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Posted on 07/28/2024 10:29:25 AM PDT by delta7
In the July 18 edition of Gold Newsletter, editor and publisher Brien Lundin wrote about the failure of silver prices to keep up with gold prices. "I'm not the kind of conspiracy buff that many of my friends in the industry are," Lundin wrote, "but it's hard to look at silver and not see some hidden hands at work (especially considering who holds so much of the metal in both physical and paper forms while acting as custodian for the biggest silver exchange-traded fund)."
Of course, Lundin meant investment bank JPMorgan Chase and silver ETF SLV.
Why anyone would invest in silver or the other precious and monetary metals with JPMorgan Chase can be explained only by ignorance.
In the last decade, the bank has pleaded guilty to five felonies and has paid more than a billion dollars in government fines and civil lawsuit settlements, including a fine of $920 million for manipulation of the monetary metals markets by some of its traders:
https://www.justice.gov/opa/pr/jpmorgan-chase-co-agrees-pay-920-million-connection-schemes-defraud-precious-metals-and-us
But silver market manipulation long has been bigger than even JPMorgan Chase.
Indeed, silver price suppression has been U.S. government policy since President Lyndon B. Johnson signed the Coinage Act of 1965, which removed silver from the country's money.
Signing the act into law, Johnson proclaimed: "If anybody has any idea of hoarding our silver coins, let me say this. Treasury has a lot of silver on hand, and it can be and it will be used to keep the price of silver in line with its value in our present silver coin. There will be no profit in holding them out of circulation for the value of their silver content":
https://www.presidency.ucsb.edu/documents/remarks-the-signing-the-coinage-act
https://www.gata.org/node/15838
It's not known how long the U.S. government's strategic silver inventory lasted after 1965 and how much was used for executing the price-suppression policy Johnson proclaimed, but eventually, collectors and investors did exactly what the president warned would bring them no profit. They removed the silver coins from circulation and hoarded them as the steady inflation of the U.S. dollar made them worth far more than their face value.
JPMorganChase Bank long has been a primary dealer in U.S. government securities and has been particularly close to the U.S. Treasury Department, so when SLV was launched in 2006 and the bank became custodian of the fund's silver, suspicion of government involvement with the bank and the ETF was fairly aroused. (The bank now is also the custodian of the metal of the major gold ETF, GLD, prompting more fair suspicion.)
After SLV was founded, complaints that JPMorgan Chase was manipulating the silver market grew loud enough that the bank felt obliged to answer them publicly.
First, the bank's CEO, Jamie Dimon, said the bank had no interest of its own in the monetary metals and traded them only for clients. Then in 2012 the head of the bank's commodity desk, Blythe Masters, went on CNBC to emphasize this denial, particularly in regard to silver.
"There's been a tremendous amount of speculation, particularly in the blogosphere, on this topic," Masters told the CNBC reporter. "I think the challenge is that it represents a misunderstanding of the nature of our business. ... Our business is a client-driven business where we execute on behalf of clients to achieve their financial and risk-management objectives. ... We have offsetting positions. We have no stake in whether prices rise or decline."
See: https://www.gata.org/node/11216
But since CNBC is a mainstream financial news organization, its reporter failed to put the critical follow-up question to Masters: Do JPMorgan Chase's clients trading silver and other monetary or precious metals include governments, particularly the U.S. government, directly or indirectly?
The answer to that question was provided inadvertently 10 years later, and barely noticed by mainstream financial news organizations, during the trial of the JPMorgan Chase traders charged with and convicted of "spoofing" the monetary metals futures markets. In the very last paragraph of its July 31 report about the trial, Bloomberg News reported:
"Another set of important clients were central banks, which trade gold for their reserves and are among the biggest players in the bullion market. At least 10 central banks held their metal in vaults run by JPMorgan in 2010, according to documents disclosed in court":
https://gata.org/node/22108
A mechanism for governments to use for surreptitious manipulation of the monetary metals futures markets was already in place at CME Group, operator of all the major futures exchanges in the United States. It is called the Central Bank Incentive Program, whereby CME Group exchanges provide volume trading discounts to governments, central banks, and international organizations for trading all futures contracts on CME Group's exchanges.
CME Group's master statement to the U.S. Securities and Exchange Commission says: "The customer base of our derivatives exchanges includes professional traders, financial institutions, institutional and individual investors, major corporations, manufacturers, producers, governments, and central banks":
https://www.gata.org/node/18925
http://investor.cmegroup.com/node/43571/html
https://www.gata.org/files/CMEGroup-CentralBankIncentiveProgram-Feb2019.pdf
So there remain some compelling questions in the monetary metals sector.
-- Would Western governments and particularly the U.S. government have worked so hard for so long to control the price of gold, as documented by GATA here --
https://gata.org/node/20925
-- while leaving the other major monetary metal, silver, alone?
……more……
My mother started pulling all silver coinage and saving it, as did many who didn’t trust our government. One Pre-65 Dime, 10 cents , silver, is now worth just over 2, $1 paper notes ( $2) in melt value.
Keep in mind our silver coinage was not pure silver, copper added to increase its hardness. That said, 10 silver dimes ( $1 ) is worth today 20 paper Federal Reserve notes ( $20 dollars).
It requires some thought, but it is easy to see how much paper dollars DECREASE over time.
What about Gold? Well, a US $20 pre-1933 St Gaudens US gold coin is now bringing $2400 +/-. Why would anybody hold paper dollars over time?
” $1 paper notes ( $2) in melt value.”
LOL!
Last fact:
Our Penny, pre-83 , copper, is now worth $0.027 in paper Federal Reserve notes.
It doesn’t take a genius to see how much our paper Federal Reserve notes is losing, every day. US paper dollars are for spending, Gold and Silver is for preserving wealth.
My ‘precious metals’ are LEAD & BRASS.
It is hard to explain how quickly our USD is losing value. Maybe others can explain it more clearly.
My ‘precious metals’ are LEAD & BRASS.
————
A good start. Lead and Brass ( copper zinc alloy) have been steadily rising also.
Hint: these metals really aren’t going up in value, rather the amount of paper USD it takes to buy them is increasing ( loss of USD purchasing power).
“It is hard to explain how quickly our USD is losing value. Maybe others can explain it more clearly.”
Inflation due to irresponsibly increasing money supply.
A diversified portfolio should contain some other PMs as well.
Having some PMs are like having a maid or housekeeper. Everyone ought to have one.
It’s so simple it’s sad.
Printed money has no intrinsic value on its own. When the government “creates” money faster than the (REAL) growth in goods and services that means more dollars chasing fewer goods. Goods then cost more dollars, dollars worth less in purchasing power.
Unless there is a scarcity of a particular commodity, precious metals buy the same amount*.
*Unless the government artificially depresses the value of a metal as it has been doing for decades with silver and to a lessor degree with gold.
The government has created somewhere between $5 and $7 TRILLION dollars out of thin air since the fake pandemic was instituted. At a time when there were also fewer goods to go around. That’s probably a conservative number because the feds lie a lot about the annual deficit.
𝐊𝐞𝐲 𝐞𝐭𝐞𝐫𝐧𝐚𝐥 𝐭𝐫𝐮𝐭𝐡: 𝐈𝐧𝐟𝐥𝐚𝐭𝐢𝐨𝐧 𝐢𝐬 𝐜𝐚𝐮𝐬𝐞𝐝 𝐛𝐲 𝐠𝐨𝐯𝐞𝐫𝐧𝐦𝐞𝐧𝐭𝐬.
Enter Gresham's Law.
Have a bucket half full of clean water. It's valuable as a drinking source. Let government leaders piss into it. Now the bucket is fuller. But it doesn't have as much value, of less use and people would seek other sources of value.
“Our Penny, pre-83 , copper, is now worth $0.027 in paper Federal Reserve notes”
I have many thousands of these, but it’s illegal to melt them down. An article I just read says that if the Gubermint decides to discontinue issuing pennies then it would become legal to melt them down? I guess that has a possibility of happening.
Other than a 2019/ 500-rnd purchase, I have over 100k (8 calibers bought by palet loads) stockpiled from 2002-3-4-5, at the seriously cheap prices, to my business.
You’re probably right, but I don’t trust most of the PMs.
If YOU would like to be on a Gold & Silver PING LIST, please pm me.
The Gold & Silver Ping List covers the following:
Everything Gold & Silver
Stock market investments in mining companies,
etc.
Inflation due to irresponsibly increasing money supply.
————-
That really hits home when you use the Federal Reserve calculator.
https://www.bls.gov/data/inflation_calculator.htm
For example: enter $100 for year of 2000. You need $186.12 today to purchase what you could in 2000….and that is from Jerried Government Inflation rates.
Who in their right mind would “ save” USD’s?
And when the SHTF, you’ll actually be able trade with that!
The ideal level of inflation is 2%. Anything less (1%, 0% or even negative i.e. deflation) causes the velocity of money to decrease, negatively impacting economic growth.
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