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Showing posts with label invest gold and silver. Show all posts
Showing posts with label invest gold and silver. Show all posts

Thursday, December 16, 2010

JPMORGAN CUTS BACK ON US SILVER FUTURES

JPMorgan cuts back on US silver futures

Jack Farchy in London and Gregory Meyer in New York
December 13, 2010
www.ft.com

JPMorgan has quietly reduced a large position in the US silver futures market which had been at the centre of a controversy about its impact on global prices for the precious metal.

The decision by JPMorgan was an attempt to deflect public criticism of the bank's dealings in silver, a person familiar with the matter said. The person added that the bank's position in silver would from now on be "materially smaller" than in the past.

A group of small precious metals investors has alleged that large short positions – or bets on lower prices – in silver futures held by several banks, including JPMorgan, are keeping prices artificially low.

The US regulator, the Commodity Futures Trading Commission, announced in September 2008 that it was investigating complaints of misconduct in the silver market, although it did not name specific entities.

However, JPMorgan said in a statement: "It is absolutely incorrect to say or imply that the Nymex, CFTC or any other exchange or regulator has instructed or asked us to reduce our position." The bank declined to comment on whether it had reduced its position in the silver market.

The price of silver has risen more than 70 per cent since mid-August to hit a 30-year high of $30.68 a troy ounce last week on the back of a surge in investor buying and a rebound in industrial silver consumption.

In two previous reviews of the silver market, the CFTC has dismissed claims of manipulation. Most analysts say there is little reason to believe the price of silver is being systematically manipulated.

But, Bart Chilton, a CFTC commissioner, said in October that he believed there had been "fraudulent efforts" to "deviously control" the silver price. He did not name any party.

Publicly available data on individual traders' positions are sketchy. In a speech last Wednesday, Mr. Chilton said that "earlier this year, one trader held more than 40 per cent of the silver market". He declined to identify the trader.

The CFTC's Bank Participation Report shows that one or more US banks held a gross short silver futures position equal to 19.1 per cent of the total number of outstanding contracts in early December. In January the share was 30.2 per cent.

The CFTC only reports data for the US silver futures market, a small corner of the global derivatives market for the precious metal, which is centered in London and largely traded via private over-the-counter deals. The data also do not cover transactions in the physical market.

Analysts and traders said that JPMorgan's large short positions on New York's Comex exchange, a division of Nymex, were hedges for the bank's long positions in physical silver and London's over-the-counter market.

JPMorgan has invested nearly $3bn over the past two years in its commodities business led by Blythe Masters.

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Thursday, September 18, 2008

Ron Paul on the current financial crisis

http://www.libertymaven.com/2008/09/18/ron-paul-rants-on-the-lunacy-of-foreign-aid-while-america-is-bankrupt/1952

If you have the jitters about the stability of your bank, your retirement funds, 401Ks, your stock portfolio, you have good reason.

Ron Paul again offers sound economic policy, if only the rest of "them" would take it to heart and decide our best interests are what will propel the US into economic and financial security. Included in this entry from Liberty Maven, are videos.

Washington Mutual (WAMU) is on shaky ground and is expected to slide into the pit soon.

Here are a list of bank failures. Is yours there? http://www.fdic.gov/bank/individual/failed/banklist.html

Next time you get paid or visit your bank, take enough out to buy one gold coin. A Krugerand if you can afford it, a silver bar (they aren't expensive), a vial of silver dimes or quarters. Hold it in your hand. Here in your hand, is wealth. Look at one of our dollar bills. What is that, anyway?
A piece of paper. Funny money. Faith based? Faith in what? The money machine switch is turned on at the Federal Reserve as needed. Bail out a trillion-dollar failing bank and brokerage - no problemo. Fixed. Your money is devalued. Worth less. It is FIAT MONEY.

My friend, a coin dealer whom I've known for years did just that for me several months ago.
He held up a tube of Krugerands and let me hold it. "Here. With this, in WWII, if you were in Italy, you could take one of these coins and get to freedom; get on a train, take it to Switzerland.
This will allow you to start over in any country in the world." With every financial crisis, with every bail out, with every collapse, our economy grows weaker. With every one dollar you deposit in the bank, they can loan out nine. They have loaned and loaned, and if you look around, are you seeing banks sprouting up like crocuses in spring? And they don't seem to have apparent business. How are they staying in business? They are the children of other banks, loaning out nine dollars for every one.

Glenn Beck
's on the radio. He just said, "The value of the dollars is just...worthless." http://www.cnn.com/2008/POLITICS/09/17/beck.wallstreet/index.html?iref=topnews

Maybe you'd better listen or view the transcript of his program today. He's getting really deep, discussing US T-bills/bonds going into default. People are running to gold.

If your finances are a mystery, get smart. Don't trust so much you lose it all. Protect yourself. Your bank could fail overnight. It happened in 1929. I remember images from old newsreels of men with wheelbarrows full of paper money. It was WORTHLESS.




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