You’ve probably heard about silver price manipulation. There are plenty of people online who believe that silver prices are undervalued because major players on the silver market, or potentially even governments, want it that way. Many have been investing in silver for years and they’re mad that their investments aren’t worth more. But there may be some truth to at least one theory, because silver hoarding has certainly happened before. The main culprit: JPMorgan, which simultaneously is the biggestsilver short seller and holds one of the world’s biggest silver positions.
COMEX, the world’s primary futures market for silver, gold, and other precious metals, has seen silver short trading dominated by JPMorgan since 2008. That was when it bought Bear Stearns for $2 a share. Bear Stearns was an investment bank that was essentially facing a run in 2008 on the heels of the 2008 financial crisis. The takeover had the backing of the U.S. Federal Reserve and Treasury as the United States government scrambled to save too-big-to-fail banks. In the case of Bear Stearns, they were facing a liquidity crisis with $46 billion in subprime mortgage loans under question, followed by a long line of hedge funds taking their money out.
JPMorgan came to the rescue, buying out their rival at a steep discount. As it turned out, Bear Stearns had, up to that point, been the leading silver short trader on COMEX, troubled at a time when silver was skyrocketing. Since then, JPMorgan has profited from every short silver position it’s ever taken while also creating the largest silver holdings ever (even more than the Hunt brothers), all at deeply depressed prices of its own making.
The prevailing theory is that JPMorgan has been driving prices down with its massive shorts to accumulate a large stockpile of silver in preparation for a major price lift off.
If it all seems unfair to you as a silver investor who’s been waiting years to see under-valued silver prices come back, stop despairing and start getting ready for the big one. You can’t fight silver price manipulation, but you can ride the waves. After ten years of silver price manipulation, JPMorgan isn’t the only one that can buy silver at low prices.
You can start investing in silver now. The same low prices JPMorgan has benefited from are available at silver dealers like Silver Gold Bull and others. They sell silver bars and silver coins to investors who want to own the real deal. A big part of investing in silver is holding real precious metals. One of the consequences of COMEX short selling is that there is a lot more paper silver than real silver, and silver mines couldn’t possibly deliver all the futures on the silver market.
Don’t get caught when a big silver short fails, as it almost did when Bear Stearns was floundering. Buy real silver from dealers like Silver Gold Bull online. You can store silver in your home or in global allocated storage. Ask dealers about keeping your silver safe in insured storage.
Don’t let silver price manipulating keep you from investing in silver. Take advantage of artificially low prices and get yourself ready for the changing tide.