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JP Morgan Cornering Silver Bullion Market?

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JP Morgan Cornering Silver Bullion Market?

- Why is JP Morgan accumulating the biggest stockpile of physical silver in history?
- Legendary silver analyst Ted Butler believes JP Morgan are in a position to corner silver market
- JP Morgan may be holding as much as 350 million ounces of physical silver
- JP Morgan realises the value of owning physical silver bullion today
- Silver at $16 today - Set to soar to over $50 again

 goldcore_chart2_01-05-15

JPMorgan Chase, the largest U.S. bank, one the largest providers of financial services in the world and one of the most powerful banks in the world has accumulated one of the largest stockpiles of silver, the world has ever seen.

The total JP Morgan silver stockpile has increased dramatically in the last four years. In 2011, JP Morgan has little or no physical silver. By 2012, they had acquired 5 million ounces of silver bullion.

Incredibly, in the last 3 years their COMEX silver stockpile has increased tenfold and is now over 55 million ounces (see chart below)

goldcore_chart3_01-05-15
Here’s a breakdown of the Comex’s recent physical silver deliveries to JP Morgan:

April 7th: 1,110,000 ounces

April 8th: 1,280,000 ounces

April 9th:  893,037 ounces

April 10th: 1,200,224 ounces

April 14th: 1,073,000 ounces

April 15th: 1,191,275 ounces

April 16th: 1,183,777.295 ounces

This is a huge bout of deliveries in a very short space of time. It’s such a large amount, that it even creates a spike on the long-term chart of JP Morgan’s silver stockpile (see chart).

JP Morgan has accumulated another 8.3 million ounces of silver in just the past 2 weeks alone.

Is JP Morgan accumulating silver at these depressed levels in anticipation of geopolitical and financial turmoil?

It seems likely. JPMorgan Chase Chairman and CEO Jamie Dimon in his recent letter to shareholders warned

"Some things never change - there will be another crisis, and its impact will be felt by the financial market”.

Dimon warned that the trigger for the next crisis may not be the same trigger as the last one - but there will be another crisis.

“Triggering events could be geopolitical (the 1973 Middle East crisis), a recession where the Fed rapidly increases interest rates (the 1980-1982 recession), a commodities price collapse (oil in the late 1980s), the commercial real estate crisis (in the early 1990s), the Asian crisis (in 1997),so-called "bubbles" (the 2000 Internet bubble and the 2008 mortgage/housing bubble), etc. While the past crises had different roots (you could spend a lot of time arguing the degree to which geopolitical, economic or purely financial factors caused each crisis), they generally had a strong effect across the financial markets."

The preference for silver instead of gold may be explained by the current depressed prices.

In the last two weeks JP Morgan Chase has accumulated more than eight million ounces of physical silver.

goldcore_chart4_01-05-15

At the same time, JP Morgan Chase restricted the use of cash for selected markets and went so far as to restrict clients from using cash for credit card payments, mortgages, equity lines and auto loans. There will also be no ability to store cash or bullion in their safe deposit boxes.

JP Morgan’s massive silver buying brings to mind the Hunt Brothers' attempt to corner the silver market in the late 1970s. The Texas oil-tycoons tried to corner the silver market by accumulating a massive silver futures position.

Regulatory authorities increased margins which saw silver prices fall and the trade go against them. When they failed to meet a $100 million margin call they were almost completely wiped out.

The Hunts faced losses of $1.7 billion and a widespread panic on Wall Street was averted when a consortium of U.S. banks bailed out the main brokerage firm involved.

The story has become the stuff of legend in the annals of precious metals trading and indeed trading. Before their buying on the COMEX, silver traded at $6 an ounce. It gradually rose in price before a blow off spike to $48.70 in January 1980.

At the time the Hunt brothers were believed to have acquired futures contracts worth one third of total annual global mine supply on leverage. Had they been in a position to meet the margin call the outcome may have been quite different.

Had they accumulated physical silver rather than paper silver in the form of futures contracts, as JP Morgan are doing, the Hunts would likely have made an absolute fortune.

So, it is interesting to note that legendary silver market analyst Ted Butler has estimated that JP Morgan may currently hold far more than their official figure of 55 million ounces.

Butler believes the true figure to be closer to 350 million ounces. Annual global silver production is 820 million ounces which, if Butler is correct, puts JP Morgan in a position to corner the physical silver market today, unlike the Hunt brothers back in 1980. As this would equate to a holding 42.7% of total annual supply.

JP Morgan has been acquiring this vast hoard of physical silver while holding the largest short position in the silver futures market, i.e. while suppressing the silver price with its unlimited access to free money, according to Butler.

What motivation could one of the key insiders on Wall Street have to accumulate such vast quantities of physical silver? It seems clear JP Morgan anticipates strong demand for physical silver in the not too distant future - either due to another crisis or purely due to the tiny size of the physical silver market and very favourable supply demand dynamics.

In the event of more market dislocations, demand for silver and gold will surge again. Heretofore - in similar circumstances - demand has been dampened by institutions dumping contracts for massive volumes of silver, paper or electronic silver, onto the futures  markets.

Silver in USD - 10 Years (Thomson Reuters)
Silver in USD - 10 Years (Thomson Reuters)

However, it would appear that JP Morgan now have less motivation to cap silver in the paper markets and indeed are set to make enormous profits from the physical position they have taken. Indeed, they are likely to reverse their leverage short positions and also go long in the silver futures market in order to maximise profits.

When JP Morgan chooses to exploit this advantage remains to be seen. It seems likely that a major event is imminent in the markets and demand for physical gold and silver will likely soon surge again.

Will banks take their thumb off the electronic silver market and allow prices to rise in the near future?

This is hard to know but seems increasingly likely. However, it would seem like a good opportunity to take a similar position to an institution which is very well connected and very well informed due to its relationship with and influence over the U.S. government, the U.S. Treasury and the U.S. Federal Reserve.

Silver is no longer regarded as a good investment and it is only owned by a small minority of hard money advocates and bullion buyers who realise its importance as a hedging instrument and a safe haven, store of value asset.

JP Morgan, however, seems to realise the value of owning physical silver bullion today.

Conclusion
Precious metals look the most undervalued of all the asset classes - particularly silver.

The fundamental reasons for our very bullish outlook on silver is due to continuing and increasing global macroeconomic, systemic, geopolitical and monetary risks; silver's historic role as money and a store of value; the declining and very small supply of silver; significant industrial demand and most importantly significant and increasing investment demand including from the largest bank in America.

Silver is currently trading at just over $16 per ounce. GoldCore continue to believe that silver will surpass its non-inflation adjusted high $50 per ounce in the coming years. Indeed, we believe that silver will surpass its inflation adjusted high or real record high of over $150 per ounce in the next 5 to 7 years.

JP Morgan’s silver accumulation suggests another economic crisis looms large and that silver is set to soar … again.

Important Guide: 7 Key Gold and Silver Storage Must Haves

 

MARKET UPDATE

Today’s AM LBMA Gold Price was USD 1,179.00, EUR 1,049.24 and GBP 771.04 per ounce.
Yesterday’s AM LBMA Gold Price was USD 1,204.80, EUR 1,075.99 and GBP 779.73 per ounce.

Gold fell 1.76 percent or $21.20 and closed at $1,182.80 an ounce yesterday, while silver slid 2.48 percent or $0.41 closing at $16.12 an ounce. In Asia overnight, Singapore gold prices were flat and inched down 0.1 percent to $1,182.50 an ounce near the end of day trading.

Gold in U.S. Dollars - 1 Week
Gold in U.S. Dollars - 1 Week

Gold recovered after an almost 2 percent drop yesterday when stop loss orders were triggered in a brutal sell. The sell off was blamed on the better than expected employment figures but the scale of the losses were more than would have been expected - especially given that the data has been very negative this week - especially the poor GDP number.

A tumultuous week saw the dollar and bonds fall sharply, bond yields soar and stock markets in Europe and the United States weaken.

Japanese manufacturing activity contracted in April for the first time in almost a year as domestic orders and output fell, adding to fears that QE has failed and the large Japanese economy is on the verge of another recession or depression.

Yesterday's U.S. jobless claims were at their lowest level in fifteen years at 262,000 below analysts consensus of 288,000. This surprise would suggest that the labour market is recovering which would be positive for the U.S. economy. However, the veracity of some of the jobs numbers remains in doubt with some analysts concerned that figures are being “hedonically adjusted” and manipulated.

The Fed at their policy meeting this week said that the health of the economy is dependent on the jobs market and inflation data. Next week’s non farm payrolls number will be watched for more signals but the poor GDP number this week should be a real alarm wake up call.

The weaker than expected GDP number suggests that the Fed will be slower to increase interest rates than was previously expected. This is something we have been warning of for some time as we believe the U.S. recovery is far more fragile than is realised.

Silver in U.S. Dollars - 1 Week
Silver in U.S. Dollars - 1 Week

Interest rates remaining near record lows for longer than had been anticipated should be bullish for gold and silver.

In Europe in late morning trading gold bullion was off 0.34 percent at $1,180.44 an ounce. Silver was up 0.6 percent at $16.23 an ounce and platinum fell 0.29 percent at $1,137.49 an ounce.

Gold and silver are higher in dollar terms this week after the sharp falls seen in stock markets and in the dollar after the poor GDP number sent shivers through markets globally.

Breaking Gold and Silver News and Research Here

 

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Fri, 05/01/2015 - 18:35 | 6052244 Pancho de Villa
Pancho de Villa's picture

Perhaps they began last year. Look at the chart. Only recently has it been driven down to it's sub $16 lows... I personally suspect it will rise higher that anyone can imagine once they have eliminated their short positions. Did you read the article?

 

 

"However, it would appear that JP Morgan now have less motivation to cap silver in the paper markets and indeed are set to make enormous profits from the physical position they have taken. Indeed, they are likely to reverse their leveraged short positions and also go long in the silver futures market in order to maximise profits.

 

When JP Morgan chooses to exploit this advantage remains to be seen. It seems likely that a major event is imminent in the markets and demand for physical gold and silver will likely soon surge again." 

 

 

Sat, 05/02/2015 - 22:12 | 6055149 TheReplacement
TheReplacement's picture

One guesses that if they do intend to simply let up on the shorts and profit off the rise then they will want to do so sooner than later so as to keep the costs of storing it to a minimum.  OTOH, if they intend to corner the market or are buying to prepare for doomsday then who knows.

Fri, 05/01/2015 - 11:58 | 6050857 khaproperty
khaproperty's picture

Mostly regulating authorities changed some rules to destroy any good looking calkulation - may be in silver (Hunt Bros.) or any other asset.

Even when market just answered some mistakes of investors - like 2008-financecrisis - authorities wiped out any win. Not any, because some shorties stayed successful. But all the risks were wiped out to cover the big players with taxpayers money. Something is going wrong in the whole system - only to protect some cronies, neighbours and personel friends.

Instead of riskequivalence we see solidarity. Instead having transparenz we look against a wall of regulations.

Fri, 05/01/2015 - 10:52 | 6050552 BoPeople
BoPeople's picture

It makes sense that JP Morgan leaked the information about its already constructed hoard so that others will want to buy.

However, there are other possibilities as well.

Fri, 05/01/2015 - 11:08 | 6050628 Meremortal
Meremortal's picture

It does make a lot more sense to buy big on silver at $16 compared to 30-$40 like the Hunt Bros did.

Fri, 05/01/2015 - 11:31 | 6050721 Conax
Conax's picture

The Hunts didn't have the algos to run it down just as they buy, watching the trading in real time you can see the finagling downward for a few minutes then Wham! somebody gloms a bunch of contracts as the algos put out the fire and drop it back again. The Hunts drove the price up there buying it out in the open.  JP sneaks around in the wee hours spinning their webs.

I think their new pile is just ammo to cover more paper swindling.

Fri, 05/01/2015 - 10:53 | 6050551 MindHedge
MindHedge's picture

If we haven't seen how thick Ted's, James', and Eric's, (KWN) etc.. glasses are when it comes to their die hard one sided perspective in the past few years, then I would caution you to think about the following:

A rise in Silver to lets say $50/ounce...  holding 55,000,000 ounces, (what Ted claims JP Morgan are currently holding) is around: 2.75 billion.  subtract storage/insurance expenses lets say...7% per annum for 2 years, subtract a dollar cost average purchase price of say $16/ounce, we're at ~1.6 billion.

Here's a question:  What was JP Morgan's earnings last year?  http://en.wikipedia.org/wiki/JPMorgan_Chase  21.6 billion.

How did they make that money? rhetorical.

Point is, in order to continue controlling (short as required) the precious metals market with leveraged paper futures, they REQUIRE a certain ratio of physical by law. 

JP Morgan is the extention of the Gov't in this, as they both have the same vested interest, to keep this current system alive as long as possible.

Purchasing vast amounts of physical entitles them LEGALLY to have their sway in markets that can challenge, undermine, and threaten their Dollar and by proxy the current system...the system they made 21.6 billion NET with in 2014.

These guys are one of the biggest players in the world market, total assets under management: 2.6 TRILLION. I suspect they see the micro market of silver as a tiny match stick, that if not kept wet, allowed to dry, burn and find tinder, things could get out of control very quickly, this relatively small investment of silver is a sort of insurance against that.

 

 

Fri, 05/01/2015 - 15:19 | 6051638 teutonicate
teutonicate's picture

Put another way, are we to presume that JPM has the legal right to control the prices of all commodities, simply because they have the financial capacity to do so, and it happens to be convenient to their other agendas - irrespective of the the effects such medling has on the industries involved?

Fri, 05/01/2015 - 18:38 | 6052254 WhackoWarner
WhackoWarner's picture

I think that is the Too Big To Fail attitude.  Yes.  JPM has been given and has presumed and is exercising their "God's work" right due to size of their wallet.  In their eyes it is an entitlement.   Not convenience; but an ENTITLEMENT.

 

They are entitled to do as they please without regard for any other living thing on this finite planet.  Period.  Do not question this please.  Infinite greed meets infinite disregard for life.

Fri, 05/01/2015 - 18:44 | 6052273 WhackoWarner
WhackoWarner's picture

And the key word here is ENTITLEMENT.

 

A sin and a crime when applied to any "working class" taxpayer.....but a presumed God-given right when applied to JPM, above the law JPM or Goldman or Citi or or or BIS or IMF.   So entitlements to basic life are theft when a starving family asks  BUT Too Big To Deny  when it comes to Soros.

 

Fri, 05/01/2015 - 15:03 | 6051575 teutonicate
teutonicate's picture

Even if one could make the argument that JPM's silver holding are a prerequisite for the large trades they require to contain silver prices on the futures market, there is no way to make the case that owning such large holdings for the sole purpose of legitimizing their futures trading is consistent with the spirit of the law regarding position size limits.  They serve no function in the silver industry which legitimizes the ownership of such a large silver position.  If these holdings are being held solely for the reasons you state, then they are purely designed to "legitimize" their unethical manipulation of a commodity to accomplish other ends related to currency valuation.

Fri, 05/01/2015 - 19:50 | 6052408 delacroix
delacroix's picture

jp morgan is the silver users association banker. they use their eventually consumed industrial silver hoard, to control the market.  Industry has long term contracts for silver. most of the silver mined, is already spoken for. the appearance of large quantities of new silver available for purchase on the open market, is a lie

Fri, 05/01/2015 - 14:53 | 6051536 teutonicate
teutonicate's picture

I sincerely doubt the JPM is being held to any legal standard of silver ownership, as a prerequisite to being able to control silver pricing on the short side with futures sales.  They have been an extension of the will of the Fed for years, being a part owner, and have the same revolving doors with CFTC.

Fri, 05/01/2015 - 12:17 | 6050933 Consuelo
Consuelo's picture

Well put.

 

 

Fri, 05/01/2015 - 10:44 | 6050516 Johnbrown
Johnbrown's picture

This is comex warehouse holdings. It's an interesting data point, but JPM does not necessarily own or have interest in this silver.

Fri, 05/01/2015 - 10:15 | 6050416 LongSilverJohn
LongSilverJohn's picture

I have to think it might be the Fed that's using the Bullion Banks to drop the price of silver in the paper market (for dollar-protection purposes), while JPM is taking advantage of the opportunity this offers to snap up physical silver, knowing the paper market will blow up later.

The Fed can take unlimited loss on paper silver if it needs to cover a wrong way bet on shorts, right? They are the one player who can pursue a one-way bet for immediate political reasons, without having to worry about settling the account in fiat cash later.

Does this make sense to the professional silver experts out there?

 

Sat, 05/02/2015 - 13:10 | 6053845 mbutler101
mbutler101's picture

Back in 2012 a congressman on the finance committee indicated the Federal Reserve was manipulating the silver market. Sent me an email plain as day and noted the Ron Paul 'audit the fed' legislation.

Sat, 05/02/2015 - 09:21 | 6053328 sessinpo
sessinpo's picture

 LongSilverJohn   The Fed can take unlimited loss on paper silver if it needs to cover a wrong way bet on shorts, right? They are the one player who can pursue a one-way bet for immediate political reasons, without having to worry about settling the account in fiat cash later.

----

Why would the FRB care if they had to settle an account in fiat cash later?

I ask because, the FRB can print what it needs. And the amount for somthing like this is so small compared to what has already been printed and what has already been bailed out. I don't care if it is 1 billion ounces at $16. That still only $16 billion to the FRB which is chump change considering the trillions.

And isn't that what all bankers actually want, that accounts are settled only in their fiat that they control?

Fri, 05/01/2015 - 15:40 | 6051709 teutonicate
teutonicate's picture

Absolutely.  What disturbs me most about the commentary in this blog is that there seems to be no sense of moral outrage at the fact that the price of a commodity is being set by collusion at the highest levels of government - to say nothing of the likely insider trading that is going on when communications about future government interventions are "leaked" to cronies in advance.

The fate of the entire industries (in this case silver mining) is being manipulated at the whim of a banking cartel, simply because it serves their purposes to prop up the dollar for other reasons.

Can nobody but me see the long term problems associate with this precedent?

Sat, 05/02/2015 - 12:10 | 6053686 sessinpo
sessinpo's picture

teutonicate    Absolutely.  What disturbs me most about the commentary in this blog is that there seems to be no sense of moral outrage at the fact that the price of a commodity is being set by collusion at the highest levels of government - to say nothing of the likely insider trading that is going on when communications about future government interventions are "leaked" to cronies in advance.

-----

Why is it that one has to resort to manipulation as the final answer when  that one person can't or won't accept other reasons for the current price of silver. If in fact JP is/has accumulated so much physical silver, it certainly doesn't seem to be a secret. Otherwise we wouldn't have had this article exposing it!

I do concede your point that banks should not be allowed to participate in commodiites trading. But let's look at the way they do/can manipulate other markets such as buying up the ships that transport goods. No one seems to talk much about that now, but there were articles on that in the past. I can't buy your oil, then I'll buy the tankers that ship it - so there says the bank.

So I ask you politely because I don't have the answer. When do we say we have to limit their freedom to engage in certain business activities and who will monitor and enforce that? That isn't capitalistic or free market anymore, is it?

And considering we already have regulators and a mammoth government, what good does it do to have someone monitor and enforce? I certainly don't see the CFTC  raising any flags.

I think you are stretching it to say that it (silver-since this was the topic), serves as the purpose for propping up the dollar.  The dollar is propped up on one fact. Masive dollar denominated debt. I'll use hundreds of years of history as my guide. As long as the US can defend dollar militarily, the the US dollar remains. Obviously, when the US military is out, then so is the dollar.

The dollar is a drug, if you have it, your daily needs and cravings are met. If you don't have it, your fucked. We are all addicted to it. Even those of us that know better. Why? Because we are forced to use it in our day to day existence. Can you pay all your bills, food and energy without it?

I think so many on Zh are so far off the cue, they don't understand the situation we are in.  In a dog eat dog world of total chaos and collapse of current systems, it won't be about how much gold or silver you have. It will be about if you have shelter, food and the means to defend your life.

Sat, 05/02/2015 - 22:52 | 6053342 RaceToTheBottom
RaceToTheBottom's picture

All outraged out.

Sat, 05/02/2015 - 08:19 | 6053258 msmith9962
msmith9962's picture

The outrage is a given.

Sat, 05/02/2015 - 17:29 | 6054342 Automatic Choke
Automatic Choke's picture

ever heard of "outrage fatigue"?

Fri, 05/01/2015 - 09:38 | 6050279 Ban KKiller
Ban KKiller's picture

They know a bargain when they make it. 

Fri, 05/01/2015 - 10:32 | 6050479 bilbert
bilbert's picture

+100

Fri, 05/01/2015 - 11:48 | 6050806 HenryHall
HenryHall's picture

+100 500

Fri, 05/01/2015 - 09:19 | 6050199 mtl4
mtl4's picture

I'm sure JPM is aware of a future market event coming and they have clearly revealed which market they are playing in but then the question remains are they going to try and drop the market further or are they preparing to reverse course and go long?  To that end I would say a resounding yes they will try to drop the market further without a doubt.  They are probably using the physical silver in order to hold more paper shorts against the market and increase their leverage but it also creates a hedge if we have a true black swan event (hence banning average people from holding gold/silver in banks and moving to electronic currency).  Silver price spikes are usually very quick and violent which is perfect if you are allowed to spoof using HFT trading algos without fear of prosecution.  It's a head's I win tails you lose sort of setup.

Fri, 05/01/2015 - 10:03 | 6050368 semperfi
semperfi's picture

or how about just plain old replacing the stuff they illegally "borrowed" from SLV before they get caught with their pants down around their ankles spankin their monkey

the only reason they've capped silver for so long was to preserve the much much more important dollar hegemony - if they knew that hegemony was over and done with, and that a new system is coming online soon to replace it, a system based on gold & silver, then they would be doing exactly what they are doing

my bet is that both of these reasons are true

 

Fri, 05/01/2015 - 09:12 | 6050187 Calculus99
Calculus99's picture

Good read on the Bunker brothers attempted Silver conrner -

Great Silver Bubble (Coronet Books)

Fri, 05/01/2015 - 09:09 | 6050179 quasimodo
quasimodo's picture

Funny, whenever I see the morgue in the news, it's never touting facts such as the aforementioned. Now, if they actually own that many ounces of phyz, one would expect that they see a tidy profit to be made down the road. Maybe not this year or the next, who knows? I do know when Jamie talks of another crisis, you can rest assured even if it's not just around the corner it's likely on the way, and while that might seem obvious to those of us who have followed this whole charade for the last six + years, it still bears worth mentioning. 

This house of cards should have imploded like the WTC's long ago, but the corpse remains on life support longer than we could have imagined, and likely has a little longer to go yet. I could care less what pie in the sky, moonshot figures for silver five years on amounts to. It's all relative; anyone else see their cost of living going down in that time span?

Fri, 05/01/2015 - 21:28 | 6052639 mt paul
mt paul's picture

necrophilia

is a dying art..

Fri, 05/01/2015 - 09:03 | 6050148 SoDamnMad
SoDamnMad's picture

JBilyj

But if they dump it they will lose a bit or at best, barely break even on the dump but then what?

Take the break-even money and buy ????? gold.

Fri, 05/01/2015 - 08:58 | 6050128 Jonesy
Jonesy's picture

If all that accumulation hasn't moved silver higher, then look out below!

Sat, 05/02/2015 - 22:33 | 6055194 TheReplacement
TheReplacement's picture

Immaterial.  The price of phyz is set by paper (shorts that is).

Fri, 05/01/2015 - 08:55 | 6050115 Quintus
Quintus's picture

Why would they do that?  They can drop a literally unlimited quantity of fake paper silver on the market at any time.  As long as there is a belief that their paper silver is identical to real silver, there is no need for any actual metal in this process.  They could reduce the price of a silver contract to $0 today if they so wished.

Fri, 05/01/2015 - 09:50 | 6050320 agent default
agent default's picture

Because if the paper market breaks it may trigger a run on real physical and if they cannot cover there and then , it will truly be game over.  They have to be able to cover the opening stages of a physical run in the hope that the panic will subside and the wave of redemptions will subside. 

Fri, 05/01/2015 - 16:00 | 6051625 daveO
daveO's picture

Bill Holter has been writing a lot about the Comex running out of silver and gold. Shanghai will take them out.

4/28/15

"I wrote last year an article titled “Kill Switch” where I hypothesized the very large open interest in silver was actually the Chinese (et al) holding their thumbs on a kill switch.  One where they could make a “call” on more COMEX silver than is even available.  The open interest has again expanded and now near record levels well over 188,000 contracts representing over well 900 million ounces versus 63 million ounces available to deliver.  I still believe there is validity to this hypothesis, we will see."

Fri, 05/01/2015 - 08:37 | 6050061 JBilyj
JBilyj's picture

Or are they amassing a hoard to drop it on the public to induce the final leg down in metals, taking silver to $12 and gold around $850?

Fri, 05/01/2015 - 09:13 | 6050192 Uchtdorf
Uchtdorf's picture

I wonder what the storage fees are for 55 million ounces. Would they pay those fees solely for the purpose of scaring the market lower?

I wonder what it costs to short paper silver. JPM would choose the least expensive wouldn't they?

Fri, 05/01/2015 - 11:01 | 6050596 jiggerjuice
jiggerjuice's picture

55 million ounces seems like a lot to mere mortals. x16 bucks an ounce comes out to what, 750 $mm? JPMC sneezes that on a sunny afternoon. They paid what, 11 billion in legal fees from the London Whale case and still booked a profit for that quarter? I don't see this as being a big deal. It's really just pocket change to them. A million ounces a day in April is like, 20 minutes worth of HFT skim. 

Fri, 05/01/2015 - 11:37 | 6050760 Uchtdorf
Uchtdorf's picture

Thanks for the perspective.

Fri, 05/01/2015 - 09:06 | 6050166 Stuck on Zero
Stuck on Zero's picture

More likely they will sell their commodity trading division to a Panamanian trading company but will keep the physical metal.  The holding company will go bust and silver will shoot up in price. It wouldn't be the first time Wall Street banks moved losing positions to a dummy company.

Fri, 05/01/2015 - 09:05 | 6050160 hendrik1730
hendrik1730's picture

Thereby reducing the value of their own assets by 30%? I rather would suggest they know the fiat paper money is about to implode.

Fri, 05/01/2015 - 09:44 | 6050308 agent default
agent default's picture

Their hoard means nothing to them.  The Fed will more than make up for their loses.  I am not even sure if it is their money, or the Fed's money they are using.

Fri, 05/01/2015 - 09:09 | 6050173 Muddy1
Muddy1's picture

And will Chase JP Morgan be treated the same way the Hunt Brothers were?????

Fri, 05/01/2015 - 12:14 | 6050918 bluskyes
bluskyes's picture

Comex strangled the Hunts with their own margin.

Fri, 05/01/2015 - 17:03 | 6051980 Fun Facts
Fun Facts's picture

Zomex changed the rulez as they always do to the schmucks.

Fri, 05/01/2015 - 11:13 | 6050631 Boxed Merlot
Boxed Merlot's picture

treated the same way the Hunt Brothers were?...

 

The Hunts also owned Sunshine Mining in Idaho at the time, and if memory serves correctly, it was one of the largest annual producers to boot.  There are still a lot of Sunshine rounds floating around as I'm sure any stackers out there can testify to.

My own personal opinion is the morgue may be hedging their relationship to the US treasury to provide an immediate source of physical for coining purposes if / when this little experiment with electronic currencies fails to develop fully due to the hacking of ingenious individuals and not just belligerent / historic national “foes”.

Their inside positioning and influence peddling in order to initiate the US to exercise power over Swiss personal bank accounts, monitoring other nations currency deposits while seeing their own folks using Canadian, Irish and Cayman Island jurisdictions to skirt reporting and tax issues in order to maintain their personal autonomy and phony positions of authority are assets even stacks of physical bullion can’t compare with.

I’d be interested to know of any mining / producing activities the morgue is controlling as the 30 -40% annual production number, if actually relevant, could more easily be manipulated on that end of the equation.

 

Jmo.

 

Fri, 05/01/2015 - 21:31 | 6052653 mt paul
mt paul's picture

Bunky Hunt was asked

just how much silver do you own

his was reply...

only the lord and me knows

and he ain't talking...

Fri, 05/01/2015 - 23:59 | 6052946 bluskyes
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