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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.
was an attempt to deflect public criticism of the bank’s dealings in silver, a person familiar with the matter said.
Lastly, this means that silver is about to really blast off as the push to really hurt JPM takes off in earnest.
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.
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.
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.