In Jim Cook's Archive


Things couldn’t be more bullish for silver. Our independent silver analyst Theodore Butler has concluded that JPMorgan has purchased up to 350 million ounces of physical silver over the past few years. That’s almost half the silver mined in the world in one year. Analyst Michael Snyder writes, “Over the past few years, JPMorgan has been voraciously buying up physical silver. Nobody has seen anything quite like this ever before. In fact, JPMorgan has added more than 8 million ounces of physical silver during the past couple weeks alone.” The Wealth Watchman confirms this view: “Our old buddies at JPMorgan Chase not only see value in silver here, but they’re currently standing for delivery in their own house account in such strong numbers, that it commands our attention.”

What could be more bullish for silver than the world’s largest bank hoarding silver? No institution knows more about the intricacies of the silver market then JPMorgan. They may be short 65 million ounces on paper in order to control the price, but according to Mr. Butler they are long five to six times that much in actual silver bars. They must surely be planning to harvest huge profits. Should silver rise to $100 an ounce, they will be up $30 billion. Do you think they are going to pass that up? They are the most gifted profit seekers on the planet. They are laying the groundwork for something big.

Furthermore, by holding the price of silver below what the free market price would be, the silver market is warped beyond comprehension. An artificially low price reduces mining production while increasing industrial demand. According to silver analyst Andrew Leyland, silver mining production will drop this year. On the other hand industrial demand remains strong with solar use expanding rapidly. Indian demand alone will absorb 1/3 of the world’s silver production. The above ground supply of silver is down 85% from 60 years ago. That means the amount of silver available for industry and investment has shrunk to the point that a shortage could easily occur with any upswing in demand. A shortage would send the price into the stratosphere.

Ted Butler predicts that a shortage is inevitable. He points out that we almost had one in 2011 when silver surged to $48 an ounce. That’s when he thinks JPMorgan figured out how little silver was available and slowly began to accumulate all they could get without disturbing the price. Again we must ask, what could be more bullish for silver than the world’s biggest bank hoarding a massive amount of silver while suppressing the price so they could buy more on the cheap? As Ted Butler has said, “This is the chance for the score of a lifetime.”

Start typing and press Enter to search