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JP Morgan Is Exiting Its Silver Shorts

JP Morgan and Citibank have long manipulated the price of silver via short positions on the futures market. These silver shorts ruin the silver price, according to Bill Murphy, the Gold Anti Trust Action Committee chairman and editor-in-chief of Le Metropole Cafe.

He notes the gold and silver ratio has recently been 125:1, presumably due to such manipulations. It’s historical average is 16:1. This is changing, according Murphy.

“They’re getting out,” Murphy told The Gold Silver Bitcoin Podcast. “The open interest, which is the long and shorts on COMEX, has come down from 145,000 to 138,000. When silver went to $50 in 2011, it was 135,000 contracts all the way up ‘til near the end. So, JPMorgan, and the gold cartel, are clearing the decks for the gold and silver prices to go bonkers.”

At writing, Silver Futures Open Interest is at a current level of 139,256.0, down from 192,676.0 one year ago. This is a change of 27.73% decrease from one year ago.

Now that open interest in gold has collapsed, the price is heading to $2,000 and then to $3,000, says Murphy. “They don’t have enough physical gold to stop the price and that was happening before the Coronavirus hit.” 

The gold cartel has already blown up, he says. “The gold open interest is down from 800,000 to 450,000. It’s the bad guys getting out just getting out of the way of the big moves coming in gold and silver.” 

The gold and silver cartel are the bullion banks and elements in the U.S. government, which try to stop the prices from increasing, because it makes the U.S. Dollar looks bad, according to the longtime commodities commentator. 

“Open interest [in silver] has been 200,000 to 225,000 for years and years,” said Murphy. “Now, it’s down to 135,000. That means they’re getting out of their short positions on the COMEX.  Silver will take off out of nowhere. Once it gets to $21, it’ll shoot for $50 and then $100.”

“I’ve been waiting for this for years,” he said. “It’s here. And that means they’re going to have to let it go because they know what’s coming.” 

Silver has been manipulated ever since the 2011 run to $50, says Murphy. “They made a fortune for nine years, winning every trade in the row for nine years.” 

Back in 2011, in the wake of the 2008 financial crisis, open interest in silver was 135,000 contracts during most of the parabolic price increase. “All the way up until the very end went up to like 150,000 the last month,” said Murphy. “It was this low open interest that we have right now all the way up. So JPMorgan wasn’t in there stopping it.”

Murphy calls the bank a criminal enterprise. He isn’t alone. The Justice Department once called J.P. Morgan’s metal desk a criminal enterprise. The prosecutors charged the head of JPMorgan’s global precious metals trading operations and two others in 2019, accusing them of  “conspiracy to conduct the affairs of an enterprise involved in interstate or foreign commerce through a pattern of racketeering activity.”

The Justice Department evoked RICO, Racketeer Influenced and Corrupt Organizations Act. “Based on the fact that it was conduct that was widespread on the desk, it was engaged in in thousands of episodes over an eight-year period — that it is precisely the kind of conduct that the RICO statute is meant to punish,” Assistant Attorney General Brian Benczkowski told journalists.

He added: “We’re going to follow the facts wherever they lead, whether it’s across desks here or at any other bank or upwards into the financial institution.”

Murphy says the price of silver is going to at least $100. “This time, once it takes out $50, that’ll be breaking a double top,” he said. “JP Morgan bought silver all the way up in 2011. They’ve been manipulated ever since.” 

There is one difference between the coming rise in silver price and what happened in 2008, according to Murphy: “It’s not coming down this time.”