“PK, and how is all that different to 2001?I am not sure why you...

“PK, and how is all that different to 2001?


I am not sure why you reference 2001, Jantimot
In 2001 I guess the silver that is in the ground (at AYN)still (mainly) remains there. Various companies and management have sought to remove it for a profit. Some more successful than others, but the silver is yet to be recovered. Nothing different there.

Traders taking educated and uneducated punts – good and bad management of trades, winners & losers – nothing different there either!

I don’t know what was happening in Silver around 2001. I can only assume that the predecessors of Bear Stearns were manipulating the markets via ‘traditional’ trading means.

In 1983, the big COMEX silver short seller was Drexel Burnham Lambert. After Drexel went bankrupt in the late 1980’s, the Drexel Trading operation ( and silver shorts) was taken over by AIG Trading. Around 2004, the big silver short position was transferred to Bear Stearns.

In March 2008 the Bear Stearns’ big silver (and gold) COMEX short position was transferred to JPMorgan as part of some sweetheart deal done by the FED.

NOTE - During the GFC, when AIG was looking down the financial barrel, the United States Federal Reserve Bank stepped in, announcing the creation of a secured credit facility of up to US$85 billion to prevent the company's collapse. Now the FED dishes out the same amount each month to keep their broken financial wheels slowly turning, never minding to repair the broken spokes!

After inheriting the BS short silver book, JPM goes to town on manipulating the market to an even higher and more sophisticated level. Back in 2001 HFT algorithms and systems were akin to the Commodore 64 computers of yesteryear.... slow, clunky and unreliable. Now these market mining HFT systems rule and wreck the trading world all at the whim of an operator.

Let there be no misunderstanding, JPM holds market corners in both gold and silver. A long corner in gold (25+% of the futures market) and a short corner in silver (15+% of the futures market). When any position about 3% is deemed excessive and 5% a size that leaves manipulation possible, these two holding are way beyond excessive! To be long in one and short in another precious metal is simply (normally) fanciful! This ongoing crime continues!

JPMorgan is a massive criminal organization that now has become known globally for its crimes if different markets. This year alone it has paid out some $13billion in fines and settlements for its criminal activities – so far without any criminal charges being brought to against any of its directors. I tip my hat to their massive criminal team for keeping their bosses out of the Klink!

The amount of financial devastation that this bank dishes out to global investors is simply mind-blowing. But every empire has its day. Every empire eventually falls into disarray leaving a trail of social & financial devastation.

What’s also different to 2001……….. the supply of silver bullion has decreased dramatically. New supplies cannot compete with industrial consumption. Silver is actually disappearing at an exponential rate. No suppressing or manipulation of a market (up or down) can compete with the forces ‘supply & demand’. Not even the crooks at JPM!