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    Default JP Morgan Silver Manipulation

    Allow me to bring you up to date on what you need to know about JP Morgan's manipulation of the silver market.

    It is being exposed, and JP Morgan is failing, and losing money on their scheme.

    On April 5th, we were given the gift of JP Morgan's Blythe Masters giving a TV interview on CNBC where she was trying to claim that JP Morgan does not hold any position in the silver market, but rather, is hedging client long positions in silver.

    Blythe says, "We store significant amounts of commodities, for instance silver, on behalf of customers. We operate vaults in New York City, in Singapore and in London. Often when customers have that metal stored in our facilities they hedge it on a forward basis through JPMorgan, which in turn hedges in the commodities market," she said.

    "If you see only the hedges and our activity in the futures market but you aren't aware of the underlying client position that we're hedging, then it would suggest inaccurately that we're running a large directional position," she added. "In fact that's not the case at all. We have offsetting positions. We have no stake in whether prices rise or decline."

    The article and TV interview are here:
    JPMorgan Not Speculating on Commodities: Blythe Masters
    http://www.cnbc.com/id/46969993

    Note the phrase: "the underlying client position that we're hedging."

    Excuse me, my instinct tells me that clients don't want their long silver positions hedged, or sold short. Why would a client with a long silver position want the bank to create an offsetting short position for the client? If you buy stock or shares in a company, do you want your brokerage firm to short the company you just bought to "protect" you from upside gains? This explanation makes no sense. A client with such a long and short position would also have to pay storage fees on the long silver position, and then lose all of any upside gains due to the short position. It makes no sense, in the way that Blythe is trying to get us to understand the words she is using.

    As I understand things, JP Morgan (and many other banks, but mostly JP Morgan) has many clients who want to be long silver, in the OTC or "Over The Counter" market and LBMA market, up to perhaps $100 billion to $200 billion worth of "silver" in "accounts". But JP Morgan (and other western banks) never went out and bought this silver in the first place, because there does not exist $100 billion to $200 billion worth of silver to buy in a world that produces and mines only about $6 billion (at $10/oz.) to $21 billion (at $30/oz) worth of silver per year. This puts JP Morgan (and other banks) in a natural short position, as they owe their clients 10-20 times more silver than the world produces annually. JP Morgan thus has this massive natural silver short exposure. To protect the bank from the silver short position, JP Morgan must cap silver prices, by shorting silver on the COMEX, where prices are set. Otherwise, as silver prices rise, the bank loses more and more on the silver they are supposedly holding for their clients. Only in that sense, does JP Morgan have "offsetting positions"; in other words, shorts on COMEX to back up or shore up JP Morgan's other losing short positions (client long positions)!

    JP Morgan cannot offset such OTC positions in the OTC market. Except, in the sense I just explained, every single additional "sale" of silver in the OTC market protects and hedges every other sale, as all sales of "silver" in "accounts" to customers have the cumulative effect of preventing people from buying and taking delivery of real physical silver which would drive the silver price up.

    The key reason why the London LBMA and OTC silver selling is so successful is that nobody ever asks for delivery of the silver, because there is a 20% tax on silver delivery in London. See here: http://en.wikipedia.org/wiki/Silver_...tment#Taxation

    There were two good commentaries on JP Morgan's Blythe Masters TV appearance, here:

    Mike Maloney breaks down Price Manipulation in the Gold and Silver Market
    http://rt.com/programs/capital-accou...n-gold-silver/

    The Russia Today TV show is 27 minutes long, and begins with Jeff Christians shocking admission at the CFTC hearings that the silver market trades 100 times as much silver as really exists to back up all the positions and trades.

    JPM’s TV Appearance
    http://www.silverseek.com/commentary...-tv-appearance

    JP Morgan first admitted having (or trying or wanting to cover) a short position in silver back in December 2010, about a year and 5 months ago. This was reported by the Financial times, and by Barron's, and others.

    JPMorgan cuts back on US silver futures
    http://www.ft.com/cms/s/0/7d699ca4-0...#axzz182HTfhCl

    Report: J.P. Morgan Cutting Back Big Bets Against Silver
    http://blogs.barrons.com/focusonfund...od=rss_BOLBlog

    What's excellent today is the comparison of today's explanation to JP Morgan's lie from a year and 5 months ago. Back then, JP Morgan was trying to claim they were closing out, or had closed out, their short positions in silver. Today, a year and 5 months later, they supposedly have this rational excuse that their firm's short positions in silver exist to offset other client long positions. Both explanations are lies, obviously. What I like about the lie of "offsetting client long positions" is that it is a lie disguised by the truth. The truth is that they do have client long positions that would likely bankrupt the bank if they filled those positions and tried to buy silver that does not exist, and to hedge that exposure, they must manipulate the silver market's prices lower. Thus, the current lie is sort of like an admission of the truth, but they are being very deceptive and tricky about how they present it. The best kind of lie is simply a distorted version of the truth, of course.

    The New York Post exposed JP Morgan's manipulation of the silver market back in May, 2010, when they exposed an ongoing investigation by the CFTC AND the US Department of Justice into JP Morgan's silver trading.

    Feds probing JP Morgan trades in silver pit
    http://www.nypost.com/p/news/busines...OJpB55M7Rh9vwM

    That article came out a month after my complaint to the US Justice Department in April, 2010, a month earlier.
    http://silverstockreport.com/2010/doj.html

    My readers told me they wrote to the US Department of Justice about silver manipulation, without mentioning any company names, and the US Department of Justice sent back form letters saying they were looking into JP Morgan's activities in silver, mentioning JP Morgan by name!

    So, what about my claim of the size of those OTC silver positions being in the range of $100 billion to $200 billion, which are far larger than the silver that trades on the COMEX?

    Well, those are not my claims, but rather, those are numbers produced by the BIS, the Bank of International Settlements. I have repeatedly reported on these figures here:

    BIS Changed Silver Data
    (From $203 to $93 Billion in Silver Liabilities?)
    by Jason Hommel, July 6th, 2011
    http://silverstockreport.com/2011/BIS-DATA.html

    Silver News Explodes; JP Morgan Admits Guilt!
    (JP Morgan admits they are short silver!)
    by Jason Hommel, December 15th, 2010
    http://silverstockreport.com/2010/jp...ver-short.html

    BIS Admits $190 Billion Silver Fraud
    (Almost, if you know where to look!)
    by Jason Hommel, April 6th, 2009
    http://silverstockreport.com/2009/OTC-silver-fraud.html


    The discrepancy or change in the BIS data from $203 Billion of "Other Precious Metals" (in other words, silver) down to $93 billion is still being reported at the BIS website.

    From the 2010, June report: $203 billion for the June, 2009 period.
    http://www.bis.org/publ/qtrpdf/r_qa1006.pdf

    From the 2010, December report: $93 billion for the June, 2009 period.
    http://www.bis.org/publ/qtrpdf/r_qa1012.pdf

    See Table 22a, Amounts outstanding of OTC equity-linked and commodity derivatives, in the category of "Other Precious Metals". Scroll down about 90% into the pdf documents.

    This BIS data is the smoking gun of manipulation in the silver market.

    There is no way that the big banks can increase OTC shorts by $100 billion in silver in 6 months, when the world barely produces $15 billion of silver per year, without the silver price going bananas to the upside, unless this kind of silver derivatives exposure is silver that is owed to clients, which is essentially a naked short position, or silver that was "bought" by the customers, but never purchased by the banks in the open market, purposefully and maliciously and with the specific intent to prevent the silver price from running away to the upside, and to keep the fraud of the paper dollar going as long as possible. This is really revealing the fraud of the multi trillion dollar paper money scam that the world has going.

    There is no reason to disbelieve the BIS numbers when the banks accidentally reveal data that condemns them, and exposes the silver short selling fraud; and every reason to suspect bad faith and nefarious intent when they later edit the data at a key time, Dec. 2010, when JP Morgan is being investigated by two arms of the US Government.

    JP Morgan first took on this silver short position when silver was about $20/oz. Later, the silver price was manipulated down to $9/oz. Today, with silver at about $32, we can see that the manipulation game is failing.

    All frauds eventually fail completely. This one will, too. In the end, holding silver in accounts with large banks will not help you. You need real silver in your own real vault that you have personally lifted and stored away. Any other kind of silver that others hold for you is likely fraud, and will not protect you in the event of the collapse of the dollar or the collapse of the financial system or the collapse of your brokerage company.

    By the time this fraud is exposed fully, and by the time a mere 1% of people or money in America starts buying silver, such as only about $180 billion in the banking system, the silver price will exceed $500/oz. and large firms such as JP Morgan will either be bankrupt, or they will be bailed out to the tune of trillions to keep the financial system together, which will create further inflation that will drive 2% of people into silver, and create the very runaway metals market that will just not stop until all paper money and paper accounts are destroyed for generations.


    =====


    I strongly advise you to take possession of real gold and silver, at anywhere near today's prices, while you still can. The fundamentals indicate rising prices for decades to come, and a major price spike can happen at any time.


    Sincerely,

    Jason Hommel
    Take this as you will.

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    For once I read your entire quote. Can't say I'm very surprised at this kind of behavior though. How legal is it for them to do this?

    muddymess

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    As soon as I get some 'spare' money I'll buy some.


    Thing about me is, buying from Ireland, from a site like APMEX or whatever, I'd probably get shafted on some weird taxes I never heard of or something. Shipping costs etc too... I would want shiny symmetrical bullions that I can stack in a pyramid shape too... I dont know if I'd enjoy trying to find space for dirty coins or silver bits I scavenge.

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    Quote Originally Posted by KoKane View Post
    As soon as I get some 'spare' money I'll buy some.


    Thing about me is, buying from Ireland, from a site like APMEX or whatever, I'd probably get shafted on some weird taxes I never heard of or something. Shipping costs etc too... I would want shiny symmetrical bullions that I can stack in a pyramid shape too... I dont know if I'd enjoy trying to find space for dirty coins or silver bits I scavenge.
    Buy locally if you can. Look online for someone selling, that is the cheapest way to buy.

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    Quote Originally Posted by KoKane View Post
    As soon as I get some 'spare' money I'll buy some.


    Thing about me is, buying from Ireland, from a site like APMEX or whatever, I'd probably get shafted on some weird taxes I never heard of or something. Shipping costs etc too... I would want shiny symmetrical bullions that I can stack in a pyramid shape too... I dont know if I'd enjoy trying to find space for dirty coins or silver bits I scavenge.
    That's what is keeping me from investing in gold just now, even though I know I should. The idea that I will be taxed on buying it, and then taxed on any "gains" in value (when it's simply fucked up inflation) is insane. More taxes, more crap to deal with. Sigh. If I was in the USA I would still do it because the dollar will collapse, but in Canada I don't think there will be hyperinflation.


    Yummy.

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    Quote Originally Posted by Death's Chill View Post
    That's what is keeping me from investing in gold just now, even though I know I should. The idea that I will be taxed on buying it, and then taxed on any "gains" in value (when it's simply fucked up inflation) is insane. More taxes, more crap to deal with. Sigh. If I was in the USA I would still do it because the dollar will collapse, but in Canada I don't think there will be hyperinflation.
    Buy/sell from/to individuals and you dont get taxed.

    In Missouri there is no tax on buying or selling of coin.

    From what I understand you might have to pay taxes on gold coin and silver coin when it goes up in value but really that is impossible to enforce, unless you sell large amounts to APMEX or PROVIDENT METALS or another large business. I buy with cash so good luck.

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    Quote Originally Posted by [LoD] EE View Post
    Buy/sell from/to individuals and you dont get taxed.

    In Missouri there is no tax on buying or selling of coin.

    From what I understand you might have to pay taxes on gold coin and silver coin when it goes up in value but really that is impossible to enforce, unless you sell large amounts to APMEX or PROVIDENT METALS or another large business. I buy with cash so good luck.
    Living in Sweden I bet I'd have to pay tax out the ass for gold and silver. That, student debt and poor job situation keeps me from buying.

    muddymess

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    Quote Originally Posted by [LoD] EE View Post
    Buy/sell from/to individuals and you dont get taxed.

    In Missouri there is no tax on buying or selling of coin.

    From what I understand you might have to pay taxes on gold coin and silver coin when it goes up in value but really that is impossible to enforce, unless you sell large amounts to APMEX or PROVIDENT METALS or another large business. I buy with cash so good luck.
    Yeah.. maybe, but I'm scared if I buy from people I may end up with fake gold or silver. I don't trust people.

    Also, I'm in Canada. I'll have to lookup the tax rules and such here for precious metals.


    Yummy.

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    Quote Originally Posted by [LoD] EE View Post
    Buy/sell from/to individuals and you dont get taxed.

    In Missouri there is no tax on buying or selling of coin.

    From what I understand you might have to pay taxes on gold coin and silver coin when it goes up in value but really that is impossible to enforce, unless you sell large amounts to APMEX or PROVIDENT METALS or another large business. I buy with cash so good luck.
    just another greedy lil madoff, nothing to see here

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    Quote Originally Posted by muddymess View Post
    For once I read your entire quote. Can't say I'm very surprised at this kind of behavior though. How legal is it for them to do this?
    It is extremely illegal, It is price fixing.

    The Department of Justice is currently suing Apple for price fixing E-Books.

    http://www.theblaze.com/stories/doj-...-price-fixing/

    If everyone in the US bought 1 oz of gold and silver for themselves, JP Morgan would go bankrupt along with many other institutions who do these kinds of things.

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    Quote Originally Posted by [LoD] EE View Post
    It is extremely illegal, It is price fixing.

    The Department of Justice is currently suing Apple for price fixing E-Books.

    http://www.theblaze.com/stories/doj-...-price-fixing/

    If everyone in the US bought 1 oz of gold and silver for themselves, JP Morgan would go bankrupt along with many other institutions who do these kinds of things.
    Yeah, that's what I figured. Does the bank have any obligation to actually deliver on the silver/gold? It seems odd that they can take several billion dollars for a commodity that they can't feasibly acquire. Is it because it's counted as an investment and not a purchase?

    muddymess

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    Quote Originally Posted by muddymess View Post
    Yeah, that's what I figured. Does the bank have any obligation to actually deliver on the silver/gold? It seems odd that they can take several billion dollars for a commodity that they can't feasibly acquire. Is it because it's counted as an investment and not a purchase?
    When you fishing out your contract ( 5000 oz ) you can either sell or accept delivery ( transportation fees, taxes etc are than added ) or you can pay JPMorgan, MF Global etc to store your silver for you. The thing is, they can continue to sell your Gold and your Silver at 100 oz for every 1 they own. If someone else decides to take ownership, sooner or later you are going to have 99 people who cant because there is no physical metals left to take ownership of.

    I simply wont own paper that says I own something unless I physically have it in my hand. Possession is 9/10ths of the law.

    Look at MF Global and what it did. Transferring out customer money and 'losing' customer silver and gold. Upwards of $1.5 billion has gone missing.

    But to answer your question, yes, they are obligated to give you your PM's if you ask for them, the real question is, when shit hits the fan, will they? What will you do to make them do so if you are in Chicago and they are in LA, or even worse, another country?
    Last edited by [LoD] EE; 04-12-2012 at 14:18.

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    Quote Originally Posted by [LoD] EE View Post
    When you fishing out your contract ( 5000 oz ) you can either sell or accept delivery ( transportation fees, taxes etc are than added ) or you can pay JPMorgan, MF Global etc to store your silver for you. The thing is, they can continue to sell your Gold and your Silver at 100 oz for every 1 they own. If someone else decides to take ownership, sooner or later you are going to have 99 people who cant because there is no physical metals left to take ownership of.

    I simply wont own paper that says I own something unless I physically have it in my hand. Possession is 9/10ths of the law.

    Look at MF Global and what it did. Transferring out customer money and 'losing' customer silver and gold. Upwards of $1.5 billion has gone missing.

    But to answer your question, yes, they are obligated to give you your PM's if you ask for them, the real question is, when shit hits the fan, will they? What will you do to make them do so if you are in Chicago and they are in LA, or even worse, another country?
    Right, so if everyone collectively pulled out their supposed stores they wouldn't be able to cover the costs. Bartering with what they don't have or have the means of procuring has to be illegal. You can't pull silver out of thin air, the whole system is absurd.

    If you have a contract that should hold up in court, but besides legal action there isn't really anything you can do. Even in court your chances aren't great considering what you're going up against.

    muddymess

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    Quote Originally Posted by muddymess View Post
    For once I read your entire quote. Can't say I'm very surprised at this kind of behavior though. How legal is it for them to do this?
    legal/illegal it doesnt matter to these people they have friends everywhere

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    Quote Originally Posted by [LoD] EE View Post
    Take this as you will.
    where did that come from?
    We should celebrate March 2013 as the month Off-Topic went Full Retard.

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