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Silver Wheaton Corp. Message Board

  • sharpie3444 sharpie3444 Dec 11, 2013 9:24 AM Flag


    via Ed Steer . . . lver analyst Ted Butler allowed me to take four full paragraphs out of his weekly commentary to his paying subscribers on Saturday, as he had a few things to say about JPMorgan's grotesque long position in the Comex futures market as brought to light by last weeks Bank Participation Report. Rather than use it as a big quote in The Wrap, I thought I'd post in here.

    "The big surprise to me was in the Bank Participation Report on gold. I’ve been dithering the last few weeks trying to pinpoint JPMorgan’s long market corner in gold, varying between 70,000 to 80,000 contracts. My last guess was 80,000 contracts and, I was even expecting more privately. Unless JPMorgan has figured a way to put long gold contracts in a foreign subsidiary, the new BPR indicates the bank holds no more than 70,000 long gold contracts as of Tuesday. True, 10,000 contracts are only 12.5% off my 80,000 contract guess, but there was something else that jumped out at me.

    "Since Oct 29, the commercials have purchased almost 85,000 net contracts on the $130 gold price decline, thanks largely to net selling by the technical funds of a near identical 88,000 net contracts. Yet over that same period, JPMorgan actually reduced its long market corner in gold by 5,000 contracts to 70,000 contracts. Let me state it a different way; Over a 5 week period in which the gold price was rigged $130 lower (by the commercials) and in which the commercials absolutely gorged themselves in buying 85,000 net contracts from technical funds, the largest gold long in Comex history didn’t buy a single contract and, in fact, sold 5,000 contracts. Huh?

    "To my mind, JPMorgan could and should have bought 20,000 to 30,000 gold contracts on the engineered price drop. Easily. Instead, it didn’t buy any, even though it is taking 95% of December gold deliveries. When something occurs that is this outside expectations, it is natural to ask why. JPMorgan has accounted for more than 75% of the 200,000 gold contracts bought by the commercials over the past year. Why would they not buy more during the super-attractive buying circumstances over the past month? I think the correct answer to this question could be the key.

    "I can’t help but believe that the reason JPMorgan didn’t join in on the commercial buying festival is because its long market corner in gold had become too well known. I can’t know if the pressure not to add to JPM’s gold market corner came from regulators, the exchange or from within the bank itself; but something prevented JPM from adding when it was most advantageous for them to add long positions. Since I discovered the gold market corner in the first place and have been shouting about it from the hilltops, it’s possible the sending of my articles to JPMorgan actually woke them up.

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    • Gold Trading Halted As Prices Spike Higher; Stocks Stumbling

      Gold and silver are extending yesterday's gains as US markets awake this morning. The crack higher at around 8:07ET caused the futures market to be halted after 3,000 Gold Futures contracts traded in one second at 08:07:45 on December 10, 2013 sending the price up $10 and tripping circuit breakers for 10 seconds.

      This sort of thing is happening far too often: see also the drops on April 12, 2013, September 12, 2013, October 11, 2013, November 20, 2013 and November 25, 2013 which also resulted in trading halts.

    • J.P. Morgan files for digital-payment patent similar to Bitcoin

      J.P. Morgan Chase & Co. has applied for a patent for a digital-payment network that would allow for anonymous payments like the virtual currency bitcoin, according to a patent application dated Nov. 28. The application was first highlighted by Let's Talk Bitcoin.

      "Embodiments of the invention include a method and system for conducting financial transactions over a payment network," the application said. "The method further includes freely publishing the payment address and making it available to users of an internet portal or search engine." A J.P. Morgan media contact didn't immediately respond to an emailed request for comment

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