Inquiry Into Monopolistic Trading Practices By JPMorgan On LME Launched, Sending PMs Higher

Tyler Durden's picture

Some interesting headlines just hit Reuters:


As further clarification, our colleagues at the FT's blog Alphaville point out the following findings about JPM's dominance of the LME which apparently has pissed off at least one local committee (since the CFTC can not be bothered to complete its investigation of JPM precious metals manipulation).


79. We heard that there were large companies dealing metals within the UK and an allegation was made by the MMTA that a company through a subsidiary may be behaving in an anti-competitive manner: on the London Metal Exchange there are four very large companies that own the very warehouses that people deliver metal into, J.P. Morgan is one of them.

They own a company called Henry Bath. They are, therefore, a ring-dealing member of the exchange and they also own the warehouse. That is restrictive. They were also reported, at one point, to have had 50% of the stock of the metal on the London Metal Exchange.[113]

80. We would be concerned if the ownership of metals storage warehouses by a dominant dealer on the London Metals Exchange were to be anti-competitive. We would also be concerned if a dealer who had the resources to own over 50% of stock on the London Metals Exchange impeded the correct functioning of the market.

81. We use this report to bring the alleged activities of large dealers on the London Metals Exchange to the attention of the Office of Fair Trading. We would be concerned if a dealer were undermining the effective functioning of the market and we look for assurance that the market is functioning satisfactorily.

And another big oops for Blythe Masters who apparently has decided to move now officially investigated market manipulation practices to London and away from the CFTC. In the meantime, silver Comex holdings continue to decline and at last check, are flirting with the record low 100 million ounce level. Once can only imagine (literally) what is concurrently happening at the LME and/or LBMA. (But neither of these is currently an issue, supposedly, once again courtesy of our colleagues at the FT).

Regardless, here's silver, which appears poised to resume the trek higher.

h/t Victor

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LRC Fan's picture

Silver, bitchezzz!

Texas Gunslinger's picture

I'm curious, does the above chart reflect the price of physical or paper silver?

If it's the paper price, no one at ZeroHedge should care - right?  Or is this another case where the paper price is marveled at tick by tick on the upside, yet dismissed as insignificant on the downside?




strannick's picture

You guys are right about this guy, with his 'aw shucks, Im curious, couldja plese explain sumptin' metals bashing attitude.

HamyWanger's picture

Good observation. 

But the contradictions and hypocrisy of silverbugs on this site are endless. Right now I can buy fully allocated physical for just $0.80 over spot, so the whole "physical/paper price divergence" was just a scam. 

We're still waiting for the Comex default announced by tmosley, by the way. 


by tmosley 
on Wed, 05/04/2011 - 16:46


I'd give it a 40-50% chance that it will default in the next delivery month.  Add 20% to that chance for each delivery month that passes.

But then, I have always been early on such things.  Which is why I just hold physical.


tmosley's picture

Wow, you waited a whole three weeks.  Rather than, you know, waiting for the next delivery month (ie July), like I said.

lol, "fully allocated".  I bet you're paying storage too.  What a rube.

HamyWanger's picture

"Wow, you waited a whole three weeks.  Rather than, you know, waiting for the next delivery month (ie July), like I said."

The problem is that you've been announcing an "imminent" Comex default for 12 months now, without interruption. 

"lol, "fully allocated".  I bet you're paying storage too.  What a rube."

Just because some peasants in Montana or Vermont can't find any Silver eagle in their remote local pawnshop does not mean there is a shortage of physical silver. 

You can find .999 silver bars at less than 1 dollar over spot, yes. 


tmosley's picture

Uhh, no, I haven't.  I said it is coming, and that it is possible for it to strike without warning.  It didn't become "imminent" until the start of May.  I only put a watch out for this once before, in 2008.

And sure, you can find some 1000 oz bars out there for less than a dollar over spot.  But you used to be able to get them AT spot.  And as recently as last month they could be had for half of current premiums.

And you didn't answer my question.  What has been happening to COMEX inventories for the last 7 months?

Texas Gunslinger's picture

tmosley is probably the biggest joke at ZeroHedge.

Here's a guy who portrays himself as an expert on precious metals, yet was caught completely off guard by the CME margin hikes, even though there were 57 hikes on the NYMEX since the beginning of the year.  A true "expert" would understand that margin hikes are a routine practice by the CME, and not part of some goofy, larger conspiracy that happens out of nowhere.

Mosely is great with the conspiracy stuff, but quite short on facts.   


tmosley's picture

Sorry, how was I caught off guard?  I posited that something like that would happen several months before it did, and then identified what was going on a couple of days after it started happening.

The principle thesis remains the same.  Buy physical.  

Failtroll fails again.

Why don't you tell us some more about your local dogfood price, or how your silver dealer is a demigod of some sort.

Texas Gunslinger's picture

 I posited that something like that would happen several months before it did...

Really?  You have any proof?  Because I find posts that are completely the opposite. 

Here you are predicting that silver would totally rebound back to $49 by the 5/6/11:

A few posts later in the same thread, you promised to leave ZeroHedge forever if silver ever went below $35.

Seems to me that you were caught completely off guard, had no fucking clue what was going on, and fell on your face, hard.  

tmosley's picture

I do:“catast...



Fri, 02/04/2011 - 08:35 | tmosley (Total Score:1)

The paper price is fake.  The sooner it breaks down toward zero (among infinite volatility), the sooner the current system ends due to metal default, and "gold bugs" take over the financial system as physical premiums head toward infinite.


I predicted the rebound PRIOR to FIVE consecutive margin hikes.  With that clear and obvious manipulative action, they made it clear that they intended to keep paper down by any and all means.  The natural result of that was a flight from paper to physical.

As to the leaving ZH, I specifically said PHYSICAL silver had to go below $35 for TWENTY FOUR HOURS.  It never did.  It was further made to a person who then threatened my job via cyberstalking activities.  The $35 was a move up from the previous $20.  I don't see any need to honor the higher number, but maybe I will, if it is ever breached under my terms.

Your "fell on your face" comment leads me to believe that you are actually Red Neck Republicant.  Had to make a new character, eh?  Why don't you fuck off, dipshit?  Nobody wants you here.

Texas Gunslinger's picture


That's your defense? The paper price is fake?  Another conspiracy comment about paper silver going to zero, which doesn't even address my comment towards you?


Where's your prediction that the CME would hike margins, and that it would crush the silver longs? 

Furthermore, if you're saying that physical silver was never at $35, then you're calling Eric Sprott a liar because Sprott said he could buy all the physical he wanted at spot. Silver has been under $35 for many days since May 12th.  According to Sprott, the paper price is exactly where he's buying, which blasts a fairly large hole through your "paper is fake" garbage. 

All this conspiracy stuff is just a substitute for your lack of true understanding.  





Tito Gobbilicious C's picture

Yeah, well...if I was Eric Sprott I could get pretty bitchez to load me up on the spot at spot for spot all day long. But I'm not Sprott, so I gotta pay the preem...and life is like a merrily merrily dream...

tmosley's picture

Uhhh, no, that's not my "defense".  That is my proof--ie I was talking about this kind of thing happening a long time ago.  I didn't care, and I don't care to predict the particular paper games they will play to try to knock down the price, because I DON'T CARE.  I want physical silver.  End of story.

Also, nice job totally taking Sprott out of context.  For one thing, Sprott is on record MANY times saying that he has a LOT of trouble finding silver at spot.  He can buy it, because he's moving millions upon millions of dollars into silver, meaning there is none left at that price for anyone else.  The closest we can get is a few COMEX deliverable bars, whos premiums have doubled.  Of course, most people are stuck with smaller products, whos premiums have tripled or worse.

Funny how you accuse me of talking conspiracy as a substitute for understanding when in this very thread you are claiming a conspiracy that was raising silver prices.  Funny that that DEFINITELY was a substitute for understanding, since the topic in this thread is on COPPER, not SILVER.  IE the LME doesn't trade silver futures, you dumb fuck.

ZapBranigan's picture

Save your breath tmos, Shitslinger is the fakest of the fake and most daily readers know that by now, so just ignore this asinine fuck.

tmosley's picture

I agree that he is fake, but the argument he made stands on it's own.  If we are unable to refute them, then there is a possibility that we are wrong.

So I will refute these foolish arguments, no matter who posts them.

Tito Gobbilicious C's picture

Wazzamatta Schlinger? Your dick get caught in the slamming door of the price turnaround? Fizz holders could care less about margin hikes. Dumbass.

mayhem_korner's picture

Would hafta been an awfully, awfully tiny door jamb...

Pegasus Muse's picture

I like to check this site to see what Real People are buying/selling Real Physical Metal for in near Real Time: 

Looks like premiums are running 17% and up.


Hey Tex, where are you buying physical silver at 80 cents over spot?  Link please.  I'm looking to buy more.

Fiat2Zero's picture

Average premiums (averaged for 50 major sources realtime) for silver did drop just now from $3.60 to $3.20. However this was on an aggressive move up of $1.20 today which is, as we speak, triple testing it's important upward resistance at $36.25.

Blythe just soiled her panties.

Expect the entire sock puppet brigade to become extremely vocal in the next 5 minutes (math man, robotrader, Texas gunslinger, Ning, et al)

You fucking replicants, you'd better get to work or you can kiss your paypal debits goodbye.

Now lets see some slapstick troll comedy...

smlbizman's picture

ur still here?...what, ur god hates trolls and assholes too?

in4mayshun's picture

Whatever happened to the Andrew McGuier fellow? He was supposed to "blow open" the silver short scandal. Is he still alive??? Puss'd out???

Fiat2Zero's picture

It seemed like there was a failed hit put on him. Either that or just a really bad driver rammed him and drove off. The timing was suspicious.

stopthenewworldorder's picture

he is dealing with various regulatory types in the US who promise the world and then disappear into the shadows

stopthenewworldorder's picture

he is dealing with various regulatory types in the US who promise the world and then disappear into the shadows

ViewfromUndertheBridge's picture

he is getting on with his life as a precious metals trader in can subscribe to a trade-by-trade service with Andrew through Coghlan Capital

Ahmeexnal's picture

Endgame is near. COMEX about to default. They just can't keep covering JPig's big fat greasy ass.
Time to give the sheeple a big show so they think there is such thing as justice.

tmosley's picture

The timing of this is interesting, not even a full week after the HKMEx launches.

Makes me think some big players are now seeing the writing on the wall, and they are turning on each other.

This is not the ideal form of default for those owning silver (assuming the regulators involved force the books open and make with the audits, leading to the public revelation that there is much less silver than advertized).  The best way would have been for them to run the ponzi right up to the last second, when the shipments of physical everywhere just suddenly stop as they have run completely out--the equivalent of running at full speed off of a cliff.  This action will likely cause us to hit bottom on a higher escarpment, rather than at the bottom of the valley.  It might even avert a user panic.

We will see.

Edit:  Just realized, the is the LME, not the LBMA.  This is thus about their market corner on copper, not their massive silver short.  Though if their copper hedge is taken from them, that will leave them with problems on their silver short.

Since this investigation is unlikely to touch silver, that means the best case scenario for physical silver holders is still in play. 

Rynak's picture

That someone is really desperate, already was clear to me, when about one week ago, the telepromted message to the psyops folks here, changed from "buy stocks instead of PMs" to "buy gold instead of silver". Not saying that people should do the opposite.... just saying that for them to convey such a message, shit must be hitting the fan.

HamyWanger's picture

I'm not a troll. I'm a silver bull. 

And that's why I expose the lies of tmosley and all the "Silver Bear" adepts. 

With allies like them, silver does not need any enemy. 

tmosley's picture

 I'm a silver bull. 

News to me.  Find me one post by you where you were bullish on silver.

downrodeo's picture

I always thought that Hamy Wanger was Harry Wanger's doppelganger. He is opposite man; I've been operating under the assumption that the counterpoint of whatever he says is what we're supposed to take away. With that in mind, all of his posts are bullish on silver.

DeadFred's picture

You fooled me, sorry. My bad.

HamyWanger's picture

"Endgame is near. COMEX about to default. They just can't keep covering JPig's big fat greasy ass."

I've heard the same blitherings for 7 months... 

tmosley's picture

And what has happened to COMEX silver inventories over the last 7 months?

Math Man's picture

They were pumped and dumped when the price went up 150%, dumb shit.

Most of it wound up in SLV.

tmosley's picture

But you said SLV was flooding the market via redemptions.

Which is it?

Math Man's picture

Both. SLV bought 60mm ounces during then run and dumped 30mm+ during the decline. Still over 325mm ounces to sell.... Have fun when it's back below $20, bitchez.

DeadFred's picture

At $20 we will have lots of fun, thank you.

tmosley's picture

Who bought it?

I'm seeing very little in the physical markets.

Texas Gunslinger's picture

That's because your perception of the physical market has very little depth. You're focused on retail coin shops, as if the true physical market is reflected by the price and supply at Wilber's Coin Shop in Lubbock.

Most of your comments about the larger market are rooted in conspiracy, which is what people resort to when they don't understand something. The fact that Wilber's Coin Shop is short on maple leaf supply and selling them at $40 means absolutely nothing.

More than anything, you've demonstrated that you're just another typical retail investor, a small fish who truly doesn't understand the ocean around him.




tmosley's picture

Yeah, I guess APMEX and other gigantic online retailers don't count as part of the market either.  Nor does Ebay.

They don't count because the prices there aren't manipulated.  Only paper markets count.


Ahmeexnal's picture

The top echelons are already in a cannibalistic frenzy.

Just look at DSK.

And now GS -the alpha dog- is about to sodomize JPig.

It was just a matter of time. JPig has always been a mediocre outfit with no chance whatsoever to match GS.  The very best of the quants (IQs over 180) work at GS.  JPig's top brains average an IQ in the low 70s. And JPig paid trolls like MathMan and Texas -Jesus humping- Cumslinger have an IQ around 60. This is just Darwinism in action.

Upswaller's picture

Then get your sorry shit-for-brains ass out of here.

mayhem_korner's picture

When you boil it down, the problem is the investigators. 

LRC Fan's picture

The problem (for them, and I suppose for me too since you can never have enough) is not enough silver, and the retarded fiat money that is shoved down our throats. 

The investigators are similar to the media shills at Bloomberg, MSNBC, CNBC, Fox, or whatever.  They simply parrot the talking points, make it look like they are keeping the proper "checks and balances" and then they get paid off.