No End in Sight to JPMorgan’s COMEX Silver Price Manipulation
Much has been created newly about a distance and range of JPMorgan’s COMEX china vault. We suspicion we’d supplement to that review today.
First of all, some background.
JPMorgan didn’t even have a COMEX china safe in early 2011. The focus was usually rushed by in Mar of that year, and they began accumulating china that summer. (https://seekingalpha.com/article/259549-will-jpmorgan-now-make-and-take-delivery-of-its-own-silver-shorts) See next for a graphical illustration from GoldChartsRUs.
Since 2012, JPMorgan has aggressively “stopped” contracts during a COMEX smoothness process. The many new information shows that a House Account of JPM took control of 5,239 china contracts in 2015 and another 4,960 in 2016. They combined 5,489 in 2017 for a 3 year sum of 15,688 contracts. At 5,000 ounces per contract, that’s 78,440,000 ounces of china true into a JPM exclusive comment and expected enclosed in a “eligible” difficulty on a CME Silver Stocks news shown below:
So it’s easy to interpretation that this vast store of china is not patron china in storage nor is it hold in control as a partial of a SLV. Instead, this is really expected JPM’s possess silver, opposite that JPM can emanate contracts as an purported hedge. Just as offering call options opposite a vast equity position can produce an financier additional income, we trust JPM sells futures opposite this earthy position. This allows them to conduct cost and consistently emanate increase for their commodity trade desk.
This widespread position also allows them shield opposite annoying regulations put in place to assure opposite monopolistic and manipulative control of a markets. The settled front and smoothness month position extent in COMEX china is 1,500 contracts. However, as we can see below, twice in 2017 a House Account of JPM was in transparent defilement of these boundary by interlude 2,689 contracts in Mar and another 2,800 in December.
We filed an central censure with a CFTC in Mar of 2017 and reported this second defilement in December. In an sell of voicemail messages on a matter, we were told by Charles Ricci of a CFTC that “there are (position limit) exemptions that request with courtesy to hedging if your organisation qualifies.”
So there we have it.
JPMorgan has amassed a monopolistic and manipulative position in COMEX silver. They can emanate and sell thousands of COMEX contracts and afterwards transparent their brief position (and transparent defilement of mandated position limits) by their CFTC-blessed “qualified exemption”.
These are your “markets” in 2018. They are dominated by Big Banks—often handling underneath a deceive of insurance offering them as Primary Dealers for a Federal Reserve. The supposed regulators have been marginalized to a indicate of being unable to make even a simplest of statutes. Thus, china cost strategy continues with no finish in sight. – Craig Hemke
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