2014 Will Not End Well Other Than Precious Metals
New York (Jan 27) JPMorgan has amassed between 100 – 200 million ounces or more of physical silver. Most of it is stored in London. My friend Trader David R would agree. He says he has seen the silver there himself. According to Butler, their plan is to force silver’s paper price (Comex) lower and then buy the physical metal as cheaply as possible. They use the same technique on gold.
It only takes around $2 billion annually to absorb the available 100 million oz. of silver not used by industry and jewelry fabrication. But it takes over 50 times as many dollars to absorb the 80 million oz. of newly mined gold that is left over for investment purposes.
According to Butler, even if it isn’t JPMorgan that is the big buyer of physical silver (and he is sure that they are), silver has moved from weak hand to strong hands.
JPMorgan’s short position in Comex is around 80 million oz. If they actually do own 200 million oz., as Butler states, then the CFTC would not have reason to take action on their manipulation.
JPMorgan acquires a majority of the (physical) silver that becomes available from mining, recycling and sales from existing holders, including SLV.
On the Comex, it’s the commercials (especially JPMorgan) vs. the speculators (the hedge funds). Butler believes that JPMorgan is responsible for the large High Frequency Trading smashes of silver.