This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Thinking Silver? Talk to the Gold Bugs

Stocks in this article: JPM

The largest of these precious metals markets -- the gold market -- is still a relatively small commodities market. However, take away 90% of the "trading," which is just international bankers engaging in currency swaps, and the gold market becomes a tiny market as well.

In other words (in proportionate terms) we're not talking about these short positions being a mere order of magnitude larger than other short positions in the world of commodities (i.e., 10 times as large), but more like one hundred times larger than the average short positions of other commodities. Short positions that are blatantly criminal in nature.

At the end of the 1970's, the infamous Hunt Brothers accumulated a massive (long) position in the silver market. They were subsequently investigated, charged and convicted of an anti-trust violation: attempting to manipulate the silver market.

By Ed Steer's best estimate, JPMorgan's (JPM) short position -- by itself -- now comprises half of the mammoth short position indicated on the previous chart. This massive, permanent concentration (on the short side) is significantly larger than the size of the crime committed by the Hunt Brothers.

The feeble justification offered by JPMorgan is that it is "hedging" in the silver market. Right. After the price of silver had been driven to -- i.e., manipulated to -- a 600-year low in real dollars, what exactly was JPMorgan hedging against? That the price would go still lower?

That the price of silver would go still lower when there were more new patents for silver than any other metal, and previous suppression of the silver market had already caused inventories to collapse by 90% ?

When an entity enters a market with prices already near a 600-year low, and inventories already collapsed (and with demand strong), and then buries that market under the largest short position (in proportionate terms) in the history of human commerce; it shouldn't require one of the gold bug detectives to explain what is taking place here.

Any reader with the slightest understanding of market fundamentals knows that with any market where prices are at an historic low and inventories have been completely obliterated there is only one direction in which prices can possibly go: up.

3 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,089.64 +59.43 0.33%
S&P 500 2,090.61 +8.73 0.42%
NASDAQ 4,798.7210 +25.2490 0.53%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs