Sprott Money Contact Form

Thank you for contacting Sprott Money.  We will respond to you within 1 business day.



The Sprott Money Team

Sprott Money Ltd.
111 Queen St. East
Suite 501
Toronto, Ontario M5C 1S2

[t] 1.888.861.0775
[f] 416.861.9855

Administrative office only - no walk-in sales.


Please Try Again After Some Time...
Please enter valid captcha
Loading Image

Toll Free: 1-888-861-0775; Local: 416-861-0775

Swipe to the left

JPMorgan’s Imaginary ‘Silver Hoard’ Is Explained - Jeff Nielson

JPMorgan’s Imaginary ‘Silver Hoard’ Is Explained - Jeff Nielson
By Jeff Nielson 4 years ago 40171 Views 38 comments

Over the past couple of months, several respected commentators and (of course) the mainstream media have been reporting that JPMorgan has supposedly amassed a gigantic hoard of “physical silver”, roughly twice as large as what was amassed by the Hunt Brothers (and their cartel) back in 1980, when the Hunt Brothers were formally charged and convicted of “cornering the silver market”.

This report was previously greeted with extreme skepticism in a previous commentary, for a multitude of reasons. When the Hunt Brothers were charged/convicted of cornering the market; their hoard accounted for less than 20% of total global inventories, yet this “squeeze” on the market resulted in the price of silver soaring by a factor of ten (i.e. 1,000%).

The JPMorgan “silver hoard” is supposed to be twice as large as that of the Hunt Brothers; yet it comes at a time where global silver inventories are at best one quarter as large as back in 1980. In other words, the JPMorgan silver hoard (if it existed) would represent a market concentration of at least eight times as extreme as that of the Hunt Brothers. Yet while JPMorgan has been accumulating this supposed hoard; the price of silver has been falling.

Let me repeat this point, to ensure that it is clearly grasped by readers. We have a supposed market concentration today in the silver market by JPMorgan which is eight times as extreme as that of the Hunt Brothers (when the price of silver increased by 1,000%); yet, today, the price of silver has been falling, not spiking higher.

How is this possible? It’s not. There is no rational/legitimate market (or universe) where a market concentration of this supposed magnitude could not result in a dramatic, upward spike in price. Period. Certainly if this much silver was ever dumped onto the market (rather than supposedly withdrawn from the market), we know what would happen to the price of silver: it would plummet lower.

Obviously “markets”, by definition, move in two directions. If dumping massive amounts of silver (and even paper-called-silver) onto the market causes the price to crash, always, then withdrawing massive quantities of physical silver from the market must cause the price to soar. Always.

This brings us to the explanation of JPMorgan’s latest gigantic silver-fraud, and the purpose behind that fraud. Further enlightenment comes via the interesting observations of Bill Holter (from June 26th):

First, we have an insane situation brewing in Comex silver. The open interest finally exceeded 200,000 contracts (1 billion ounces). I believe the only other time this much open interest existed was back in 1980 or ’81. This makes no sense whatsoever, the price is again plumbing 4 year lows yet open interest has moved to record highs…?

In other words; we have Mr. Holter reporting a market-insanity precisely parallel to what was just noted before this, where JPMorgan has purportedly accumulated an extreme, long position in the silver market (larger and more extreme than in 1980), yet the price has gone down rather than up. Holter continues:

The fact open interest has expanded while price has declined is proof positive the “initiation” of this expanded open interest has been by “shorts” but absorbed by “someone” on the other side of the trade. Total global production of silver is only 800 million ounces or thereabouts so Comex shorts have contracted to deliver 25% more silver than will even be produced globally over the next 12 months. Silver available for Comex delivery only totals 57 million ounces so they sit on a naked short time bomb of more than 950 million ounces! [emphasis mine]

Enter JPMorgan. Obviously one does not have to be Sherlock Holmes to deduce who is the “someone” on the “other side of the trade.” They are the facilitator for the construction of this gigantic, illegal short position. In an ironic example of role-reversal; we have JPMorgan playing the part of the patsy-long, absorbing all of the bets of “the other side” in this serial shorting – by other Big Bank tentacles of the One Bank (such as Scotia Maccotta and HSBC).

Simultaneously; we have JPMorgan claiming to have accumulated a massive hoard of “physical silver”, when the market tells us that this could not possibly have occurred. Hence we know that the JPMorgan silver hoard is imaginary silver. But this begs an obvious question: why would the most-notorious silver short in the history of the silver market pretend to accumulate a massive long position – while still holding a large short position, itself?

To say that this makes absolutely no sense is the greatest of understatement. Obviously there had to be an ulterior motive to this sham, as JPM would certainly never engage in any behavior to deliberately drive-up the price of silver, which is precisely what it seemed to be doing here. Now, via Bill Holter, we see this “ulterior motive”, plain as day:

they [i.e. the One Bank] sit on a naked short time bomb of more than 950 million ounces!

How do you defuse an absurdly gigantic, naked-short, time bomb in the silver market? With an absurdly gigantic “hoard” of physical silver, conveniently delivered to the market, as needed, to prevent implosion of this time bomb. And in our criminalized system, if you don’t have a hoard of real silver available for this defusing; imaginary silver will be a perfectly good substitute.

Let me refer back to the commentary which first scoffed at reports of JPM’s imaginary silver hoard:

…The purpose of JPMorgan pretending to hold “a massive long position”?

That’s an easy one. If JPMorgan pretends to be holding a 350-million ounce hoard of silver and its criminal accomplices who operate and (supposedly) police these markets go along with this massive sham; that is 350 million “ounces of silver” which this fraud-factory could claim to dump onto the market – as part of some future operation to crash the price of silver.

This is exactly what we seem to be seeing now, except with one, different wrinkle. Instead of JPM’s imaginary silver hoard being used to drive-down the price of silver still further (from already extremely depressed levels); this imaginary silver hoard will be dumped onto the market to “cover the shorts” – to prevent an explosive rise in the price of silver when these naked shorts would (otherwise) implode.

All that remains is to put this latest “operation” in the silver market into the overall context of the looming economic catastrophe which approaches, the Next Crash, scheduled for 2016 (or perhaps the end of this year). What happens in sane, legitimate markets when some economic disaster and/or panic occurs? People seek shelter in humanity’s most time-tested “safe havens”, gold and silver.

What happens when populations collectively move into these safe havens? The price for these precious metals explodes higher. However, as we have seen for most of the last 40 years, and all of the last 25 years; this is the one thing which the One Bank seeks to prevent, with literally all of its criminal might.

When you are planning to crash global markets (in order to profit from your foreknowledge of that scheduled crash); you know that doing so will put tremendous upward pressure on both gold and silver prices, and gold and silver demand, in markets already (criminally) stretched to the breaking-point. How do you blunt such a price-spiral, and hopefully the explosion in demand which would/should accompany it? By scheduling a price-crashing operation in the silver market simultaneous with, or slightly after your other, larger “operation”.

If Niccolo Machiavelli were alive today, he would be carefully taking notes, as he observed the schemes and crimes of the One Bank.

Alex Parker 4 years ago at 7:16 AM
I thought the Sprott organisation was supposed to be one of the good guys, so I'm amazed to see this shameful piece of journalism having no regard for the painstaking work undertaken by Ted Butler. Shame on you for stating as fact the individual views of the author!
Erik Gates 2 years ago at 6:23 AM
Banks don't "load-up" on commodities for their own accounts (other than customer facilitation, etc.). Anyone with a triple-digit IQ in the 21st century is keenly aware of this. EVEN if this nonsense were true....a failed "cornering" of market would be imminent with that type of overhang...and the price would collapse.
me 3 years ago at 9:30 AM
The author must have been paid by JP Morgan for the article. JP is very good at manipulating the precious metals market on both ends of the podium by creating false downside then buying massive quantities on down dips. Also dumping shorts when most advantages. also being in bed with the SEC helps too.
Bobby Fresa 3 years ago at 1:56 PM
Are you sure it's ONLY JP Morgan who's responsible for this???
Timothy Bond 2 years ago at 12:20 PM
That you cannot build a sizable position in a particular asset with the price declining is simply not true.

Silver declined from 2011-2015 and someone could have easily taken the buy side to accumulate that much silver that the speculative funds were puking.
Erik Gates 2 years ago at 6:33 AM
Fascinating....it's NEVER a conspiracy by the boogie-man when prices are going up...but always a conspiracy when prices are going down. Silver is dying because of the speculative premium placed by those who think we'll return to the days of the Roman Empire and it will be $$$ again! The Silver Institute's nonsense re the huge "ramping up" of industrial uses/needs is highly-exaggerated. It's in a dying asset class owned by those who long for yesterday. Digging crap out of the ground and calling it "wealth" ...again....yesterday. OH...even worse news for those who struggle to think >> over $20/ounce ...one can find a cheaper alternative to silver for almost any commercial/industrial application. So...run to your William Devane safe deposit boxes boys...and run your fingers through your "wealth". I guarantee your standard of living will continue to erode.
Silver Surfer 1 years ago at 7:14 AM
Thats Jamie for putting things in historical context.
Enough of this worthless antiquated relic.Im off to buy lots of grossly overvalued equites whose valuations bear no relation to economic realities.Thats again Jamie.Oh say hello to Blanky for me.
truth 9 months ago at 2:20 PM
yeah explain to me how the tech industry is going to replace silver and gold.. take a look in the mirror and face the music, non backed currency is worthless. simple as that.... but you cant look in the mirror, you dont like silver.
Stoopid Wookie 6 months ago at 7:22 AM
2ndshowroom@gmail.com 8 months ago at 2:06 PM
Get a life, Silver DESTROYS the good old paper fiat money...! Always did, Always will. It has MORE uses than GOLD...Golds S.H.I.T.! Its silver that will save the planet, Just its antibacterial properties R off the charts...! Its used EVERYWHERE around the world for 1000's of things, What you use gold or paper and ink for?????????
L Klem
<Erik Gates is a Dumba22> 8 months ago at 1:53 PM
.. Lol. Silver/Gold will always beat Fiat.
"Silver is dying because of the speculative premium placed by those who think we'll return to the days of the Roman Empire and it will be $$$ again!"
Lol what..? We were using Gold/Silver up into the 1900's. Fiat's don't last forever. You can't replace your Fiat with another Fiat. No one would want them. Silver literally means MONEY in many Languages. Good luck trying to buy Food with a Dead Tablet/Laptop.
Steve 5 months ago at 3:50 AM
That's a very Western-centric view of silver and I guess gold. Considering most people who value PMs deeply are from India and China (2.7B of the 7B on earth), I think your view should be broadened. Beyond the VERY important industrial uses there is a pure unexplained emotional attachment to Ag/Au which has stood the test of time. Feel free to dump your worthless silver and gold on me. I will happily email you my address to take such archaic dug-up none sense off your hands.
P'louey 19 days ago at 8:43 PM
your stand on ag/au, will crash to bottom. Then u have free au/ag at 1usd/kg. Good luck, this year 2019 March 22 is going to happen.
A Johnson 4 months ago at 7:11 PM
There really is not an option to silver for some uses, due to it's unique molecular arrangement. And most silver has been used up. I am now in 2018 seeing articles for solar panels made with gold. Would that not set your argument on end?
RPB 2 months ago at 10:58 AM
Wow, So very wrong in every way.
Mike 2 years ago at 2:03 PM
Wouldn't JP Morgan's influence in the paper markets (i.e. shorts) and manipulation of the price downwards be an explanation for the low price, despite their physical accumulation?
Henk van der Laan 2 years ago at 9:22 AM
It is a pitty the writer does not know the difference between fysical silver and the role of JPmorgan controlled paper silver. The whole silver trade is paper magic and has no supply-and-demand rationale at all.
Spartan 2 years ago at 3:39 PM
The price has fallen because J P M sells more futures contracts than it buys metal!
Watch what happens when they stop!
Dean F. 1 years ago at 7:10 AM
BINGO to last few replies. Paper leverage/derivatives allows buy-up of anything physical at prices suppressed by sale of paper. Neat trick. Manipulation and collusion today makes Hunt brothers look like pikers, while regulators with dirty hands look the other way.
Bernie 1 years ago at 2:21 PM
Short comment;
Bernie 1 years ago at 2:28 PM
I do have a question!
How many ounces of silver will JP Morgan have to trade in this lovely buy and sell scheme on a daily bases to make up the short position? We can clearly see manipulated prices of .30 to .50 cent moves! One can only assume they are selling millions when up and buying more on the flip side when on the low!
JPM 1 years ago at 4:31 PM
By trading its futures and betting against it they manipulate the price causing it to fall. Once they stop trading the futures watch silver spike to $1000/ oz. JPM silver cornering is real.. Either get in or lose out!
R 11 months ago at 6:53 AM
You missed a key point. They also now control AI and robotics...and no longer have a need for us, especially during any sort of disruption, upset, refusal to work, uprising etc... They will either control us with mass z produced offensive robots or destroy us... take your pick.
Dean 10 months ago at 1:02 PM
R. Yep. Have actually written a fair amount on that subject exactly. A BUNCH more folks need a red-pill moment! Very doubtful, but we can keep trying.

Sorry for slow reply. I only just received notice someone had responded
Ali 10 months ago at 9:51 AM
I have gotten things wrong so often that I can easily forgive the author for getting this one wrong. The more recent comments have it right, (JPM is shorting massive paper silver to manipulate prices lower while buying and storing physical bullion).

We have to remember that we cannot just inspect a chart and say, "Oh, I thought JPM was short here on this point of the chart. Their paper short did not pay off that year, and so JPM must not have really truly been short." (And visa versa for longs) Even though fund managers do aim to yield a 30%+ ROI at year over year, this does not mean that any one trade must realize profits before end of year. JPM is not you or me. They do not move hundreds of dollars or even thousands. We tend to think too small and too short term to understand what the big manipulators are doing. Look at silver's monthly chart. Silver and gold are almost always longer term trades for their best profit potential.
JPM silver is a long term trade. Even if it takes a total of 10 years from the time JPM began to accumulate physical bullion to the time they exited the market and took full profits, they can still show a very nice ROI for their customers. Example: acquiring the bullion at around $16.66 (assuming cost of storage and everything) and selling the paper for delivery at over $50 still mounts to over 300% ROI over the ten years, which divided out equals an average 30% return PER YEAR of this trade.

And none of this is assuming that this is a long term play -which it is. We are neglecting the fact that the dollar will crumble and silver will peak well over $100, giving the ten year trade 600% ROI at an annualized ROI of 60% Not bad JPM... not bad...
John Doe 7 months ago at 8:47 PM
Lol if the dollar crumbles, which I'm sure it will within the next 10 years, why would they care what the price of silver is in garbage fiat money? They arent going to be selling any of it...no one should because one day it will be recognized for what it is, real money.

If you sell silver for "reserve note" imaginary monopoly money you're a moron.

The ONLY reason you should sell, barring a personal financial emergency, is selling small amounts for fiat when you need to make purchases.
A Johnson 4 months ago at 7:14 PM
there are several states with gold and silver currency laws, the only thing remaining is to take the tax off, and there is a proposed law to do just that now in 2018
Paul Sellon 9 months ago at 12:54 PM
After following the JP Morgan silver manipulation story for a while I decided to do my own research into the matter. You see I have a vested interest in the outcome. I've been sitting on silver and gold since 2012. Not the best position to be in.
As I see it JP Morgan made the bonehead move of acquiring a shitload of silver just before the peak in 2011. The price fell dramatically later that year and JPM had a major problem on their hands. This kind of problem goes right to the bottom line and in 2012 banks could not afford to have problems of this magnitude. How to mitigate the situation?
I was a silver jewelry supplier for many years to major U.S. retailers. Sometimes I would make bonehead moves and buy silver at the high (Just like I did in 2012). In order to offset the purchase I would have to buy silver at lower prices to average my inventories and keep adding silver until I solved my problem or got back in line with the prevailing silver price. Basic dollar cost averaging of inventory.
This is what JPM is doing. It takes time. JPM needed assurances they can guarantee lower purchase prices going forward until the problem is solved and they alone have this capability. How do they do it? Massively short the market while continuing to acquiring physical silver.
Based on my calculations they need to buy about 50 million more oz's to have their average ownership around $17 - $18 per oz. They are now at about $21.50. When that happens they stop shorting the market and allow the price to go up. Let’s say it goes up to $36 per oz. The bonehead move is swept under the rug and JPM turns a 105% profit on their total holdings or roughly 15% per year over 7 years. A reasonable ROI for their efforts. Not a bad return. If silver goes a lot higher, and I believe it will. They stand to take their disaster purchase in 2011 and turn it into a major moneymaker by 2018 or a little over 7 years. With that said, I'm holding on to my silver and gold positions till year end or JPM reaches their goal.
BTW how are they getting away with this blatant manipulation? Don’t believe a word about not supporting too big to fail banks. The U.S. government and the Feds are in full support. After JPM made the deal with the govt. to acquire Bear Sterns, It’s the least they can do to help JPM out of their problem.
Boot 8 months ago at 1:55 PM
Sounds like I'll need a bit more Silver then while it's low..
D Hobbs 5 months ago at 5:01 AM
Insightful observation Paul,, coming from someone who's in the supply business too,, its certainly a credible assessment, but running such a scheme for 7 years with all the unforseen market events to mitigate a manageable loss when the bank is reaping many billions in profits through the bull markets doesn't make sense,, in fact they could have just not shorted silver in the first place and the price will have been back above their cost level for the physical in no time !,, alot of what happened has to do with the Bear stearns takeover story and I think JPM is there to protect itself and many other banks that will fail if silver and gold make a run to these highs again.
Richie K. 8 months ago at 3:39 PM
2ndshowroom@gmail.com 8 months ago at 6:54 PM
Silver is KING...Theres NO metal till this day that comes close to Silvers use...They cany hold down the price to much longer
bob 8 months ago at 5:49 PM
They can not go lower or it becomes useless to mine. Many mines have slowed down and some have stopped all exploration and expansion so we will see it start to reduce the available volume. After JP flipped their loss which was done to control this price the entire time, they will have stupid amounts of silver to unload on the market and nothing will be stopping it as fiat and paper back will likely disappear as we transition into their crypto currency. The banks control Bitcoin and Litecoin and a few others already.
bob 8 months ago at 5:50 PM
Also possible they will hold the price down. They need the prices available to finish their plans to make a technocracy. It is going to need a lot of physical silver. Their position has multi uses to globalist central bankers. A war is coming though and it is against them.
Dylan 5 months ago at 8:02 PM
If you look at a silver price chart from 1980 to today you can see a cup and handle pattern that has taken 40 years to develop. Anyone have any thoughts on if that matters or not?
A Johnson 4 months ago at 11:28 PM
I think it means I will be dead before we see any price movement
Steve R 4 months ago at 12:11 AM
Ahh yes but the plot thickens they gained about 7 trillion worth of silver futures contracts from the Lehman Brothers collapse on the cheap which they use to supress the price of silver while buying up their hoard keeping the price low. That's why Max Keiser called them out on their silver futures with his crash J.P. Morgan campaign which drove the price up to $50 /oz in 2011 they panicked and started buying up all the silver to cover their position a good percentage of the estimated 615,000 oz were bought around that price too.
Adolph D. Brown 3 months ago at 8:13 PM
I like all the comments: This is the bottom line silver is king currency it always has been going all the way back to the time of Abraham in the good Book . JP is buying it for one reason only when the Dollar crashes so will all paper currency and cripto as well. In order for them to stay Rich
And keep their Mansions and Rolls Royce. They will have to reset the worlds currency To a metal backed currency. Gold is to soft so it must be silver. They will issue new paper backed by silver. There will be a war to end all wars about 2.6 billion people will be leaving this earth in this war Due to this global melt down. On the other side the new currency will be silver at $96,000.00 pre OZ . The difference this time will be people with 96k are going to want the coin in their hand or will want to see it in the bank from time to time in a bag with their name marked on it no more BS.
This is the only way it works silver at 96k gold at $138k with world population at 5.25 billion people. Get ready kiss your loved ones and get ready

Back to top