In Jim Cook's Archive


It’s true that silver has tried our patience over the past few years. Nevertheless, it still remains a superb value investment because in many cases it sells for less than the cost of mining it. That means you buy it and wait patiently for its true value to be recognized in the market. When that day comes silver analyst Theodore Butler predicts there will be multiples of the current price. That means our patience will have paid off in a big way.

There’s a reason JPMorgan has accumulated a huge stockpile of silver. They know there isn’t a lot of silver above ground that’s available for purchase. They are aware that the billions of ounces that were once held by the U.S. have been used up by industry and are gone forever. They know that silver is a miraculous metal with so many important uses that it’s grossly mispriced and severely undervalued. They probably have read some of Ted Butler’s missives that explain why a silver price explosion is the inevitable outcome of a price suppression.

At some point in 2011, JPMorgan must have realized the true dynamics of silver and opened their eyes to the enormous profit opportunity it offered. They have been accumulating silver ever since.

Ted Butler points out that JPMorgan has likely accumulated 350 million ounces of physical silver. Against that they have shorted 75 million ounces on paper. This isn’t typical hedging as some would suggest. It’s what Ted Butler insists is the mechanism to manipulate prices. The price of silver is set in daily trading on the COMEX futures market. By selling silver short, a big player can hold down the price. They can keep silver cheap while they hoard it. However all that needs to happen for the price to soar is for the big silver short to stop selling. Once that happens, it’s off to the races.

The fact that JPMorgan owns so much silver virtually ensures that silver prices will climb. How much physical silver will the big bank want to own before they relax their short selling? This isn’t going to go on forever. There are billions in profits waiting to be had by them. This train is going to leave the station and when it does, you want to be on board. It should be the ride of a lifetime.

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