JP MORGAN IS "LONG"? (The Trap Nobody Sees)

Summary

In this compelling video, the narrator reveals how JP Morgan has been executing a masterful financial strategy by secretly accumulating a massive physical silver hoard while publicly appearing to be short. Over three years, they built up 147.3 million ounces of silver in their vault, far surpassing the total registered silver inventory of the entire Comex exchange. As the price of silver rises, JP Morgan stands to make billions in profit, orchestrating a market squeeze. The video uncovers the truth behind their strategy, highlighting the risks for those holding paper silver assets without physical backing.

Takeaways

• 😀 JP Morgan holds 147.3 million ounces of physical silver in their vault, which is far more than the entire registered silver inventory on the COMEX.
• 😀 Despite common belief that JP Morgan is 'short' on silver, they actually have a significant long position with 147 million ounces of physical silver.
• 😀 The current physical silver holdings of JP Morgan are worth $11.27 billion, providing them with a $6.85 billion profit from accumulated silver.
• 😀 JP Morgan has been using a strategy of shorting paper silver futures to suppress prices while secretly accumulating physical silver at lower prices.
• 😀 Over three years, JP Morgan has quietly added 60.1 million ounces of silver to their vault, averaging a cost basis of $25 per ounce.
• 😀 Despite a reported $1.85 billion loss on their paper short position, JP Morgan is still making a net profit of $5 billion thanks to their physical silver holdings.
• 😀 The silver market is experiencing a 'gamma squeeze,' which could push the price of silver significantly higher, benefiting JP Morgan's physical holdings.
• 😀 JP Morgan’s paper short positions are only a small part of their strategy, designed to create the illusion of being trapped, while their physical position grows.
• 😀 Other financial institutions like HSBC, Scotia, and Deutsche Bank are reportedly trapped in short silver positions, lacking the physical metal to back them up.
• 😀 The key risk for investors holding paper silver (like SLV shares or futures contracts) is that they may not be able to claim actual silver when the price rises, potentially triggering a 'force majeure' clause that cancels contracts and offers cash settlements instead.
• 😀 The video emphasizes the importance of holding physical silver to avoid being caught in the paper silver squeeze, as JP Morgan’s physical silver holdings are about to see significant profits as the price of silver increases.

Q & A

What is the significance of JP Morgan holding 147 million ounces of silver in their vault?

JP Morgan's vault holds a substantial amount of silver, approximately 5.9 times more than the entire COMEX registered inventory. This highlights their immense control over the physical silver market, contrasting with the belief that they are short silver and facing liquidity issues.

Why are people confused about JP Morgan's position in the silver market?

People are confused because while JP Morgan is publicly short on silver futures, they hold a massive long position in physical silver. This creates a paradox, as their paper losses are significant, but their physical holdings are making them billions of dollars in profit.

What does the term 'paper short' mean in this context?

A 'paper short' refers to JP Morgan's position in futures contracts where they have sold silver that they don't own, betting that the price will fall. If the price rises, they face a loss. However, their physical holdings in silver help hedge against these paper losses.

What is the 'basis trade' strategy that JP Morgan is using?

JP Morgan's 'basis trade' involves shorting silver futures to suppress the price, while simultaneously accumulating physical silver at lower prices. Over time, this strategy has allowed them to amass a huge silver stockpile without much market attention, positioning them for significant profit when prices eventually rise.

How does JP Morgan's paper short position affect the silver market?

JP Morgan's short position on paper silver suppresses the market price, as other traders follow their lead, causing a downward pressure on prices. This allows JP Morgan to buy physical silver at a depressed rate and accumulate large amounts of it, making their physical position grow while appearing to be losing on paper.

Why are the other entities like HSBC and Deutsche Bank considered 'trapped' in the silver market?

Unlike JP Morgan, HSBC, Deutsche Bank, and others do not have sufficient physical silver to back their short positions. As the price of silver rises, they face massive losses and were forced to abandon their positions, unlike JP Morgan, which profited from its physical silver holdings.

What is the gamma squeeze, and how does it impact the silver market?

A gamma squeeze occurs when the price of silver rises rapidly, forcing short sellers to buy back their positions to limit losses. This creates a feedback loop that accelerates price increases. JP Morgan stands to benefit from this squeeze due to its long position in physical silver.

What are the risks for investors holding paper silver like SLV shares or futures contracts?

Investors holding paper silver may face significant risks because these positions are backed by entities that may not have enough physical silver to fulfill their obligations in the event of a market squeeze. These entities can invoke the 'force majeure' clause, which allows them to settle trades in cash, potentially wiping out the investors' gains.

What does 'force majeure' mean, and how could it affect silver investors?

Force majeure is a legal clause in many financial contracts that allows the issuer to cancel or delay performance due to extraordinary circumstances, such as market disruptions. If silver prices soar and entities holding paper silver can't deliver physical metal, they can use force majeure to settle the trades in cash, depriving investors of their expected profits.

How is JP Morgan positioning itself for a potential silver price rise to $100 or more?

JP Morgan stands to make billions of dollars as silver prices rise. They hold 147 million ounces of physical silver, and every dollar increase in the price of silver adds significant value to their holdings. They are likely to benefit from the squeeze and may even help drive prices higher by stepping back from market-making activities.