Bill Murphy: JPM Stopped Manipulating Silver From January-June of 2011

GATA’s Bill Murphy has just publicly released STUNNING new revelations regarding JP Morgan’s alleged silver manipulation.
Murphy states an informed source has advised him that JP Morgan was compelled to stop manipulating the silver market in January of 2011, and that fact is the reason why silver ran from $28 to $50 over the next 6 months.
Murphy states JPM took down silver in the infamous overnight May 2011 raid from an auxiliary account, and began manipulating silver again in June of 2011.

Murphy’s source also states that JP Morgan’s CIO derivatives losses are actually tied to the Bear Stearns short silver positions JPM inherited from the Fed in 2008, and that the LIBOR scandal will soon engulf JP Morgan in a SILVER MANIPULATION scandal- likely when the CFTC releases their findings on their silver manipulation in the next 30-60 days!

Murphy states:

It has come to my attention that in January 2011 JP Morgan, for some yet unknown reason, was compelled to stop manipulating the silver market. That is when the price of silver went vertical to the upside…

Silver practically went straight up to $49 an ounce. THEN, it collapsed for no apparent reason. That reason, from my most well informed source, was that JPM came back into the market in June. Now, if that is the case, JPM worked through some sort of auxiliary account to overnight raid silver in the earliest of May in 2011, because that is when The Gold Cartel/JP Morgan went into combative action in earnest to crash the price down…

Monthly silver price
http://futures.tradingcharts.com/chart/SV_/M?anticache=1341620769

I hope to be able to explain more of this in the near future, but that is what I can put in the public domain for the moment.

Regarding JPM’s CIO losses:

JP Morgan’s public declaration about being offside on a $2 billion dollar “hedge transaction” was not fully transparent. My sources tell me that was the case, but in addition, that what JPM CEO Jamie Dimon said at the time was camouflaging another serious financial problem. At the time it made little sense that a CEO would talk about a trade loss of that kind when his firm was making $18 billion dollars a year. The smell meter that the situation was much more serious than $2 billion lit up the light bulbs on the GATA camp scoreboard. Since then New York Times has reported the amount of the loss could be as high as $9 billion.

The bottom line here: my well informed source tells me that the Jamie Dimon lament is about a derivatives problem that also involves the silver position JPM took over for the Fed when Bear Stearns went belly up. I hope to have more particulars on this declaration in the near future. The main point is that JPM has some serious issues with their present short silver position and is having difficulty extricating itself from that position. Whether it has to do with coming up with a large amount of borrowed physical silver, I am not sure. We will stay on the case and report on any new developments.

Should the CFTC finally release a verdict (as Bart Chilton advised SD readers would be coming by September) implicating JPM of manipulating silver, we are potentially looking at a perfect storm of scandals converging on The Morgue at the same moment.

Got Popcorn (and Phyzz??)

Comments

  1. I don’t doubt Murphy’s information, but I doubt anything will happen.  Silver is nothing more than a gnat on the back of a LIBOR elephant.  All we can do is continue buying at depressed pricing as long as we can, and thank the Morgue for the opportunity in a couple of years.

  2. So the April ’11 run up was an example of what would happen if they took their foot off the brakes. No wonder they will fall on their swords to keep the spot prices down.  Once it breaks out, everyone will want a piece of the action, and there aren’t enough pieces.
    I would remind them that production and scrap recovery has been hindered by their low price program, so it is their own fault the market is a ticking time bomb.

    Big Badda BOOM-  someday soon.


  3.  

    GATA’s reputation has been stellar over the years (they don’t sell gold or silver).
    This story would prove that silver is indeed the Achilles’ Heel of the bankers financial system, as some have proclaimed so often in the past.  So, silver may not be just a ‘gnat on the back of the LIBOR elephant’.  Silver will prove to be the one ’secret weapon’ that will bring the current financial system of the world to its knees.  (Is there anything else in the world that has government regulators investigating price manipulation and suppression for an astonishing 4 years?!?!)

  4. So the CFTC will release a verdict  that the Morgue has manipulated silver.  Gotta admire Murphy’s optimism.  Hope springs eternal . . . . .

  5. I’m of the opinion that the had to stop suppressing the price because at that time, physical supply was tight (like it is now), and Sprott was buying up silver for his PSLV.  So, if they pushed down the price, then Sprott would have gotten all the physical there was left, and they would not be able to make delivery.

    Well, now, it seems that physical is tight, and Sprott has again started to buy silver for the PSLV ($200 million worth) ….
  6. Let me guess… The day after the manipulation is revealed the next [big war / terror attack / financial breakdown] starts and everyone drops the ball. Just like the Trillions “missing” on September 10 2001. Just like the Obama BC. Or anything other of real importance.

  7. …or “JPM had the hedged silver stored away in a vault, but [Al-Assad / Kony / Alqaeda] made off with it”.

  8. The problem is JP Morgan is doing the manipulation with the full backing and interest of the US Treasury.   Because they are acting as an agent of the US Government, they are not guilty of a crime and will not be forced to stop.

    The only thing that will stop this is natural market forces.  The big question is will the SLV share holders get thrown under the bus?   Until the SLV runs out of physical metal, this crap is going to continue.   For sure, a lot of what SLV holds is paper contracts, but they do have some physical metal.   If we knew how much, it would be much easier to guess when the gig was going to be up.

  9. Hey #427, are you reading this?

    From the ‘You-Can’t-Make-This-Shirt-Up’ Department:

    Ford Motor Co. is telling owners of the brand-new Ford Escape not to drive the SUVs until dealers can fix fuel lines that can crack and spill gasoline, causing engine fires.  Dealers will pick up the Escapes and drop off a loaner car that customers can use until the repairs are finished.

     

    This is the second recall of the redesigned Escape, which went on sale in June. On Saturday, the company said it would recall more than 10,000 Escapes to fix carpet padding that could interfere with braking.

    -  -  -  -  -  -  -  -  -

    They may have built cool vehicles in the past, but that was then ans this is now.  People who believe Fords are the best vehicle out there are the same as the people who still believe that real estate always goes up.

     

  10. So, back on-topic…’for no apparent reason they were compelled to stop manipulating the Silver market?’  Perhaps the reason was to, afterwards, rake in massive profits off those who believe the price will shoot back up to $50/oz within a year.

  11. Mammoth  Said:
    So, back on-topic…’for no apparent reason they were compelled to stop manipulating the Silver market?’  Perhaps
    the reason was to, afterwards, rake in massive profits off those who
    believe the price will shoot back up to $50/oz within a year.

    Many of the people that follow the Open Interest numbers on the COMEX think that when the manipulators reduce or eliminate their short position enough, they will just step aside and let the price run.   Or they may even go long.

    My concern is this is like a soldier in a fire fight.  If they get get their short position reduced enough it means they can open fire again with big barrages of shorts.   The good news is there are a couple of thing that may keep this from happening.   First, the physical market is getting awful tight.  It doesn’t do any good to smash the price if you can’t placate demand.  The other thing that is going to be helpful is JP Morgan is coming under the microscope for manipulation in a lot of different markets.  They may not be willing to take the heat for such a small market as Silver.

  12. I’m telling you guys, no other explanation makes sense other than that there are good guys taking them out.

    If JPM was forced out for a period of silver manipulation, it was compelled to do so by someone extraordinarily powerful…it was to prove a point: without them the price of silver would soar.

    If this does converge with a LIBOR/Derivative/Silver investigation resolution….there can be other other explanation for what’s going on.

     

  13. If this is true, we should start seeing the silver manipulation stop now or very soon. JPM is well aware of any decision if it is truly coming in the next 30-60 days. If so, they would be exiting their shorts now so they aren’t caught flat footed again when the verdict is announced. JPM wouldn’t keep the manipulation going until the last moment and have every hedge fund on the other side of the trade bidding up silver against them.

    If we don’t see silver start rallying very soon, then I have to say this is likely bogus.

  14. Funny, isn’t it?

    They manipulate prices down, physical gets tight. 
    They halt their manipulation for a moment, and people hoard silver in overdrive.
    Silver stackers are really frustrating that way. They buy like it’s a whole city for a dollar when it’s cheap. They spend their last penny like it’s the last drop of water in a global desert, when it goes up too quickly. Selling, they’ll only do when they have to, or to swap to gold when the ratio seems favorable (and it usually turns out later it in fact was).
    The stacking is comulative, there is no net balance as with the tides. Stackers take, and they take. Put it in their wills, promise it to unborn grandchildren as study funds, or bridal treasuries.
    So, JPM go back to manipulating it down, to build the thickest long they possibly can. As now they know what happens when they were to manipulate the prices UP in their own favor. Holding down is too much like swimming up the stream. Only good for over-ripe salmon about to die anyways.
  15. You may well be correct, Plebian.  Though, I don’t necessarily think the general public will see silver as a monetary canary in a coal mine.  The Morgue is shorting silver because they were stuck with the Bear Stearns short.  Though, folks could certainly argue that they haven’t done much to exit their shorts since 2008.  Silver will begin to topple JP Morgan by late fall or early winter this year.  They’ll cry out for a Mulligan, and the Fed will help them.

  16. Never Weaken  Said:

    Silver will begin to topple JP Morgan by late fall
    or early winter this year.  They’ll cry out for a Mulligan, and the Fed
    will help them.

    I disagree.   They will be flat or long before they release the price.   Remember, they have the full backing and support of the US Treasury.  They won’t be held accountable for their actions.

  17. I had a thought in regard to this story that I decided
    I’d toss on the table for the hell of it. The ‘exercise’ could have been a ‘fly-over
    surveillance’ to discover what patterns would emerge, so as to map out a more
    economically sustainable strategy for attacking the next ‘run-up’. I don’t
    know, for what it’s worth, it’s just a suspicion that popped into my head.

  18. The very next time that the CFTC gets off of its ass and does something that is actually useful will be the very first time that has happened.  :-(

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