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Guest Post: Guess Who's Almost Out Of Silver

Submitted by Tyler Durden on 04/08/2011 12:11 -0400

Submitted by Mark McHugh of Across the Street

Guess Who's Almost Out Of Silver

According to Jamie Dimon, he did America a favor when he agreed to take bailout money from taxpayers (and we didn’t even have the decency to thank him). Last week ,we learned that the JP Morgan CEO likes his catastrophe’s predictable, but as Mick Jagger once observed, “You can’t always get what you want.”

So in case you’re wondering who might be stupid enough to
buy silver at $40, chances are extremely high it’s going to be the guys
who sold at $15, $20, $25, 30, 31, 32, 33….. On April 6, Bloomberg
reported Comex Silver Stockpiles as of April 5, and if you scroll down through the report, you’ll notice that JP Morgan has enough silver to fill, wait for it, 6 contracts. Yep 30,844 troy ounces, that’s all.

Now consider this: Since December, JP Morgan and their customers (whoever they may be) have sold more than 12.2 Million Ounces of physical silver (net). Here’s JP’s activity year-to-date from the Comex report:

JP Morgan Silver YTD2

I will not insult your intelligence by explaining this any further.

Shine on you crazy Dimon!

- advertisements -

Fri, 04/08/2011 - 12:29 | 1150308 benb

Next potential threat:

“What the government doesn’t want is for Americans to have an escape valve. They don’t want Americans to have an alternative. They want to keep us bottled in that currency so they can steal its value…if you look at what the government is doing, they are laying the foundation for making it illegal to buy gold and silver, to sell gold and silver.” Peter Schiff April 5, 2011 regarding the federal prosecution and confiscation of silver from Bernard von NotHaus

Fri, 04/08/2011 - 12:59 | 1150434 unky

fine, for all of us who not live in the U.S. ;- )

Fri, 04/08/2011 - 14:56 | 1150875 Head for the Hills

They are doing such a fine job with Marijuana and Cocaine.....

They don't want people to have that either.

Fri, 04/08/2011 - 16:25 | 1151267 Jonas Parker

Then the government has to get rid of brass and lead first... otherwise things will get somewhat hostile...

Sat, 04/09/2011 - 05:48 | 1152998 FEDbuster

+.223

Fri, 04/08/2011 - 12:31 | 1150317 Mr Lennon Hendrix

I mentioned they would lift their shorts a year ago. I think I said something like, "Crash JPM, buy silver." Something like that anyway....Anyway, anyone feel like playing cards? Yes? Anyone? Anyone? Fuck it I will just go write on my blog now....

Fri, 04/08/2011 - 12:40 | 1150357 Lord Welligton

"lift their shorts"

What? You mean their shorts were around their ankles?

If that's the case they'll have to bend down to lift them.

Quite a vulnerable position if you think about it.

Fri, 04/08/2011 - 12:50 | 1150399 Mr Lennon Hendrix

They may, before everyone figures out they are a hermaphrodite better known as baphomate. Or else everyone is going to catch a flash of apocalypse goat balls.

Just imagine what would happen if JPM crashes because they were shorting silver and they ask for a bailout. 'We need more cash, so we can keep shorting silver.' That will go over well.

Fri, 04/08/2011 - 12:51 | 1150410 Lord Welligton

Not a pleasant image at all.

However. Perhaps best if we did.

Then we might recognise a little more of "reality".

Sounds bullish for goat balls and Armageddon so.

Fri, 04/08/2011 - 12:58 | 1150429 Mr Lennon Hendrix

The Buddha found heaven under a tree, then he got hungry.

Fri, 04/08/2011 - 13:11 | 1150474 Lord Welligton

Well yes.

If the people had a small taste of freedom they might work out that buying iPad2 on credit is not freedom.

Difficult to know how people would react to "freedom".

Also worrying to think what the slave masters would do to stop them getting it.

From the statues I've seen of the Buddha I think he should go to weight watchers.

Fri, 04/08/2011 - 13:17 | 1150506 Mr Lennon Hendrix

And you think Jesus was a blonde white guy?

Fri, 04/08/2011 - 13:49 | 1150609 Lord Welligton

No.

Always thought he was a Jew (probably slightly brown with all that Sun and fishing) just like his father.

Fri, 04/08/2011 - 12:29 | 1150319 Irwin Fletcher

"I will not insult your intelligence by explaining this any further"

OK, suit yourself Mark. Here's my takeaway message then: They're probably hiding plenty of silver in the JP Morgue, waiting for it to hit par with gold, planning a government press release to announce their successful mining of deposits in Afghanistan, thinking of ways to dump their horde on over-leveraged suckers at a bleed-but-not-kill rate, keep the price as high as possible while they accumulate ownership of anything that is now privately owned, and then, hey, look, that war really saved our economy and the health of our financial system! Suck it Max Keiser! </sarcasm off>

Fri, 04/08/2011 - 13:01 | 1150441 Mr Lennon Hendrix

Max will be fine now that he patented the telephone.

Fri, 04/08/2011 - 13:15 | 1150486 Lord Welligton

I thought he co-invented the Internet with Al Gore.

Fri, 04/08/2011 - 12:32 | 1150328 FunkyOldGeezer

Even though JPM have only just opened their vault, 30,000 odd ounces is an absolute joke, isn't it?

Fri, 04/08/2011 - 21:57 | 1152454 Imminent Crucible

Everyone, including Mark McHugh, needs to look at that chart again: JPM is already out of silver.

The chart lists zero ounces in the "registered" category, and 30,844 ounces in the "eligible" category. Only "registered" ounces are available for delivery. Eligible means the silver is owned by someone who does not want to make it available for delivery at the present time. If JPM must meet delivery contracts now, they're going to have to get the silver from someone else. Maybe their good buddies at HongKong Shanghai Banking Corp.

Fri, 04/08/2011 - 12:33 | 1150332 metastar

I suspect the Morgue with help from the Fed will blow up the stock market, pulling PMs down with it. The Morgue will then be a buyer. That said, I'm still in silver.

Fri, 04/08/2011 - 12:34 | 1150333 Darth Silver

only a matter of time before you hear that dirty term "credit default swap" creep into the conversations of JPM. the end result is known, the timing remains the question.

as we witnessed with AIG, it will not be a linear decline.

Fri, 04/08/2011 - 12:35 | 1150344 metastar

Kill the Morgue! Buy Silver.

Fri, 04/08/2011 - 13:13 | 1150477 Mr Lennon Hendrix

Fuck Bernanke's couch. Buy silver.

Fri, 04/08/2011 - 14:11 | 1150699 The Eradicator

http://www.youtube.com/watch?v=JcJkhSUSnek&feature=related

Fri, 04/08/2011 - 14:41 | 1150816 Jay Gould Esq.

Eradicator, we appear to share the same haberdasher.

Fri, 04/08/2011 - 12:40 | 1150360 alien-IQ

And THAT, ladies and gentlemen, is how Mr. Dimon earns his paltry $20,800,000 annual salary.

Who said crime doesn't pay?

Fri, 04/08/2011 - 12:40 | 1150366 Temporalist

Au and Ag still going higher as we discuss the Emperor's lack of wardrobe.

Fri, 04/08/2011 - 12:48 | 1150388 glenlloyd

Smells like fractional reserve paper silver to me. I wouldn't want to be on the wrong side of that trade!

Fri, 04/08/2011 - 12:51 | 1150408 AlaricBalth

Avarus animus nullo satiatur lucro

A hearty congratulations goes out to Jamie Dimon of JP Morgan for his valiant, tireless efforts during 2010 which warranted his expanded pay package. After bribing public officials, manipulating the silver market, removing hundreds of military families from their homes, charging exhorbitant fees to the unemployed and feeding at the public trough to the tune of billions of dollars, you certainly have earned such remuneration. (Sarc.)

"After piloting the No. 2 U.S. bank through the financial crisis relatively unscathed, JPMorgan Chase & Co Chief Executive Officer Jamie Dimon is now being extremely well rewarded.

Dimon's total compensation jumped nearly 1,500 percent to $20.8 million in 2010 from $1.3 million a year earlier, based on the U.S. Securities and Exchange Commission's compensation formula, a regulatory filing showed.

Dimon did even better in terms of the value of money and shares actually received: his salary, bonus and stock and options from grants made largely in previous years that were actually exercised in 2010 were worth around $42 million."

http://www.huffingtonpost.com/2011/04/08/jamie-dimon-jpmorgan-pay_n_8465...

Fri, 04/08/2011 - 13:12 | 1150481 samsara

And that money Jamie gets is small change compared to his bonuses he gets from David Rockefeller for running things so well.

Fri, 04/08/2011 - 14:08 | 1150696 Vendetta

Maybe he's taking cash salary instead of stock options after divesting himself of $42 million in stock

Fri, 04/08/2011 - 12:56 | 1150419 MGA_1

All under control !

Fri, 04/08/2011 - 12:56 | 1150421 adonisdemilo

looks like Q3 and Q4 is inevitable

JPM will need all of it to save their ass

Fri, 04/08/2011 - 12:58 | 1150430 Hephasteus

Poor JPM no expendables to do the job.

You're fucking bear stearns this time bitches.

Fri, 04/08/2011 - 13:00 | 1150431 Piranhanoia

Not that I really think, but this article is about the disappearance of the metal. There is no contradictory "evidence" to the contrary, correct? Thus, to extrapolate, paper says one thing, all the nice folks saying there is no metal due to demand must be wrong. This forces us to assume 3 people out of 300 million are correct because they have loud names.

we have to get our news from people that lay it out for the sun to shine on it, or through it.. thanks ZH

Fri, 04/08/2011 - 13:00 | 1150437 the not so migh...

If the metals or precious stones are not in hand you don't own it.

Fri, 04/08/2011 - 13:03 | 1150445 The Aviator

Bad news for JP Morgue w/ silver's real price now $54

http://silverdoctors.blogspot.com/2011/04/free-market-silver-price-now-n...

Fri, 04/08/2011 - 13:03 | 1150447 The Axe

IF....all of the stories related to JPM (suckbus) and their silver short are TRUE..then WHY is the stock close to a 52 week high...That makes NO sense...cause the loss they would incur...would be LARGE! And getting larger...The stock would be hinting at this..if it was true...?

Fri, 04/08/2011 - 13:10 | 1150466 samsara

The silver losses via cash settled undeliverable contracts is chump change for JPM. What is it? Millions? A few Billions?

Cost of doing business in price suppression. They could do that forever.

When you live in a time when Hank Paulson hands over $700 billion in one check, Small expenses mean nothing.

Fri, 04/08/2011 - 13:03 | 1150450 Caveman93

Wow, radioactive debris...lovely!

Fri, 04/08/2011 - 13:08 | 1150459 Global Hunter

Are they short on the prop desk or did they sell it agency for clients? I guess what I'm getting at is, did JPM just decide to make a fundamental call and short silver themselves? And if so why?

Sat, 04/09/2011 - 02:16 | 1152899 FeralSerf

No -- they don't have the balls to do that. Bear Stearns, China, Fed, and who knows who else?

Fri, 04/08/2011 - 13:11 | 1150473 e_goldstein

cry me a river, blythe.

Fri, 04/08/2011 - 13:15 | 1150493 ivars

I think oil will start to go down soon, with money moving into PM. That means, peak for correction in silver and Gold will coincide with next LOW in oil. Which is early MAY, 2011.

So , one more month for silver rally.

Here are oil price prediction for 2011-2012 from february 6th, has predicted 2 peaks correctly already:

http://www.saposjoint.net/Forum/viewtopic.php?f=14&t=2626&p=31662#p31662

See the dip in MAY? And here is corresponding ( independently derived) peak in Silver ( it has to be in early MAY 2011, the March 13th graph shows maximum little too early. The value at peak can be close to 45 USD, may be 48 USD):

http://www.saposjoint.net/Forum/download/file.php?id=2673

Then, FED will bailout JPM shorts, and silver will drop by 40% afterwards, as it happened in 2008 when FED bailed out Bear Sterns via JPM.

http://www.saposjoint.net/Forum/download/file.php?id=2609

http://www.saposjoint.net/Forum/viewtopic.php?f=14&t=2626&start=0#p30486

And oil will rise again, to a massive peak ( Brent >140 USD) which will finally signal that the USA is back onto path to next recession.

Fri, 04/08/2011 - 13:16 | 1150500 JLee2027

You wish.

But the shortage of metal will decide Silver's price.

Fri, 04/08/2011 - 13:15 | 1150497 Hannibal

Bernanke will cover JPM's silver shorts. Done deal.

Fri, 04/08/2011 - 13:27 | 1150524 JLee2027

With what a magic wand? There is no silver. So it's a default and a PAPER bailout of some kind. Useless.

Fri, 04/08/2011 - 14:29 | 1150780 Rogerwilco

Read the agreement. If necessary, exchanges can settle with a check.

Fri, 04/08/2011 - 22:15 | 1152502 JLee2027

Already been happening since December. The check doesn't matter. The default is THERE IS NO SILVER. When enough realize that, the panic stampede begins.

Sat, 04/09/2011 - 02:18 | 1152905 FeralSerf

With enough dollars, I'm sure they can buy the silver. Maybe not at $41, but grandma will give up her strerling eventually (especially if they turn off the heat and it gets cold). The price is yet to be discovered. It may be in three digits.

Fri, 04/08/2011 - 13:20 | 1150511 youALREADYknow

These are just the numbers from their newly opened vault. Someone is trying too hard.

I doubt they have even 10% of the physical needed to cover, but this isn't the proof.

Fri, 04/08/2011 - 13:33 | 1150537 zero intelligence

When JP Morgan said that they would become a COMEX depository, everyone immediately assumed it would be a scam. However, one possible aftereffect is that it gives at least some picture of JPM's physical holdings. Because, if you are JPM, are you going to hold your silver at someone else's depository? And pay them storage fees?

Sat, 04/09/2011 - 10:48 | 1153201 mark mchugh

I think that's a very astute observation. Hasn't it occurred to anyone else that other market participants are not on board with JPM?

Fri, 04/08/2011 - 13:39 | 1150575 Debtless

It's going to take time for the silver paint to dry...then they'll start the real bar counting.

Fri, 04/08/2011 - 13:41 | 1150583 LowProfile

Douchebag thread hijacker 99er's first post looks like it's getting junked into oblivion, so the the legitimate converstation linked to is is archived here:

by LowProfile
on Fri, 04/08/2011 - 12:22
#1150267

In an attempt to bring the comments near the top of this thread to something remotely fucking related to the subject matter of the post, and with inflammatory language directed at the spamfuckers who hijack it to pimp their pretty charts (yeah you, 99er, tell me WTF your post has to do with JPM running out of silver? ASS. You are a perfect example of why most comment boards need to be moderated.)...

So... Without further ah-doo:

How many people here think JPM is betting they will be able to buy that silver cheaper than $40? How would they do it?

Can you say deflationary impulse?

I can. Assuming they do it (which I think is better than 50/50), it's obviously a buying opportunity, but you may want to get ready.

by DoChenRollingBearing
on Fri, 04/08/2011 - 12:24
#1150282

Low, my guess is that if JP Morgue gets into any real trouble, the Fed will just bail them out. JPM then just settle with cash, not ounces.

by LowProfile
on Fri, 04/08/2011 - 12:27
#1150300

Possible (and why I gave odds), but consider the repurcussions if the COMEX is fully revealed to be a faux vehicle for price discovery.

At that point, gold moonshots as well, and the whole system goes *poof*.

I think they give it one last college try to save it. Could be wrong, but I'm a gamblin' man.

by DoChenRollingBearing
on Fri, 04/08/2011 - 12:36
#1150340

I would agree with your analysis. If either/both JPM or COMEX default on physical, they may get bailed out, but both Au and Ag take off. Majestically!

by skohiu
on Fri, 04/08/2011 - 12:42
#1150373

didn't the CONex already change rules where it can just deliver GLD/SLV in lieu of physical?

http://www.chrismartenson.com/forum/comex-can-now-deliver-gld-etf-instead-physical-gold/22425

by tmosley
on Fri, 04/08/2011 - 13:05
#1150456

Last I heard, they give shares of GLD or SLV+ a cash premium.

But nothing official--all rumors.

by depression
on Fri, 04/08/2011 - 12:46
#1150386

Cash Settlement Bitchezz !!!

by LowProfile
on Fri, 04/08/2011 - 13:01
#1150438

I would agree with your analysis. If either/both JPM or COMEX default on physical, they may get bailed out, but both Au and Ag take off. Majestically!

Which is why I don't think it's going to happen...

...Yet.

by centerline
on Fri, 04/08/2011 - 12:44
#1150372

I would wager that these guys are a little ahead of the chaos. Not by much. But, maybe just enough to ride the next deflationary impulse into such a position. Deflationary impulse already in the making actually. It is the next leg of the events unfolding wherein the sovereign crisis becomes an epic political crisis. That show is just warming up. A little taste of deflation is all that will be needed to set the stage for the political crisis being turned into a public crisis. And the blame for what happens next will have been shifted squarely onto the politicians and people. Classic misdirection.

by LowProfile
on Fri, 04/08/2011 - 13:09
#1150462

I think you may have nailed it.

I suspect though that they may not have the level of control they think they do. Everybody thinks they can engineer to beat the tsunami, and then one comes along that's just a bit outside what you planned for and...

Either way, I am beyond giving a fuck... Pass the beer nuts.

by centerline
on Fri, 04/08/2011 - 13:17
#1150507

Agreed. At some point they will get their pecker caught in the wringer.

I am with you. Numb. Quietly doing my own thing to prepare. I dont even bother trying to shake people out of thier coma anymore.

<passing the beer nuts>. Toss me a beer. Its getting really interesting now.

by cossack55
on Fri, 04/08/2011 - 13:32
#1150540

100% cuncur. I'll join you in a beer as soon as I get these cases of Polish vodka stored in the bunker.

Either way with silver. If drops I'll buy more, if up I'll buy more coffee, tobacco and iodine.

by LowProfile
on Fri, 04/08/2011 - 13:39
#1150562

I'm long potatos, kettles, copper tubing and charcoal filters.

Fri, 04/08/2011 - 14:07 | 1150693 Highrev

by 99er
on Fri, 04/08/2011 - 12:15
#1150217

A Predictable Catastrophe

Cars, whole houses and even severed feet in shoes: The vast field of debris from Japan earthquake and tsunami that's floating towards U.S. West Coast

By Daily Mail Reporter
Last updated at 10:53 AM on 8th April 2011

Read more: http://www.dailymail.co.uk/news/article-1374520/Japan-earthquake-tsunami-debris-floating-US-West-Coast.html#ixzz1IwrHqFid

99er, next time lead off with "OT".

Fri, 04/08/2011 - 13:57 | 1150645 AAPL_Short

I would gladly pay something like USD 20,000 as my personal contribution, if that helped JPM and Vampire Squid go bankrupt. Gladly. That is why I have been buying more SLV ETF even lately. Die die die !!!

Sat, 04/09/2011 - 04:14 | 1152965 ZeroPower

Careful for OpEx next week, wouldn't surprise me in the slightest to see spot down to around $36. These new high levels have basically flown up and thus missed any chances of consolidating to make and key S points. Be cautious is all im saying; longer-term, yes up up and up.

Sat, 04/09/2011 - 10:56 | 1153212 mark mchugh

Excellent point.

Fri, 04/08/2011 - 14:10 | 1150700 goldsaver

Guys, look at the HSBC numbers. We know that JPM is basically a subsidiary of HSBC and they are both subsidiaries of the Fed (and the BoE). So, now we see the reason for the manipulation. JPM uses paper shorts to drive down the price at COMEX and HSBC buys physical at the suppressed prices. Any paper losses incurred by JPM are covered by the Fed (and the BoE). At the end JPMHSBCFEDBoE corner the physical market by holding real wealth in their vaults.

Fri, 04/08/2011 - 14:32 | 1150784 Lord Welligton

"HSBC buys physical at the suppressed prices"

How much physical has HSBC acquired while JPM was "suppressing" prices at COMEX?

Fri, 04/08/2011 - 14:52 | 1150855 goldsaver

Based on their COMEX holdings, at least 36 million ouces. Adn that does not include any PMs held overseas.

Fri, 04/08/2011 - 16:10 | 1151184 Lord Welligton

OK.

@ $40 per ounce that's about $1.4bn. Correct?

That's less than Goldman Sachs paid out to staff in 2010.

Goldman Sachs bankers to receive $15.3bn in pay and bonuses

http://www.guardian.co.uk/business/2011/jan/19/goldman-sachs-bankers-pay-bonuses

What is the value, in Dollar amount, of JPM's short silver as of, say, 31st March 2011?

Fri, 04/08/2011 - 14:28 | 1150766 Youri Carma

You Can't Always Get What You Want http://youtu.be/wxkdmL3iMCY

Fri, 04/08/2011 - 14:33 | 1150799 Downtoolong

I’m happy for all those making a mint (yours will be the only one with any real silver soon) off JPM and the silver markets. But, it’s sad that most don’t see the real damage here. This is another tragic example of how the big banks and big players make a mockery of the commodity markets with their irresponsible, bully trading practices. As a prior post already pointed out, JPM will probably be allowed to settle in cash if they are ever pushed to the wall. That doesn’t do much to cover the lost profits of a silver buyer who intended to use it to manufacture conductive adhesive for computer components. It’s all relative, and even when the banks lose, the main street economy loses even more when this kind of shit happens.

Fri, 04/08/2011 - 14:48 | 1150839 slewie the pi-rat

i went to the source, and not one word of the article, above the line is tyler's. some it may sound like him, but he posted mark mchugh's "open thread" from today verbatim. that's all mark, no tyler.

i'm so hot for blythe i can't think straight! she has triggered latent trading fantasies of which i never dreamed i was capable of dreaming. i've posted the most outrageous one on zH, already, and won't bore further abt it, now, except to confess that hsbc was my fantasy for the "bad bank/call option" part. no shit.

wtf is 12mm Troy oz to jpmorgue for a quarter? is it not at least possible that some of these "trades going to delivery" represented gains for da morgue? does this crimex data include the bars in blythe's new very own warehouse? IF da morgue lost $10/oz on every ounce, ok?---THEN, they're down 122 million FRN's. [-$122,000,000.00]. unhh,...this is freaking jpmorgue here, sports fanZ, ergo, this is chump change. plus, i can't figure to the 12.2 million ounces, so slewie does not pass mark's intel test, today! my intelligence is insulted and can't get up! maybe if i could figure out wtf the I, C, S, and H mean i could "get" it, but i'd rather think about blythe, most fondly, of course...

many seem to ass-u-me they know what blythe is really up to on the crimex trading floor. they just know her book, that's all! they get if from the COTS reports and these crimex pdf's, apparently, and, like mark, figure anyone is brain-dead who doesn't see it their way.

call me brain-dead. you won't be the first, trust me there! slewie prefers to assume nothing, and just followz the amazing story of spot silver in real time, coaching a few of his peeps who, unlike him, have jobs and/or money, according to their needs and situ's.

without the assumptions, it's amazing what one can see in the way of possibilities for the morgue! ok, i do assume that blythe has her totally trimmed hedges all over the place, including, but not limited to ETF's, GSR, options, possible leasing, and so on. as for her fabulous, engorged labia, well, she's mine, i tell you, mine!

Fri, 04/08/2011 - 14:50 | 1150858 mrcmmm

I don't get the arm-waving. If JPM owns a 12.2m oz short position all by itself, at $40 it's less than half a billion exposure. If it doubles, it's a billion. JPM is presently losing four times that amount annually on mortgages and still making a $15 billion profit. This will not "crash" JPM, at least if the numbers above reflect its entire short position. Even if it were tenfold this, JPM could take a $10BB hit and survive -- and probably even make a little net profit overall. A bunch of other people may get rich benefitting from JPM's short coverage.

Fri, 04/08/2011 - 14:59 | 1150891 Bansters-in-my-...

Hey LowProfile I see you have a Target in the centre of your forehead.

I would love for you to be the backcatcher for catch the base metal(lead) and you can use your dot.

Peace.

Fri, 04/08/2011 - 15:06 | 1150912 BanksterSlayer

For those of us who are new at understanding why JPM keeps selling silver to force down price (once in a while now) even though they can clearly see the price going up, this blog posted back on March 9th was very helpful at answering this conundrum:

http://tfmetalsreport.blogspot.com/2011/03/questions-continue.html

Quote from the article: When I first started to realize that JPM has shorted far more silver than they could ever hope to cover, my first question was “why would they do that?”

Now I know the answer. According to Max Keiser and now a couple ...of other independent sources, it seems the reasons why first Bear Stearns and now JPM are so desperate to manipulate the price of silver down is due to the fact that BS and JPM shorted billions (yes billions not millions) in ounces of silver through their derivatives.

Just like Joe Conason at AIG, silver shorting through derivatives have caused literally billions in losses not the millions that we know about publicly. That is why JPM has been so desperate to manipulate the price of silver downward so blatantly. If I am right about this, then JPM will be dead when silver hits $60 or so. Based upon the COT and BPR, if silver hits $60, JPM will lose around an additional $6 billion dollars, a large number but not nearly large enough to bring down mighty JPM.

But what is not known is that due to the way that its derivatives are written, JPM’s losses are exponentional once silver breaks $36 or so. Rumors has it that JPM could be losing as much as $40 billion once silver is above $50. It has something to do with how the derivatives are written with payment tied to the price of silver.

Sat, 04/09/2011 - 04:22 | 1152969 ZeroPower

Yes, this whole 'silver losses exponential at >$36' post has been flying around the blogosphere.

To add some insight: this is absolute rubbish: "But what is not known is that due to the way that its derivatives are written, JPM’s losses are exponentional once silver breaks $36 or so"

Unless the poster is an insider (and i would bet he isnt') there is no way him, I , or anyone has any idea about JPMs "written" (ill assume this means net) short silver derivatives. Just a pipe dream. Also, please show at least a modicum of proof as to where the $40Bn loss of Ag @ $50/oz is.

For you haters, no i dont have a vested interest in JPM and nor do i want silver to fall, but one should always keep an open mind and not believe (and in this case, repost BS) in every senseless comment posting.

Fri, 04/08/2011 - 15:16 | 1150942 Youri Carma

The Official Silver Liberation Army! http://silverliberationarmy.com/ On Tube Promo: http://youtu.be/zPnCt3qC5K4 Max Keiser: Silver will be the first element in the periodic table to become extinct (shooting price per Oz. past Gold) http://maxkeiser.com/2011/04/08/silver-will-be-the-first-element-in-the-periodic-table-to-become-extinct-shooting-price-per-oz-past-gold/ Silver at New High of $40.76 o/z http://icharts.kitco.com/KitcoCharts/index.jsp
SPREAD THE WORD FOLKS! BUY SILVER CRASH JP MORGAN!

Fri, 04/08/2011 - 15:26 | 1150999 quartshort

OK- Conspirosy theorists and silver foil hat fashionistas.... I just got wind from my boss that a very close friend of his is leaving the USA to Switzerland to make an attempt to retrieve his silver NOW. He received a call from the Swiss bank telling him his account is small potatoes and the bank will sell his silver holdings for currency and change his account to CASH. Total is 3700 oz of silver. Anyone with PM in someone else's grip is going to get scalped. You've been forewarned.

Fri, 04/08/2011 - 15:33 | 1151024 honestann

EXACTLY. Those of us who understand what is happening must keep saying this over and over and over again... to save as many bullion holders as possible from destruction.

In recent years, many have noticed that their allocated gold and silver are not even available, even when they've been charged storage fees for years. This is pure, unadulterated theft, yet nobody has gone to jail.

Everyone: take possession of your gold and silver.

Everyone: convert all paper assets into physical assets in your personal possession and control.

Everyone: take responsibility for your own assets and your own future, otherwise the predators will eat you alive.

Fri, 04/08/2011 - 15:28 | 1151009 honestann

JPM == smoke-and-mirrors, ponzi, paper, scam.

Fri, 04/08/2011 - 15:49 | 1151091 devnickle

I have several ounces of lead I'd like to deposit in.....er.....with... Mr. Dimon and his ilk. X-(

Fri, 04/08/2011 - 15:54 | 1151123 Bansters-in-my-...

Hey Oh RegionalIndian

You say you seen first time buyers of silver buy a kilo ,thats no biggy.

Theres only a few rolls of Eagles or Maples,maybe 4 or so.

What does one ounce of gold cost.???

A key is no big purchase.Just helping to save thier hard earned money.

Fri, 04/08/2011 - 16:10 | 1151190 Bansters-in-my-...

Fuck off asnd die you piece of shit LowProfile ,sir.

Fri, 04/08/2011 - 16:16 | 1151211 Bansters-in-my-...

Maybe mr Dimon would hold that lead,in his head for you.

Fri, 04/08/2011 - 17:59 | 1151751 devnickle

Exactly. Mind like a steel vault.......

Fri, 04/08/2011 - 17:02 | 1151500 strannick

"Shine on you crazy Dimon!"

+ $41.95

Fri, 04/08/2011 - 17:02 | 1151505 mrcmmm

At end of Q4 2010, JPM appears to have had total derivative positions in all non-gold PM of about $11.8B, exclusive of "any contracts not subject to risk-based capital requirements, such as foreign exchange contracts with an original maturity of 14 days or less, futures contracts, written options, and basis swaps" (see Table 9):

http://www.occ.gov/topics/capital-markets/financial-markets/trading/derivatives/dq410.pdf

Fri, 04/08/2011 - 20:30 | 1152184 tomster0126

Nice...It's not gonna play out for JP the way they want it to and they're f'ed now. i'm upping my physical and getting as much as I can for the time being. let's go!

www.forecastfortomorrow.com

Fri, 04/08/2011 - 20:30 | 1152187 BernankeHasHemo...