A DIFFERENCE IN TIME
Four years ago, in November of 2016, JPMorgan’s COMEX short position in silver was 24,000 contracts (120 million ounces) and in gold 50,000 contracts (5 million ounces). Today, JPM is flat or slightly long in both markets. In addition, the amount of physical metal JPMorgan has been able to accumulate over the past four years is monumental. The bottom line is that JPMorgan has never been better positioned for a silver or gold price explosion. While the 8 big shorts in COMEX gold and silver are in the hole for more than $12 billion JPM has eliminated its short position and has already booked and realized a few billion dollars’ worth of cumulative paper profits. Today it sits on more than $20 billion in unrealized profits on its physical metal holdings – with the likelihood of many tens of billions in additional profits to come.
The most compelling factor for a price explosion in silver and gold is the recent settlement between JPMorgan and the Justice Department and CFTC. JPMorgan has entered into a criminal deferred- prosecution agreement and it will not replicate the same crime. The big bank will not suppress the price of silver as it has in the past (while accumulating a billion ounces of silver at an artificially low price). JPMorgan is clever enough not to violate the terms of an agreed upon-criminal settlement. Let’s face it, JPMorgan is now on parole when it comes to precious metals. This major roadblock to higher prices has been removed. They now intend to profit mightily. It’s another big reason to own silver. My best advice is to do what JPMorgan is doing. Buy and hold a lot of physical silver.