J.P. Morgan manipulates silver market on behalf of Federal Reserve

jingriver

The CFTC is investigating J.P. Morgan's (NYSE: JPM) manipulation of the silver (NYSE: SLV) market after years of cries from traders, blogs, and others.

The CFTC will look into the claims of people such as Ted Butler (ButlerResearch.com) and former metals trader Andrew McGuire that J.P. Morgan was colluding with other traders to start sell-offs in the precious metal, then buy up the metal in order to profit when prices recover.

Silver expert David Morgan say, “We have never gone down the road this far. We've had roadblock after roadblock, and now the roadblocks are gone, and we are speeding toward the truth, and I am really excited about it.”

This story has been written about as early as December by Benzinga, as the bank supposedly is trying to corner the market.

Some have accused the bank of acting as an agent for the Federal Reserve in the market, as a tick higher in silver means a tick lower in the dollar.

As of the December 2, 2010, J.P. Morgan was supposedly short 3.3 billion ounces of silver.

In March, J.P. Morgan supposedly raised its short position in silver by 30%. J.P. Morgan reportedly increased its COMEX silver short position by 6,000 contracts to 25,000 contracts (125 million ounces).

Shares of J.P. Morgan are down 23 cents in pre-market trading to $45.30, a loss of 0.5%.

Read more: http://www.benzinga.com/news/11/ ... v-jpm#ixzz1GJnCGpKE

dividend_growth

They don't tell you how many contracts JPM is long at.

It's totally possible that JPM is just acting as a dealer in the market, trying to capture the spread.

Also, cornering always means on the long side. You can't corner something by selling it short!

Those kind of rumors are mostly likely started by a bunch of lunatic Silverworms (and Goldbugs).