The largest motivations for JP Morgan acquiring both silver bullion and likely large amounts of unpublished gold bullion too are likely two-fold. Greed based profit bonuses on trading the volatile derivatives, as well, ultimately fear-based survival of the organization.
The Bank for International Settlements has a working group that has the G20 sign onto supranational legislation calling for bank bail-ins, not bank bailouts the next time some listed global systematic important bank or listed financial institution goes bankrupt. At the top of the explicit too-big to fail bank alone remains, you guessed, them. JP Morgan Chase. Given that gold is now a tier 1 asset, it would make sense for JP Morgan to hold some physical gold bullion, you know, just in case some bad derivative bet chain somewhere took them down.
Problem is physical gold bullion in large volumes is being gobbled up by central banks at the moment, to the record-sized tune of levels not seen since the last public record timeframe, in which government gold price rigging backfired in their face. With JP Morgan currently under US Department of Justice investigation for manipulating the precious metal derivative markets for handfuls of years.
Well, one could easily surmise greed might be at play. By having the largest positions in both silver COMEX derivatives and slim fractional reserved silver bullion underlying the total notional trading on the COMEX silver market annualized.
JP Morgan can theoretically dictate rapid price movements virtually any direction it may deem fit for itself in the COMEX silver futures market. Silver Bullion Bull Perspective. Silver demand and applications appear to be only growing industrially and within newly discovered scientific applications. Yet silver to many in the investing world is also money. This was during a time when we were not having a financial crisis.
When fiat currencies were not devaluing with high velocity yet. The system is not sound no matter the fiat price propaganda we have been seeing the last handful of years. All the arable land, real estate, fiat currencies, businesses, and properties, everything that has value and is owned in the world.
Silver bullion inventories these days are probably around 4 billion troy ounces. That takes into account all annual fee laden silver ETFs, commodity exchange silver holdings, and private investor silver bullion buying from the mids onwards. Total silver bullion valuations currently are a grain of sand on a beach awash with debt, currency and credit bubbles, with a tiny pile of physical gold likely to also continue increasing in value in the decade to come.
A silver whale is not going to save nor drown your longterm silver bullion position. The currently limited downside versus the explosive upside for silver ahead is about as clear a trade, that even the recently deceased Nelson Bunker Hunt would hopefully make intelligently this time around.
Simply buy and hold a prudent silver bullion position for the long term. No silver whale will make silver values get to where they are destined. It was then and most likely again going to be the predictable result, the cause and then effect, of this deranged financial system we have allowed to grow around us collectively that will set silver to its nutty valuation levels to come.
About the Author. He has both worked and invested in the physical investment grade bullion markets prior to the global financial crisis.
Therefore, any manipulation using naked shorts would be short-lived. The global silver market could face a deficit of million ounces by and could send silver prices surging. More than two billion ounces of silver have disappeared from the market over the last ten years and we could be facing an annual shortage of more than million ounces by About , in metric tons of silver reserves remain around the world, the USGS reports.
The general consensus among market watchers, researchers and precious metals experts is that the long-term forecast for silver is positive. How much is Silver Worth? Interestingly, above-ground silver is actually more rare than gold.
In fact, almost all the gold that has been mined to this day is still here, and its use is largely limited to currency, portable wealth, and jewelry. Email Address. Your Password. Remember Me Forgot Password? New to JM Bullion?
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