HISTORIC PRICE PLUNGE
The most unusual feature of the (Feb. 28) COT report was that through Tuesday, February 25th JPMorgan increased its gold short position while the other commercial shorts did the opposite. It’s very much an outlier that JPMorgan added new shorts as the other commercial shorts were buying back short positions. My conclusion is that JPMorgan knew it was going to lower the boom on gold (and silver) prices and loaded the boat with short positions. Simply put JPMorgan was singularly responsible for the February price smash. I’m inclined to believe that JPM increased its silver short position by 3,000 contracts to 18,000 contracts which perfectly positioned this corrupt bank for the price carnage to come. Let there be not the slightest doubt that JPMorgan is the most corrupt market force to ever exist.
JPMorgan was the biggest (sole) short seller in gold and silver through Tuesday and, therefore, the largest single beneficiary of the spectacular price plunge into Friday. As dramatic as was that price plunge, it didn’t come close to eliminating the total open and unrealized loss of the 7 big shorts in gold and silver. On yesterday’s close, the total open loss was reduced by a very large $2.5 billion from last week’s $7.2 billion, to a new total open loss of $4.7 billion. While this was one of the biggest weekly reductions, $4.7 billion is not chump change. The big shorts are still extremely reluctant to book actual realized losses. This created potential for JPMorgan who may have been able to buy back a disproportionately large number of shorts given the reluctance of the other big shorts to book realized losses. Considering the dramatic price plunge and the large amount of trading volume and the declines in total open interest, JPMorgan could have bought back most of its short contracts. These are unprecedented times and anything is possible. Nevertheless, I haven’t sold and am not about to.
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