- Published on Thursday, 18 October 2012 14:09
- Written by Sara Nunnally, Editor, Inside Investing Daily
- Hits: 391
Tell me if you think this is a crime:
JPM and HSBC cornered the silver market, holding -- at one point -- 85% of the bets on low-priced silver. They were betting silver prices would keep falling. But the markets were bullish, and prices tried to climb. JPM and HSBC stepped in and flooded the markets with their bad bets, and investors got spooked.
Demand for silver fell, and so did the price.
JPM and HSBC turned their losing silver bets into huge winners.
Consider this report from the Financial Times, via ZeroHedge.com:
In the latest example that virtually every conspiracy theory is almost always inevitably proven to be fact, the Financial Times reports that JPMorgan, the firm targeted by thousands of "tin foil hat" wearing, conspiratorially oriented "gold bugs," has cut back on its U.S. silver futures.
"JPMorgan has quietly reduced a large position in the U.S. silver futures market which had been at the center of a controversy about its impact on global prices for the precious metal."
...As Bart Chilton indicated over the weekend, it is JPMorgan that at one point or another (and possibly very recently) controlled as much as 40% of the silver market, via a massive short. Attempting to make others believe that this short could be covered without pushing the price of the silver metal to over $100 per ounce is an indication of either how stupid JPM believes the general population to be, or just how desperate the firm is to end the ongoing short squeeze onslaught.
The Commodity Futures Trading Commission and Bart Chilton have been investigating this manipulation for four years, but these guys are good at hiding their tracks. And no matter how guilty they are, if you can't find evidence, you can't bring a case.
But the cat's out of the bag, folks. The blatant price manipulation is over for silver, and that means one very important thing to silver investors.
But this price manipulation is just one reason why silver prices are headed north. Here's another.
The Silver Doctors reported yesterday that 5 million ounces of registered silver have been withdrawn from Brink's Comex vaults since Friday. That's about 25% of Brink's total registered inventory.
And to top that off, huge amounts of silver are leaving U.S. shores. According to the USGS, the U.S. sent 169 metric tons of silver to the U.K. in July. That's 5.4 million ounces of silver in a single month, when normal flows are about 30 metric tons.
This certainly feels like someone's trying to move an awful lot of silver. And investors are noticing...
"MASSIVE DEMAND?" says one comment. "Yep, ALL IN. I am stackin' like a b****."
A silver stacker is an investor who buys and holds actual silver in bullion, coins, rounds or even scrap. They're not letting go of their silver for anything. From the horse's mouth:
There's a big difference between a trader and a stacker. Traders should investigate paper silver with little to no premium. Stackers don't have a plan to sell. They may buy property, food, fuel, etc., with their stack one day, but no true stacker would trade their silver for fiat dollars because the price went up.
I bought a large amount of silver Canadian Maples on June 28, 2012, delivered to me for a grand total of $28.59 per ounce, and could've sold it this week for a very handsome profit of $6 per ounce, but again, no true stacker would trade their silver for fiat dollars because the price went up. We are not traders.
Whether you're a stacker or a trader (and maybe you should be both), you're looking at massive potential in the silver market. Prices have climbed more than 130% in the past five years, and more than 620% since 2000.
And we could see moves like this again as silver prices get out from under Big Bank manipulation. Some say $50 per ounce by year-end, and some say higher.
But this could be just the beginning.
Editor's Note: Once-in-a-Decade Silver Opportunity. The last time the silver market reached this point, the price of silver skyrocketed 103%. But this time, silver is primed to reach new record highs. It's all thanks to price fixing by the big banks. They caused a "price glitch" with their shady practices that strangled silver prices for the past decade. Learn all about the biggest silver scam in 20 years and how you can get into position for huge gains. Three opportunities to win big right now...