After almost 9 weeks of trying to break over $28, silver closed over over $28 on Thurs/Friday and, after a concerted and blatant attempt by the silver manipulating banks to take silver below $28 this morning, it inexplicably shot up like a roman candle at 11:12 a.m. EST time.
We know that at some point in the future that JPM’s paper short position in silver is potentially the equivalent of a small nuclear device embedded deeply the bank’s bowels.
The trigger will be the point at which counter-parties to JPM’s short position demand physical delivery of the silver JPM is derivatively short on the Comex, LBMA and OTC derivatives market.
Submitted by Dave in Denver:
But gold has risen with only slightly more than 1% of the world’s assets in gold. Right now the world’s assets are about $150 trillion. Of that number, $60 trillion is in cash, $40 trillion is in bonds, and $40 trillion is in stocks. But, remarkably, only $2 trillion or just a bit over 1% is in gold.
With inflation headed higher, institutions, which have virtually no allocation to gold today, they will have to increase their allocation to gold. There have been several studies over the last few months that have suggested that institutions will need to put part of their funds in gold.
If you look at world financial assets, a 1% increase in allocation to gold of the world’s financial assets would require 12 years of gold production at today’s prices. There simply isn’t the gold available at today’s prices to facilitate even a small move by institutional money into the sector. Of course they can never get a sizable commitment into gold at these prices.
I would also add that over time they will put a lot more than 1% into gold. The studies I reference also suggest that institutions will improve their risk vs return situation by moving money into gold. So I am convinced that there will be a big inflow of institutional money into gold over the next two or three years
After almost 9 weeks of trying to break over $28, silver closed over over $28 on Thurs/Friday and, after a concerted and blatant attempt by the silver manipulating banks to take silver below $28 this morning, it inexplicably shot up like a roman candle at 9:12 a.m. Denver time. I say “inexplicably” because I could not find any specific news which might have triggered the move, the SPX did not move at all (so the move in silver was not in correlation with the stock market) and gold moved higher higher as well although not anything that closely correlates with the scale of silver’s move.
As subscribers to GATA’s Le Metropolecafe know, one of Bill Murphy’s sources in London – someone who is described as being in a position to know – has told Bill that JP Morgan is in trouble with its short position in silver. Please note, that we only see JP Morgan’s massive, illegal but unpoliced short position on the NY Comex market. We have no idea what its short position on the LBMA or in OTC silver derivatives looks like (although we do know that JP Morgan has by far the largest position in OTC “metals” derivatives per the quarterly BIS report).
Beyond that we do not know much other than JP Morgan has likely been the big manipulator in the silver market for many years and likely does so on behalf of the Federal Reserve/U.S. Government. We also know that at some point in the future that JPM’s paper short position in silver is potentially the equivalent of a small nuclear device embedded deeply the bank’s bowels. The trigger will be the point at which counterparties to JPM’s short position demand physical delivery of the silver JPM is derivatively short on the Comex, LBMA and OTC derivatives market.
On this note, given that JPM is the custodian for the massive SLV ETF, which means JPM is the gatekeeper on the enormous stockpile that SLV is supposed to be stored in JPM-controlled vaults, I would not advise anyone to own SLV. SLV, like GLD, has the potential to be another Enron. Just for the record, JP Morgan was one of Enron’s primary advisory banks.
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/live/s_silv.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/live/s_gold.gif)
If were only so.
Sometimes I think what it will be like when the TBTF banks begin to belly up. Even though I will be cheering because it will be a blow for liberty, I shudder at the thought of what will happen to our country. We will become easy pickin’s.
It’s to early to say but I think my guess on next Fridays Ag price is gong to be way to low. Those who didn’t really pile on to their stack the last couple of months my have missed the last best price forever. The bright side is it is still well under 30$. It’s still on sale!
Somewhere in the past posts was a note that maybe 3,000,000,000 ounce of silver are available in the world today. 3 billion ounces? Wow. Worth maybe $90 billion We spend more than that dog food, manicures and toilet paper. Compare to any other form of wealth, silver is bupkis.
AGX: the last figures that I heard was 1 billion above ground supply with a market value of around 30 billion. But who can really say? What ever the real # is, its a tiny market!
I think, at the very least, they will have to raise the range(maybe $40-$50) where they manipulate in order to keep miners solvent to produce supply.
Another bullish sign……The trolls are gone!!!
Good observation. Their “work” has largely already been done and even they get bored. But they’ll be back by Monday.
I didn’t buy or sell any of my silver to save and or pay bills. Yet, i was very happy to awake and see silver skyrocket. However, the Asian Market Silver is down -.10 cents and Gold -.90 so far. I would be very surprised if Silver did a return from this mornings gains. I would really be pissed off! We shall see
My educated guess has been that the real pressure to JPM starts to hit big time when silver moves into the high $30s. I base that view on the timing of their most aggressive actions, such as the top at about $37.50 on Feb. 29th, open interest / COT numbers, swings in their derivatives market position and the backdrop of outside market action, etc. But they have certainly taken on the tactic of using lower and lower “lines in the sand” over the last six months, where $30 and $32.50 and above used to be a “no go” number, we saw $27, $28 (just fell, as per Doc’s note above) and $29 seemingly arbitrary selected for the “no mas” higher line in the sand. They didn’t seem to build in buffers like that a few years ago and maybe that can be interpreted as their need for bigger buffers given improving silver market fundamentals. In any event, this is all speculation on my part and exceedingly hard to prove. I’d have to say that the one guy that comes the closest to nailing this sort of analysis is Rob Kirby.
JPM has been playing with fire to long and is about to get burnt.