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Water, Meet Blood - JP Morgan Admits To, Reduces Massive Silver Short Position, Proves Millions Of Conspiracy Theorists Correct

Tyler Durden's picture





 

In the latest example that virtually every conspiracy theory is almost always inevitably proven to be fact, the Financial Times reports that JP Morgan, the firm targeted by thousands of "tin foil hat" wearing, conspiratorially-oriented "gold bugs", has cut back on its US silver futures. "JPMorgan has quietly reduced a large position in the US silver futures market which had been at the centre of a controversy about its impact on global prices for the precious metal." And in what can only be considered an unprecedented victory for all those who have over the past year agitated to putting JP Morgan out of business, most recently spearheded by the likes of Mike Krieger and Max Keiser, by forcing a massive short squeeze on its commodities trading desk, we learn that "the decision by JPMorgan was an attempt to deflect public criticism of the bank’s dealings in silver, a person familiar with the matter said. The person added that the bank’s position in silver would from now on be “materially smaller” than in the past." Of course, the latter is pure and total bullshit: as Bart Chilton indicated over the weekend, it is JP Morgan who at one point or another (and possibly very recently) controlled as much as 40% of the silver market, via a massive short. Attempting to make others believe that this short could be covered without pushing the price of the silver metal to over $100/ounce is an indication of either how stupid JPM believes the general population to be, or just how desperate the firm is to end the ongoing short squeeze onslaught. Either way, we are confident that this first unprecedented confirmation that a) JPM is indeed massively short silver and b) that it is hurting bad, will merely redouble efforts to put the world's biggest financial company out of business. Lastly, this means that silver is about to really blast off as the push to really hurt JPM takes off in earnest.

From FT:

The US regulator, the Commodity Futures Trading Commission, announced in September 2008 that it was investigating complaints of misconduct in the silver market, although it did not name specific entities.

However, JPMorgan said in a statement: “It is absolutely incorrect to say or imply that the Nymex, CFTC or any other exchange or regulator has instructed or asked us to reduce our position.” The bank declined to comment on whether it had reduced its position in the silver market.

The price of silver has risen more than 70 per cent since mid-August to hit a 30-year high of $30.68 a troy ounce last week on the back of a surge in investor buying and a rebound in industrial silver consumption.

In two previous reviews of the silver market, the CFTC has dismissed claims of manipulation. Most analysts say there is little reason to believe the price of silver is being systematically manipulated.

But Bart Chilton, a CFTC commissioner, said in October that he believed there had been “fraudulent efforts” to “deviously control” the silver price. He did not name any party.

Publicly available data on individual traders’ positions are sketchy. In a speech last Wednesday, Mr Chilton said that “earlier this year, one trader held more than 40 per cent of the silver market”. He declined to identify the trader.

The CFTC’s Bank Participation Report shows that one or more US banks held a gross short silver futures position equal to 19.1 per cent of the total number of outstanding contracts in early December. In January the share was 30.2 per cent.

The CFTC only reports data for the US silver futures market, a small corner of the global derivatives market for the precious metal, which is centred in London and largely traded via private over-the-counter deals. The data also do not cover transactions in the physical market.

Analysts and traders said that JPMorgan’s large short positions on New York’s Comex exchange, a division of Nymex, were hedges for the bank’s long positions in physical silver and London’s over-the-counter market.

JPMorgan has invested nearly $3bn over the past two years in its commodities business led by Blythe Masters.

And while we revel in the knowledge that the short squeeze is causing massive pain for JPM, we are far more overjoyed that the days of Blythe Masters as head of JPM's commodities desk is coming to an end: any comparable massive admission of weakness by a trader is always and inevitably followed by some very high profile terminations.

 


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Mon, 12/13/2010 - 21:23 | Link to Comment Mercury
Mercury's picture

How do we know that JPM is/was net short (let alone hugely so) on their entire silver position?

Mon, 12/13/2010 - 21:24 | Link to Comment bigfootmm
bigfootmm's picture

When our government asked JPM to take over Bear Stearns' portfolio, JPM said okay and it then inherited the PM shorts. The question is, did JPM get the government to guarantee it against losses on that porfolio? If there is a guarantee, might not the Ben Bernank want to keep the Morgue from perishing? The BB does have more money than god, so the game may not be over just yet.

Tue, 12/14/2010 - 02:01 | Link to Comment StychoKiller
StychoKiller's picture

Really do NOT care if The Morgue dies, as long as it gets hit in the face with a Silver and Gold pie!  This time, perhaps GOOD MONEY will chase out the bad, because if it does not, then we all should just lie down and tell Big Brother to insert boot onto our face. >:(

Mon, 12/13/2010 - 21:25 | Link to Comment Catullus
Catullus's picture

Could they have possibly closed out part of the short position by purchasing the RBS Sempra European Commodities book earlier this year?

Mon, 12/13/2010 - 21:28 | Link to Comment trav7777
trav7777's picture

JPM better like take over Peru or something; that way they can deliver.  Just use some Fed window cash to hire Xe and get it done

Mon, 12/13/2010 - 21:31 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Xe doesn't want dollars.

Mon, 12/13/2010 - 23:37 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

Peru doesn´t want Chavez (or clonez) and they sure don´t want any foreign bank like JPM coming down and taking over.

To buy Peru would cost a LOT of money, more than the Fed can print up, believe me, LOL.

Xe boyz would get their asses kicked all the way back to Ecuador they try shi´ite down here!

Tue, 12/14/2010 - 02:28 | Link to Comment trav7777
trav7777's picture

270B GDP, it's doable...10% coupon on that and a few trillion ought to get it done.

Tue, 12/14/2010 - 14:06 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Peru sounds better everytime I hear her Name!

Mon, 12/13/2010 - 21:28 | Link to Comment DavidRicardo
DavidRicardo's picture

Maybe.

Mon, 12/13/2010 - 21:28 | Link to Comment DouglasA
DouglasA's picture

minimum wage in 1956 when I was

a babe in arms was $1.00 / hour

the nice house keeper got lets say 6 hours work 

for 6 silver dollars.

Today her granddaughter gets 7.25/hr and 43.50

each silver dollar about 0.77 ounces each so grandma got

4.62 ounces

 

granddaughter of housekeeper gets 43.5/28 = 1.55 ounces

for the six hour day that is / 0.77=  2 silver dollars

minimum wage should be 20/hour to be equal.

Something is going to give and I am wondering if it will be 

the price of silver because of wage deflation in this country 

compared to wages throughout the world. There is a huge amount of deflation going on

 

 

 

Mon, 12/13/2010 - 21:34 | Link to Comment Biggus Dickus Jr.
Biggus Dickus Jr.'s picture

eggs are also ten times the nominal price from back then.  However as a percent of income eggs have never been cheaper.  Silver is not just money so there is not going to be a one to one relationship between silver and minimum wage.

Mon, 12/13/2010 - 21:31 | Link to Comment spinone
spinone's picture

Ha!

 

Mon, 12/13/2010 - 21:32 | Link to Comment Biggus Dickus Jr.
Biggus Dickus Jr.'s picture

guys you do know that at any time the COMEX can mandate cash settlement, or liquidation only.   Once we hit the manic leg it's time to think about cashing out, because the rulz will change.  Also  why would JPM admit to this if they hadn't already covered?  Someone give me a good reason.

Mon, 12/13/2010 - 21:41 | Link to Comment CU1981
CU1981's picture

Because they are now Long ! (And probably have been for some time now) They run the game, they can't lose.

Tue, 12/14/2010 - 00:38 | Link to Comment dark pools of soros
dark pools of soros's picture

"....no one is gonna get screwed...."

Mon, 12/13/2010 - 21:50 | Link to Comment Bastiat
Bastiat's picture

At some point, delivering cash (even at a premium) instead of metal, the Crimex will lose its credibility as a price setting exchange. 

Mon, 12/13/2010 - 21:35 | Link to Comment szjon
szjon's picture

I was about to buy 3 gold coins for my kids christmas money from their grandparents. Going to buy up some more silver instead, I smell blood, just a trickle for now, but the gusher is coming. Will be nice to tell them their presents were a part of history in the making.

 

I'm pledging 100 more oz. :-)

Mon, 12/13/2010 - 21:36 | Link to Comment CPL
CPL's picture

Time to buy another 3000 ounces.

 

This shark smells a small trickle of blood, time for a feeding frenzy

Mon, 12/13/2010 - 23:44 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

Down here in Peru you put a little blood in the eastern (Amazonian) waters, you get piranhas...

Mon, 12/13/2010 - 21:38 | Link to Comment steve from virginia
steve from virginia's picture

Hmmm ...

I disagree.

 - JPM has a large paper short position b/c there is a large paper long position. That is, when the long position is greater than the 'organic' short position(s). That is, there are more people who want to buy silver/gold @ the current high price than there are real, flesh and blood traders/producers who want to sell. When this happens the exchange takes the place of real sellers and its own bank or banks become the 'short'.

 - JPM is one of the bankers for the exchange(s). JPM is hedged (long positions in different contract months or in different markets) It can also call on the Fed and on Bernanke's unlimited silver.

 - Contracts are settled in cash dollars rather than in metal. I know I know the exchange doesn't allow this. Who do you think owns the exchanges and the bullion markets?

 - IF JPM is liquidating its shorts, someone else is taking them over. Goldman Sachs, maybe?

 - When silver retreats and all these banzai longs are desperate to unwind positions, the ONLY buyer will be JPM or GS. You guys are so fucked! Precious metals is a CURRENCY TRAP. This is how money is destroyed! Not only by inflating it away but by the insolvency of market participants who hold YOUR money and who are subject to ruinous margin calls.

What youse guys don't understand is the shorts will squeeze the longs even as the same longs are being sold out by their brokers for whatever price the shorts are willing to pay. Instead of being a haven, the markets are quicksand.

 - This happens over and over and the longs never learn. Never, ever!

 - Why would JPM or anyone else want to suppress prices? Certainly not the Fed which is in the paper money business. It wants to devalue the dollar (if it can). $5000 gold is what the Fed WANTS. It has a corner on the paper money trade.

 - The real problem is the oil/dollar trade. Oil is crushing the economy right now, manifest as bond distress and likely sovereign defaults. Oil is a tax on all economic activity. Not so gold or silver. Gold @ $5000/oz is curious.

Oil will never get up to its old high of $147 because the world's economies will collapse, first. Don't look now but they are doing so right under your noses.

 

Mon, 12/13/2010 - 21:46 | Link to Comment CU1981
CU1981's picture

Your a funny guy Steve. I think a bit more DD is in order here. (On your part) 

Mon, 12/13/2010 - 22:08 | Link to Comment dnarby
dnarby's picture

Yo Steve,

Answered your points in order (sorta)

Look up naked shorts.

Are you sure JPM is hedged?  How? 

If Silver is skyrocketing the Squid will sell into it?  LMAO.

Currency trap?  Yeah, it's a trap.  Fiat goes into PMs, but it doesn't come out.  It's like a Roach Motel for fiat.

FYI, the Fed holds no silver.  Zip, zero nada.  Whoops!

No evidence the Fed wants $5k gold, only evidence is the Fed wants to save the big banks, and if suppressing gold is part of that, count on it.

You might try pricing oil in gold for shits and giggles.

Also, the COMEX can elect to settle in cash instead of physical, but that will just cause the dealer price to skyrocket vs. the COMEX spot price, and then it's game over.

Mon, 12/13/2010 - 23:36 | Link to Comment Temporalist
Temporalist's picture

Similar to what I said to Hendrix the Fed is trying to save itself from the trillions in RE liabilities.  They know they are responsible for overvalued RE and the loose money speculation, the governance or lack thereof (Fannie and Freddie), the banking mortgage fraud and the foreclosure fraud as well.  I have read the Fed owns from 70% to 95% of mortgages in the U.S.

They are putting out fires as fast as they can but they live in a house made of flash paper soaked in jet fuel.

Tue, 12/14/2010 - 02:07 | Link to Comment StychoKiller
Tue, 12/14/2010 - 07:13 | Link to Comment fiftybagger
fiftybagger's picture

Another moron junked

Mon, 12/13/2010 - 21:44 | Link to Comment papaswamp
papaswamp's picture

Silver in the mid 29 zone...gold toying with 1400 again...

Mon, 12/13/2010 - 21:46 | Link to Comment Bastiat
Bastiat's picture

Physical demand will break the paper price fixing fraud and open the way to true price discovery--based on physical metal supply and demand.  Regulators can wave their wands, JPM can double triple hedge through OTC derivatives of derivatives, it doesn't matter.  In the end it's:  Where's the hard stuff? 

It is a sign of utter delusive arrogance that that have held this position, and grown it, into the dwindling and coming exhaustion of stockpiles, rather than gradually exiting. 

Mon, 12/13/2010 - 21:48 | Link to Comment cocoablini
cocoablini's picture

Time to move into copper market, where Jerk-Prick Morgan wants to front run the ETF system.
Not only public criticism, but sovereign wealth funds buying on the fucking dip to rehammer JP short position into submission. Its a national security issue to have a major bank so naked and exposed to a hit job on the silver/ gold market

Mon, 12/13/2010 - 21:48 | Link to Comment Joe Ploppy
Joe Ploppy's picture

Personally, I'm playing silver long, but I'm not convinced JPM is in trouble for this reason given by Peter Crabb professor of finance:

 

The largest group selling futures contracts for delivery of silver are silver mining companies. Idaho-based Hecla Mining Co. and Coeur D’Alene Mines Corp., for example, use derivative contracts, like futures, to hedge the risk of falling prices.

 

An even more common way for mining firms to hedge their risk is in a forward contract. Forwards work just like futures but do not trade on exchanges such as the COMEX. A forward is a customized agreement to sell a stock, bond, or commodity in the future.

 

The other party to a forward transaction is often a bank. The bank acts in this market in the same manner it does in the stock market, as a broker. So banks may have heavy short positions in futures contracts, but also large long, or buy, positions in forward contracts. On net, the banks may not be long or short — they are just acting as a dealer.

 

Unless we know how many offsetting positions JP also hold we don't know how much they are really hurting.  Personally, that's a moot point, I'm playing silver in the long direction. 

Mon, 12/13/2010 - 21:53 | Link to Comment Encroaching Darkness
Encroaching Darkness's picture

Damn,damn,damn. I thought I had at least another three-six months before it all Crunched.

I spent the last two weeks trying to work up the nerve to buy another ounce of gold on credit. Now it looks like silver might be a better idea. Anyone got an opinion? Should I buy another oz. of gold, or another (1500/30)= 50 oz. of silver before the roof caves? Will silver rocket higher than gold?

damn,damn,damn. No timing at all. BTW, captcha machine, (25 x -16) = -400; I believe my MathCad program knows how to multiply, even if I don't!

Mon, 12/13/2010 - 23:21 | Link to Comment blunderdog
blunderdog's picture

Silver's the better bet based on the history, but hey, if you're talking about $1500 on credit and you don't eat if you lose on the trade, don't be silly.  At least buy a hundred pounds of rice first.

Tue, 12/14/2010 - 00:44 | Link to Comment LFMayor
LFMayor's picture

and then a CETME or a GP75, with some flashbang chow for it. 

Mon, 12/13/2010 - 21:50 | Link to Comment KickIce
KickIce's picture

I'll believe it when I see it.  I thought it was game, set and match when the gold whistle blower went public.  One thing for sure, never underestimate the government's ability to kick the can down the road, that and a dumbed down public has allowed this ponzi scheme to last far longer than it should have.

 

Mon, 12/13/2010 - 21:55 | Link to Comment penisouraus erecti
penisouraus erecti's picture

+1

Mon, 12/13/2010 - 22:01 | Link to Comment jomama
jomama's picture

the awareness - let alone the gravity of these implications - is not even on the radar of >95% of Americans.  

Tue, 12/14/2010 - 00:37 | Link to Comment Fearless Rick
Fearless Rick's picture

So very true. I talk to people every day about the coming collapse and have been since 2006, and still, they look at me funny and do nothing I tell them they should do.

Told them all to SAVE, SAVE, SAVE and buy gold and silver in mass quantities. None of them have. Told a few to retire now (they can), but they won't, holding on for an extra 1.5% per year of service. These folks will kick themselves and hate me when their pension plans get cut 20-30% or more.

Silver is your savior... along with many bottles of water, canned food and booze.

Tue, 12/14/2010 - 04:27 | Link to Comment gloomboomdoom
gloomboomdoom's picture

nothing is coming though. You are telling them a fairy tail you made up in your head

Mon, 12/13/2010 - 21:54 | Link to Comment bronzie
bronzie's picture

"virtually every conspiracy theory is almost always inevitably proven to be fact"

ultimately, the 9/11 truth seekers will be shown to be correct as well ...

Mon, 12/13/2010 - 21:57 | Link to Comment penisouraus erecti
penisouraus erecti's picture

Barack Obama - the perfect President for people who don't know how to feed their kids.

Mon, 12/13/2010 - 22:53 | Link to Comment prophet
prophet's picture

Well, they are after all, becoming the majority.

Mon, 12/13/2010 - 22:04 | Link to Comment jomama
jomama's picture

you mean to tell me that terrorists in a cave halfway around the world DIDN'T orchestrate the most complex and co-ordinated terrorist attack in the history of the USA?  

And all this time I thought OBL had brilliantly manipulated NORAD into standing down to allow the planes to hit the WTC and the pentagon!!

Wed, 12/15/2010 - 02:56 | Link to Comment No More Bubbles
No More Bubbles's picture

Yes, with Box-cutters there too I believe.

Mon, 12/13/2010 - 21:54 | Link to Comment bigredmachine
bigredmachine's picture

to da moon

 

Mon, 12/13/2010 - 21:58 | Link to Comment UncleFurker
UncleFurker's picture

 

Big players TAKE DELIVERY.

http://standfordelivery.com/stand.php - 150,000 oz now pledged.

 

Small players - help get people involved in the silver business.

http://silver-dollars.com

 

 

Mon, 12/13/2010 - 22:00 | Link to Comment SCOTT
SCOTT's picture

I agree to da moon!!!! Big red

Mon, 12/13/2010 - 22:09 | Link to Comment squexx
squexx's picture

Pound that stake into the vampire's heart!!

Mon, 12/13/2010 - 22:14 | Link to Comment h4rdware
h4rdware's picture

aaaaahahahahahahahaaa!

thats worse than hilarious - better than fiction. pure solid precious magic!

ha!

Mon, 12/13/2010 - 22:17 | Link to Comment bigredmachine
bigredmachine's picture

looks like a short squeeze in weed market, dealer asking

$20 more and no more credit. wtf?

Mon, 12/13/2010 - 22:23 | Link to Comment johngaltfla
johngaltfla's picture

Got Damn you JP Morgue! Why you keep killing my Chitty Wall!

Mon, 12/13/2010 - 22:24 | Link to Comment Joe44oz
Joe44oz's picture

Not really a conspiracy happening... "Something is going on that your government does not want you to know about"... just our old frenemies ( Russia and China) teaming up with other countries to form the SCO (Shanghai Cooperation Organization) and influence the PM markets. Trust in the U.S. dollar is declining in the rest of the world and they really want to back their currencies with gold.

This article states that there is a conscious effort on their part to accumulate gold and silver and dump dollars.

http://buygoldsilver.org/2010/11/global-currency-crisis-gold-whats-reall...

These member nations are truly BoS since they collectively contain 1/4 of the world's population.

Mon, 12/13/2010 - 22:28 | Link to Comment frippy
frippy's picture

$30 by this time tomorrow.

Mon, 12/13/2010 - 22:41 | Link to Comment ruffian
ruffian's picture

we should have been above 30.65 an hour ago, we are only 5 cents above mon. intraday high......not particularly bullish action considering.........

Mon, 12/13/2010 - 22:51 | Link to Comment prophet
prophet's picture

Red Rover, Red Rover, let Jamie come over. (Dimon to DC to replace TG?)

-OR-

if you behave a little better we'll let you gobble up another

As all good managers know, its all about the people.  Get the right people in the right places and the desired outcome will flow.

The housing/mortgage fix has got to get slammed into place pretty damn quick.

(w/rose colored glasses <on>)

 

Mon, 12/13/2010 - 22:58 | Link to Comment bullet357
bullet357's picture

This article was bullshit...just trying to pull more suckers into the silver game. The game is over and by Jan. 7th there will be only two things a person would want to own. Food & Ammo.  (if i wanted some silly silver i would then come and take it.)

Mon, 12/13/2010 - 23:09 | Link to Comment KickIce
KickIce's picture

Agree that food will become the important asset but still need to call the bankers on their scheme with a run on metals.

 

 

Mon, 12/13/2010 - 23:18 | Link to Comment lunaticfringe
lunaticfringe's picture

Come get some silver from me badass

Tue, 12/14/2010 - 00:47 | Link to Comment LFMayor
LFMayor's picture

"Tikki Motel."

... "Give me your address there."
Damn, that's two Arnie quotes already.  I love this post.

Tue, 12/14/2010 - 00:57 | Link to Comment Bolweevil
Bolweevil's picture

Don't fuck with the Lunatic. Seriously.

Tue, 12/14/2010 - 01:13 | Link to Comment LFMayor
LFMayor's picture

Yeah, well,  that's Mayor, Lunatic Fringe, one ea.  Always figured there were other like minds, just didn't know who or where.

Mon, 12/13/2010 - 23:32 | Link to Comment HellFish
HellFish's picture

You're under the impression those holding PMs are not also holding firearms?

Mon, 12/13/2010 - 22:59 | Link to Comment bob_dabolina
bob_dabolina's picture

My, my, my.

Lean Hogs are the new killing it.

Lock limit up...who whudda thunk it.

Mon, 12/13/2010 - 23:00 | Link to Comment Spigot
Spigot's picture

IMO silver was manipulated in order to collar gold. If silver were allowed to operate at free market prices, then gold would have had to have tagged along. Gold is an important reference point for interest rates (Summers), and in order to control interest rates Summers and Rubin (1996) took control of the gold indicator (measure) and turned it into a knob (control).

The fact that Morgan and HSBC's short positions have expanded over the years show clearly that they have had to progressively add to their short selling in order to maintain control. Well, that, essentially, is coming to an end thanks to our Asian and Indian brothers. The are doing God's work now.

I look forward to and dread (at the same time) the end result of this conflagration. Its gonna be a hot one, my friends.

 

Tue, 12/14/2010 - 07:21 | Link to Comment fiftybagger
fiftybagger's picture

+ 50 to 1

Mon, 12/13/2010 - 23:00 | Link to Comment national treasure
national treasure's picture

They want longs to think they are near the top and start selling their positions; LONGS KNOW BETTER!

Mon, 12/13/2010 - 23:01 | Link to Comment goldmiddelfinger
goldmiddelfinger's picture

Waffell & Reed. grazzy noll, birfers anf trufers.; it all adds up but this JPM sliver was never a comspirasy. Now Bunkie n Bache that my friends was a plan of attack!

Mon, 12/13/2010 - 23:13 | Link to Comment RabidYack
RabidYack's picture

Got a 1958 silver quarter the other day in the change from a purchase.  It was obvious way it sounded compared to contemporary quarters.  I said to the cashier, "that's silver" which was met with a blank stare.  So clueless.

Mon, 12/13/2010 - 23:16 | Link to Comment lunaticfringe
lunaticfringe's picture

I am going to keep my boot on her throat. Ya never give a rattlesnake a chance to bite you, you cut off it's fucking head.

Mon, 12/13/2010 - 23:16 | Link to Comment pomogranate
pomogranate's picture

"... virtually every conspiracy theory is almost always inevitably proven to be fact ..."

what kind of candyass BS is that? virtually ... almost always?  pussy.

Mon, 12/13/2010 - 23:18 | Link to Comment mark mchugh
mark mchugh's picture

For the record, Mish is a douche nozzle.

http://globaleconomicanalysis.blogspot.com/2008/08/great-gold-silver-conspiracy-explained.html

http://globaleconomicanalysis.blogspot.com/2008/08/jon-nadler-senior-analyst-kitco-chimes.html

http://globaleconomicanalysis.blogspot.com/2008/08/conspiracy-theory-psychology.html

Silver's up more than 100% since August '08 when he wrote these three garbage articles.  The S & P 500 isn't back where it was then yet.

I hope his poor clients sue his dumb ass.

Mon, 12/13/2010 - 23:20 | Link to Comment jomama
jomama's picture

everyone's got to make a living somehow or another.

Mon, 12/13/2010 - 23:24 | Link to Comment Spigot
Spigot's picture

How is it you say in your language... "Eat shit and die"? Yes?

This, of course, is in reference to Mssr JP Morgue, not the fine citizens of ZeroHedge.

Mon, 12/13/2010 - 23:25 | Link to Comment Trifecta Man
Trifecta Man's picture

Reading over the FT article, these are the impressions I got:

1)  An unidentified person claims that JPM has reduced its Comex position in silver.  That it also will keep its position smaller.  And that they are doing this partially to deflect criticism.

2)  JPM said that no other authority asked them to do so.

3)  So it's unclear whether this unidentified person has verifiable information, as nothing in the article shows JPM admitting anything.

So that leaves us with speculation based on other evidence, which is the subject of many other items posted by the individuals in this thread.

Mon, 12/13/2010 - 23:34 | Link to Comment RobotTrader
RobotTrader's picture

Mon, 12/13/2010 - 23:40 | Link to Comment Lulzum Vincit Omnia
Lulzum Vincit Omnia's picture

*Reads title.  Instantaneously decides to keep silver rounds for self instead of gifting for X-mas.*

Tue, 12/14/2010 - 00:11 | Link to Comment robertocarlos
robertocarlos's picture

LOL. That was funny.

Tue, 12/14/2010 - 01:20 | Link to Comment Fearless Rick
Fearless Rick's picture

Good choice. I have three nieces, who are the only people getting Christmas presents this year. I thought, OK, a nice Morgan silver dollar for each, then I thought, well, maybe a few quarters. Then I thought a nice mercury dime.

I'll end up keeping my silver and buying them iTunes gift cards. They love those. Some day, I'll show them the dimes and quarters I was going to give them and tell them what they were worth in 2010 and what they're worth some 10-12 years on. Their mouths will hit the floor.

Tue, 12/14/2010 - 01:49 | Link to Comment blunderdog
blunderdog's picture

Give them the CHOICE this year if you want the lesson to really come across.

Tue, 12/14/2010 - 05:49 | Link to Comment jahbless
jahbless's picture

+1

Tue, 12/14/2010 - 03:35 | Link to Comment chopper read
chopper read's picture

hilarious!!

Mon, 12/13/2010 - 23:41 | Link to Comment nachtliche
nachtliche's picture

Funny, just last Friday this guy posted this was "viral nonsense" about silver:

http://globaleconomicanalysis.blogspot.com/2010/12/investors-hold-bigges...

Mon, 12/13/2010 - 23:57 | Link to Comment What_Me_Worry
What_Me_Worry's picture

Just wanted to post in what should be an epic thread...

JPM must have had some pretty high level meetings with most execs and their general counsel to consider the pros and cons of such a move.  They could care less what the public opinion is of their involvement, IMO.  99.9% of Americans probably do not own more than some silver trinkets, actual silverware or a couple coins that g-pa gave them.

This is obviously(to me) a sophisticated ploy.  As long as they are the ringleader of SLV though, they are still up to no good here.

After all, TBTF's should never have to publicly make any statements.  We all know the government or any agency won't make them.  They pay good money to keep their puppets in power.

Mon, 12/13/2010 - 23:59 | Link to Comment cbaba
cbaba's picture

Best news of the day , thanks ZH, thanks Tyler and team:)

Tue, 12/14/2010 - 00:06 | Link to Comment PrDtR
PrDtR's picture

BUY the RUMOR.. SELL the FACT [NEWS] !!!

Tue, 12/14/2010 - 02:19 | Link to Comment StychoKiller
StychoKiller's picture

Sorry, but NO SALE(S) here! :>D

Tue, 12/14/2010 - 00:07 | Link to Comment UP4Liberty
UP4Liberty's picture

From GATA (http://www.gata.org/node/9419):  "However, JPMorgan said in a statement: "It is absolutely incorrect to say or imply that the Nymex, CFTC, or any other exchange or regulator has instructed or asked us to reduce our position." The bank declined to comment on whether it had reduced its position in the silver market.

hahahahahahaha

How dare any of us miscreants, useless eaters or however else you want to disparage us lowly human life forms say or imply such a nefarious statement...

What a bunch of d-bags...

Tue, 12/14/2010 - 00:09 | Link to Comment robertocarlos
robertocarlos's picture

You guys with the PM will throw me a bone, right?

Tue, 12/14/2010 - 00:36 | Link to Comment Croesus
Croesus's picture

I don't go in for those "backdoor shenanigans".

 

Tue, 12/14/2010 - 00:47 | Link to Comment Tapeworm
Tapeworm's picture

If I was a producer of silver I would be selling some portion of production forward right here and right now. I do recall the sub 9.00 prices in the last panic.

 There are way too many rah-rahs that never were around when one could buy a delivered contract of 5k ounces at well below USD23000. Now it is USD148,000+, and it is far more costly to take delivery.

 If I had silver miners, which I do in HL.pC, I would be pissed if they weren't locking in six months of production at 29.75.

 junk me

Tue, 12/14/2010 - 00:58 | Link to Comment gwar5
gwar5's picture

I also just read the FT and the GATA artcles re same thing on my way over here. Silver Bitchez!!

ZH has been hammering Blythe Masters and JPM to get to this point, and predicted a JPM scramble out of their shorts. A great deal of thanks should go to Zero Hedge and everybody else who has been on this for years/months, like: Ted Butler, Andrew McGuire, all the GATA guys, Max Keiser who took it to the streets and to everybody else.

And, lastly, thanks to the real Silver Bitchez like Blythe Masters at JPM for helping millions of people buy silver at really cheap prices. 

 

Tue, 12/14/2010 - 01:00 | Link to Comment Chuck Yeager
Chuck Yeager's picture

Finally!

 You are the MAN!  I love you all tonight.  

I would like to dedicate Dire Straits "The Man's Too Strong" to you all. 

"I have legalised robbery
Called it belief
I have run with the money
And hid like a theif
I have re-written history
With my armies and my crooks
Invented memories
I did burn all the books
And I can still hear his laughter
And I can still hear his song
The man's too big
The man's too strong..."

http://www.youtube.com/watch?v=AVdB-UKfxD4

 

Tue, 12/14/2010 - 01:09 | Link to Comment Rwbrown72
Rwbrown72's picture

Long SLV as much as I can buy! If SLV bits the dust.... I'll make enough on the call spreads that I won't care!!!!!

Tue, 12/14/2010 - 01:10 | Link to Comment Rwbrown72
Rwbrown72's picture

P.S. Fuck them all!!!! Zero sum game my ass!

Tue, 12/14/2010 - 01:10 | Link to Comment Tapeworm
Tapeworm's picture

For what it is worth, bags of 1000 face are now going for more than they did when slAg was at the peak of the runup in 1980, and silver was nearly twenty dollars higher at that spike.

 Another thing, what is so good about JPM covering their shorts at this price? When that buying pressure goes away what will replace it?

 The NY funds are what is pushing PMs. If you are wedded to a rise in PMs then you are in bed with your hated hedge funds of NY. What happens when they sell top lock in their runup?

Tue, 12/14/2010 - 02:22 | Link to Comment StychoKiller
StychoKiller's picture

Who sez buying pressure will go away?  Check your premises.

Tue, 12/14/2010 - 06:09 | Link to Comment honestann
honestann's picture

Yup, buying will continue until the USSA is a charred ruin, and China, India, Russia force a return to a gold standard at about $50,000 per ounce (in current dollars).

Tue, 12/14/2010 - 01:18 | Link to Comment gloomboomdoom
gloomboomdoom's picture

the doomers new slogan should be, "I'll huff and I'll puff and I'll blow your economy recovery down."

Junks all around :)

Tue, 12/14/2010 - 01:25 | Link to Comment Fearless Rick
Fearless Rick's picture

Yessssssss. And you get the first one.

Tue, 12/14/2010 - 01:33 | Link to Comment bingocat
bingocat's picture

Why do people assume JPM had a multibillion dollar net short delta on silver without an appropriate hedge? Why do people assume they took massive delivery risk positions? No problem with tin foil hat ideas but the base assumption that they would run a naked short position of $5bn (40k comex contracts at $25 is $5bn) on a 30vol asset (i.e. single asset 1d 99% VaR exposure in the multi hundred million dollars range) makes a significant assumption about JPM's risk management, as does the assumption that they would run naked delivery risk (paper vs physical delivery) on a significant portion of open interest is similarly unrealistic.

Tue, 12/14/2010 - 01:38 | Link to Comment What_Me_Worry
What_Me_Worry's picture

I can sum up my answer in 4 letters.

Tue, 12/14/2010 - 02:58 | Link to Comment bingocat
bingocat's picture

viz?

Tue, 12/14/2010 - 03:21 | Link to Comment Delmar
Delmar's picture

G.O.L.F??

Tue, 12/14/2010 - 05:52 | Link to Comment Temporalist
Temporalist's picture

Oh I know!!!!

 

WWJD?

 

What Would Jamie Do?

Tue, 12/14/2010 - 06:05 | Link to Comment honestann
honestann's picture

The federal reserve has been, and will continue to cover all losses on all silver and gold short positions by every large bank.  That's why JPM doesn't care... any losses they suffer will be covered, +50% extra.

Tue, 12/14/2010 - 02:09 | Link to Comment Crummy
Crummy's picture

Deathbed confession.

Tue, 12/14/2010 - 02:17 | Link to Comment Bow Tie
Bow Tie's picture

their real plan is far more cunning and right under people's noses! 1000z silver coated copper bars, available for delivery today.

Tue, 12/14/2010 - 02:21 | Link to Comment Troy Ounce
Troy Ounce's picture

 

I just hope the dealings of JPM are still part of a crime scene?

Is everything forgotten now?

  • Feds are investigating JPM silver dealings: "nothing to see here..please go home.."
  • CTFC is investigating...."sure, we'll put this file in the archive..."
  • Several court cases on silver manipulation with JPM as the culprit...."..nothing wrong Your Honour, just look at our present short position.."

 

 

Tue, 12/14/2010 - 06:02 | Link to Comment honestann
honestann's picture

Yeah, probably correct.  Of course that's just like a murderer saying, "I'm not murdering anyone right at this moment, so no problem".

The predators-that-be (JPM included) still control ALL.

Tue, 12/14/2010 - 02:23 | Link to Comment greenewave
greenewave's picture

To find out more about the Imminent Collapse of the U.S. Economy, watch this video "PUMP AND DUMP HORROR SHOW, END OF U.S. EMPIRE PONZI SCHEME" at (http://www.youtube.com/watch?v=Pf7e7xAm77w).

by Anonymous

This feels like late summer 2008, when the Dow went like a rocket from 10000 to 14000 within a few months and we all know how that ended. I'm all cash now because I'm terrified by what is going on. I think we are headed for a huge CRASH sometime in 2011 or 2012. This time the Gov is so much in debt that it can do nothing and we will slide into the Greatest of Depressions.

Tue, 12/14/2010 - 06:00 | Link to Comment honestann
honestann's picture

BIG MISTAKE.

Because this time the biggest crash will be the dollar... as in "cash".  Convert all your paper assets to physical silver and gold in your own grubby paws.

Also invest some of your cash in seeds, garden tools, 3KW ~ 5KW generator, weapons and ammo (high power slingshots and crossbows if you hate guns), etc.

Tue, 12/14/2010 - 02:38 | Link to Comment robertocarlos
robertocarlos's picture

The Bank of Canada has warned us to get out of debt. We have too much debt.

Tue, 12/14/2010 - 03:42 | Link to Comment Hook Line and S...
Hook Line and Sphincter's picture

This is what we all wanted, right? This silver catapult will absolutely sodomize the dollar. There may be some unintended consequences for those who haven't prepared appropriately.

You know who you are...

  • Those who still live in the 50 states of 'God's playground'
  • Those who bought silver (as in only a few oz)
  • Those without a tie-over food supply
  • Those without good contacts established for barter
If you can only achieve a few more of the above, NOW is the time to do it. There is still a bit of time, don't stand around a pick at your melvin.

Tue, 12/14/2010 - 04:30 | Link to Comment Widowmaker
Widowmaker's picture

Similar to a hand of hold'em, there isn't only one round of bets.

You folks running all-in with pocket 7's before the flop and silver on the mind are killing me.  First time to the casino?

My personal favorite is fear and apprehension that China is buying up all the pennies that the average Jane/Joe walks over, and couches devour, every - single - day.   HERE COMES THE "WAR ON LINCOLNS," RUN!

Call. 

Tue, 12/14/2010 - 04:25 | Link to Comment gloomboomdoom
gloomboomdoom's picture

so the dollar is not a bubble after all.

Gold is going to crack! So sad to see Bernanke win this war over Ron Paul

Tue, 12/14/2010 - 04:31 | Link to Comment Widowmaker
Widowmaker's picture

Agreed, but having a little still can't hurt.

Tue, 12/14/2010 - 05:52 | Link to Comment honestann
honestann's picture

Get real.

The dollar  is  crack.

Tue, 12/14/2010 - 04:54 | Link to Comment suckerfishzilla
suckerfishzilla's picture

It has been very enjoyable watching Gold get smoked by Argent for the past 10 years.  It will be even more enjoyable watching the die hard goldbugs back pedal as the Au/Ag ratio drops to one and lower.  Get some Argent.

Tue, 12/14/2010 - 05:09 | Link to Comment MrTrader
MrTrader's picture

STRONG BUY. LET THE METALS DESKS IN LONDON AND NEW YORK BURN !!!!!!!!!! LADIES AND GENTLEMEN - MAKE NO MISTAKE: IT IS UTTERLY IMPORTANT TO IMPLEMENT THE RIGHT STRATEGY : BUY ATM PUTS TO ADD TO THE PRESSURE TO THE FRAUDSTERS AND GO LONG SILVER FUTURES !!!!!ATM PUTS WILL PLACE A ROCK SOLID BOTTOM FOR OUR LONGS !

Tue, 12/14/2010 - 05:48 | Link to Comment honestann
honestann's picture

JPM losses are not hurting JPM, because they always have been, and continue to be covered by the FederalReserve.  Their manipulation of silver and gold keeps the purchasing power of the dollar significantly higher than it would be otherwise, which covers for some of their egregious FederalReserve practices during the Greenspasm and Bernanke era.

Prediction:  The new rules limiting size of positions will have little impact on JPM manipulations... they will get a [secret] pass, like the other 2 or 3 biggest players.

Tue, 12/14/2010 - 07:42 | Link to Comment Bilderbugger
Bilderbugger's picture

The only thing we can do is eat the physical silver market empty. And request physical delivery for ETF's. The FED will probably cover JPMorgan but JPmorgan and the FED will then be exposed as the bullion oppressors. This to support their fake low inflation reports. The damage will be that nobody takes those guys serious anymore and they will n out of bussiness soon after

Tue, 12/14/2010 - 07:56 | Link to Comment honestann
honestann's picture

Yes, I agree.  We should all have the vast majority of our savings in physical silver and gold.  I've stayed between 90% and 98% in silver and gold for about two years now.  Everyone should follow suit.

At some point, JPM will reverse their positions (liquidate their shorts and buy even more long positions), because they know perfectly well this would launch silver into intersteller space, and they'd make astronomical sums with their longs.  Anyone who isn't "all in" on physical silver and gold at that point will be royally screwed.

Tue, 12/14/2010 - 06:14 | Link to Comment honestann
honestann's picture

I believe this charge, but I do not believe $32.60 is a magic number, especially since the FederalReserve is covering all losses in this effort to keep lipstick on the pig commonly known as the US dollar.

Tue, 12/14/2010 - 06:42 | Link to Comment Coldfire
Coldfire's picture

A bankrupt JPM wouldn't be the end of the world, only the end of the quadrillion dollar OTC derivatives pyramid. God fucking speed.

Tue, 12/14/2010 - 07:37 | Link to Comment belogical
belogical's picture

Sprott, I believe bought at $25.82 silver. I can't see him purchasing 500 million in silver for a $3 move. If even a small number of shorts were in fact closed the price would have spiked a lot more then a few dollars. This rides to $50-80 in my opinion just on the G/S ratio

Tue, 12/14/2010 - 07:41 | Link to Comment belogical
belogical's picture

I made another physical silver purchase in late October and I'm still waiting on delivery. I didn't wait this long on my last one back in march and it was a lot bigger. So, I'm assuming something going on in the physical supply 

Tue, 12/14/2010 - 08:06 | Link to Comment Bilderbugger
Bilderbugger's picture

Hmm this is not good. Ofcourse i don't know what silver you have bought. But i have bought wiener philarmoniker and maple leafs and i had, here in holland, delivery within 2 weeks. You have to chase your supplier right away and DEMAND delivery. Is it a reliable supplier.?

Tue, 12/14/2010 - 07:48 | Link to Comment pauldia
pauldia's picture

Hmm, Jamie Dimon meets with Obama on December 8. J.P. Morgan issues statement reduceing  it's silver future exposure, December 13th.,5 days later. FOMC meets today. Could a change in wording be in the offing?

Tue, 12/14/2010 - 08:11 | Link to Comment mogul rider
mogul rider's picture

the only way to kill this fucking vampire is to cut off his head and a stake through the heart.

Do your patriotic duty and buy silver eagles or silver maples for christmas presents this year. The best gift ever.

 

Tue, 12/14/2010 - 09:19 | Link to Comment blindman
blindman's picture

buy a physical oz.

or two ...

today  !

Tue, 12/14/2010 - 09:40 | Link to Comment Shakey
Shakey's picture

Thud.

Tue, 12/14/2010 - 09:42 | Link to Comment Loan Gunman
Loan Gunman's picture

Futures market is open, "they" have managed to knock 20 cents off the silver price.  Hope they have lots of ammo cause everyone in the pm world is going to jump at the chance to buy cheaper.  Today will be interesting to say the least.

Tue, 12/14/2010 - 10:06 | Link to Comment Dr. Gonzo
Dr. Gonzo's picture

People. I've said this before and I'll say it again. Silver has to be at $90 to bring economic mother nature into harmony. If the party insists on silver staying at $30 the proles...whom they hate will keep buying 42 million silver eagles per year... our entire mine supply. How the hell are they going to make their i-pods, video games, and other trinkets with the proles hoarding all the silver. The proles have won for once.

Tue, 12/14/2010 - 10:15 | Link to Comment Dr. Gonzo
Dr. Gonzo's picture

"It's a trap!"

-Admiral Akbar.

Just kidding. Silver being crashed 50 cents before the open. If JPM is closing it's shorts and the proles are buying then why is the price going down?  JPM is lying out of desperation. This might be a desperation head-fake to confuse the proles. Don't be tricked. Buy! Also full disclosure I bought 204 maple leafs Sunday. Silver biotches!

Tue, 12/14/2010 - 10:23 | Link to Comment Stuck on Zero
Stuck on Zero's picture

So, when all the physical silver is gone will we still have an active futures exchange?  If that's true then can we open a Dodo exchange?  T Rex exchange? 

Tue, 12/14/2010 - 10:52 | Link to Comment Calculated_Risk
Calculated_Risk's picture

No, then you have confiscation for the purposes of "national security".

Tue, 12/14/2010 - 10:23 | Link to Comment TeMpTeK
TeMpTeK's picture
I along with several other friends have been waiting for a month now for physical delivery of silver from more than one bullion dealer.. A MONTH!! Something us up.. I have never waited this long, Ever!
Tue, 12/14/2010 - 11:36 | Link to Comment In Fed We Trust
In Fed We Trust's picture

Calling all and any statistical people to calculate the following probability.

What are the odds of the greatest attack on America (911); happening on Bush's first few months in office; AND

The greatest Wall St crash happening on Bush's last couple months in office?  The short answer would be statisically way to to high to be random. 

I liked to think of it as a 1-2 punch by the NWO to consolidate power.

Anyone with a brain, and not afraid of the truth knows that 911 was an inside job. 

The market crash, and subsequent TARP, guareenteed Obama would win the election a few weeks later.

Wall St backed Obama, to ensure the bailouts continued...

 

Tue, 12/14/2010 - 17:31 | Link to Comment Calmyourself
Calmyourself's picture

.

Tue, 12/14/2010 - 17:23 | Link to Comment Calmyourself
Calmyourself's picture

Really, all it requires to believe 911 was an inside job is a "brain" and the ability to not be "afraid" of the truth..   Any other secrets the government is keeping; Area 51 aliens or...

Tue, 12/14/2010 - 15:34 | Link to Comment Inflate Or Die
Inflate Or Die's picture

Paging Mr. Jeffrey Christian.  The "troglodytes" were right and you were wrong bitch.  By the way, I thought gold was going to average between 900 and 950 dollars an ounce.  We are in the 1400's!!  Wrong again Mr. Christian.  Can anybody tell why Jim Puplava continues to have this guy on his show?

Tue, 12/14/2010 - 18:23 | Link to Comment Temporalist
Temporalist's picture

Comic relief...

Tue, 12/14/2010 - 20:10 | Link to Comment suckerfishzilla
suckerfishzilla's picture

Some of the venues I buy Silver at are charging a higher commission for Silver Eagles than say a generic Englehard round.  I opted for generic rounds today because some of these guys are throwing the Eagles that are all banged up in with the uncirculated ones.  Watch out.

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