Something’s Wrong in the Silver Pit, and It’s Much Bigger than J.P. Morgan

4 posts / 0 new
Last post
Johnny Oxygen's picture
Johnny Oxygen
Status: Diamond Member (Offline)
Joined: Sep 9 2009
Posts: 1443
Something’s Wrong in the Silver Pit, and It’s Much Bigger than J.P. Morgan

Something’s Wrong in the Silver Pit, and It’s Much Bigger than J.P. Morgan

http://www.marketoracle.co.uk/Article24928.html

 

The BIS tells us that total global outstanding “other precious metals” derivatives are 127 billion.

General market wisdom [gleaned from OCC Commercial Bank data] suggest that J.P. Morgan and HSBC are the two dominant players in silver [other precious metals]

Yet, the U.S. OCC tells us that J.P. Morgan and HSBC combined – make up 13.577 billion of the 127 billion BIS total [roughly 10 %].

The U.S. OCC tells us that Morgan Stanley and B of A and Goldman have an additional combined 70 TRILLION in derivatives – at the Bank Holding Company level – but they give us NO HINT as to what portion of these totals consist of precious metals activity. We are left to assume that this is because the OCC is only mandated to regulate Commercial Banks – while Bank Holding Companies fall under the purview of the Federal Reserve. 

Unless J.P. Morgan and HSBC are LYING to regulators as to the extent of their silver market activity – there are other MASSIVE players in the silver price suppression game. Who ever these ‘players’ are – metaphorically, they MUST BE BLEEDING FROM EVERY ORIFICE with silver’s parabolic run up in price over the past few months.

Most likely among American entities are MORGAN STANLEY, B of A and Goldman Sachs – since together they are operating a 70 Trillion derivative “BLACK BOX” about which we know LITTLE to NOTHING as it pertains to precious metals.

Any way you slice it – precious metals data reporting on the part of American regulators is atrocious.  Simple MATHEMATICS tells us a gold / silver ratio at 48:1 is EXTREMELY contrived and REEKS of manipulation on the part of the Federal Reserve and the Banks they are charged with regulating.

aarondenal's picture
aarondenal
Status: Bronze Member (Offline)
Joined: Oct 24 2010
Posts: 59
Re: Something’s Wrong in the Silver Pit, and It’s Much ...

Intriguing, thanks for the post JO,

I cannot help but feel a sense of cynicism about the whole silver manipulation thing.  What force could possilby bring down such vast and total monopolization of a market sector?  Granted, I have a very limited view, but it is hard for me to conceive that these banks and "holding companies" would easily yield to pressure from anyone given the stakes.

Can anyone with more knowledge than me shed light on the question of what factors/circumstances could force these institutions to release their grip?

Johnny Oxygen's picture
Johnny Oxygen
Status: Diamond Member (Offline)
Joined: Sep 9 2009
Posts: 1443
Re: Something’s Wrong in the Silver Pit, and It’s Much ...

Pretty simple really. The whole concept of massive shorts is to keep people from considering a 'thing' has value. Its essentially a bluff. Once enough people continue to buy physical silver (and they will) the bluff will be called and their short position will bite them in the a$$.

Then the Fed will probably bail them out...again.

Nacci's picture
Nacci
Status: Silver Member (Offline)
Joined: Apr 22 2009
Posts: 194
Re: Something’s Wrong in the Silver Pit, and It’s Much ...

I find It worth noting to this community that APMEX, the largest supplier of precious metals, specifically Silver, on the Net uses JPMorgan Chase as it's banker.  This means when you purchase Silver from the APMEX in an attempt to to squeeze JPMorgan on it's alleged short, possibly naked position on silver you will wire payment directly to the very bank that many are attempting to break.  JPMorgan Chase through the magic of fractional reserve banking is no doubt reaping huge profits from this arrangement.

Do we know the true relationship between the APMEX and JPMorgan, specifically; why would the APMEX choose the very bank suspected of massive manipulation and fraud in precious metals market as it's banker?  Nacci.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Login or Register to post comments