Precious metals guru exposes JP Morgan scheme, predicts huge price explosion

ColumnLogo-1Editor’s note: Silver investment guru Ted Butler has discussed market manipulations before, but has now summarized what he believes to be the biggest precious metals investment coup in history- JP Morgan having accumulated a 500 million ounce hoard of silver, at bargain prices, via a vast manipulation of the silver market using its privileged position. He predicts huge price growth fairly soon, but not the exact timing. Butler’s estimates of the full extent of this are far higher than others. He also says that JP Morgan literally has to do nothing to ensure a price explosion- only to cease its market manipulation and allow market forces to take over. If the price only rose back from its current levels to its highs of a few years ago, an $11 billion gain could realized. If the price rose to $100/oz, it could be a $31 billion gain.

Hidden in Full View

By Theodore Butler, June 2, 2016


After studying the silver market closely for more than three decades, I find it nearly unbelievable that its single most important price factor is widely unknown. Admittedly, the vast majority of the investment world has little interest in silver and that’s unlikely to change any time soon. But underappreciation has its merits in the investment world.  After all, silver does have a history of climbing in price higher and faster than just about any other asset and a multitude of factors now point to another massive price move higher ahead.

The factors favoring a big move higher revolve around the incredibly small amount of physical silver available for investment as a result of most of the silver produced over the centuries having been used up in industrial applications. That, in combination with the fact that more investment buying power exists today than ever in the history brings to mind the words of the famous silver speculator, Bunker Hunt, “silver is an accident waiting to happen.”  Granted, silver also has a history of plunging more than other commodities, but since prices have already declined by 70% from the peak of five years ago, the next big move will, undoubtedly, be up.

Still, even among those who follow silver closely, remarkably little is mentioned about the one factor that just about guarantees much higher silver prices ahead. That factor is that the US’s biggest and most important bank, JPMorgan Chase, has accumulated the largest privately owned stockpile of physical silver in world history over the past five years – 500 million ounces. Only the US Government owned more silver than JPMorgan, but that was nearly a century ago and came when silver was used in common coinage. The US Government once owned several billion ounces of silver, but today holds no silver, having completely eliminated its holdings.

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William "Bill" Hicks

Is it possible that silver will either remain at the current cost or even go lower? After all, silver is rarely in industrial use these days.