Jamie Dimon Manipulates Investors To Hand Over Their Silver!
Commentary on how it is done....
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- Jamie's Own
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Most investors seeking silver exposure prefer the paper over
the pure, the likeness over the legitimate, the pseudo over
the “sound,” ultimately...the fake over the physical. Case in
point: SLV, the iShares Silver Trust ETF, currently the largest
silver ETF on the market.
The trust holds a whopping 325 Million ounces of physical silver,
an amount large enough for many investors to call it silver’s
“death star,” considering its open-ended setup for large-investor
price manipulation. Fortunately, SLV’s setup requires the trust
to deposit the physical metal in accordance to the shares bought
and created by investors. The remote risk, of course, is that
the collective buying power of the world’s largest investors can
easily dwarf the actual amount of physical silver available on
the global market. Given this requirement, you can see how SLV
transactions can drive the physical market. For instance, SLV
played a significant role in silver’s price skyrocketing in 2011
as demand for the ETF drove the trust’s physical holdings from
zero (five years prior) to 360 Million ounces by April 2011.
More recently, in the last days of December 2018, there was a
huge surge in SLV buying, yet no silver deposits were forthcoming,
leading analysts to speculate that a large short on SLV was forthcoming.
And indeed, that’s what happened.
Against the backdrop of real supply and demand (and the fact that
there is less physical silver supply in the world due to decreased
silver mining and production), the “real” price of silver is not
what you see in the spot market. SIlver prices are being manipulated
and obscured. The biggest manipulator of all being, of course, is
Jamie Dimon's JPMorgan. This is an old premise, a narrative so oft
repeated in both truth and suspicion that it has almost evolved
into something of an “urban myth” among precious metals investors.
But this near-myth is not without evidence, as it’s now subject to
a Department of Justice (DOJ) investigation. On November 6, 2018, a
JPMorgan trader pled guilty to manipulating gold and silver prices.
During the Justice Department’s announcement, they made it clear that
the current JPMorgan investigation is ongoing. The question looms
if the DOJ is investigating how JPMorgan has been pressuring silver
prices downward since they took over Bear Stearns’ short positions
in 2008, or whether the DOJ is more interested in short-term manipulations,
say, “spoofing” and other minor violations of the sort. According to
reports, JPMorgan has always been net short silver via COMEX futures.
Their risk-free manipulation scheme consists of two parts:
Laying down massive shorts on COMEX silver futures to bring prices
down; and accumulating physical silver at discount prices.
Not only does this price obfuscation deceive investors as to the true
fundamentals of the silver market, it also allows JPMorgan to continue
buying physical silver on the cheap as investors--particularly SLV or
other ETF holders--dump their shares (causing the ETF trusts to dump
their physical holdings...into JPMorgan’s hands). It’s a genius albeit
a criminal strategy and its mechanisms are as brilliant as its ethics
are questionable, nefarious, and dark as the character of Jamie Dimon
himself. When silver prices plunge, it turns out that 99% of the time
JPMorgan is holding the largest single short position.
Last June, JPMorgan shorted 40,000 silver contracts. Aside from holding
the largest short position in the market, JPMorgan was the only commercial
short at the time. With such immense downward pressure on the market -
quite naturally - silver plunged. Then in September, with prices at a low,
JPMorgan closed their short position. Based on what is known of their
strategy, September would have been the perfect time for JPMorgan to
scoop up the physical metal. In October, JPMorgan then re-shorted silver
with 15,000 new contracts. But a month later, the DOJ announced JPMorgan’s
guilty plea on market manipulation. JPMorgan quickly bought back 15,000
contracts they had just shorted.
In an efficient market, you can rely on prices to reflect real supply
and demand conditions, the “true” fundamentals of a market. This is
not the case with silver. If you base your silver investment decisions
on market sentiment and price rather than fundamentals, you can easily
be misled to by the price manipulations of big institutional players,
namely JPMorgan. If JPMorgan ceases (or is forced to cease) its
manipulative practices, then silver prices will fly much higher to
reflect its true valuations. More importantly, it’s important to bear
in mind why JPMorgan is so heavily short silver. It’s likely they are
using the COMEX to depress silver prices in order to accumulate the
physical metal. Silver is sound money. Jamie Dimon knows this - hence -
his strategy. Yet he also knows that it takes only a little volatility
and price suppression to convince less-sound investors to give up their
silver so that it can fall into his hot little hands!
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- CEO Swindler
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