Tinfoil Hats Proven Correct About JP Morgan Metals Manipulation

Water, Meet Blood – JP Morgan Admits To, Reduces Massive Silver Short Position, Proves Millions Of Conspiracy Theorists Correct

Zero Hedge reports:

In the latest example that virtually every conspiracy theory is almost always inevitably proven to be fact, the Financial Times reports that JP Morgan, the firm targeted by thousands of “tin foil hat” wearing, conspiratorially-oriented “gold bugs”, has cut back on its US silver futures. “JPMorgan has quietly reduced a large position in the US silver futures market which had been at the centre of a controversy about its impact on global prices for the precious metal.” And in what can only be considered an unprecedented victory for all those who have over the past year agitated to putting JP Morgan out of business, most recently spearheded by the likes of Mike Krieger and Max Keiser, by forcing a massive short squeeze on its commodities trading desk, we learn that “the decision by JPMorgan was an attempt to deflect public criticism of the bank’s dealings in silver, a person familiar with the matter said. The person added that the bank’s position in silver would from now on be “materially smaller” than in the past.” Of course, the latter is pure and total bulls&**t: as Bart Chilton indicated over the weekend, it is JP Morgan who at one point or another (and possibly very recently) controlled as much as 40% of the silver market, via a massive short. Attempting to make others believe that this short could be covered without pushing the price of the silver metal to over $100/ounce is an indication of either how stupid JPM believes the general population to be, or just how desperate the firm is to end the ongoing short squeeze onslaught. Either way, we are confident that this first unprecedented confirmation that a) JPM is indeed massively short silver and b) that it is hurting bad, will merely redouble efforts to put the world’s biggest financial company out of business.

The day of reckoning for the metals markets is drawing near.

Everyone should be holding physical silver and gold.

The velocity of money has reached a tipping point and Morgan can no longer control the metals markets.

Within the next few months we will see inflation accelerate.

Maybe I am missing something. I just can't seem to find any real information in that article other than 100% total speculation by the author of the original piece. The author is completely giving you opinion based on how he/she interprets such.

Let's look at the BOLDING by the author - where he/she interprets their personal opinion.

was an attempt to deflect public criticism of the bank’s dealings in silver, a person familiar with the matter said.

Speculation. It does add a nice touch though doesn't it? Not that it matters, irrelevant. It wasn't in the original article, just an addition by the author.

Lastly, this means that silver is about to really blast off as the push to really hurt JPM takes off in earnest.

Oh, is that what it means? Let's go back almost 2 full years now. ZH has been almost absolutely on the wrong side of the market for this whole length of time. I wasn't aware all the sudden Tyler Durden's crystal ball started to work all of the sudden.

And while we revel in the knowledge that the short squeeze is causing massive pain for JPM, we are far more overjoyed that the days of Blythe Masters as head of JPM's commodities desk is coming to an end: any comparable massive admission of weakness by a trader is always and inevitably followed by some very high profile terminations.

Conjecture, irrelevant anyway.

Overall I enjoy the website (or used to) - it is getting to the point now where they need to create sensationalized materials to keep generating ad revenue. It's just getting old.

Silver may or may not continue its run, but it will not be because of weak retail money pushing institutional money into submission.

After more research this is also interesting. JPM is the custodian of SLV and can liquidate the actual ETF SLV and accumulate physical Silver in a swap process. So I guess it still really doesn't make a lot of sense. This is probably the most important part actually.


Actual i-Shares Prospectus


The more I think about it the more it occurs to me they should be able to hold as much as they want. At some point it becomes all too expensive to them when demand drops exponentially due to price. I personally think it should be that way for everything because position limits are only adhered to by the largest participants. This probably causes more collusion than having these restrictions in the first place.

I have already expressed my opinion in other threads. So much misinfomation involved in this entire silver charade. And almost always you will see a link nearby to a reseller that "thoughtfully" sells you silver at a markup. I really do not believe this is at all what you are thinking.

I also know most of you don't understand what role a market maker plays in an instrument. You should read and try to understand the SLV prospectus (as difficult as it reads) to gain a better perspective of what it going on here.

Go to the bottom of page 9 of the prospectus (it will not let you copy and paste). It is telling you that it is continually arb'ing situations in the marketplace. So it most likely holds huge insurance against adverse scenarios. So while they may be short 40% somewhere, they may also be long 25% through various other outlets. Most likely they are selling delta, or short volatility / somehow / in some crazy combination.

More about delta

if everyone buys up all the copper, then the price of silver and gold will plummet

Originally posted by Dance4Life
After more research this is also interesting. JPM is the custodian of SLV and can liquidate the actual ETF SLV and accumulate physical Silver in a swap process. So I guess it still really doesn't make a lot of sense. This is probably the most important part actually.

Curious...in your judgement, what is the significance of JPM's responsibility as custodian in relationship to it's ability to; "liquidate the actual ETF SLV and accumulate physical Silver in a swap process."

Originally posted by Dance4Life
Go to the bottom of page 9 of the prospectus (it will not let you copy and paste). It is telling you that it is continually arb'ing situations in the marketplace. So it most likely holds huge insurance against adverse scenarios. So while they may be short 40% somewhere, they may also be long 25% through various other outlets.

When you say "it" (bolded above), you are referring to ?

As a mechanism for tracking share price to NAV, arbitrage opportunity is an important component in all ETF's. How does this essential market function as it applies to SLV, relate to JPM's paper short position in the futures market ?

I believe they're also involved in wrongdoing against gold price - something which has been well swept under the carpet. Big bunch of financial terrorists.