The CME Should be Investigated, This is Complete BS IMO
Luxor
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Read the entire article:
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Your hobby is supposed to be your therapy, not the reason you need it.
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Wash / Rinse / Repeat! lolzz
COPPER is gutter !
interesting timing. conspiracy fuel! bodes well for physical stackers
Loves me some shiny!
“Often wrong, but never in doubt.”
I don't think this game, if it is a game will last, they will lose credibility and confidence which is what the business is based on.
This explains things further:
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Your hobby is supposed to be your therapy, not the reason you need it.
More unsupported conspiracy theory nonsense along with factually UNTRUE statements like the one by Sprott that the banks are shorting silver. I can't believe a guy like that doesn't know that it's the bank's clients that they custodian for.
A little deeper, a little smellier....
UNTRUE statements like the one by Sprott that the banks are shorting silver.
lol, why was JPM fined $920,000,000 for spoofing the silver market? Stop trying to defend the indefensible.
I knew it would happen.
Because that doesn't affect the price of silver. It's all intraday games.
Yes, it's factually true that a few traders spoofed. It's also factually true that it doesn't affect the price of silver.
It's also factually true that JP Morgan isn't trading silver for their own account.
then why do it?
BS. JPM has one of the largest bullion desks that trades on the COMEX. You're saying they are allowed to trade someone else's silver? Who's money are they using? LOL
You present yourself here as a trading professional but your words say otherwise.
Velocity, Not Valuation Defines A Bubble.
Because the 2 guys were gaming the system and cheating, that's why ! Or they thought it was a legal loophole.
Fidelity and other mutual fund families have the largest stock trading desks. They aren't buying stocks for the owners, which is a privately held company. They're buying for their clients, the public, who invest in MFs and SMAs.
This isn't rocket science only known to professionals like me. It's common sense. Email any bank regulators, federal or state, and tell them you know a bank that is speculating and trading silver. See what they say.
There are factually correct points made but remember she is a salesperson.
It's really just a circuitbreaker function though they will not admit that because that undermines the basis of an exchange.
We all know capitalism is not 100% fair with 100% integrity.
Exchanges crystallize events into wild swings that can cause chaotic results. That's why there are circuitbreakers.
Even if JPM didn't trade PMs for their own accounts, they were charged with fraud to enrich JPM. Also JPM has over 200 affiliates that are 100% owned by JPM that are scattered over the globe including places where there are little to no supervisory oversight.
https://www.justice.gov/archives/opa/press-release/file/1320581/dl
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These banks can own subsidiaries. And these subsidiary entities can (and do) trade commodities on their own, for their own account.
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No, they can't. That's what the Bank Holding Company amendments were all about. Any consolidated entity reflected in the income and cash flow statements of the parent also shows up in the balance sheet. That's the loophole the S&Ls utilized in the 1970's and 1980's.
If you show the revenue and cash flow and profits...then you also own the balance sheet. Can't have one without the other.
Energy companies trade commodities, but it's what they buy and sell. And there, the valuation premium is miniscule because many analysts believe the gains/profits will be fleeting and/or arbitraged away. BP makes billions but it's valuation doesn't reflect that. A bank, which is highly leveraged compared to BP, would get punished if it did that.
Most banks downsized their fixed income trading desks years ago because the profits weren't large and the volatility was. Which meant the regulators frowned on them.
Now....if they don't trade bonds, their stock in trade, you think they're gonna venture into commodities which they know nothing about and are highly volatile and which DON'T produce any income ? BOA got cruficied for losing $70 billion in bonds when rates rose in 2022-23. You think they'd risk the same with commodities ? CEO would be fired.
If it were only two rogue traders they would be in jail.
There is a big difference between a broker and the "house."
Regulators know what's going on. As with J. Epstein, just another case of "hands off."
Velocity, Not Valuation Defines A Bubble.
Now....if they don't trade bonds, their stock in trade, you think they're gonna venture into commodities which they know nothing about and are highly volatile and which DON'T produce any income ?
I know for a FACT that Goldman Sachs has been trying to get into the oil market for years. You don't know what you are talking about.
I knew it would happen.
Stop, your background may be in securities and trading but not brokerage regulatory reporting. I was a registered B/D FINOP and in brokerage accounting for many years and the above is not accurate. All the holding company reflects is the inter-company P&L and every balance sheet item from affiliates is lumped into financial instruments and 'other assets'. All the murky details are in the financial statement footnotes. Guess the 5B below is not there.
Really ? Goldman Sachs used to have one of the largest trading desks for commodities and then dumped it in the 2000's. The market didn't like it. They trade commodities (including oil) for their HNW clients and for their internally-managed funds but do NOT speculate with the banks Tier 1 capital.
It's not me who doesn't know what he is talking about. Try reading a 10-K or an Annual Report. You might learn something.
Oh...and making a market in something is not the same as speculating, FYI.
My point is that the notion that they are speculating with the bank's capital using affiliates is not the case. Lehman was manipulating the quarter-end balance sheet numbers and that was their own assets. Technically true, but misleading. Even that has been shut down.
The Big Picture here is that some people here -- reading what are conspiracy websites -- insist that banks are manipulating PM prices or othter commodities using their balance sheets and/or Tier 1 or regulatory capital. That is NOT the case.
Since you worked in Financial Operations, then tell us: do banks or B/D's speculate in PMs and/or silver with their balance sheet in order to control/manipulate the price ?
As opposed to making a market or executing client orders, of course.
In order to manipulate prices using their capital, well the DOJ fraud case would appear to prove they manipulated commodities to make a profit. Even if done for their customers &/or used customer monies, they get a piece of that action. But Bank affiliates do trade commodity derivatives. Do they hold physicals with their own capital, not sure but would probably lean towards no, not a good use of capital. But JPM's $5B of commodity derivative contracts which may be small potatoes with their balance sheet is still a material # or it wouldn't even be included in the notes.
There is also the CFTC monthly Bank Participation report that reflects US and Fgn banks long & short futures open contracts
from everything from PMs to Cattle, Energy & Currencies, etc. Below is the Feb report. Not sure who the 5 US Banks are but if I was a betting man would bet the ranch JPM is 1 of them. March's will be out next week.
Sure, they need the derivatives to help UHNW clients. Same thing with me at my 2 large banks -- we used derivatives all the time.
We NEVER speculated on the price of silver, although some people here would insiste we were holding the price down (we weren't; we just had the off-setting longs elsewhere).