Monday, February 5, 2018

JP Morgan And SLV - What Is Going On?

It looks like JP Morgan is moving its silver from iShares Silver Trust (SLV) to its COMEX warehouse. Look at this table:

data in millions ounces of silver

source: Simple Digressions

Note that since 2017 the changes in SLV holdings match the changes in JP Morgan holdings. This pattern is particularly clear this year - JPM increased its holdings by 7.9 million ounces of silver up-to-date while SLV reported a decrease of 7.7 million.

Last year JP Morgan added 37.3 million ounces to its COMEX warehouse while SLV reported a decrease of 20.7 milion.

Now the question is what it is all about.

By the way, there are 127.3 million ounces of silver at JP Morgan's COMEX warehouse. (as of February 5, 2018). To give you some comparison - the annual silver production is 886 million ounces (2016) so JP Morgan (or its clients) hold around 14.3% of the world's silver production. 


  1. SORRY

    1. A few possible answers. Let me name a few (but the question remains open):
      - I have no idea
      - It means nothing
      - JP Morgan is hedging against a financial crisis (betting on precious metals outperforming other instruments, particularly equities))
      - JP Morgan's customers are hedging against a financial crisis
      - JP Morgan is hedging against possible silver deliveries at the COMEX (hoarding silver bullion)
      - JP Morgan or new Hunt brothers try to corner the market

  2. Si sta assicurando da eventuali perdite sull'azionario?