsBob's picture

Anybody have a line on options action?

High Plains Drifter's picture

People used to laugh at me and call me crazy for buying my junk many years ago. Junk silver that is. So to them I say now, get your hands off of my junk, junk silver that is. I love my junk and it is dusty and heavy, but I have always loved it. Nothing like the smell and feel of real money. I got the idea to buy silver from a independent self reliant kind of guy who lives in southern Missouri named George Gordon, a former protege of Gordon Kahl. Franklin Sanders, another one of these self reliant Americans , says that it would be a good idea to have 33 percent of your net worth in PM, with 75 percent of that in silver. So far ,so good. I love it when a plan comes together.  Now those who laughed are asking me, gee , plains, where do we buy gold and silver. Idiots.

Crisismode's picture

33% is for pussys.

 

Gerald Celente went for 80%.

 

Now there is a REAL man.

 

PalladiumTrading's picture

Cool video, but their prices aren't the best.  We beat the pants off these guys.  Our monster box is over $1,000 less.  http://www.PalladiumTrading.com/buy-precious-metals

High Plains Drifter's picture

I know some rich jews who buy their PM from a guy in California named Tulving , if I am not mistaken. They got the idea from me about PM. They are wealthy people and did not understand gold and silver and now they are buying loads of it every week and stashing it in their home safes. They live in a guarded gated community so they have no worries about it really. I ask you. If these people who have lived on the system are now buying gold and silver at a fast pace, then what may I ask, is it that they see in the future? What is it, that is scaring them so. Something evidentually is because they started asking me about PM a few months ago and now are buying like there is no tomorrow. I am telling anyone that will listen, hedge yourself for the days that are coming.

Crisismode's picture

The very same thing that is scaring you and me, buddy.

 

The very same thing.

blindman's picture

http://www.youtube.com/watch?v=tTSaHk8Jx9g

Ry Cooder & Nick Lowe: The Very Thing That Makes You Rich (Makes Me Poor) Dublin, Ireland.

Bastiat's picture

No doubt the JP Morgue and its Blythe have hedged through the Oh-TeeCees with The Ben Bernank or its agents.  The JP Morgue will not have its pants around its ankles, the sheeples will.

High Plains Drifter's picture

I suspect dearest Blythe has spent a great deal of time on her knees, in order to get fast advancement at her job, whatever that is.  Nature of the beast. You have to sell your soul in order to succeed. Jim Cramer sold his a long time ago. Now he does his weekly mea culpa on CNBC like that means anything. Maybe that is one of the mitzvah's that he has to perform every week, according to his Rebbe, in order to balance out his bad works with some good works, while he supposedly gives all of us poor dumb flyover country hicks, some investment advice. Harde har har har.

RobotTrader's picture

I doubt anything serious is going to happen to JP Morgan if we get a parabolic short squeeze in silver.

Why?

-  They are the No. 1 Fed-sponsored, Plutocrat-supported entity in the U.S.

-  They are extremely well connected, and will have access to various exotic hedges (available to no one else) which will adequately protect them against a short squeeze, should it occur.

-  JPM is too big to fail.  The Fed probably has risk control officers on staff full time, and they are probably actively managing certain parts of the portfolio to make sure they don't get into too much trouble.

I am so confident that they will not fail, I am willing to go long JPM if it can close 2 consecutive days over the 200-day, with a stop just under the line.

 

huggy_in_london's picture

Yeah except there is no trend there, and hasnt been for ooohhh almost 200 days... so you'll be buying at the upper end of the trading range.  You need to look at different technical indicators for this one i am afraid.  A close above a flat lining 200d ma is pretty useless.  That chart doesn't look so good imo... it trades the up moves quickly then bleeds.  Seems more likely to test the lows one would think.

gwar5's picture

"Just buy the fucking dips"