Did JP Morgan Just Tip off PAAS That Gold & Silver Are About to Explode Higher?

Pan American Silver (PAAS) announced out of the blue yesterday that just THREE weeks after it announced that it had implemented hedges for a significant amount of its gold and silver production, it had decided to remove them.  This was a stunning and rapid reversal of a big financial decision.
One of the primary Wall Street firms that “advises” PAAS is JP Morgan.  JP Morgan has spent the better part of the last 9 months eliminating its massive, manipulating short position in Comex gold and silver contracts and has actually amassed a considerably large long position in gold contracts.
My bet is that JP Morgan advised PAAS that, based on what it knows as an insider to the precious metals market worldwide, putting on those hedges was not a good idea.
This latest move by PAAS further confirms my view that the metals are marking some time here – ostensibly until after the next FOMC meeting next Tues/Wed – before they begin to make a move to the upside that will take everyone except the hardiest of precious metals investors by surprise.

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From Truth in Gold:

It looks like Obama finally put the finishing touches on his fade from attacking Syria without justified provocation.  Hell even AP has ripped to shreds any of the “evidence” that Obama has offered up as proof Syria even used chemical weapons at all:  LINK  What’s most stunning about this whole ordeal to is the ineptness with which Obama and John Kerry handled the entire situation.   This whole stunt the Obama regime tried to pull off was pathetic from start to finish.

To me the worst adjective that anyone can label anything is “pathetic.”  What’s hilarious about the whole ordeal is that the Democrats and CNN are now assuming the role of the neocons and the Republicans in Congress are now largely the pacifists.  It pretty much leaves one speechless.  Certainly anyone who originally supported and loves Obama unequivocally CAN NOT support this tragically pathetic neocon now…

At any rate, I am starting to conclude that gold and silver are marking time for a big move to the upside.  My latest indicator?  Pan American Silver (PAAS) announced out of the blue yesterday that just THREE weeks after it announced that it had implemented hedges for a significant amount of its gold and silver production, it had decided to remove them.  This was a stunning and rapid reversal of a big financial decision and it must have cost them a lot of money to remove the hedges.  I’ll know if the cost was big enough that have to disclose the details in their next 10-Q (it will be pigeon-holed in the footnotes for sure).

I have never cared for PAAS as an investment because I have found the management to be incompetent and full of crap.  More important, they have always been a hedger.  But probably the biggest red flag for me with regard to PAAS is that Bill Fleckenstein was on the board of directors until the end of 2011.   Fleckenstein is probably one of the most disingenuous and incompetent market analysts out there.  For some reason he gets air-time on CNBC, but probably because he represents the “contrarian” investor viewpoint and CNBC has also figured out the he’s an idiot.  We certainly know that CNBC features nothing but idiots.

At any rate, one of the primary Wall Street firms that “advises” PAAS is JP Morgan.  JP Morgan has spent the better part of the last 9 months eliminating its massive, manipulating short position in Comex gold and silver contracts and has actually amassed a considerably large long position in gold contracts.  My bet is that JP Morgan told PAAS that, based on what it knows as an insider to the precious metals market worldwide, putting on those hedges was not a good idea.

There are plenty of other signals being flashed loud and clear for anyone who is paying attention, but this latest move by PAAS further confirms my view that the metals are marking some time here – ostensibly until after the next FOMC meeting next Tues/Wed – before they begin to make a move to the upside that will take everyone except the hardiest of precious metals investors by surprise.

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