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A Single Trader, JP Morgan, Holds 90% Of LME Copper
When a week ago we reported that JP Morgan has denied it owned more than 90% of the copper positions on the LME, we suggested that this could very well mean that Blythe Master's firm could just as easily control 89.999% of the copper and still not misrepresent the truth per that non-commital press release. Turns out our unbridled cynicism was spot on as usual. The Wall Street Journal has just reported that in the copper market "a single trader has reported it owns 80% to 90% of the copper
sitting in London Metal Exchange warehouses, equal to about half of the
world's exchange-registered copper stockpile and worth about $3 billion." Oh and yes, while JP Morgan technically is not singled out, we will be delighted to issue a retraction the second JP Morgan approaches us with a refutation that it is not the trader in question. And while we are at it, we also will repeat our claim that it was indeed JP Morgan that reduced its massive silver position, as per the recent FT article: as above we will immediately issue a retraction and apologize should JPM's legal department contact us that we are wrong on this. Somehow we don't think that will be an issue. And so it is once again made clear that the biggest market manipulating cartel in the world is not only JPM's commodity trading operation, but the "regulators" at the CFTC, who are doing all they can do to delay implementing rules on position limit- a stalling tactic whose sole purpose is to make the life of Jamie Dimon as comfortable as possible while he corners the copper market (and offloads his PM shorts to some "foreign bank"), even if that means the complete collapse in faith in the commodity market. Presumably, this means that Mr. Gensler has received an outsized Christmas gift to assuage his conscience. As for the commodity market, well, just look at what has happened to the stock market now that everyone knows it is nothing but a house of cards scam where a few robots front run each other. We are confident to quite confident tomorrow's ICI report will confirm that 33rd consecutive outflow from domestic equity funds. It is a pity that the same fate will now happen to the commodities market, as everyone tells Gensler to shove his corrupt market, and moves to physical. Frankly, it couldn't happen to a nicer group of so-called regulators.
From the WSJ:
Copper soared to a new record of $4.2705 per pound on Tuesday in New York, and is up 28.3% this year. The LME's three-month copper contract closed at $9,353.50 a metric ton, up 1.6% on the day, a new record.
J.P. Morgan Chase & Co. recently had a large position in copper, though it is unclear whether the U.S. bank increased its holdings, or whether a new player has taken dominant position.
"Regardless of who owns it, the only thing of note here is that we are being told that one person has a substantial position," said David Threlkeld, president of Resolved Inc., a metals consultancy.
While commodities exchanges scrutinize all holdings to ensure a single player isn't trying to corner the market, and many of the positions are owned by big firms on behalf of clients, the large holdings do result in a concentration of ownership that could skew prices.
Please keep the bolded text in mind, as you read the following description of the idiocy spewed on TV tonight, via the Street:
"Everything that goes up is not a bubble," Jim Cramer told the viewers of his "Mad Money" TV show Tuesday, as he reminded viewers that the laws of supply and demand have not been replaced by the law of gravity.
Cramer said he's had enough with the skeptics keeping investors from making real money in stocks, and especially in commodities. He said it's OK to be skeptical sometimes, but being skeptical about everything will only hurt your portfolio.
Case in point, the commodities. Cramer said the last big rally in commodities like copper and oil was indeed driven by a hedge fund frenzy, but this time is different. This time, he said, commodities are being driven higher by real demand, by the fact that the world is growing, and there's an inability to find new raw materials fast enough.
In other words: per Cramer, the story broken by the WSJ is just fabulation and JPM's 90% lock of the copper market is as indication of proper supply/demand dynamics. Because, in some parallel universe, JP Morgan controlling 90% of the market is real demand...
You read that right.
And this person is on TV, advising lemmings how to throw their money into a ponzi which nobody even pretends to hide.
That said, we are not worried about Cramer: following the next market crash, which is coming, after his termination from what is left of CNBC, he will make millions selling his latest book written in second grade friendly-English, titled "This time, I promise, it is different." With a subtitle:" Trust me - I was on TV...in spite of my atrocious Nielsens rating."
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Are you (s) hitting me?
this complete attack of JPM brought to you by CHASE SAPPHIRE and the COOLHUNTING Gift Guide
maybe they are selling some silver in there as well
http://af.reuters.com/article/metalsNews/idAFN2127057720101221
(Reuters) - The International Monetary Fund said on Tuesday it had concluded the sale of 403.3 tonnes of gold under a program approved in September 2009 to help boost its lending resources
I own three things: physical gold and silver, and TRE. TRE will be a moonshot.
EDIT: a post below indicated I should....
Full disclosure: I own 15,000 shares average price $5.23; I will sell never.
Time to put on the spread bets on em all. Should be wild
I don't know why anyone still bothers trading equities, commodities, or currencies. It's all one big con game - if you participate you're nothing but juicy fresh meat for cattleprod donning institutional traders. Do yourself a favor, buy some gold (or exchange your Dollars for a basket of currencies) and walk away for a few years until the dust settles.
What do you think I've been doing? Now 95% of my assets are in silver and gold.
Oh, you mean the other 99.999% of humanity.
Good point.
And I thought I was doing well at almost 50%. I can say, I am still doing this, "Buy the Fukn Dip".
~ 60% gold/silver, 40% dollars... Using dollars for productive commercial real estate purchases; small warehouse complexes that have businesses that are doing well in this economic environment.
No stocks, no bonds, no paper. So far, so good.
Yup, all gold and silver, physical only, and using the rest of my printed paper stack to line every square inch of my roof with solar panels so I´m as energy independant as possible.
physical, junior miners, fertile farmland, oh yeah!
All physical here. planning on selling NOTHING for a long time. will buy copiously on dips with the coin made in the Bernanke pumpothonic....
today, gains from NFLX and AMZN were converted to physical silver. thank you Ben, at least you are kindly providing me with the means to protect myself from you.
You sir are very wise!
""It is a pity that the same fate will now happen to the commodities market, as everyone tells Gensler to shove his corrupt market, and moves to physical. Frankly, it couldn't happen to a nicer group of so-called regulators""
I just had to quote that because it is so true. Meanwhile, let's get physical, bitches!
Anyone controlling war materials will have a generational profit
BreakingNews S. Korea plans largest-ever live-fire drill Thursday on mainland near N. Korea border - Reuters
16 minutes ago
Get your war on.
Such blatant moves can only mean that there is no fear of consequence here.
No fear of consequence comes from knowing that the "books" are going to get wiped clean.
Know who has the biggest physical holdings of Copper? China of course.
It's a simple resource fight with the added benefit of hiding the crime of the century for a few more weeks/months.
ORI
http://aadivaahan.wordpress.com
We're not there yet.
Thus the weeks or months, at most.
ORI
ORI, interesting. What if China stop building so much? Who will use the copper in months/years?
Why old naughty, into the war machine.
My view, we are parallelling the time between wwi and wwii right about now (last 15 years especially, we are now in about 1939ish).
Then, it was Germany's war industry that was built up by the you know who's (Standard oil, Union Banking, IG Fraben, Ford, Granpappy bush et. al.).
When Germany was nice and ready and the rest of the "allies" nice and battered, the good ole US of A came and saved the day. Boom (Hiroshima), Boom (Nagasaki) and the tone was set for the next 50+ years.
This time, the recipient of all that technical/monetary largesse has been china. In to much the same way and by too familiar a cast of characters (descended).
Old game, I see a rhyme coming.
ORI
http://aadivaahan.wordpress.com
Not neccessarily true... the threat of mutually assured destruction could keep us (them) from ever taking real action against that sophisticated of a counterpraty. So you need someone like the Taliban.
"Then, it was Germany's war industry that was built up by the you know who's (Standard oil, Union Banking, IG Fraben, Ford, Granpappy bush et. al.)."
Except that it wasn't. German industry wasn't on a war footing until late '43-early '44. The Germans were expecting war in the late '40s, not 1939. They hadn't ramped up production capacity in much of anything. That's why they were forced to make do with obsolete tanks (Panzer I, II, 35(t), 38(t) [which were captured from the Czechs], inadequate numbers of trucks, had virtually no navy (which was just starting a build program), etc. It's also why they were able to continually increase production despite Allied bombing until mid '44. There was a lot of non-military industry that they converted throughout the war to make up their production shortfall.
Fuck Everybody, http://www.youtube.com/watch?v=L9sveS7ZmmE&feature=related
If you can't trust so-called officials and regulators to do what they are supposed to do, there's no choice but support Wikileaks et al.
Should Wikileaks and Julian Assange get prosecuted, I may just feel the need to leave my couch and potato chips and do something...
The regulators are under no pressure because there is no media pressure. You want to get this type of in their clamy hands.
And what do you suppose that regulators are supposed to do? Let me take a crack at answering this.
They are supposed to initiate the use of physical force against some actors in the market, in the name of the "public good". They are supposed to be smart central planners (impossible, as Hayek proved). They are supposed to centrally plan for the public good (the term is undefinable, as every special interest group fights to capture this banner). They are supposed to be incorruptible, but I think ZH and others have done a good job disproving this.
So what we have is a group who initiates the use of physical force against some people (i.e. violating their rights by coercion), based on the notion that they are smarter than everyone else and absolutely incorruptible.
What gets me is that people keep clamoring for more of this insanity (per Einstein), and bemoaning how did the oligarchy end up in control over everything.
You fools! We the people are not only giving them the power, we are begging them to take it! And I just read today that the FCC will now be given more power to regulate and price-fix in the Internet. I guess their hope is to bring up the level of innovation in all things Internet to the much higher levels we see in automobiles and the aviation industry, eh?
The regulators are supposed to implement the rules - frontrunning (algos), position limits (jpmc), insider transactions (expert networks) and so on and so forth to support market integrity. What i expect then is they live up to their obligation and actually enforce basic market rules for players in a market (which is what the FCC is doing a poor job of). I am not suggesting a take over of a new industry or implementation of a new regulatory body, rather, I am suggesting they eliminate the GAMING of a system by an elite few, who benefit from it, to the detriment of society. To me, this is public good you want to put in quotation marks for whatever reason.
That will never happen as long as we have the revolving door between gov't & the corps. Why would they tie the hands of their previous and future employers? They become the "elite few" when they leave their post.
I have studied copper charts during Weimar. Only a dumbfuk JPM commodity trader would think copper is a hedge against inflation.
Copper: http://www.nowandfutures.com/images/weimar_copper1914_1923.png
Gold: http://www.nowandfutures.com/images/weimar_goldmarks_in_papermarks.png
As you can see, gold holds it value after the velocity. Copper, like stocks, doesn't hold its value after the initial velocity. JPM traders couldn't score a winning commodity trade if their jobs actually depended on knowing what the they were doing.
You're forgetting they are the market now. They can do what they like. Welcome to serfdom.
No one is bigger than the market. The silver market is proof of that.
Hopefully history will be on your side. Until then, short term vs long term sucess is the arguement we're making.
Knowing China is a collector of copper, maybe JPM is following orders to drive up the price of copper to force China to expend more of its capital as it collects. As long as JPM can off-load to the Fed its not real money to them. Or maybe not. Regardless I'm way out front for a change. I've been collecting pre 1982 pennies for two years now. If you think silver is bulky, try copper.
Yep, its a bitch. It is still the easiest 170% return you can get, admittedly, not liquid. I've saving the nickels as well.... Gresham's Law at its finest.
I just missed out on the silver era, I did snarf up every silver coin I could find; about 100 quarters, maybe 50 dimes.
I had a cousin who worked in an arcade in the early 70's, he exchanged all the silver he could afford to. He has picture of himself with a handcart and canvas bags full of coins wheeling them for scrap. Used it as seed money for his business in Old Montreal. Ah, those were the days
Close, but actually, I think it was used to loosen up China with the rare earth metals stranglehold they put on. Just saw an article saying China doubled exports from the "clamp down".
Slightly OT, http://www.moneynews.com/Companies/EarnsConAgraFoods/2010/12/21/id/380570
ConAgra (big user of commods) 16% drop in earnings for last qtr ending Nov.28. The article says because ConAg shopper promotions failed big time. Ouch! People are "downsizing" to store brands, not buying the Chef Boy Ar Dee spaghetti O's anymore?
Darden fell on news that they are raising menu prices. Too much margin squeeze on commods they use?
Another article of interest, Carmax up on sales of USED cars. New cars may not be selling, people are "downsizing" to used cars?
Speaking of rare earths, AVL.TO will list on the AMEX as AVL... up 20% today.
Don't chase this one, wait for a pull back. They have the heavy rare earths, Lynas and Molycorp have the light ones. The heavy ones are where the real action is.
They also have an Indium property (think touchscreen computing)....
Full disclosure: 1600 shares at cost of $2.38, will sell 1/2 at $5+
YES the amateurs who cant think 1 step ahead once again outsmarting China chess masters into another 2 move checkmate game. Anyone who thinks we're out smarting those who wrote The Art of War a couple thousand years ago theyve got another thing coming.
Yup, exactly two steps, well, maybe three. First, China waits for a sweet copper price and then dumps physical on the market, collecting a huge payday while driving the price waaaaaay down, at least temporarily. JPM sustains a nearly-fatal head wound. Second, they use their new cash to buy out all of the silver long contracts they can find and then stand for physical delivery, fatally crushing JPM in the ensuing silver short squeeze. And then, maybe third, they buy back all of the physical copper they dumped at bargain-bin prices.
Check-mate.
Beautiful.
Agreed, I don't think they are outsmarting anyone, I was just was conjecturing.
If it only takes 3B to corner the market on the what was the initial US "dollar" bottom tier currency coinage material, we may be seeing the final stages of accumulation prior to roll out of our newest world currency. JPM silver short unwind, IMF concludes AU sales, "mystery" investor takes ownership of registered copper.
If anything is to be learned by the rise / fall / acceptance on the world stage of the US "dollar" its that any legitimate attempt to gain acceptance of paper there must be at least in the initial debut physical intrinsic coinage to give credence to its claim of value. imo
JPM is the market. Realize it. They can pump copper to $50 tomorow if they wish.
Right, they can just pump it up forever with no economic impact of anything being ignored to infinity. Why didnt someone think of this before? I mean, DUH!
JPM have taken on the Chinese Pig Farmers...I kid you not, they have been hoarding copper for a very long time...CPF are the market. Game on!
Bingo! The Chinese farmers are digging holes in their pig pins and filling them with bulk copper. This news was in the local paper several years ago. The Chinese gov was encouraging the action, just as they are now encouraging their citizens accumulate gold/silver.
Charts of things priced in Marks, are you serious?
Anything priced in marks will obviously look 'nice'. Hey, hyperinflation...win!!!1
No.. not really.
That is the whole point. Even in hyper inflated marks, copper went back to darn near zero.
true, but don't think of it as a hedge but more as every bullit casing has a high copper content.
dp
Your graph for copper is not right, unless the world price collapsed over 99.9%!
Copper has been money before, although only in the form of pennies. However, it should also benefit from the rush to real money. Copper production gets all used up at the moment, so perhaps the percentage gain will be larger than silver and gold, as silver is junior to gold, so copper is junior to silver. Betting on copper could be like getting the warrant return rather than the equity return (silver) or the bond return (gold).
Read Gonzalo Lira's articles on hyper inflation and you will understand. The chart is right. There was no real demand for copper in a collapsing economy. As soon as the printing presses stopped, or it was thought they would stop, it imploded. Gold and silver, being money, continued to be valued vs all the existing money.
Obviously, some of you guys are long copper and in serious denial. This data is correct. Hyper inflation is a financial trade and a survival trade. It is not a stock trade or an industrial commodity trade.
I don't believe it. Your chart gives a price of 1 mark of the hyperinflated marks for copper, which meant Germany had the cheapest copper in the world by an unbelievable margin. Nobody came and bought it?
How can I believe your Gold/Copper ratio, which is almost infinity?
Read Gonzalo Lira's work on hyper inflation. It is here on ZH.
No need to read some guy that does your thinking for you. Your graph of copper in hyperinflated marks is so obviously wrong. There wasn't "free" copper in Weimar Germany. Who stole your ability to think?
Nah.
There were copper monies before that.
http://www.24hgold.com/english/news-gold-silver-why-sweden-s-central-ban...
+1
I know a guy who tried to be a 'male model' in NYC, and couldn't. He is now working at JPM in Beverly Hills. Knowing what I know about his understanding of markets, I'm confident that JPM is hiring any monkey who can smile and punch F1, F2 over and over again.
As usual, PigMen remain in control. They control the vertical. They control the horizontal. Do not try to out guess or out gun the PigMen. Otherwise, you will get crushed.
Someone please feel free to out gun them.
oops, NSA watch probably didn't like that one.
And don't forget that it was only 2 years ago that they were all about to go under.. We should have let the bastards burn in hell but nooooooooo, we bailed them out and allowed them to double in size. Now they just laugh at the average Joe and small businesses in America. I'm glad you enjoy living in a FASCIST Country that is run by CRONIES and gangsters because to most of us it is a very sad situation watching America die this slow, greed induced death.
who are you suggesting enjoyes this?
America will survive this...and prosper again. Hang in there.
Do you have a more recent photo of yourself JLee?
Copper is the new silver. JP Morgue is a Swampthing.
If JPM ever gets control of 90% toilet paper I'm recycling it back to them.
JPM is hoping copper is a secondary play on silver and gold. It won't work. They are praying they don't get reamed in the ass.
"JP Morgan controlling 90% of the market is real demand..."
What we got here is failure to communicate. The Morgue demands contol, which is the way he wants it, so he gets it. I don't like it any more than you do.
its all their 'clients' demand - JPM can't help it they are the only game in town!!
What we have her is ambivalence.. Good by JPM, and BofA. The FED and Squid have won. You're done.
File BK and cut your consumption in 1/2..
I no longer care.
Tyler, could you please issue a postion statement on owning SLV instead of physical silver. Some people can do both, and some people can only buy SLV for several reasons (e.g. their local shops are out of silver, or they have their investment money tied in an IRA). So, if a person can not buy physical, can they still make an impact by buying SLV? Some argue that SLV doesn't really hold physical 1 for 1. Some argue SLV can theoretically issue millions of new shares and put off taking delivery indefinitely, taking advantage of dips. Others say SLV may also be shorting to manipulate the stock price and that JP Morgan is the SLV custodian. Others claim there is actually a glut of silver in the refineries. I think I have heard it all, and the shorts have definitely pulled out the big guns in the MSM, causing longs to pull out their guns too. So, I don't actually know what is the truth about buying SLV. Could you please have somebody do a piece on it? Theoretically, those who have IRA's could go 100% into SLV on any given day or span of days....like 12/29 for example....and I'm sure many ZH readers would like to know if that would have a contributing, counterproductive, or no effect on Max Keiser's campaign to buy physical silver.
I would find it very educational and informative if a headline were to read "______ SLV on (insert dates here), Crash JP Morgan" (words to fill in the blank could be "buy", "sell", or "short" for example). Thanks!
Stop asking the same question please. We've already responded multiple times. We aren't here to lobby for any particular ETF, Trust, or PM vendor. Either buy physical or make your own decisions and buy what you want to buy. I personally don't recommend buying something that is paper leveraged and the only physical portion of it is in JP Morgan's vaults, so SLV is out of the question for me for anything except this trade:
BUY PSLV, SHORT SLV.
But I'll wait to see if the premium spread closes before I do anything like that...
If you are worried about holding SLV (I would be) I'd get the physical. If you are too worried about a safe place to keep silver buy a basket of precious metal miners. I'd rather have a piece of paper representing a share of a real business than a piece of paper that represents a leveraged piece of silver overseen by JPM. Didn't JPM have to pay customers back for insurance and storage fees on metal they didn't have in their vaults?? If I were going to hold leveraged paper its gonna be the AGQ and watch it carefully.
Who the hell knows what to do when the rules change constantly. It is very dangerous to decide what to do when you have more than a few thousand dollars extra to save in this environment. Setting stops is risky too 'cause the big boys can bust your stop quicker than you can say kowa a bunga Buffalo Bob.Then whooooosh, the price is right back up. Oh that's right..... they call it an UNEXPLAINED glitch in the system.
+1 bazzilion lincolnsteffens:
"Who the hell knows what to do when the rules change constantly. It is very dangerous to decide what to do when you have more than a few thousand dollars extra to save in this environment"
...this is exactly why I am asking for a professional article...
Thank you Captain Benny. I will chalk your vote up to the buy PSLV and Short SLV column, with no indication as to time - which is indeed in the lead amongst responses. However, I don't know who you are (though I have seen your posts and generally like them), or anyone else who has responded, and of course I have received feedback on other threads saying "buy SLV." This is indeed the reason why I keep asking this question. This is precisely the reason why I am asking Tyler or Max Keiser or Turd, etc. to please do a write up on this. It doesn't have to be long, but it should answer the following:
What would be the dates to buy/sell/short PSLV or SLV, if somebody would hypothetically want to maximize the effect and support the "Crash JPM, Buy Silver" campaign? Would 12/27-12/30 be interesting times?
I would just simply be all happy and make my independent, informed decision if ZH could possibly do an informative article on this. I personally have the ability to trade in and out of PSLV and SLV in one particular account but I can't buy physical silver with that particular account. The idea of just buying PSLV and shorting SLV is indeed appealing for multiple reasons, but I would like some affirmation after futher education from reputable sources.
Yes, Captain Benny, I am an idiot on this matter. It is not my forte. I know just enough to be dangerous and want to make sure I am not helping anyone who is manipulating this market through unethical short positions, such has been alledged that JP Morgan is doing.
So, that is why I keep posting this. Thank you for your patience with this idiot. The bag over the head of my avatar is because I don't want my ignorance to be associated with my face!
...and also, thank you for your reply...I like it very much ;)
Whatever trade you decide to do, start small...because you are going to lose it. You won't know until you bet.
There is a reason that all posters and contributors here disclaim any responsibility and do not give specific advice. You are asking for specific advice.
You are asking the wrong question in the wrong place. That is why you are not getting answers.
Yup, for the same reason as you I'm comfortable with
asking questions.
is that really as bad as it sounds?
because it sounds pretty bad.
its all very well to feel smug about owning gold "just in case"
but its not so nice when that case transpires
This is the most screwed up, f_____d up market I have ever seen in my 35 years of being in the markets. Man this will get ugly.
And, I am glad Tyler and I are on the same side, hate to piss him off. Yikes. Well said sir.
We're screwed. Ammo is full of copper. Those bitchez.
"Ammo" is not full of copper, only the jacket.
Just a thin copper jacket.
rusty ammo sucks and then fcuks the barrel, copper gd'nuff. WTF w/ ETF Copper! An item in short supply and best as liquid as possible (not hoarded) from the bins of Industry. So JPM is allowed in this multiple shell game to box up the physical Copper to invest in the inevitable price rise from invented negative supply (as if they sealed up the milnes in Chile)! To what end but to divert from the trade in the biggest holder is unnecessary but to provide a another way to steal real value from real users. The regulators are working in a room filled with the laughing gas of the Goldest Slax.
The article goes on to report that someone else owns 70% of the physical alumina.
But it's Ok because it's expensive to store and the profit from futures trading is required to be small.
demand for aluminum is going up in China and they are going to have problems with Three Gorges Dam and may have to drop water levels down and hamper electical production which could bring the aluminum plant offline.
Breaking news:
Dec. 22 (Bloomberg) -- Goldman Sachs has just announced that by the end of January 31, the firm will control 90% of all unleaded gasoline contracts on the NYMEX. "We will not be out flanked by JP Morgan", quipped Lloyd Blankfein, the firm's CEO. "It is essential for our firm to gain control of gasoline supplies in the United States, in the event of a market disruption which could interrupt supplies."
Just kidding......
sounds like of of the 230K cables out there that the bogeyman is holding.
I picked up a 100 oz silver bar on Saturday! Fuck you JP Morgan!
short duracell, they got the coppertop batteries!
It's not a market if 1 trader owns all the copper.
Is this a PD trying to export inflation to China by keeping the price of copper high?
Why Not ? One trader owns the FED ! That be Godman Shafts, (GS).
Tyler, did you see this? The IMF has sold its remaining gold...
http://www.imf.org/external/np/sec/pr/2010/pr10509.htm
They must be the only idiot on the planet actually selling tons of real physical.
I don't think it is ALL their gold. This was a deal to sell 400 tons and now that it has all been sold this specific sale is now closed. They have more...
probably salted tungsten again like the Clinton Admin...opps did I just say that...watch what you buy!! Suggest not buying anyone over 10 oz, would highly suggest buying minted 1 oz coins from Canada, and drill and test randoms...do not trust any govenement to just hand over the real stuff.
and POP!
It is a pity that the same fate will now happen to the commodities market, as everyone tells Gensler to shove his corrupt market, and moves to physical. Frankly, it couldn't happen to a nicer group of so-called regulators.
Right on Tyler right on. You da man!
first of all, thanks for that info ZH.
( I am beginning to suspect you are working for GS ? )
If what you say is correct, (about Funds Copper holdings) this confirms what I said earlier:
All Markets,but especially Commodities Markets are totally rigged against any Traders or Investors or anyone that is not part of a hedge-fund (like JPM or Goldman Sachs).
Especially Pension funds and retail investor funds are raided and manipulated and taken to the cleaners as they are the easiest victims with all their Tax-payers funds coming in week after week to be raided and manipulated by Hedge-funds.
This is exactly how the last crash happened.Since 2003 Commodities were aggressively pumped up to quadruple their value in 2007 just before the sub-prime crash.
Dr Copper, as it is known,was pumped up because of demand for housing so they wanted everyone to believe.Remember when Copper was so expensive People would steal it from the life power electrical circuits of Railway lines ?
Well,then the Hedge-funds decided to sell,and then,only then the crash followed !
Hedge-funds that accumulate so much commodities will have to eventually sell.That is when they go short,tell everyone to buy,then be prepared for the big crash!
It is the same old pump and dump game and we are there again in all markets,but especially the commodity Markets.
What is copper used for? Housing construction.But Housing has crashed in the sup-prime market and so why is copper at record heights again ?
Because of the pump and dump game of Hedge-funds,who have fucked the markets completely by their monopolies and manipulation without any regulation.They can make more money by going short as soon as all the suckers have come in,including all those lazy idiot pension funds,then the short selling will begin again,with the blessing of the SEC !
This Markets are completely fucked ,but especially all the commodity Markets and now especially Gold.I know many of you think that Gold is a good investment.
I don't hold any Gold myself (got all my debt paid off,own a small property in the city,have no investments apart from cash at 4.5% short-term deposits)
If it is true that JPM holds even 50% of Copper,than the Commodity market world wide is broken and dysfunctional and ready to crash! Have you looked at your CRB charts lately?
Sometimes I really feel as if I am totally surrounded by Idiots or that maybe I am the only person left taking a look at these rigged markets.I can not believe what I am seeing and I find it hard to believe that there are any Investors left at all in such a corrupt,rigged market after what happened only as recent as the 9th March 2009 when the SPY was at 677.
Dr.Copper has become another commodity Bubble again,
when it bursts,you will lose all you got locked up in this rigged ponzi Hedge-fund Casino.
http://www.crbtrader.com/crbindex/spot_calc.asp
My sentiments exactly
I posted today
The only way to control tyrants is our constitution less the 17th amendment ( I think )
+1
I smell short squeeze
JPM are just making a big pot to piss in
I tell my wife that she has not seen anything yet. She believes me. It's a good feeling to know your wife has your back. She bought me 50 ounces of silver for my birthday...I bought her 100 ounces of silver for her Christmas gift this year and a nice Tiffany Necklace. To loosely quote a previous posting...Double Fuck You JPM!
Well may JP Morgan Hold 90% of the copper market.
Copper's arrest criminal type people so it pays JPM to grease the palms.
Good investment to stay on the outside.
It works - NO Criminals have been arrested.
OH! your talking about Cu - a Base element - Are they raping that now?
May their Dicks go green.
It's not like JPM can lose. The fed will buy anything that declines in value. The house always wins. $3B is chump change. Bennie B. has more clownbux than that stuck betwixt his teeth.
melt your per 1982's bitchez!!!
so JPM is helping old housing prices by pumping up all the copper in them? perhaps they can buy lead too for all the old lead paint
I have had an Evil thought.
That Bull on Wall street?
What's it worth as Scrap?
It is after all 90% copper
uhh... Statue of Liberty
just sayin..
It's all about the bonus. Let's say you're the head of the commodities desk at a TBTF institution with access to unlimited amounts of free money from Uncle Ben's Rice Paper Press. You know that after the Paulson-Geithner Act of 2007, You Can Do No Wrong (c). What are you going to do?
You're going to use that cash to maximize your bonus, which as we have seen over the past four years, is based on "marked-to-what-I-need-it-to-be" accounting. So Blythe goes out and buys all the copper on the LME and establishes a $3 billion long position. Obviously the buying drives up the price (28%). Just for the sake of argument let's say the unrealized profit is about $500 million (minus the losses on silver), and that a TBTF trader can expect anywhere from 10-35% of their "gains" as a bonus. Blythe could be looking at a payday of $100 million. It's biscuits and gravy at the Master's this Christmas!
Oh, and what if all the "gains" evaporate when JPM liquidates? Blythe's already cashed the bonus check and as we all know, losses are something for the taxpayer to assume. Capitalism (sic), baby!
By the way, in my election campaign for President in 2012, the key plank of my platform is that I will use Obama's new Executive Order (see today's Zero Hedge) and use it to hold, for an indefinite period, Blythe Masters along with Jamie, Lloyd, Tim, Ben, the entire FP Division at AIG, anyone I see dining at Elaine's---all at Rahway, as these clowns do not even deserve the nice weather at Guantanamo.
Vote Chindit13 in '12!
Why were you junked...Rahway (East Jersey State Prison) is an inspired choice:
http://www.youtube.com/watch?v=2vekFSapjx0
Junked? I guess Blythe thinks the bonus is honest money. Either that or somebody in Rahway State doesn't want the neighborhood to deteriorate with the likes of Jamie or Lloyd. Inmates have standards of decency, after all.
chindit13, do you have a first lady?
Yeah...but is The Morgue shorting copper too?
Deleted
Tyler you relate: “ The Wall Street Journal has just reported that in the copper market "a single trader has reported it owns 80% to 90% of the copper sitting in London Metal Exchange warehouses, equal to about half of the world's exchange-registered copper stockpile and worth about $3 billion."
I feel sorry for the individual or more likely the investment banker, and related hedge funds who own the physical product as physical demand will not be forth coming at the current price: the owners are going to take a loss as numerous report are coming in the press that China is turning away delivery.
Copper, JJC, shows three white soldiers, that is a reversal pattern; I believe it is terrifically overvalued; and that it is one commodity that will fall hard.
There's plenty of overcapacity in aluminium in russia and the far east, main use of copper is electrical wiring, aluminium can do as well if not better at same weight. I feel sorry for american bankers: they are too stupid to have ever understood basic industrial material technology.
http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=aVNPrbr6hM2U
But there is a good reason for cornering copper - the algos are tracking copper furtures tick for tick. It used to be EUR/JPY or AUD/JPY, then the ES, then long bond, now copper. When team Geithner and Chairman has trained the pavlovian computers to take the cue from the next paper asset, copper will go away.
Aluminum wiring sucks, here its not even allowed by code.
If you live in the US, that statement is wrong.
Check BOCA changes due to fire hazard.
Wire your house with aluminum wire and watch it burn to the ground.
If JPM does actually own a large pile of copper, then being 'short' futures does not expose them to price risk.
In fact they may well make out like bandits, in government credit of course, if the basis narrows.
OFF TOPIC! OFF TOPIC!
CNBC's program on Student Debt was actually helpful. If you have kids approaching college age, it is a wake up call.
Sorry, it's just that I'm so amazed something useful came off that channel.
BACK TO COPPER!!!!!
“Price of Admission”
http://www.cnbc.com/id/39911910/
The College Debt Crisis
http://www.cnbc.com/id/40682477/
Dear Robot Trader, have already delivered children's food/shoe money to bullion. What is good entry to JPM? Thanks in advance. Seriously.
Somebody call a copper, I was robbed!
Bravo Chindit13.
Maybe I'm naive, I see only 2 parties in the copper trade.... speculators and users. Big copper users apear to be manufacturers, like CHINA. If a speculator grabs 90% of the market and artificially forces the price up then the users are going to get irritated. Maybe it's not such a good idea to irritate the world's largest user of copper. Maybe it's better to cut up the pie. So maybe JPM, or whomever, is the front and has the approval of the "Five Families" to play this game. Which means what... somebody is going to take a dump. A big one. Yes?
The eclipse was really cool. As it came back, it truly was blood red, although the camera refused to work, I guess just not enough light. The last one on the solstice was in the 1600's, but for the next one, you only have to wait 80 years. Better eat some healthy food!
Pix here
http://oahutrading.blogspot.com/2010/12/eclipse.html#disqus_thread
Some would consider the moon being blood red as a very
bad sign indeed!
you have to keep the shutter open manually!
My bet is the China angle is prob right on, playing hardball in response to rare earths supply corner. JPM is just acting as one of the long tentacles of the central committee. Call it 'The Heavy Metal War'.
Could hoarding be a prelude to war?
This kind of cold war type move goes on all the time, especially with trade sanctions, military maneuvers, diplomatic name calling, Nobel Prize rigging etc...
Rare earths are strategic and so is copper. So it's a game of chess.
Game of 'airplane contrails' off the west coast is what it is. Everyone forget that already? Maybe the next contrails will be headed to Wall St instead of out to sea?
+1
off topic, well sort of. but very good bill has been introduced to end the fed and provide sound money to the US
http://market-ticker.org/akcs-www?post=175557
I see three main issues that this bill will generate.
1. No interest on deposits. This will not encourage people to save and this is a major reason we are in the situation we are today.
2. All lending basically will be controlled by the government. This 'may' and probably will, if we have learned anything from history, allow those in power to control who is lent to. This could be a real 'controlling' factor on what business gets a loan a who does not leading to favoritisms.
3. States would not be able to get loans except through the federal gov. which would put them totally at the mercy of the federal gov. - scary
These three issues would need to be addressed before I could support this bill. Though not perfect it still appears to be a lot better than the system we have in place. Although sonce fraud is 'always' part of banking we may not want it so tied to the federal government and leave the states at the total mercy of the ferderal gov. as the states would not be able to get a loan from outside sources.
ah america...the land of bitches, blogs, and serfs who think changes comes by talk hope and not violence.....bend over further
The plot thickens.
China’s bonded-warehouse copper mysteryhttp://ftalphaville.ft.com/blog/2010/12/21/443881/chinas-bonded-warehous...
It's bluff, parry, smoke and mirrors and a teenie bit of truth in the big game, friend. What's clear is global competition for resources is getting stepped up. China's rare earth restrictions and threats were the opening salvo in what is sure to become an interesting tangle. China needs bargaining power to leverage more oil and ag. So they're playing the cards they have. Good cards. US also holds good cards. Welcome to neo-quasi-virtual-colonial-imperialism.....back to the future.
This goes a bit off the topic, but what do you thing about the BDI, meaning about its performance lately, as it's seems to be heading to abysses. Today's number is 1886, seems that the trend down is even accelerating. I don't know if BDI is forecasting anything, or if it's actually a lacking indicator, I have read both opinnions about it. What thoughts you have??
Leading.
See 2008 as best example. It's nosedive preceded the September melt-down by about 3 months.
Makes sense right? If global trade is the basis of the current economic system, there is no better indicator of the health of global trade than what people are willing to pay for ships to get their goods/bads to their marks (oops I mean markets) in time.
But this is a single reference point. I'm sure indicator experts here will be able to enlighten you much more.
ORI
http://aadivaahan.wordpress.com
I read that current shipments to the US from China are proceeding at "wind-speed" ie slow...I had never heard of this as a concept but apparently it has to do with warehouse capacity in Ca if sales are slow...fwiw
Goldman Sachs Robot has second thoughts:
http://www.youtube.com/watch?v=mwGoAmbVTKg
Why aren't the american citizens rising up and speaking out against their tarp money being used to corner the copper market?
because there was nothing saying TARP couldn't be used for whatever they wanted?
i telling max keiser! he'll know what to do!
i'm telling the chinese, they'll know what to do!
where's robo copper?
Tyler,
You seem to be an honest man
The drift of your blog has been to invest in commodities.
Now you reveal that the prime brokers, the big banks, who are first in line for all the QE $ --- are gaming the silver, and copper markets.
These bankers are probably into gold. Oil, and food, in such a big way that you have yet to discover the forest.
So my hope is that you begin to pump the easiest and best method ever invented to control the entrenched power brokers whether political or financial
The U S constitution
Listen to Beck
Listen to the Pauls
Your begining to just keep it up.
Maybe the JPMorgue thinks it can make a little more money when they gut the copper from foreclosed houses.