Is JP Morgan Getting Nervous about its Silver Inventories?

Something interesting has been going on in the Comex silver warehouse inventories this week.  Not only have large amounts of silver been removed from the Comex since Monday, but there also have been some large transfers that seem quite peculiar.

In the beginning of the week, there was a large 2.2 million oz withdrawal of silver from the Comex.  However, part of this amount was transferred to JP Morgan:

COMEX SILVER 72213B

Here we can see that Scotia Mocatta transferred nearly 600,000 oz of silver from its Registered inventory to JP Morgan’s Eligible.  Basically, the registered category is silver that is available for delivery and is also labeled as the dealer inventory.  The eligible category is silver owned by an individual or party that is not available for delivery and is known as the customer inventory.

Now, on Tuesday we had another large withdrawal of silver from the Comex but the majority of it came from Scotia Mocatta’s warehouse.  And again, if we look at the spreadsheet below, we can see another large transfer of silver from Scotia’s registered inventory to JP Morgan’s eligible:

COMEX SILVER 72313

So, we had 600,000 oz transferred on Monday and another 600,350 oz on Wednesday for a total of 1.2+ million oz in  just two days.  I find this quite interesting because JP Morgan has a substantial amount of silver in its eligible inventories of over 20 million oz.

Then on Thursday, there was another large transfer of silver from Scotia to JP Morgan:

COMEX SILVER 72513

In three days, Scotia Mocatta transferred 1.8 million oz of silver from its registered inventories to JP Morgan’s eligible inventories.  Furthermore, a total of 2.7 million oz of silver were withdrawn from the Comex (net of transfers) and Scotia Mocatta saw its registered silver inventories decline nearly 20%.

The real question is… what’s going on here.  Could this be just a typical transfer of metal from one bank to another?  Or could it be that an individual or party has transferred their silver from Canada to the U.S.?  Those are all probable answers.

However, we really don’t know what is going on here as everything in the Banking Industry is a big secret.  All we can do is speculate.  I wrote Harvey Organ and asked him what he thought of these transfers.  He replied be saying it could be that JP Morgan is building physical supplies to hand in against delivery notices.

While the more professional traders and Wall Street analysts would blow off these silver transfers as part of doing a honest days business… there really isn’t much honesty left in the banking community.  For example, we just learned of new govt. probe into Goldman and JP Morgan’s warehouse industry via ZeroHedge:

Goldman And JP Morgan Probed Over Metals Warehouse Manipulations

Following our initial uncovering of the manipulation and monopolization of the metals warehousing business two years ago, the last few days have seen the public’s attention grabbed by the reality of what the banks are actually doing. Following this week’s hearing, as the Fed reconsiders banks roles in non-banking businesses (and the ‘societal benefit’), it seems the CFTC has woken up. As the WSJ reports, the Department of Justice has opened an initial probe into the metals warehousing industry and the Commodity Futures Trading Commission has also sent letters to some firms telling them to preserve documents, in what is likely the beginning stages of an investigation.

FULL ARTICLE LINK

With this and all the other conspiracies and frauds taking place such as the LIBOR scandal and etc, I actually believe something is AMISS and there is  probably something STRANGE taking place in JP Morgan’s silver warehouse.  I wish I could shed more light, but at least I can reveal what is taking place and we will have to see how this unfolds in the future.

Enter your email address to receive updates each time we publish new content.

I hope that you find SRSroccoReport.com useful. Please, consider contributing to help the site remain public. All donations are processed 100% securely by PayPal. Thank you, Steve

15 Comments on "Is JP Morgan Getting Nervous about its Silver Inventories?"

    • Brendan… yeah I saw that. How ironic…aye? However, I find it quite interesting that their gold warehouse stocks are declining while their silver have been growing… especially the past several days.

      steve

  1. if the SLV inventory and Comex inventory are essentially the same stock, when jp morgan gradually accumulate SLV shares, these adjustments probably make sense.

    plus, these are probably paper adjustments too.

    Silver inventory at shanghai futures exchange dropped under 600 tons.
    Silver inventory at shanghai gold exchange dropped under 30 tons last week, normally its around 50-60 tons.

    i still can’t believe given all that’s going on, prices are still where they are.

    i have these bastards!

  2. Adolf Hitler | July 26, 2013 at 11:04 pm |

    I suggest you not turning to Harvey Organ for advice. He has little understanding of the delivery process.
    JP Morgan has been taking delivery of silver this month.
    http://www.cmegroup.com/delivery_reports/MetalsIssuesAndStopsYTDReport.pdf
    2733 contracts, 13,665,000 oz as of today. JPM moved some of the silver it took delivery of to its own vault.

    • Adolf… I appreciate the insight. However, I find it quite interesting that JP Morgan is taking delivery of silver when it is making plans to exit the physical metal warehousing business.

      So Adolf, what is the motivation for JP Morgan to take delivery of silver from Scotia’s vaults? Is it doing so for the sake of its clients?

      steve

      • Adolf Hitler | July 27, 2013 at 5:51 pm |

        Steve, as far as I know, JPM is only making plans to exit the physical BASE metals warehousing business. PMs are not included.
        Most of the silver taken delivery of is for JPM itself (House). You can see from the link I provided. H stands for House. C stands for Customer/Client. I stands for Issue (delivery notice) S stands for Stop(delivery notice)
        However, big investors can use JPM as a proxy to hide their identities through complex arrangements. You may see JPM taking delivery of silver for itself(House) from the report but the real buyers of this silver could be somebody else. (I don’t know the real buyers)
        As for the motives of JPM taking delivery of silver from Scotia’s vault, I should say this is NO special motives.
        If you are an investor and want somewhere to deposit your silver in New York, you can choose any vault you like. But as long as your silver is in bars of 1000oz 99.9% pure and the vault you choose happens to be one of the 6 Comex depositories, say Scotia, your silver will appear in the daily inventory report, in the eligible category.
        If you have a short position in silver on the Comex and WISH to make delivery on it, you just tell Scotia and Scotia will issue a warrant with your name on it (the real process is more complex but the essence is the same). Then you will see your silver moved from the eligible category to the registered category in the inventory report.
        When you make delivery of your short position and the holder of the long position is say, JPM; Scotia will change the owner of the warrant from you to JPM. BUT the silver is still in Scotia’s vault and in the REGISTERED category. You will see NO changes in the inventory report although JPM has taken delivery of the silver and the owner of the silver becomes JPM.
        If JPM decides to move the silver to its own vault, you will see in the inventory report, silver being moved from the registered category of Scotia to the eligible category of JPM. That’s what you’ve seen in the inventory report.
        It could be Brinks or CNT or HSBC or else. So IMO, there is NO special motive.

        • Adolf,

          Thanks for clearing that up and explaining the whole process. It is interesting to see 3 transfers of 600,000 than one of say 1.8 million. I’d appreciate if you would consider sharing anything that might be interesting on your end as it pertains to gold or silver warehouse changes.

          steve

  3. Die Leute,so sie noch Papierwechsel auf Edelmetalle halten werden sich bald wundern wenn sie wie bei der Bank ABM AMRO mit bunten Zetteln abgespeist werden und ihre Gold und Silber Ersparnisse in Papier auflösen !

  4. http://www.reuters.com/article/2013/07/27/us-jpmorgan-commoditybusiness-idUSBRE96P10M20130727

    The bank said it will continue to trade in financial commodities such as derivatives and precious metals.

  5. I can’t help to have this feeling that everyone looking at the silver manipulation is looking in the wrong direction. So far everything has been 100% unintuitive as far a the silver price goes..Silver falling below $25 would cause chaos and all hell would break loose that never happened (Future Money Trends). Fall below 20 and miners would go out of business and there would be massive shortage etc. None of this has even come close to happening. I know the information is solid but there is still something we are all missing. Silver was at 4 bucks for years and still mines would sell so I dont think the spot price has anything to do with a supply shortage (Although it should it doesn’t in the case of silver). As far as futures go it is understandable that if you have 100 mil oz in the vault you can have billion or two of future delivery paper that your selling, if a Bil ozs are mined a year. The contracts are for future delivery dates keeps everything fluid. So I dont think that is where to look because so far has panned out nothing but speculation. ..Basically I am just saying I dont where to look however I know now where not to look. I like your articles and I think eventually you’ll get to the solid truth but I suspect the truth lies in a completely different direction…Wish I knew I got a lot of the stuff and could have much more if I waited.

    • Mike

      Excellent comments, concerns and question. I plan on making a post on the things you brought up.

      Steve

  6. OutLookingIn | July 27, 2013 at 4:37 pm |

    Scratching the Surface;

    Something to think about when the metal warehouse issue is discussed. Aluminum.

    For a number of years now some big users of aluminum, namely the beverage sector (beer & soda), have complained bitterly of the lengthy (up to one year) delays in delivery of aluminum contracts.

    These are no small potatoes – Coka-Cola, Anhuaser – Busch, etc. This stems directly from the TBTF banks owning the metals warehousing sector of the LME.

    Some background;

    J.P. Morgan is put on the MF Global bankruptcy committee on November 7, 2011. Just two weeks later J.P. Morgan buys MF Global’s 4.7% stake in the London Metals Exchange for $39 million in a “competitive bidding” process! Seven months later, on June 15, 2012 the London Metals Exchange receives a purchase offer for $2.2 billion from China’s HKEX, (which is accepted) making JPM’s stake worth $103 million.

    Recently the HKEX (as owners), have made sweeping changes to the London Metals Exchange delivery rules governing timely delivery and stopping the process of “warehouse metal swapping” thereby stopping overcharge of storage “fees” charged by the warehouse owners. So you see, its no wonder the TBTF banks are scrambling to get out from under the HKEX thumb! The Chinese are late to the game, but are quick learners, much to the chagrin of the hubristic, greedy, TBTF’s banks.

    Steve, enjoy your site muchly and am a daily reader when you have something posted. The above is a matter of public record and worth some of your expertise at delving into detail.

Comments are closed.