/biz/ - Business & Finance

[Anonymous No.18747458]

Why is silver so undervalued? Why does JP morgan have the biggest silver short but is also horde physical silver?

makes me think.

[Anonymous No.18747505]

thinking too much is not good for you

[Anonymous No.18747834]

Translating these numbers means we will own dark black slaves.

[Anonymous No.18748699]

Sir, I think you've had a little too much to think.

[Anonymous No.18748980]

They inherited the short positions from Lehmans Bros who collapsed in 2008. By keeping the shorts open and supressing the price, they have been accumulated silver on the cheap for years

[Anonymous No.18749017]

>>18748980
* Meant Bear Stearns not Lehman

[Anonymous No.18749021]

Silver and Gold seem to separate wide at the start of a recession and get tighter at the end of a recession, see 2012

[Anonymous No.18749064]

>>18748980

>In just five years, JP Morgan Chase has accumulated the largest holding of physical silver in the world. In fact, prior to JP Morgan, there was only one other entity that owned more physical silver--the US government. And that was over a century ago when silver coinage was in common use.

In 2008, the US Treasury and Federal Reserve asked JP Morgan to take over the failing investment bank, Bear Stearns. What many people don’t know is that Bear Stearns held the largest short positions in COMEX gold and silver. Upon taking over Bear Stearns, JP Morgan inherited the role as the metals’ largest short seller.

According to CFTC data, JP Morgan maintained these positions while concentrating its efforts on the silver market. Before long, JP Morgan became a dominant force in silver, able to exert significant influence on silver pricing.

JP Morgan’s resources were so large that they were able to sell nearly unlimited quantities of silver futures even as prices rose, and buying them back as they plunged. As a result, JP Morgan made a profit amounting to hundreds of millions immediately after the Bear Stearns takeover.

The continuous silver market manipulation suppressed prices (as low as $9 per ounce) at a time when the physical supply of silver was drying up--a factor that catapulted silver to the near highs of $50 per ounce.

Caught with a dangerously large short position, JP Morgan sought assistance from the CME to offload some of these shorts--a cooperation that led to the rigging of one of the sharpest sell-offs in history.

During this harrowing process, it dawned upon JP Morgan that investable silver was fundamentally scarce and that the most profitable side to be on for the long term is the long side. And this is when JP Morgan began hoarding silver.


https://gsiexchange.com/jp-morgan-cornered-silver-market/


https://www.bloomberg.com/news/articles/2019-09-16/precious-metals-traders-charged-with-rigging-futures-contracts

[Anonymous No.18749493]

>>18749064
Cool story. But when will they let it fly? Bought my first 100oz recently

[Anonymous No.18749587]

>>18749064
This seems like the most plausible explanation

[Anonymous No.18749603]

>>18747458
hedging

[Anonymous No.18749611]

>>18749021
This isn't a recession. This is the worst depression the world as ever seen.

[Anonymous No.18750152]

>>18747458
Cause Morgan knows that paper silver is over and bullion is all that matters now.

[Anonymous No.18750231]

>why is this asset which only had value in the past was to compliment gold as a smaller division of value undervalued now that we only use gold as a store of value
>Hmm we just don't know

[Anonymous No.18750649]

>>18750231
Not everyone can afford gold. Silver is good for coinage as it is antimicrobial.