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As we all know JPM has been in deep water the last two weeks with regards to its $2 billion dollar trading loss using high risk derivatives. However the one thing that has surprised me is that there is no talk of JPM shorted silver positions. 

 "You don’t often get to buy something trading far below its free market price." - Ted Butler

 

That is the bottom line of a   http://www.investmentrarities.com/ted_butler_comentary04-16-12.shtml recent article by Ted Butler on his quest to end the manipulation of the silver price.  In this article he explains how JP Morgan holds 25% of the concentrated short positions in the silver market and how holding such a large position is actually manipulating the price of silver from its true value determined through the market.  The question that is established is  what a bank is doing holding so many short positions in the first place.

 

Since the economic bailouts, companies like JP Morgan have not learned their mistakes. Taking the same extreem risks as before, they feel confident that their next screwup will be covered by the FED once again. It must be nice knowing that a fellow private bank has control over the money presses that continue to pump worthless currency into the markets. The funny thing though is we the public eat it up!  If JPM isn;t able to unload their massive short positions in silver now, then this $2 billion loss is nothing compared to the losses the bank faces when silver risses again after this bottom we are in now.

 

Please note that in this case I do not wish to reflect silver as a ratio to gold since I believe that industrial demand for the metal will be the major driving force that will lead Silver higher in the near future. 

 

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