Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
A bullion insider claims JP Morgan is accumulating huge volumes of physical gold and silver despite short positions against the precious metals on paper.
According to Silver Doctors renowned analyst Ted Butler alleges JP Morgan’s major reported short positions on the precious metal are held on behalf of a key government client – either the Federal Reserve of the Chinese, and that the storied financial institution is actually long on gold and silver bullion.
Metals investment guru Jim Sinclair further asserts that the bank’s short positions on paper for the precious metals would serve to facilitate their own furtive accumulation of bullion by dragging down prices.
Silver Doctors substantiates these speculations by citing an industry insider who claims to have overseen the movement of 27 million ounces of gold from HSBC vaults into JP Morgan’s possession.
According to the confidential source JP Morgan’s paper short position is a hedged trade offsetting the bank’s amassing of vast amounts of gold and silver billion in its own private vaults, enabling it to reap immense profits which though ethically dubious remain perfectly legal.
They buy the physical silver at the same time they sell the future (on Comex) futures trade in contango (higher price than spot physical) they get zero interest rate cash from FED so borrow the money for free, they own the vaults to store the silver…. so as the future comes to maturity they can either settle against their physical long or roll the future to collect more free contango…. This is pure arbitrage paid for by the FED. This has been going on for over 30 years and why shouldn’t they be allowed to have 25% of the Open Interest? There is no manipulation because they are short the futures and long the physical and have “ZERO” price risk, but nice profits! It’s brilliant trading and completely 100% legal and that’s why they will never be charged with manipulation because there is none going on. Sometimes it’s just that easy!
6 Comments
Urs Gmür
An arbitrage trade between physical (think of costs) and futures for a maximum gain 0.25% per annum and the risk that contango becomes backwardation??? very, very unlikely…
Nancy Davis
Another reason I don’t trust the banks
Urs Gmür
For a maximum gain 0.25% per annum and the risk that contango becomes backwardation ???
2Anglico
The article states “25% of the Open Interest”, not 0.25% per annum, BIG difference.
Charles
Speculations are not substantiated by alleged industry insiders whose identity is at best nebulous. JPMorganChase isn’t necessarily going to squeeze other megabanks of gold. HSBC sucked more silver out of China in opium payments than JPM ever had in physical. But JPM or HSBC or Barclays or other giant, makes no difference to the world; all are Pilgrims Society run institutions. Beware! The main tool of these “seize the wealth necessary” operators is government edicts. The USA public lost 113,031,000 ounces silver from August 1933 into February 1937 due to EO by FDR, whose son and other relatives later surfaced in lists of The Pilgrims Society. That’s the source of the metals manipulation and the anti-free market citadel—this single British/American organization—which Gold Anti-Trust Action Committee refuses to attempt to understand! http://www.silverstealers.net
bob
extra money being held by banks getting 0.25% interest from govt shorting s and gold playing futures long free money !! nothin illigal !! wow bob