JP Morgan’s Stockpile of Silver
Since 2012, JP Morgan’s stockpile of physical silver has been steadily increasing. JP Morgan is rapidly accumulating silver, which has increased its reserves in the precious metal from 5 million ounces to 55 million ounces.
It seems as if this major bank’s interest in the metal is geared towards its inherent value as an investment. Contradicting the Bank’s move are the falling prices of silver that stand at a mere $16.68 an ounce. What is on the mind of JP Morgan’s analysts? Are they aiming for the ultimate increase in silver’s price at the climax of the next financial crisis?
When financial turmoil strikes, silver and gold become investors’ favorite choices. JP Morgan is clearly expecting another financial crisis soon as stated by its chairperson and CEO in a letter to shareholders.
What are the main triggers that can materialize the next crisis? These can be geopolitical (the 1973 Middle East crisis), Fed induced (rapidly increasing interest rates), commodity price collapse or “Bubbles”. Among this pile of “recession roots”, there is an equal amount of discussions and speculations on the reasons behind them.
Ceo Dimon is clearly expecting another very big crisis. It would only make sense to invest in huge stockpiles of silver if one expects a financial crisis nearing. Silver, with its low price, can offer a very good bargain for any investor before a financial crisis.
JP Morgan has not only acquired large amounts of silver over the past few years, but is scaling up its reserves at ever-faster rates. In fact, it added more than 8 million ounces of physical silver during the past few weeks.
If this action is not in anticipation of another major liquidity turmoil, than what is it?
Although their interest in this precious metal is not a new one, there was a temporary 16-month break in their silver buying spree.
Now after this 16 month dry spell, they jump into the market with bigger appetites for silver.
JP Morgan’s positioning in silver is even more evident in their very recent silver transactions from Comex:
April 7th: 1,110,000 ounces
April 8th: 1,280,000 ounces
April 9th: 893,037 ounces
April 10th: 1,200,224 ounces
April 14th: 1,073,000 ounces
April 15th: 1,191,275 ounces
April 16th: 1,183,777.295 ounces
These large and rapid acquisitions of silver are ample proof of JP Morgan’s economic expectations. Within the past weeks, the bank has acquired at least 8.3 million ounces of silver.
On top of this move, JP Morgan is trying to avoid cash in some markets. It has been bold enough to prohibit the storage of cash in safe deposit boxes. As of March, Chase began restricting cash in selected markets. The new policy prohibits repayment of loans, credit card debt, mortgages and other forms of debt payments from borrowers in cash. In an update to the Safe Deposit Box Lease Agreement, the company stated:
“You agree not to store any cash or coins other than those found to have a collectible value.”
This bank’s detest for cash is becoming more obvious day by day. What is the real reason behind all this?
JP Morgan is one of the biggest banks in America. Its total assets are equal to the GDP of the entire British economy. With its deep ties to the US government, it is safe to expect that it’s well aware of the current and future economic situation.
Is this financial giant expecting another financial crisis?
It has been 7.5 years since the last financial turmoil and recessions have a history of striking every 7-8 years.
JP Morgan is certainly getting ready for something worse.