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J.P. Morgan And The Big Silver Acquisition Mystery

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J.P. Morgan And The Big Silver Acquisition Mystery

Something strange is occurring in the precious metals markets. Although the price of silver bullion has continued to drop, a super entity has taken some keen interest as of late in buying and storing physical silver, rather than the usual paper version that most investors have.

This large body is none other than J.P. Morgan, one of the largest and richest banks in the entire world. Buying silver, gold, or other precious metals is nothing new. Many investors hold to this type of investment as a safety net against dire economic times.

Why Investors Go For Silver

The price of gold has risen over the years, and the value of it is over $1,200 per ounce as of today. The current price of silver is just under $17 per ounce. Investors know that the markets go through some crisis periodically.

Those who invest in metals like silver and gold know that when the markets go down, interest in metals goes up, which usually results in an increase in value. It is a smart investment for the long term. However, the interest J.P. Morgan has had of late in buying physical silver bullion has had a strange effect on the price of silver. That effect has been nil.

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How Much Has J.P. Morgan Accumulated?

In 2012, J.P. Morgan began to increase their silver physical stores. As of around March of 2012, J.P. Morgan’s reported physical silver stock was around 5 million ounces. That number grew to about 20 million in April of the same year.

J.P. Morgan’s physical silver stocks have continued to grow. Although there have been some dips in their real stock, the number of ounces physically held by the financial giant now total around 55 million.

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A Big Fortnight of Buying

Increasing your stock of physical silver is nothing to bat an eye really at unless you account for the still-low price of silver. Buying at lower prices and having the market price fall further means losses.

J.P. Morgan had a big buying spree in April of 2015. In fact, it was huge. Although the price of silver had continued to fall, J.P. Morgan’s physical silver stock skyrocketed in April 2015 by 8 million ounces. Keep in mind that this was not for the entire month, but only about half of that, or two weeks.
In that two-week stretch, J.P. Morgan bought and stored another 8 million + ounces of silver, bringing their reported total to 55 million ounces. Why is all of this odd?

• Silver has continued to fall in value, going from about $35 per ounce in 2012, down to around $17 as of 2016
• In a four-year span, J.P. Morgan has increased physical silver stocks over tenfold, going from 5 million to 55 million ounces
• J.P. Morgan is a global banking power, due to their interest in making more money, yet they continue buying silver and not batting an eye about the losses
• J.P. Morgan’s interest in buying physical silver has done nothing to increase the price of silver
Conflicting Reports

Although we know that J.P. Morgan has publicly said that they are holding over 55 million ounces in silver, there is one source that believes that figure is much higher; a stockpile that is astounding with relation to the global supply.

Ted Butler is a silver market analyst and has been for quite a while. He is very well known and has done some independent analysis. The results of that study were shocking. If Butler is correct, J.P. Morgan is lying about its physical silver stockpile numbers. If Butler is right, J.P. Morgan is holding roughly seven times more silver than it has publicly reported. Yes, Butler’s analysis speaks of a possibility of about 350 million ounces of silver being safely tucked away in J.P. Morgan’s vaults.

Provided that Butler is on the mark with this analysis, J.P. Morgan physically holds over 42% of the global supply of silver. That is nearly enough to declare an officially market cornered by the financial powerhouse.

J.P. Morgan’s positions in the silver market seem to be shifting, and here’s why.
• J.P. Morgan has the largest position in the short term regarding silver
• Their buying of physical silver contributes to the size of their extended position
• J.P. Morgan has seemed to shift the amounts, meaning their short position is getting smaller as their big position is growing
• The reason for the price of silver still being low is J.P Morgan’s doing, suppressing a price increase until the desired amassing of physical silver
• J.P Morgan has the capital to continue substantial accumulation while simultaneously managing to keep the price down.

The Big Why

Although the prime reason for J.P Morgan’s high interest in physical Silver is unknown, the best that the CEO Jamie Dimon could say is the acquiring of so much Physical Silver as a product.

Dimon said in a shareholders letter that some crisis will negatively impact the financial markets. He did not specify when, where, or how, but just stated that it would come, and Dimon believes that this next crisis will increase the demand for physical silver, driving up the price.

With such massive stores, J.P. Morgan will be in an enviable position. The massive storage leaves several unanswered, yet crucial questions: What does J.P. Morgan truly know about a future financial crisis? Is it a matter of belief that this is how things will go down? Do they have information that the rest of us do not? What is the real play behind all of this? How is the price staying down even though they continue to buy millions of ounces of silver at a time? Only time will reveal what is going on here.

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