David's Commentary:
Can JPMorgan keep a lid on the prices forever?
Well, if profit has anything to do with it, then it benefits JPMorgan to let the price of gold and silver soar, since they have eliminated their massive short positions in paper on the Comex and they have accumulated a massive position in physical silver and gold.
According to Ted Butler’s research, over the past seven and a half years JPMorgan has accumulated at least 775 million oz of silver and 20 million oz of physical gold. That’s over $30 billion worth of physical gold and silver. I see no way that prices can’t at least double from their current level and a triple for silver seems conservative. They are sitting on a future profit of up to, or more than $100 billion. So why would they sit on the price forever?
They already accomplished what they started out to do; force the price lower by shorting and then accumulate as much gold and silver as possible - without pushing the price up. Goal accomplished! The only reason they would continue the suppression is if they are taking orders from the Fed or White House to keep a lid on gold and silver. That is certainly a possibility. Still, they were unable to hold down the prices during the 11-year bull market that took silver to $50 and gold to $1900. Richard Russell often wrote that the markets are bigger than any government or central bank. Once the bull takes center stage, it will trample anyone who gets in its way.
The following article by Egon von Greyerz is a must read. It is my “article of the week.” In it he warns,
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Risk is at a maximum and we are very near the start of one of the biggest secular bear markets in history. Now is the time to be safe rather than sorry.”
And isn’t that why most of us buy gold and silver? Being early is o.k. Being late is not. Don’t follow the majority of stock market investors to the bottom. Stepping aside, and taking a profit is good advice in any market that has advanced too far. Don’t assume that this will be just a “normal 20% correction” before the stock reverses and heads back up. Those of us who held onto our gold and silver all the way down from the peak in 2011 learned the hard way – just as the stock market crowd will learn their lesson too. As Greyerz says,
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The time of easy gains in markets is now over. With the Fed and other central banks tightening and with the 35-year interest cycle having turned up, the party is over.”
“Any savings in silver or gold will within the next few years be extremely valuable. Just look at the Venezuelans. The very few who bought precious metals a few years ago now have a fortune in Bolivars, after 1 million percent inflation just in 2018.
The only remedy central banks have when a country runs out of money is to print unlimited amounts of it. The current tightening by the Fed and other central banks will last for a limited period. At some point, when market has crashed, and the economy is collapsing, they will again resort to printing vast amounts of money. As always, they will be behind the curve and thus much too late. So, the money printing will have no beneficial effect on the economy but will make currencies worthless and most people destitute.”
There is still time to act but remember we are now on the cusp of a flood of destruction, which will make the world as we know it unrecognizable.