FWIW, "JP Morgan Cornering Silver Bullion Market?"

P

picturefun

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http://www.zerohedge.com/news/2015-05-01/jp-morgan-cornering-silver-bullion-market

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
 
picturefun said:
http://www.zerohedge.com/news/2015-05-01/jp-morgan-cornering-silver-bullion-market

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
Click to expand...

350 million ounces, that's 1,050,000,000 fifty cent pieces! That's 50 million tubes. Bloomst has made a packet.
 
To put it in perspective, 350 million ounces is about 49% of the world's current yearly silver production of 836 million ounces.

They'll have to try allot harder if they want to corner the market unless the big miners suddenly collapse.
 
Of all the people spruking PMs Jamie dimon buying that much silver is the actions that i pay attention too, gotta be good for stackers yeah.
 
Could look at it another way...

Shorting paper market... acquiring physical, could be to smack down the physical market with it's large stockpile and settle contracts for paper should the market bubble over.
 
Miloman said:
Could look at it another way...

Shorting paper market... acquiring physical, could be to smack down the physical market with it's large stockpile and settle contracts for paper should the market bubble over.
Click to expand...

If they're short paper and hoarding physical that can only be good. However, we don't know whether this is a position the bank has taken or it's some hunt brothers long lost cousin who is doing things with J P Morgan's help to avoid simular trouble to the last time. Not that that's necessarily bad but it will be a big deal for the paper market if they think JPM has bought that much physical, bullish for silver generally and a kick in the teeth for the paper market.
My guess is that they're "only holding it for a friend".
 
Does Brink's own the silver it holds in its Comex depositories?
Does JP Morgan own the silver it holds in its Comex depositories?

Activity Date: 4/7/2015
Total (JP Morgan alone) 48.865.245.591 (48.9 Moz)
COMBINED TOTAL (all Comex depositories) 176.238.647.219 (176.2 Moz)

Activity Date: 4/30/2015
Total (JP Morgan alone) 55.402.649.745 (55.4 Moz)
COMBINED TOTAL (all Comex depositories) 174.680.121.139 (174.7 Moz)

Over this 3 weeks period, JP Morgan +6.5 Moz yet Comex total -1.5 Moz
Does it matter in which Comex depository the metal is stored?

In february 2011 I arrived on the silver market (by throwing my euro's at it).
Mid april 2011, after seeing a crazy price uptrend of $32 to $43, I read this exact same story / focus, as spreaded by ZeroHedge & Co.
At that time I knew nothing about the silver market nor its history, I threw my euro's based on fiatcreation by central banks (capital error flag raised here), and unlike ZeroHedge & Co, I saw this story as an element in a bearish bigger story. See https://www.kitcomm.com/showpost.php?p=1307963&postcount=26 (Lorian is the nick I had chosen back then).
It took 2 further weeks and another +$6.5 for that "steep long drop" to indeed arrive.
We're now 4 years later, and the price was sold down from $49.5 to $15 (USD), less than 1/3, with the total Comex depositories silver having seen 112 Moz end 2011, yet price was $30 then, still double todays. And now this same JP Morgan story reappears, even claiming a $50 price return, solely based on JP Morgan Chase Banks Comex depository content, which can be owned by anyone since some of JP Morgans roles on the silver market are "bullion bank" and "swap dealer". A custodian stores in behalf. Brink's also offers storage, does Brink's speculate on silver? This story is a haha, in all aspects.
This "JP Morgan Cornering..." story
 
This is Thomson Reuters' data (as published on Silverinstitute.org) of this inventory:

Exchange Inventory Build (positive value means added, negative removed, in Moz)
2004 -20.3
2005 15.9
2006 -9.0
2007 21.5
2008 -7.1
2009 -15.3
2010 -7.4
2011 12.2
2012 62.2
2013 8.8
Total2004-2013 61.5
I don't know the starting amount in 2004, that 61.5 Moz is relative to whatever it was then.
2012 was a, even "The" big addition year. The other years are up/down to an over this term nearly unchanged amount.

To put it in some (Exchange Traded Funds that came into existence over this same period) perspective:
ETF Inventory Build (positive = DEMAND, negative = SUPPLY)
2004 0.0 $6.6711
2005 0.0 $7.3164
2006 157.8 $11.5452
2007 54.8 $13.3836
2008 101.3 $14.9891
2009 153.8 $14.6733
2010 132.6 $20.1928
2011 -24.0 $35.1192
2012 55.1 $31.1497
2013 1.6 $20.0858
Total2004-2013 633

That's 633 Moz.
Btw JP Morgan became in recent years became custodian for the SLV ETF, the biggest ETF, holding atm 330 Moz (since over 2 years). WooHoo, even more silver of JP Morgan, let's make the price prediction $100! :D
 
Pirocco said:
...
Btw JP Morgan became in recent years became custodian for the SLV ETF, the biggest ETF, holding atm 330 Moz (since over 2 years). WooHoo, even more silver of JP Morgan, let's make the price prediction $100! :D
Click to expand...

$100? Way too conservative. Also, wrong currency. By Christmas, silver will be denominated in NWO credits after Obama reveals he is a Lizard Man clone from the planet of socialist muslims. The Birthers were right after all.

Pirocco said:
I read this exact same story / focus, as spreaded by ZeroHedge & Co.
...
.And now this same JP Morgan story reappears, even claiming a $50 price return, solely based on JP Morgan Chase Banks Comex depository content, which can be owned by anyone since some of JP Morgans roles on the silver market are "bullion bank" and "swap dealer". A custodian stores in behalf. Brink's also offers storage, does Brink's speculate on silver? This story is a haha, in all aspects.
This "JP Morgan Cornering..." story
Click to expand...

Yeah, the same or very similar stories get repeated over and over and over. I've noticed there are two broad classes of audience who believe these stories:

(1) Those who have newly discovered silver and are concerned about the state of the economy and are looking for more information.
(2) Those who think they are going to get rich from silver when the price goes to the moon, and who will never listen to an opposing viewpoint.
 
Phiber said:
People still buy this BS?
Click to expand...
Zerohedge, Silver Doctors and Co is an oiled propaganda machine.
Just watch how their stories get copied along myriads of dealer places all over the world.
They appear on 4 of the 5 nearest precious metal dealer sites in my region, and hundreds other pm and/or financial/money related sites pass them through.
Yes it's bought, in masses, and if you criticize them you get 1) ridiculized, if you prove the lies 2) targeted and if you stay persistent 3) routed out (just like I was on Kitco, although I just ceased posting after the last sought "Rules Infraction" - being the sentence "Those that have to ask others if it's a good time to buy, better stay away from precious metals. Will give better results." being classified as "Baiting/Trolling".

Aside of this, zero-sum markets are destinied to be clouded with BS, simply because ones profit requires anothers loss, and misleading is the prime means to the latter.
So, it's not -that- special! :D
 
Pirocco said:
Phiber said:
People still buy this BS?
Click to expand...
Zerohedge, Silver Doctors and Co is an oiled propaganda machine.
Just watch how their stories get copied along myriads of dealer places all over the world.
They appear on 4 of the 5 nearest precious metal dealer sites in my region, and hundreds other pm and/or financial/money related sites pass them through.
Yes it's bought, in masses, and if you criticize them you get 1) ridiculized, if you prove the lies 2) targeted and if you stay persistent 3) routed out (just like I was on Kitco, although I just ceased posting after the last sought "Rules Infraction" - being the sentence "Those that have to ask others if it's a good time to buy, better stay away from precious metals. Will give better results." being classified as "Baiting/Trolling".

Aside of this, zero-sum markets are destinied to be clouded with BS, simply because ones profit requires anothers loss, and misleading is the prime means to the latter.
So, it's not -that- special! :D
Click to expand...

True. if you want to know who runs them then just look at the Ukraine coverage on zerohedge.
 
Pirocco said:
phrenzy said:
If they're short paper and hoarding physical that can only be good.
Click to expand...
A "short paper", and a "hoarding physical", together form a "hedged stock".
Click to expand...

Why would you hold physical at all given the added costs if you didn't think it had a future slightly different from paper? Why not just buy that position on the market without paying for shipping and storage?
 
phrenzy said:
Pirocco said:
phrenzy said:
If they're short paper and hoarding physical that can only be good.
Click to expand...
A "short paper", and a "hoarding physical", together form a "hedged stock".
Click to expand...

Why would you hold physical at all given the added costs if you didn't think it had a future slightly different from paper? Why not just buy that position on the market without paying for shipping and storage?
Click to expand...

It's if the market "becomes physical".

Think about it. Why, if we assume the story is true, would they (or their "customer") be holding a large physical position. Using logical deduction, they are definitely expecting "increased" physical demand.

What we do know.
1) Physical silver and gold are seen as being in competition to paper money
2) Industrial demand
3) Below many producers cost of production
4) The owners of "banks" "the cartel" have worked tirelessly to demonitise precious metals but keep tight control over the market

None of us know what the future holds and if this bodes well or not for silver. What we do know is that they always act in their best interest over their entire interests. Meaning silver is where it is because of reasons they deem appropriate. They could easily bid up the market, if fact any large player could. Which is likely why they have such a position, in case this happens.

At the end of the day... we all realise that if the market does go physical then we'll be getting calls from "Houston... we're got a..."
 
Pirate Huskies cornering the physical silver market....you heard it here first

14335_pirate_huskies.jpg
 
I like how they don't consider the possibility that it is JPM's clients who own the silver.

The other possibility is that silver speculators go long futures, so JPM does it job as a market maker and goes short (has to be a short for every long) and then hedges itself by buying silver. The net effect being that JPM is helping to 100% back the silver futures longs. Again, that is not considered a possibility, or even a partial explanation.

The fact is no one has any idea exactly what JPM's position is, but it is all presented as fact. What is fact is that if JPM was maintaining a continual short position, then as the current contract got close to maturity then JPM would have roll and buy longs to close and then establish new shorts in the next contract. The effect of all that massive buying and selling would show up in the basis for the current and next contract, and that has not been observed.
 
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