JP Morgan is “fully committed to traditional banking activities,” but they are looking to sell, spin or ally with strategic partners to shed the position. Many assume that “physical commodities” means the company’s extensive inventories of tungsten and lesser gold and silver.
On November 1 Jose Cogolludo joined the corporate sales office at Citi with years of experience in commodities sales at JPMorgan and Goldman Sachs before that. The entrance of Citi into commodities, with their office based in London, is a new position as of last Fall and includes “all commodity products with corporate clients across the world.”
“I am delighted and proud to join Citi, where our client franchise is unrivaled by other institutions, in particular in emerging markets. Our plan is to systematically provide a full range of risk management products to Citi’s global client base, to better integrate our product offering with the rest of the organization, and to strengthen our position as a leading actor in the commodities space,” he said.
“With these important additions to our sales team, we have made significant strides in strengthening our commodities platform and connecting our complete suite of commodity products with a wider range of the bank’s clients than ever before,” said Stuart Staley, global head of commodities.
What, perhaps, has Citi inherited from JPMorgan? In JPMorgan’s own words:
Following the internal review, J.P. Morgan has also reaffirmed that it will remain fully committed to its traditional banking activities in the commodity markets, including financial derivatives and the vaulting and trading of precious metals. The firm will continue to make markets, provide liquidity and offer advice to global companies and institutions that have, for years, relied on J.P. Morgan’s global risk management expertise.
The decision regarding whether or not JPMorgan was manipulating the market came in the Fall of last year, as Citi was accumulating further positions. The CFTC would not investigate allegations that the silver price is manipulated by major financial powerhouses, in particular JPMorgan, whose death-by-a-thousand-cuts year might see their Too Big To Fail status tested and endure.
Ever thought: “I should buy silver bitcoin.” Or, how about, “i should sell some silver for Bitcoin.” Well, depending on when you had these thoughts, the idea could have been a great one or a terrible one.
Buy silver for Bitcoin at $50 silver and $1.25 Bitcoin, and you might be no longer with us. R.I.P.
Buy silver for Bitcoin at $266 Bitcoin and $30 silver, you’re probably looking at life through a much rosier hue.
The history of Bitcoin and everything is very short. For that reason, not much data is available in any recognizable historical context, especially when you join two tiny markets: bitcoin for silver. But, looking at the numbers can give us a sense of where this is heading, especially in the context of pre-conceived notions many of us have about the future, such as dollar devaluation, technological advancement or whatever you feel the future holds.
[heading]What Does It Mean For Bitcoin To Be One Million Years Old?[/heading]
It is one million years in the future, and human society is intergalactic. We’ve reached the far stretches of the “universe” and maybe even interacted with some other civilizations. Trade is nothing what it once was, and money can’t be pieces of paper. Read More
[heading]Buy Silver Online & The End Of The Local Coin Shop?[/heading]
Does buying silver online mean the end of the coin shop?
How to buy silver online is hardly a no-brainer. There has practically been a rush (pardon the pun) to buy silver online as silver garners a lot of attention in the press and has for the past decade. This spike in interest has taken place during the rise of -e-commerce, and the silver market has not shied away therefrom. However, in 2002-2003 many of those who bought silver, did not buy silver online. They bought silver differently. Is this way of silver procurement going the way of the dinosaur? Read More
Hedge funds guessed right when they bet on a gold rally before prices went onto to their biggest two-week gain in 20 months as the Federal Reserve Chairman Ben S. Bernanke speculated that a slowing of quantitative easing appeared to be on the horizon. Read More
[heading]What Is P2P Lending & How Does Bitcoin Oil Its’ Gears?[/heading]
Albert Einstein was a fan of the “thought experiment,” which is essentially when one uses their imagination to discover something new. Oftentimes these thought experiments served as precursors – a mental blueprint of sorts – to real-world experiments. Read More
[heading]House Of Cards in Commodities, From Beer Drinkers to Silver Bars[/heading]
“Many more of our clients today have commodity exposure than they ever had before, or they ever realized they had. It’s important to our business.” – Gary Cohn, Goldman president and chief operating officer. “
The gaming of the aluminum market has cost aluminum purchasers an extra $3 billion, an expense that has been passed onto beer and soda drinkers. Read More
When in 2008, the price of silver took a 50% haircut, demand did not. At the time, I heard reports of bullion dealers in the US who were not selling the monster boxes of Silver Eagles they had already. Physical metal was hard to find even amid a riveting selloff.
If silver’s performance in 2012 could be summarized in one period, then 12/18-12/20 is it. After months of coordinated attacks on silver, sometimes brutal beatings throughout entire trading days, the poor man’s gold nose-dived 7.5% in the 3 days preceding 12/20/12, its biggest drop in more than a year. It wasn’t the only poor day silver had on the year. Late in the year, silver joined numerous assets from copper to the FX in a liquidation in the paper markets. As has been the case for over a decade, nothing has fundamentally changed in asset markets, given currency devaluation and increased central bank gold purchases. Silver stacks up against all other global financial assets, through 2012, finishing in the top ten for the year.
[heading]”A 6,000 Year Old War Against “Buy Silver”[/heading]
“Scenes are now to take place as will open the eyes of credulity and of insanity itself, to the dangers of a paper medium abandoned to the discretion of avarice and of swindlers.” –Thomas Jefferson 1814Read More
It hasn’t been merely the gold and silver price brutalized over the past two years in terms of precious metals. The ecosystem around the precious metals – retailers, in particular – has also been transformed in a play of consolidation and mergers.