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Silver News Explodes; JP Morgan Admits Guilt!

|Includes: Central Fund of Canada (CEF), JPM, PSLV

 Silver News Explodes; JP Morgan Admits Guilt! (JP Morgan admits they are short silver!) Silver Stock Report by Jason Hommel, December 15th, 2010

JP Morgan admits guilt, admits being short silver, admits to wanting to buy back silver to cover their short positions, to appease guys like us on the internet!  This is astounding!

It appears to me that the righteous are gutting the evil, and that only a few handful have the most powerful people in the world on the ropes, as if Bible Prophecy were being fulfilled here:

Leviticus 26:8 NIV
Five of you will chase a hundred, and a hundred of you will chase ten thousand, and your enemies will fall by the sword before you.

But getting back to JP Morgan on the run, we've seen this kind of corporate behavior before.  It took years after the time that Barrick Gold first admitted they wanted to cover their short gold position, and until when they finally covered their gold shorts -- but they never really covered, they simply sold their short position back to the bankers like JP Morgan. 

Similarly, it could be years, if not decades, for JP Morgan to unwind their silver shorts, and this is no exaggeration.  True, JP Morgan can cover by giving paper money settlements, or settle some via SLV shares, or close out positions by not buying silver, but if they do, their clients who wish to be long silver, will then likely start scrambling for physical silver, which should start to happen anyway, just on this news announcement. 

The main points that many commentators and news journalists continue to ignore, is that the silver does not just trade on COMEX, it trades much more in London, "over the counter", where nobody can take delivery without paying a 17.5% Value Added Tax, which prevents nearly everyone from taking delivery!  What a scam!   No news commentators seem to acknowledge this VAT London silver tax yet.

The London LBMA market is a part of the BIS report from the Bank of International Settlements, which mentions a total notional value of "over the counter" "other precious metals" as $127 billion.  No major news outlet has even acknowledged or analyzed the BIS report yet.  It's right here.

We charge a mere 4 to 6.5% over spot: 4% over spot for US 90% silver coinage, and 6.5% over spot for 1 oz. newly manufactured rounds! 



One reason we can get silver cheaper is that we have .999 fine silver that might not ever have paid extra to be LBMA certified, but it's good silver, nevertheless.  To be LBMA certified can take years.  Many smaller refiners never bother, and if they can't sell their silver on the open market, they get 2% under spot from the wholesalers.  But instead, they are now making investment silver bars and coins that are ISO9000 certified, and so good, that you can put them into an IRA account.  We can tap into that silver stream, and save you money.

If the market had any discernment, or ability to see through the lies, silver prices would exceed $50 to $100/oz. by the end of the day.  As it is, we may have to wait for the end of next year to see such prices, because it takes time to educate people when the media is filled with so much purposeful misinformation and lack of information.

More importantly, people should be buying silver, not from bankrupt JP Morgan, not from bankrupt COMEX, but from JH MINT, at, our company that can deliver silver fast, in about 2-5 days, rather than the usual 2-5 months.  Furthermore, we can buy silver for you, cheaper, in bulk quantities from many major wholesalers, mints, and refineries.

The premiums for "fund silver" is often 12% over spot when you buy CEF, or PSLV! 

PSLV NAV  PREMIUM OVER SPOT: 12.94/11.53 = 12.2%


The whole original point of these funds was that they were supposed to be able to save you money on silver, by buying silver in bulk, but if they now cost more, then now's the time to cash them out, and buy real silver for less!


More news!  Tomorrow, the CFTC was supposed to release new position limit levels for silver!

CFTC admits will miss deadline on position limits


Holy Smokes, Word is OUT!  Overseas!  GULF NEWS!  Excellent research here.  EXCELLENT ARTICLE!

Reality of the great silver squeeze


The Financial Times acts as an unofficial mouthpiece for JP Morgan, leaking their desire to cover their shorts, hoping people will misinterpret this as if the already have covered their shorts, without quoting anyone at JP Morgan.

Disgusting!  More manipulation of public opinion.

JPMorgan Cuts Back on U.S. Silver Futures
By Jack Farchy and Gregory Meyer

"The bank declined to comment on whether it had reduced its position in the silver market."  HA!  Misdirection!

The FT times headline is NOT what the bank actually says!!!  And the headline has absolutely zero factual substantiation!

If they can spin a "no comment" other people might spin this other ways, such as:

JP Morgan, bleeding money in silver short position in a rising market, begs circling sharks to not bite!

JP Morgan, caught with pants down around ankles, claims to not be flashing the neighborhood,

JP Morgan, while trying to pick up the soap in the prison shower, begs fellow prison inmates to not take advantage.

The Story makes Barrons, but they do no research.

DECEMBER 14, 2010, 9:56 AM ET
Report: J.P. Morgan Cutting Back Big Bets Against Silver

The Story makes "Beacon Equity Research", and it's a great sum up.  They mention GATA and Ted Butler at the start, but they fail to mention the BIS report of "over the counter" "other precious metals" derivatives that have been as high as $203 billion.


Market riggers are feeling the heat, so help GATA turn it up


Here's an interesting article on silver I can not let pass by.

Sprott writes a silver report that reveals that ETF silver is not counted in the "demand" numbers for silver.

Fraudulent supply/demand numbers, omitting investor demand, or calling it a "surplus", is part of the manipulation of silver prices.

Sprott, as good as they are, do not mention the BIS report.


A few days ago, I mentioned Rob Kirby's article, which was posted in full, here: 
Something's Wrong in the Silver Pit: But It's Much Bigger than J.P. Morgan

Kirby does mention, and investigate the BIS report!!!

I disagree with his main conclusion that the price ratio should be 3:1 silver to gold, based on the outstanding open interest, the price could do any number of things if people actually scramble for physical, and get out of these "bullion accounts" "over the counter" at LBMA member banks that cannot possibly have or store anywhere near $127 billion in silver, when the entire world mining industry produces so little, only $21 billion per year at 700 million oz. at $30/oz, and when only $3 billion in physical silver is actually being purchased annually for investment.


Skeptics continue to ask us to "prove" that JP Morgan was short silver, despite that they have now admitted it.

Hey, I was at the CFTC meeting, where the apologists said, several times, that the COMEX bank short positions were a hedge of "client long" positions.  At one point, Chairman Gensler asked what that meant, since it's obvious, that if the clients are long, then the firm is short, so they would be hedging a short with more shorts, which is the essence of market manipulation!  While they tried to avoid names, JP Morgan was fingered and proved to be the silver short with first hand evidence by Andrew McGuire at the hearings.  Or, in other words, there is no need to hedge client positions, since the clients want those positions!  You would only "hedge client positions" if the client positions would bankrupt the system if the banks had to deliver the silver that the clients want, so instead, they short silver, against their clients!

Read my report on the CFTC hearings from back in late March, here:

What other proof?
1.  Bear Stearns had a silver short position and was acquired by JP Morgan.
2.  25 lawsuits against JP Morgan for manipulating the silver market.
3.  Admission by Bart Chilton of the CFTC that one entity controlled 40% of the silver at COMEX.
4.  Admission by the Justice Department that they were investigating JP Morgan for silver manipulation, published by the NY POST.

Deniers are those who are ignorant, lack research skills, or who choose to lie to people.  JP Morgan can pay many people to lie.


So, here is a skeptic, denier, fool, paid disinformation agent, who knows.  Regardless, he needs to be answered.

I refute 8 major points in an article from Mike "mish" Shedlock at my facebook page.

Jason Hommel Most Prolific Idiot of the day on silver: Mike Mish Shedlock. So many errors, so little time.

The Silver Conspiracy From JPMorgan Makes No Sense And They Could Actually Be Making Money

Really Mike?  Well, you asked, so don't get mad at the answers. 

1. Where is the proof JP Morgan was short silver? 25 lawsuits against them, based on Bear Stearns' positions which they acquired, and the BIS reports showing up to $203 billion in OTC other precious metals notional derivatives values. 

2. Could JP Morgan hedge by buying the SLV? Well, the SLV has, like, what 350 million oz.? But JP Morgan might be short by up to 3.3 billion oz. That's not really enough to hedge; that's the main point.

3. Why didn't JP Morgan blow up long ago on silver shorts? JP Morgan has $2 trillion in capital, that's $2000 billion. Shorting 3.3 billion oz. at $5/oz. up to $30 is a loss of $25 x 3.3, which is a paltry $82.5 billion so far, most of which would not need to be paid, if OTC holders in bullion accounts never demand delivery, which they don't, because London has a 17% VAT on silver, making delivery very rare.

4. Where is the conspiracy? Well, how about the CFTC looking the other way for years, and denying everything that was just admitted today by JP Morgan themselves? If JP Morgan is shorting for the Fed to maintain the dollar, this is a big conspiracy to prop up the currency of the dollar.

5. No logical reason to be short? Um, propping up the bad currency is a big important thing to do, somebody has to do it.

6. Opportunity to gain? Who else can JP Morgan buy silver from, to cover up to 3.3 billion oz, when the world mines 700 million oz. in a year? Nobody has that much silver. Nobody else is selling; that's the problem of a concentrated position, there is nobody else to trade with to unwind the trade; they were the primary sellers.

7. Everyone should be happy with a low silver price? Silver is money, it's savings. Many investors have died waiting for silver to rise, and they never benefited, and lived in poverty while waiting, and were essentially defrauded here by this. Low prices are not good for miners, either, who produce essential things for the world like zinc, copper, lead, and gold, as byproducts of silver.

8. Sillyness to suppress markets for decades? Read the Bible, these things go on for 40 to 80 years at times. This time, it has lasted since 1913, and it's not over yet.

My God, was Mish That wrong about that many things? Can't be by accident, I think, but you never know.


Someone named Kid Dynamite tried to refute my estimate that JP Morgan is short by 3.3 billion oz., but he had to retract his statement that such a position was impossible, and the discussion revealed new evidence that JP Morgan could be short by as much as 6.6 billion oz., or $100 billion at $15/oz., which could be $200 billion today.  The reason is that the BIS report that nobody mentions, used to say the total notional value in derivatives for "over the counter" other precious metals, as of June, 2009, was $203 billion, but this number was revised to $93 billion sometime after I wrote to the US Justice Department about JP Morgan's silver position back in April, 2010, here, where you can see the original number in my archives.

In the discussion, I remembered that JP Morgan has permission from the US government to not disclose anything in their financial statements that might threaten national security, and this directly threatens the value of the US dollar, or Federal Reserve Note.  Thus, JP Morgan likely revised statements given to the BIS in light of the heat turning up on their silver short position.

The discussion on Kid's blog was the most popular article at seekingalpha for a few days.  I posted about 8-10 times at his blog.

JP Morgan and the Massive Silver Short: The Greatest Story Ever Told


Speaking of evidence and proof for the skeptics, I just remembered that the NY Post posted the emails from Andrew McGuire, where he outlined to the CFTC the manipulation, IN ADVANCE!

The NY POST then investigated, and discovered that two arms of the Federal Government were investigating JP Morgan's silver short position, and this was back in May, 2010!!!!

Feds probing JPMorgan trades in silver pit
Last Updated: 10:42 AM, May 16, 2010

===== is listing more and more silver and gold for sale. If we begin to run out, we may start listing our bullion for sale on their platform!

Follow Max Keiser's latest on "Crash JP Morgan, Buy Silver"!


I strongly advise you to take possession of real gold and silver, at anywhere near today's prices, while you still can.   The fundamentals indicate rising prices for decades to come, and a major price spike can happen at any time.

Become my friend on facebook!

JH MINT & Coin Shop, Grass Valley, CA -- minimum order $5000 for free shipping, USA shipping only.
Open 10AM to 5PM Pacific Time, Monday to Friday, closed weekends and bank holidays.  (Also Closed from Dec. 25th to Jan 1st)
(530) 273-8175
Kerri handles internet phone orders:
(530) 273-8822

For smaller orders, or for shipping overseas, see my Mom's Silver Shop in Sacramento, CA
3510 Auburn Blvd., #12  (Auburn & Watt Ave)
Sacramento, CA
(916) 481 5656


    Jason Hommel

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Additional disclosure: I own over 50,000 oz. of physical silver, and have it available for sale at