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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_as_an_inv...stment#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-account/mal...on-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/jp...s-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...l#axzz182HTfhCl
Report: J.P.
Morgan Cutting Back Big Bets Against Silver
http://blogs.barrons.com/focusonf...mod=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/b...qOJpB55M7Rh9vwM
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.co...1/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...lver-short.html
BIS Admits $190
Billion Silver Fraud
(Almost, if you
know where to look!)
by Jason Hommel, April 6th, 2009
http://silverstockrep...lver-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...df/r_qa1006.pdf
From the 2010,
December report: $93 billion for the June, 2009 period.
< target="_blank"span lang=EN-US
>http://www.bis....df/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.
JH MINT &
Coin Shop
13241 Grass
Valley Ave
Grass Valley,
CA 95945
(530) 273-8175
www.jhmint.com
Minimum
telephone order $5000 for free shipping, USA shipping only.
Open 10AM to
5PM Pacific Time, Monday to Friday, closed weekends and bank holidays. (Also Closed from Dec. 25th to Jan
1st)
Kerri handles
internet phone orders:
kerri.jhmint@yahoo.com
(530) 273-8822
NEW Location in
Auburn, CA!
JH MINT Silver
& Gold
1760 Highway 49
A140
Auburn, CA
95603
(530) 889-1086
www.auburnsilverandgold.com
You can also
buy silver from my mom at www.momssilvershop.com
Mom will ship
overseas, even large orders up to $300,000 or larger, and also in lots of
more or less than 100 ounces.
3510 Auburn
Blvd #12
Sacramento, CA
95821
Sincerely,
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