As we have noted many times in our writing, if you want to become rich, watch and do that the rich do when it comes to investments. And despite the fact that banks like J.P. Morgan have used the paper Comex market to short the spot price and protect their paper derivative positions for several years now, one thing is for certain, they are not discounting ownership of physical silver and in fact, have accumulated hundreds of millions of ounces in what appears to be preparation for a serious run to higher physical prices for the monetary metal.
JPMorgan Chase, the largest U.S. bank, one the largest providers of financial services in the world and one of the most powerful banks in the world has accumulated one of the largest stockpiles of silver, the world has ever seen.
The total JP Morgan silver stockpile has increased dramatically in the last four years. In 2011, JP Morgan has little or no physical silver. By 2012, they had acquired 5 million ounces of silver bullion.
Incredibly, in the last 3 years their COMEX silver stockpile has increased tenfold and is now over 55 million ounces (see chart below)
Here’s a breakdown of the Comex’s recent physical silver deliveries to JP Morgan:
April 7th: 1,110,000 ounces
April 8th: 1,280,000 ounces
April 9th: 893,037 ounces
April 10th: 1,200,224 ounces
April 14th: 1,073,000 ounces
April 15th: 1,191,275 ounces
April 16th: 1,183,777.295 ounces
Is JP Morgan accumulating silver at these depressed levels in anticipation of geopolitical and financial turmoil?
It seems likely. JPMorgan Chase Chairman and CEO Jamie Dimon in his recent letter to shareholders warned – “Some things never change – there will be another crisis, and its impact will be felt by the financial market”. – Zerohedge
Whenever you see bankers, analysts, and financial chief operators like the former head of the Federal Reserve Ben Bernanke talk down a historic store of wealth like gold or silver, it either means that they want to keep the common investor from accumulating their own positions, or to con these same investors into other assets like stocks or bonds. And unlike American and European populations, who have lost their understanding and appetite for precious metals as investments or as real money over the past 40 years, not only have nations in Eurasia and the East been profiting from the West’s ignorance of gold and silver, but have themselves acquired record numbers in preparation for a time when gold and silver will become an intrinsic part of the new monetary system.
J.P. Morgan is the manager of the SLV paper silver ETF, and through vast amounts of naked shorting has worked against their own customers in devaluing the investments of traders in this equity market. This has been made possible through the Comex still having control over the global spot price, and in their using this authority to protect the risky bets of the banks who placed derivatives on the price of precious metals. But the writing is already on the wall for anyone who sees the trends moving away from U.S. and dollar hegemony and into the hands of China and Eurasia, and those in the know are buying precious metals hand over fist, and accumulating every ounce they can to not just survive the coming financial collapse, but to have a seat at the table in the next system that emerges.
Kenneth Schortgen Jr is a writer for Secretsofthefed.com, Examiner.com, Roguemoney.net, and To the Death Media, and hosts the popular web blog, The Daily Economist. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.