Where Then is the Money Flowing?

No doubt some money is leaving U.S. equities and heading toward developing country equity markets. But I’m guessing some money is escaping establishment U.S. investments for commodities over the past 10 days. Prices have been strong for oil. For example, WTI Is up 3.2% from $57.32 to $59.15 and copper has gained 5.78% from $2.77 to $2.93 during the last 10 business days. You might assume money is not going into gold and silver given their price patterns during the last 10 days, but the fatal flaw in making assumptions based on price of course is that you also need to know trading volume for the commodity in question. Moreover when it comes to gold and silver we know from our interviews with David Jensen listen at jaytaylormedia.com/manipulation that prices quoted for both gold and silver are fraudulent and manipulated by the very people that may be accumulating the most gold and silver.

silverAs David has pointed out with numbers backing up his claims, the major bullion banks, J.P. Morgan being the largest, systematically drive quoted price for gold and silver down by massive “paper” (actually electronic) sales of silver in the spot metals markets. It is important that you understand this is being done because these banks control the quotes you see every day for gold and silver and they are the phony prices paid to the mining companies we cover in this letter.

So it should be expected that J.P. Morgan (and its peers) who write our rules and control our regulatory process has been driving the price of silver down at the very time that they have been accumulating massive amounts of silver. I’m suggesting the same process is going on in gold as well. But based on the report from Resource Investors, I’m focusing my comments now on silver only.

The chart on your left displays the massive accumulation of silver by the biggest bullion bank of them all, namely JP Morgan Chase. But while JP Morgan may be convincing you to sell your physical silver by fictitiously driving these virtual spot silver prices down, that bank has been taking physical deliveries of silver at break neck speed. Yet this has had no impact on the quoted price of silver because these bullion banks can continue to deny true price discovery through their fraudulent manipulation of the silver (and gold) markets. For the record, as reported by Mark Obyrne, J.P. Morgan has taken delivery of 8.3 million ounces of silver in the past two weeks alone, thus leading to the spike up on the chart above showing the J.P. Morgan silver horde.

The article pointed out a comment recently made by Jamie Dimon in a recent letter to shareholders in which he warned of another financial market crisis looming over the horizon. It looks to me like Dimon is hedging some bets with this massive accumulation of silver that seems to be in an acceleration mode. Indeed the quickening of J.P. Morgan’s accumulation of silver has taken place exactly during the last 10 days when money has been leaving both the equity markets and the U.S. Treasury markets! Given the small size of the silver markets, I’m not saying that accounts for the massive flow out of U.S. financial assets. But what better time could there be to buy silver and silver mining stocks than when a maker and shaker like Jamie Dimon is doing so?

About Jay Taylor

Jay Taylor is editor of J Taylor's Gold, Energy & Tech Stocks newsletter. His interest in the role gold has played in U.S. monetary history led him to research gold and into analyzing and investing in junior gold shares. Currently he also hosts his own one-hour weekly radio show Turning Hard Times Into Good Times,” which features high profile guests who discuss leading economic issues of our day. The show also discusses investment opportunities primarily in the precious metals mining sector. He has been a guest on CNBC, Fox, Bloomberg and BNN and many mining conferences.