An Interesting Comment on Silver Price (Not Mine) Hi, everyone,
Today I have read the following comment on silver price on Seeking Alpha. Please let me emphasize that it is not mine. It is in an article published today; its link is:
https://seekingalpha.com/article/1928171-Metals-Setting-Up-To-Kill-Remaining-And-Newly-Inaugurated-Bulls-In-2014
The comment is number 11 with the nickname, Thermalsight. The comment is:
“I will begin the civil discussion by proposing an alternative reason why silver has been dropping and why it will soon rally. I hope I get a civil response....we will see. I am not touting other analysts on Avi's board, but that is where I get my data. If you look at analysis done by Ted Butler and Casey Research you will see that JP Morgan has been accumulating silver since the peak in price in April 2011. Refer to this link and look at the chart of physical silver holdings at the Comex (https://bit.ly/1dEOmBK)
Every bit of that silver is now held at a loss. You have to ask yourself why JP Morgan is doing this. They currently hold nearly 25% of all the silver on deposit at the Comex, so this is not a tiny amount. Next, if you have been reading their articles for as long as I have, JP Morgan is very long silver in their proprietary accounts, but they have been advising clients to short silver. In addition, each day large numbers of silver contracts are being shorted, JP Morgan is taking the long side of those contracts. Why? If you look at this next link (https://bit.ly/1dEOoJY. scroll towards the bottom) you will see on the first day of January there were 1030 contracts posted for delivery (5000 ounces per contract) and JP Morgan took the long side of 988 of those contracts in their proprietary account. That's nearly 5 million ounces of silver in one day. As state in the article, JP Morgan is mega-short in the Comex paper market, but is taking physical delivery of every ounce of silver they can get their hands on.
It is my civil suggestion that what Avi is witnessing is the deliberate engineering of the silver price lower and the massive accumulation of physical silver by a single financial entity that has the full backing and support of the Federal Government. Silver is not lower because of sentiment. Silver is lower because the people with the hands on the levers of power want it lower so there is not a dollar collapse as a result of their reckless policies. JP Morgan is simply an arm of the federal government. With QE providing them all the cash they need to engineer the dramatic decline in price.
Now, the question is: what is the final end game? The last time we had financial institutions advising clients to take one position while the institutions were taking the opposite position, we had a financial meltdown (think mortgage backed securities). It is my opinion that outside influences (China and Russia) will ultimately overwhelm this scam that is being played out before our eyes and we will have a "melt up" in PM prices.
While Avi's analysis is interesting, I think they are merely lagging indicators of engineered price activities, The need for audibles is simply reflective of the need to quickly read what JP Morgan is doing today and try to be on the correct side of that activity. If you can make money doing that, fine. But really, as an engineer, should we not be performing root cause analysis for why these price movements are happening? Would you go to a doctor who says "I don't know why you are sick, but lets just treat the symptoms as they pop up?" Not me. I want to find the disease and kill it.
Now, Avi, I have tried to be as civil as possible and presented data. Will your response likewise be civil or will you start with insults a belittling comments. Let's have a "civility contest".
Civilly yours, Thermalsight”. End of comment.
Cheers
Studio10