Posted on 12/07/2010 12:16:34 PM PST by FromLori
It is widely known that J.P. Morgan (NYSE: JPM) holds a giant short position in silver. Furthermore, some observers are accusing the bank of acting as an agent for the Federal Reserve in the market - every tick higher in the price of silver undermines confidence in the U.S. Dollar. A lower silver price helps keep the relative appeal of the U.S. dollar and other fiat currencies high.
By selling massive amounts of paper silver in the futures market, JPM has been able to suppress the price of the precious metal. It is believed that these short positions are naked (i.e. they are not backed by any physical silver). In fact, reports indicate that JPM is short more paper silver than physically exists in the world.
An article by Max Keiser which appeared in the Guardian on December 2, 2010 claims that the size of the short position is 3.3 billion ounces of silver.
In recent days, rumors have been swirling on the internet that JPM's massive short position is about to blow up in their face in the form of an almighty short squeeze and potential COMEX default as large traders demand physical delivery of silver that COMEX does not have in their vaults.
J.P. Morgan is currently under investigation by the CFTC for allegedly manipulating the price of silver. The investigation into the bank can be traced back to November 2009 when London metals trader and whistleblower Andrew Maguire contacted the CFTC to report market manipulation prior to it actually occurring.
(Excerpt) Read more at sfgate.com ...
Silver Bears, caught up someone else in the 70’s as I recall.
“In fact, reports indicate that JPM is short more paper silver than physically exists in the world.”
Is that any way for a commodities futures market to work?
The Hunt Bros. were Bulls.
I’m not sure who the players were. I remember all my friends wanting to get into silver(we were only 16 at the time). I remember it all came undone and some movies were made loosely connected by story to the real thing.
The VERY CONSERVATIVE Hunt brothers were set up by Volker and his buds at the Fed and were nearly destroyed financially.
Of course, the MSM never reported THEIR side of the story. Sound familiar??
I attended an informal meeting with Bunker Hunt back in the day — BEFORE the brothers were hammered by the power elite — and CBS was on the block. He expressed interest in buying CBS but was concerned that he couldn’t find like-minded folks to staff the thing. Some of us piped up and said that wouldn’t be a problem. Needless to say, he never made the offer.
Too bad as it would have spared us Katie Couric and the rest of these morons over there as CBS would have been Fox before Fox — only more hard-core.
The Hunt brothers were able to completely monopolize the silver market, completely legally, causing the FedGov to act anyway. Their fate as similar to the GM bond holders fate in that the government, desperate to resolve the situation, basically said “The rule of law be damned.”
And the rest is history.
That said, a certain friend of mind was made mind bogglingly rich by the whole thing.
The Hunt Bros. were, as you say, probably politically very conservative (I have no idea yea or nay) but they were “goofy” (for want of a better word) with regard to their silver adventures.
That they were snookered by the CFTC or COMEX (or whatever the entity running the silver mkt was called at the time) changing margin rules and changing the market so that silver could only be sold, not bought, is accepted.
But the Bros. borrowed very, very heavily in their efforts to corner the market. They certainly came in for egregious behavior on the part of the regulators, but all by themselves and long before the regulators “stepped in”, they got horribly caught up in their own fantasy and leveraged themselves to the moon. That’s a well-known formula for self-destruction in any market.
George Soros involved?
Dick Bachert, RobRoy, and Attention Surplus Disorder seem to have a better handle on it, than I do.
lol Blythe is mentioned in the Hitler clip...
If you can stand just one more subtitle parody of Hitler’s bunker freakout scene from the movie “Downfall,” a pretty good one based on the ongoing struggle against gold and silver price suppression has been posted at YouTube, and it mentions not only GATA but also our trouble-making compatriots Eric King, Ted Butler, Zero Hedge, and Max Keiser. Just be warned that the language is even cruder than anything you’d hear from the mining guys in the Pan Pacific hotel bar on the last night of the Vancouver conference. The video is titled “Crash JP Morgan, Buy Silver — Max Keiser vs. Jamie Dimon” and you can find it here:
Crash JP Morgan Buy Silver - Max Keiser vs. Jamie Dimon
http://www.youtube.com/watch?v=I0mhX9hpq3g&feature=player_embedded
“Is that any way for a commodities futures market to work?”
What do Harry Potter and WS have in common? It’s magic and then poof it’s gone.
WS has it’s own version of don’t ask, don’t tell.
“George Soros involved?”
Wouldn’t surprise me, but the silver market is quite possibly too-small potatos compared to lots of other things that grab Soros’ attention.
The silver market is not liquid enough for Soros: In my humble estimation.
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