Loading ...JPMorgan holds massive gold derivative short position that could be larger than the bank’s total assets, top money managers warn
Should the price of gold ever shoot up from its current price by, say, another $1,000 in the coming weeks or months due to an unexpected “black swan” event, banking giant JPMorgan Chase would more than likely find itself underwater due to the massive gold derivative short positions it currently holds.
Dr. Stephen Leeb, one of the world’s top money managers, says that JPMorgan’s gold derivate short positions are so numerous and large that they likely exceed the entirety of the bank’s assets on hand – which is a very dangerous position in which to be.
“What I lose sleep over is how much exposure does a bank like JPMorgan have to the [gold] derivative market,” Leeb is quoted as saying, adding that it is an “open secret” in the gold market that JPMorgan is heavy in gold derivative short positions.
“How do they maintain these massive short positions? Because the Fed is bankrolling it through its ‘primary dealers’ – the megabanks that de facto control the Fed.”
https://www.planet-today.com/2023/03/jpmorgan-holds-massive-gold-derivative.html
Well, that is a reason WE ALL wanne go long to kill a whale. Nevertheless don’t they controle the HFT and Ai? Who else? Other interesting question … would JPM ever get a call for margin, would anyone dare?
No, if the regulators stepped in and protected a Chinese billionaire who was short nickel and let him off the hook by cancelling trades, they are definitely going to protect JP Morgan on the short gold position, especially because they are probably short to suppress the gold price at the behest of the US government.
That is why if you are long gold(or silver) derivatives, futures etc. they will just change the rules when the crisis comes like they did to the Hunt brothers and others whenever the system is threatened. They create these distracions like futures contracts and bitcoin etc. to take capital flow away from gold and silver, then when it finally blows up they change the rules and or shut down the game and you are left holding the bag by getting back fiat that has been inflated away to nothing.
First off Leeb is not one of the world’s top money managers. And to answer the question how do they maintain these massive short positions. Refer to the rules of the game monopoly where it addresses if the bank runs out of money.
According to the official Monopoly rules, if the bank runs out of cash, you are permitted to make more banknotes and add them to the bank. You can do this on scraps of paper, or if you have a printer handy, it’s easy to print out some ready-made Monopoly money templates
Ha !
Wearing my ever-the-contrarian hat, what if this statistic is also a lie? What if it is old data, liable to “adjustments” like the birth-death model adjustments to BLS jobs numbers?
GL