Mark McHugh

Guess Who’s Buying Silver NOW?

In Open Thread on Monday, April 11, 2011 at 10:21 am

OK, so the JPM vault that contains a whopping 30,844 ounces of silver (about two hours worth, given the torrid pace at which JPM delivers) was just approved by the COMEX in March.  JPM’s probably got lots of silver stashed all over the place, right?  Maybe, maybe not.  One thing is for sure, JPMs customer(s) are some of  the worst investors the world has ever seen.  After selling almost 5 million ounces in the first three months of 2011, they’re buying now.  That’s right, in March alone they delivered 374 contracts (@ 5000 ounces each) and bought…..zero.  So far in April, they’ve bought 92 contracts and sold, you guessed it….the goose egg.  And yes, they are indeed buying at new highs (See here and here).  How bad would it suck if we learned that this clueless market participant was in fact the US government?

If you’d like to track the hilarity yourself, here’s links for the daily, MTD and YTD action on the COMEX.  Daily updates on COMEX silver stocks can be found here (xls format).

Apparently there are still quite a few out there who believe this is all part of some Jamie Dimon mindfreak.  Good luck with that.

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  1. [...] Guess Who’s Buying Silver NOW? « Across the Street Posted by SilverStocksBullion at 8:31 pm blog comments powered by Disqus [...]

  2. Why would our gov be purchasing silver from JPM ? Would it be to help bail them out of their stupidity ?

  3. Rooster,

    The military uses silver. In doing research for this piece I ran across this 1981 article talking about the poor timing of the sale of government’s silver stockpile:

    http://news.google.com/newspapers?id=oxQSAAAAIBAJ&sjid=d-4DAAAAIBAJ&pg=6783,26722&dq=silver+cruise+missile&hl=en

    The article states that each cruise missle required 5,000 ounces of silver (remember this is 1981). I am sure newer missles use less, but still a significant amount. I believe the government is telling the truth when they say the stockpile is gone, and can’t find details of who the government sold all their silver to, but I’ll bet JPM was one of the main buyers.

    One of the key points of this piece is how JPMs big “customer” (who I believe is the government) is now purchasing silver, AND they did not purchase it from JPM. They had to buy it from others at the COMEX at prices that have more than doubled in the past year. In other words, JPM couldn’t fill the order. That evidence indicates that BOTH the US government and JPM are out of silver. Given JPMs commitments and the US governments demand, that sets the stage for a price explosion in silver the likes of which none of us has ever seen before.

    The government can’t bail them out. There is no amount of lies that will make silver suddenly appear, unless silver holders panic and sell.

  4. [...] Now April 11th, 2011 • Filed Under •Filed Under: Blogs Submitted by Mark McHugh from Across The StreetGuess Who’s Buying Silver NOW?OK, so the JPM vault that contains a whopping 30,844 ounces of [...]

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