Bank Participation Report Reveals JPMorgan Engaging in a Civil War, Goes Long Gold!

Blythe Masters Jamie DimonThe Civil War in gold continues. JPM Morgan is still NET LONG 45,000-50,000 contracts. The other 23 banks are desperately shorting gold, attempting to cap price and keep it below the technically-critical $1350-1360 area.
Which side will win in the end? That’s hard to say but I certainly think it would be foolish to bet against the ultimate Masters of Darkness. I mean, seriously…the other 23 banks continue on as if it’s business as usual…selling while prices rise and covering on dips…while JPM maintains it’s NET LONG position acquired while price from $1800 in October of 2012 to $1200 in June of 2013.
Clearly, the other 23 banks have a lot of ammo left to use to contain rallies,  but the key to 2014 and beyond continues to be JPMorgan. What will they do with their NET LONG position? Will they flip it back to NET SHORT? Will they stand for delivery?
Will they <gasp> actually 
add to it on continued price strength? 


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Submitted by T. Ferguson, TFMetals Report:

If you’ve been following the daily changes to open interest and the weekly changes to the CoT, then the changes to the monthly Bank Participation Report should come as no surprise. Some perspective is needed, though, and I hope to provide some in this post.

Let’s start by going back to the beginning. No, not this year or even last year. Not 2011 or even 1999. Let’s go back. Way back to the time of the troglodytes. (OK, that’s just an excuse to include this video)

Nonetheless, you may not know that back in the caveman days, there were gold futures markets. Yes, there were. And it shouldn’t surprise you that, even then, The Cartel Banks were NET SHORT. I did a Google search and found the BPR from March 3 of the year 112,365 BC.

DATE                                   GROSS LONG             GROSS SHORT            NET

3/3/-112635                                  31,262                              114,707                        -83,445

The Banks, whether from the Neanderthal or the Cro-Magnon period, were always NET SHORT and those positions continued uninterrupted until 2013. Then something amazing happened.

On the Bank Participation Report of June 4, 2013, The Banks suddenly moved NET LONG. Never before in human history had this occurred and many folks saw this as an aberration.

DATE                                   GROSS LONG             GROSS SHORT            NET

6/4/13        US Banks                   56,751                              27,129                         +29,622

non-US Banks            24,035                             49,075                         -25,040

TOTAL                     80,786                            76,204                         +4,582

But it wasn’t an anomaly, an aberration or a misprint. As paper price was deliberately massacred by these same banks over the preceding nine months, the movement from NET SHORT to NET LONG was not surprising at all. In fact, the NET LONG position actually grew over the next few months.

DATE                                   GROSS LONG             GROSS SHORT            NET

8/6/13          US Banks                 90,949                             31,476                        +59,473

non-US Banks            25,957                              47,996                        -22,039

TOTAL                   116,906                            79,472                         +37,434 

It was about this time that we noticed that it wasn’t all the banks that increasingly NET LONG, it was just one. And since it was just one…and that one was a “US Bank”…it was logically deduced to be JPMorgan. JPMorgan was the prime accumulator. JPMorgan was adding longs like crazy at the price bottom and JPMorgan now held a cornering position in Comex gold futures. What happens next and which direction price moves would ultimately be determined by what JPM does with their massive LONG position. Would they sell it on the next rally? Would they stand for delivery and break The Comex?

By the time the calendar flipped to 2014, not much had changed. JPMorgan was still NET LONG a boatload of contracts and the non-US banks had gotten in on the act, too, as they had also moved nearly NET LONG. Price also had begun to rally. From a New Year’s Eve Double Bottom near $1180, things were looking rosier by the day.

DATE                                   GROSS LONG             GROSS SHORT            NET

1/7/14            US Banks                 59,291                              20,032                      +39,259

non-US Banks           26,128                              32,492                       -6,364

TOTAL                   85,419                              52,524                       +32,895

As price continued to rally through January, we all waited with anticipation for the February BPR. Would The Banks be NET SELLERS? If so, how much? We soon had our answer.

DATE                                   GROSS LONG             GROSS SHORT            NET

2/4/14            US Banks                68,658                              24,937                      +43,721

non-US Banks          18,752                               48,860                     -30,108

TOTAL                   87,410                               73,797                      +13,613

The dastardly non-US banks (Scotia, HSBC, DB, Barclays, UBS etc) were dumping longs and adding shorts, clearly in a desperate attempt to contain and blunt the 2014 rally. In contrast, it appeared that JPM was standing against the other 23 banks and adding LONGS and the same time. Then, through February, price continued to rally nevertheless and gold was up nearly $100 over the month. What would the March BPR bring? More of the same? Hardly.

DATE                                   GROSS LONG             GROSS SHORT            NET

3/4/14            US Banks               56,272                                 30,669                    +25,603

non-US Banks         17,526                                 54,385                     -36,859

TOTAL                  73,798                                 85,054                    -11,526

“OH MY GOODNESS”, they all exclaimed! “The Banks are once again NET SHORT!!” “Head for the hills!!!”

Meeeehhhhhh…..maybe. Let’s dig a little deeper first, though.

  • First and foremost, note the similarities in the US Bank position from last Tuesday to 6/4/13. Hmmmm.
  • Note the change in the Non-US bank net position over the past two months.

Based on these two bullets alone, I would contend that The Civil War in gold continues. JPM Morgan is still NET LONG 45,000-50,000 contracts. The other 23 banks are desperately shorting gold, attempting to cap price and keep it below the technically-critical $1350-1360 area.

Which side will win in the end? That’s hard to say but I certainly think it would be foolish to bet against the ultimate Masters of Darkness. I mean, seriously…the other 23 banks continue on as if it’s business as usual…selling while prices rise and covering on dips…while JPM maintains it’s NET LONG position acquired while price from $1800 in October of 2012 to $1200 in June of 2013.

And just in case you think that this is it and that this latest report shows that price can go no higher, check this final list of data below. It’s from the BPR dated 10/2/12. Back then, The Bernank had just announced QE∞, price was near $1800 and The Banks were facing disaster. The rest is history…a counter-intuitive price smash from which we are all still trying to recover. Note the combined bank positions from that day and ponder just how much farther the banks can go, if they choose.

DATE                                   GROSS LONG             GROSS SHORT            NET

10/2/12         US Banks               40,625                              146,809                      -106,184

non-US Banks         34,881                              113,445                         -78,564

TOTAL                  75,506                              260,254                      -184,748

Clearly, the other 23 banks have a lot of ammo left to use to contain rallies. But the key to 2014 and beyond continues to be JPMorgan. What will they do with their NET LONG position? Will they flip it back to NET SHORT? Will they stand for delivery? Will they <gasp> actually add to it on continued price strength? We’ll see. The next few monthly BPRs will hold the clues.

TF

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Comments

  1.  
    Although I have no experience reading Gross Long and Gross Short Comex contracts, TF’s article simplifies and shares incredible Comex contract info in layman’s terms. IMO, as always there are no accidents in what goes on with the Israeli run Fed. What would happen to the 23 banks desperately shorting gold if some accident ha, ha sent gold toward the price it should be, $10 K per ounce? Logically it would bankrupt a lot of banks. Deliberate? It would seem so since logically it would lead to the parasites confiscating stocks and cash held by individuals in banks. A ha ha accident of this  magnitude could raise JP Morgan to the position of the only surviving bank, basically. One central bank has been the number one goal of the raci$t$ since their Communi$t Manife$to. 
     
     
    It seems to me that since there are incredible price increases inherent in both gold and silver because the Fed has priced fixed the prices of both gold and silver down for all of our lives to sell their digital nothing Madoff type dollar as honest, silver can be made honest money because so little is hoarded by the Rothschildees and its price a fraction of gold’s, whereas making gold honest money is not possible. That’s because Golden Lily and the Rothschilds’ lock on gold, making gold honest money is impossible. Anyway, if silver becomes honest money then gold of course is honest money regardless of what the Rothschilds try to do. What must be done to make silver honest money? A few thoughts. Non Rothschildees who own a lot of gold must focus on making silver honest. Number one is to store it in the hands of non Rothschildee, i.e. honest people. Possibly mines should store silver sold to big commercial users rather than commercial users store their purchases where Rothschildee Banksters can get their dirty hands on it. Build vaults to store silver which is off limits to and ownership unknown to Rothschildees. Honest silver will have to be built around a 100% cash market, no leveraged buys or sales.

  2. http://www.uncensoredsurvival.com/front63/
     
    This is for the sheeple..Nice video.

  3. Paper gold/silver not the real thing *yawn*

  4. Elvis has left the theatre……Yada, Yada, Yada!

  5. Israeli run Fed is not anti Jewish, its fact. Right now 70% of the presidents of Federal Reserve banks are Jewish. Israeli Stan Fisher has been preposed to be the CEO of the Fed. The Chairman of the Fed is Jewish. All Chairmen of the Fed since 1979 have been Jewish.  Isreali designates nationality, Semite designates racial lineage from Shem. Hum. I’m a racist? I’ll eat food touched by a Jewish person and Jews who follow Jewish dietary laws will not eat food touched by a Gentile. Whose playing the race card? Not me. I’m playing the fact card.    

  6. They sold their Gold vault and building in NY to go long on Gold. That’s a trailer park move.  

  7. The ‘writing is on the wall’. Since only the worst low-live criminal types regularly frequent ‘that neighborhood’, though, they’re the first to see it.

  8. A clash of Titans? The Morgue vs the the Vampire Squids.

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