Silver News Explodes; JP Morgan Admits Guilt!

(JP Morgan admits they are short silver!)

Silver Stock Report

by Jason Hommel, December 15th, 2010

JP Morgan admits guilt, admits being short silver, admits to wanting to buy back silver to cover their short positions, to appease guys like us on the internet! This is astounding!

It appears to me that the righteous are gutting the evil, and that only a few handful have the most powerful people in the world on the ropes, as if Bible Prophecy were being fulfilled here:

Leviticus 26:8 NIV
Five of you will chase a hundred, and a hundred of you will chase ten thousand, and your enemies will fall by the sword before you.

But getting back to JP Morgan on the run, we've seen this kind of corporate behavior before. It took years after the time that Barrick Gold first admitted they wanted to cover their short gold position, and until when they finally covered their gold shorts -- but they never really covered, they simply sold their short position back to the bankers like JP Morgan.

Similarly, it could be years, if not decades, for JP Morgan to unwind their silver shorts, and this is no exaggeration. True, JP Morgan can cover by giving paper money settlements, or settle some via SLV shares, or close out positions by not buying silver, but if they do, their clients who wish to be long silver, will then likely start scrambling for physical silver, which should start to happen anyway, just on this news announcement.

The main points that many commentators and news journalists continue to ignore, is that the silver does not just trade on COMEX, it trades much more in London, "over the counter", where nobody can take delivery without paying a 17.5% Value Added Tax, which prevents nearly everyone from taking delivery! What a scam! No news commentators seem to acknowledge this VAT London silver tax yet.
>www.jhmint.com, our company that can deliver silver fast, in about 2-5 days, rather than the usual 2-5 months. Furthermore, we can buy silver for you, cheaper, in bulk quantities from many major wholesalers, mints, and refineries.

The premiums for "fund silver" is often 12% over spot when you buy CEF, or PSLV!

CEF NAV >http://www.barchart.com/profile/etf/PSLV PREMIUM OVER SPOT: 12.94/11.53 = 12.2%

BUT, our premiums for real silver, SHIPPING AND INSURANCE INCLUDED, ARE LESS! SEE

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More news! Tomorrow, the CFTC was supposed to release new position limit levels for silver!

CFTC admits will miss deadline on position limits
>http://gulfnews.com/business/markets/reality-of-the-great-silver-squeeze-1.730074

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The Financial Times acts as an unofficial mouthpiece for JP Morgan, leaking their desire to cover their shorts, hoping people will misinterpret this as if the already have covered their shorts, without quoting anyone at JP Morgan.

Disgusting! More manipulation of public opinion.

>http://blogs.barrons.com/focusonfunds/2010/12/14/report-jp-morgan-cutting-back-big-bets-against-silver/?mod=rss_BOLBlog

The Story makes "Beacon Equity Research", and it's a great sum up. They mention GATA and Ted Butler at the start, but they fail to mention the BIS report of "over the counter" "other precious metals" derivatives that have been as high as $203 billion.

>http://www.gata.org/node/9420

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Here's an interesting article on silver I can not let pass by.

Sprott writes a silver report that reveals that ETF silver is not counted in the "demand" numbers for silver.

Something's Wrong in the Silver Pit: But It's Much Bigger than J.P. Morgan


Read my report on the CFTC hearings from back in late March, here:
>http://www.facebook.com/jason.hommel

>The Silver Conspiracy From JPMorgan Makes No Sense And They Could Actually Be Making Money

Really Mike? Well, you asked, so don't get mad at the answers.

1. Where is the proof JP Morgan was short silver? 25 lawsuits against them, based on Bear Stearns' positions which they acquired, and the BIS reports showing up to $203 billion in OTC other precious metals notional derivatives values.

4. Where is the conspiracy? Well, how about the CFTC looking the other way for years, and denying everything that was just admitted today by JP Morgan themselves? If JP Morgan is shorting for the Fed to maintain the dollar, this is a big conspiracy to prop up the currency of the dollar.

5. No logical reason to be short? Um, propping up the bad currency is a big important thing to do, somebody has to do it.

6. Opportunity to gain? Who else can JP Morgan buy silver from, to cover up to 3.3 billion oz, when the world mines 700 million oz. in a year? Nobody has that much silver. Nobody else is selling; that's the problem of a concentrated position, there is nobody else to trade with to unwind the trade; they were the primary sellers.

7. Everyone should be happy with a low silver price? Silver is money, it's savings. Many investors have died waiting for silver to rise, and they never benefited, and lived in poverty while waiting, and were essentially defrauded here by this. Low prices are not good for miners, either, who produce essential things for the world like zinc, copper, lead, and gold, as byproducts of silver.

8. Sillyness to suppress markets for decades? Read the Bible, these things go on for 40 to 80 years at times. This time, it has lasted since 1913, and it's not over yet.

My God, was Mish That wrong about that many things? Can't be by accident, I think, but you never know.

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Someone named Kid Dynamite tried to refute my estimate that JP Morgan is short by 3.3 billion oz., but he had to retract his statement that such a position was impossible, and the discussion revealed new evidence that JP Morgan could be short by as much as 6.6 billion oz., or $100 billion at $15/oz., which could be $200 billion today. The reason is that the BIS report that nobody mentions, used to say the total notional value in derivatives for "over the counter" other precious metals, as of June, 2009, was $203 billion, but this number was revised to $93 billion sometime after I wrote to the US Justice Department about JP Morgan's silver position back in April, 2010, here, where you can see the original number in my archives.

JP Morgan and the Massive Silver Short: The Greatest Story Ever Told
http://seekingalpha.com/article/241152-jp-morgan-and-the-massive-silver-short-the-greatest-story-ever-told#comment-1348412