Last week, JP Morgan announced that they are in the process of winding down their proprietary trading operations and will be laying off their 20 proprietary commodities traders. These commodities traders is believed by the National Inflation Association to be responsible for the current concentrated short position in silver.
In the past years, compelling evidence of silver and gold price manipulation by JP Morgan has been found. Marketwatch.com wrote in an article two years ago:
JP Morgan was not just an accommodative good corporate citizen in the illegal transfer of the manipulative silver (and gold) COMEX short position. In addition to undisclosed government guarantees against loss, JP Morgan was given free reign to liquidate the COMEX short position at their discretion, knowing full-well the regulators would look the other way, no matter what dirty tricks were necessary to cause the price to collapse. Nor was JP Morgan a neutral agent in the silver price collapse. Data from the Office of the Comptroller of the Currency (OCC) indicates that JP Morgan held a much larger Over The Counter (OTC) derivatives position in silver and gold than was transferred to them from Bear Stearns.
My analysis shows that Morgan has made many billions of dollars, perhaps tens of billions, from their downward engineering of silver and gold prices from their combined COMEX and OTC short positions. They have used that engineered price decline to buy back as many short positions as possible. If investors are wondering what caused the destruction of billions of dollars in gold and silver values, metal and share price alike, look no further than JP Morgan, and the government officials who enabled them.
Currently silver price is 63 times cheaper than gold and the National Inflation Association believes that there is no rational reason why the price of silver should be that low when there is only 10 times more silver has been produced in world history than gold.
At the time this article is written, the price of gold is US$1,245 an ounce. The price of silver is US$19.84 an ounce. The gold/silver ratio therefore is approximately 63. However, considering how much silver is really produced in world history, it is more natural if the gold/silver ratio is around 16, which would mean that the real price of silver, without the artificial suppression, should be about US$77 an ounce.
In their recent newsletter, the NIA writes:
NIA believes we are guaranteed to see the gold/silver ratio decline dramatically and if JP Morgan is going to be covering their shorts as part of their winding down of their proprietary trading division, the biggest move downward in the gold/silver ratio could come in the months ahead.
JP Morgan has been slowly starting to cover its silver shorts in recent months, but still holds the majority of its silver short position. In recent weeks, silver’s rise has come with very low volume. JP Morgan isn’t rushing to cover their shorts, but at least they aren’t increasing their shorts like they normally would at this time. Now is the time that JP Morgan would normally act to slam the price of silver down. If we don’t see JP Morgan make a noticeable attempt to manipulate down the price of silver within the next couple of weeks, it could be a sign that their manipulation is over.
Read the whole article on NIA.