A Specific Peculiarity

by Turd Ferguson, TF Metals Report: For years, we've watched JPMorgan stockpile what is alleged to be physical gold and silver in their Comex vaults. However, something has changed over the past four months and we thought we should bring this to your attention today.

First some background...

During the silver price run-up of 2011, JPMorgan was seemingly caught flat-footed. They appeared to hold a massive paper short position while simultaneously holding no visible physical position. At the time, JPM did not have a Comex silver vault and, as the CFTC-generated Commitment of Traders data showed at the time, the last $10 of price surge was almost entirely due to a "commercial" short squeeze. The most likely "commercial" being squeezed in April of 2011? JPMorgan.

Also in the spring of that year, the was a rapid approval for JPMorgan to start their own Comex silver vault. Evidence of this can be found when we review how this vault came about in March of 2011. This old link details how JPM was suddenly and quickly approved to establish this new Comex silver vault: https://seekingalpha.com/article/259549-will-jpmorgan-now-make-and-take-delivery-of-its-own-silver-shorts

After starting from ZERO in 2011, JPM has quickly amassed a horde of Comex silver and now has a virtual stranglehold and monopoly on this "market". As of last Friday, JPM's Comex silver vault held 112.5 million ounces versus a total Comex vault of 213.3 million ounces. This means that JPM now holds/controls nearly 53% of all silver backing the Comex silver paper derivative exchange.

To help you better understand the scope of this, check these next two charts (click to enlarge). First, here's an old Comex silver stocks report from June 3, 2011. Note the following:

Prior to JPM's inclusion in 2011, there had only been FOUR Comex silver depositories. After the first 60 days or so, JPM had only brought in 750,761 ounces, all of it marked "eligible". The total amount of silver held in all vaults was just 100,535,272 ounces.

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