JPMorgan’s Monumental Shift: From Silver Short to Massive Long Position and Its Ripple Effects on Prices
In a stunning reversal that has sent shockwaves through the commodities market, JPMorgan Chase & Co. has completely exited its longstanding short position in silver and pivoted to amassing one of the largest physical stockpiles in history. As of late 2025, the banking giant holds over 750 million ounces of physical silver, equivalent to nearly a full year’s global mine production. This move, executed between June and October, marks the end of an era where JPMorgan was often accused of manipulating silver prices downward through massive paper shorts. With silver prices already surging from around $31 per ounce at the start of the year to approximately $62 as of December 13, 2025, investors are now speculating on whether this flip could propel the metal to unprecedented heights. If you’ve been following my ZeroHedge articles from the beginning of the year, you may have been prepared for this move. However, as of Monday, December 8th, I made an announcement to our members that I am raising my 2026 price target on Silver to $105 per ounce.
…here’s why:
A History of Controversy: JPMorgan’s Silver Saga
For over a decade, JPMorgan has been at the center of silver market debates. The bank maintained a notorious 200-million-ounce naked short position in paper silver contracts, primarily on the Commodity Exchange (COMEX). Critics, including precious metals analysts and conspiracy theorists alike, argued that this position artificially suppressed prices by flooding the market with derivatives, creating an illusion of abundant supply while physical demand grew. Regulatory scrutiny followed, with fines and settlements over alleged spoofing and manipulation, but the short persisted, until now. The bank’s dominance extended beyond shorts. As the custodian for major silver ETFs, like the iShares Silver Trust (Ticker: SLV), JPMorgan controlled vast vaults, giving it unparalleled insight and influence over physical flows. By mid-2025, it reportedly commanded 40% of COMEX silver futures, highlighting regulatory gaps that allowed such concentration without triggering antitrust alarms. This setup enabled JPMorgan to lease silver to other institutions, profiting from carry trades while keeping spot prices in check.
The Great Unwind: How the Flip Happened
The unwind began in June 2025, amid tightening market fundamentals. JPMorgan methodically closed its entire short position by October, redirecting capital to physical accumulation. Sources suggest the bank “cut bait” on loans to peers like HSBC and UBS, forcing them to buy back leased silver at a loss, injecting billions back into JPMorgan’s coffers. In a mere six weeks, it added 21 million ounces to its hoard, stored in COMEX vaults and ETF custodians. This wasn’t just a defensive play. By flipping long in both physical and any residual paper contracts, JPMorgan achieved a “triple play” endgame: controlling supply, benefiting from rising prices and potentially squeezing short. According to market rumors, JPMorgan will be relocating its precious metals trading team to Singapore in an effort to capitalize on Asia’s booming industrial demand.
Driving Forces Behind the Pivot
Several converging factors compelled this shift. Silver’s supply-demand imbalance has intensified, with global mine output lagging behind consumption. Industrial demand, from solar panels, electronics, and electric vehicles, hit records highs, projected at 1.2 billion ounces for 2025 alone. Lease rates spiked 40% in October, hovering at 8%, while COMEX open interest dwarfed registered stocks by 244%. Broader economic pressure played a role too. The Federal Reserve’s renewed quantitative easing, geopolitical tensions, and inflation fears have boosted silver’s appeal as a hedge. The U.S. Mint’s silver coin shortage declaration underscored physical scarcity. For JPMorgan, facing potential banking instability, hoarding physical silver became a self-preservation strategy, even if it meant turning against Wall Streel allies.
Implications for Silver Prices: A Bullish Horizon?
The most profound impact? Removing JPMorgan’s downward pressure could unleash silver’s true value. Prices have already rocketed: from $50 to over $64 in rapid advance since last November 12, up from $57.60 on December 1, reflecting volatility but upward bias. Looking ahead, analysts are optimistic. Earlier JPMorgan forecasts pegged 2025 averages at $36 per ounce, but reality has shattered that, with year-to-date gains exceeding 100%. Revised outlooks cluster around $36-39 for year-end, but specialists eye $50 or higher based on deficits. Some bold predictions, drawing parallels to the 1980 Hunt Brothers squeeze (adjusted for inflation), suggest $600 per ounce if a full supply crunch materializes. Unlike the Hunts, who relied on paper and faced regulatory backlash, JPMorgan’s physical focus minimizes risk and maximizes control. Industrial users may endure higher premiums, delays, and rationing, while retail investors benefit from transparent pricing and a potential bull run fueled by margin calls on remaining shorts. Overall, 2025 predictions remain bullish, with silver poised for appreciation amid global uncertainties. This pivot signals the twilight of decades-long price suppression, positioning silver as a cornerstone asset for monetary resilience. As JPMorgan bets big on the while metal, the market watches closely…could this be the catalyst for silver’s long-awaited renaissance?
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