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Whistleblower Exposes JP Morgan's Silver Manipulation Scheme



March 26, 2010 – Comments (12)

More BS that most of us are already aware of

Whistleblower Exposes JP Morgan's Silver Manipulation Scheme
Submitted by Tyler Durden on 03/25/2010 21:49 -0500


Earlier today the CFTC held a sham hearing in which, among other thing, the organization discussed position limits in PM speculation, because, you know, it's the mom and pop speculators that destroy the precious metal market (not JP Morgan or the New York Fed mind you). The hearing could not have come at a more opportune time. GATA has just broken a major story, in which a London metals trader-slash-whistleblower exposes JP Morgan's silver price suppression/manipulation scheme. At this point none of this should be at all shocking, and the only thing that matters is when CFTC's ex-Goldmanite Gary Gensler will be fired for allowing hundreds of billions of dollars to be sucked out of the PM market on behalf of such major market manipulating entities as JP Morgan and the New York Federal Reserve, for whom it transacts. Don't worry - the answer to that rhetorical question is "never", as it is the administration's goal to make all the millionaires among the bulge bracket firms billionaires, via legalized theft from honest investors. Furthermore, if indeed the CFTC is complicit in these manipulative events, as GATA suggest, we hope our objective mainstream media readers enjoin GATA in seeking justice for this criminal breach of proper regulatory enforcement.

From GATA:additional Statement by Bill Murphy, Chairman
Gold Anti-Trust Action Committee
to the U.S. Commodity Futures Trading Commission
Washington, D.C., March 25, 2010

On March 23, 2010, GATA Director Adrian Douglas was contacted by a whistleblower by the name of Andrew Maguire. Maguire is a metals trader in London. He has been told first-hand by traders working for JPMorganChase that JPMorganChase manipulates the precious metals markets, and they have bragged to how they make money doing so. n November 2009 Maguire contacted the CFTC enforcement division to report this criminal activity. He described in detail the way JPMorgan Chase signals to the market its intention to take down the precious metals. Traders recognize these signals and make money shorting the metals alongside JPM. Maguire explained how there are routine market manipulations at the time of option expiry, non-farm payroll data releases, and COMEX contract rollover, as well as ad-hoc events. In February 3 Maguire gave two days' warning by e-mail to Eliud Ramirez, a senior investigator for the CFTC's Enforcement Division, that the precious metals would be attacked upon the release of the non-farm payroll data on February 5. On February 5, as market events played out exactly as predicted, further e-mails were sent to Ramirez while the manipulation was in progress. It would not be possible to predict such a market move unless the market was manipulated.

12 Comments – Post Your Own

#1) On March 26, 2010 at 12:03 PM, brickcityman (< 20) wrote:

Well I don't know about you, but betting that shenanigans like this would be cleaned up hasn't worked out too good for me so far.


Wonder how much of the 1.4B windfall tax break JPM will get diverted to activites like this?

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#2) On March 26, 2010 at 12:07 PM, XMFSinchiruna (26.58) wrote:

Not news to me, but I'm sure glad it's becoming news to the rest. :)

Thanks for posting this important news story, binve. :)

I'll write it up for publication Monday.

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#3) On March 26, 2010 at 12:10 PM, binve (< 20) wrote:


>>Well I don't know about you, but betting that shenanigans like this would be cleaned up hasn't worked out too good for me so far.

Actually I say bring it on!

I bought a crap load of silver around $10/oz in 2008. I am glad it is manipulated now. If we get a large pullback, I will buy again.

For the same reason I hold gold and am bullish on it, the same goes for Silver: Yet Another Reason Why I am Fundamentally Bullish on Gold -

Illegal shorts can affect the timing .. not the trend. Thanks!..

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#4) On March 26, 2010 at 12:12 PM, binve (< 20) wrote:

TMFSinchiruna ,

Thanks man! And exactly, not news to most of us in the PM world, but the majority of investors are not aware. Thanks!..

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#5) On March 26, 2010 at 12:22 PM, Starfirenv (< 20) wrote:

From GATA-
  posted at YouTube Submitted by cpowell on Fri, 2010-03-26 02:31. Section: Daily Dispatches

10:25p ET Thursday, March 25, 2010

Dear Friend of GATA and Gold (and Silver):

Thanks to our friend Robert Ian of La Crosse, Wisconsin, video of GATA Chairman Bill Murphy's testimony at today's hearing of the U.S. Commodity Futures Trading Commission has been posted at YouTube in two parts. The first part is Murphy's general statement. The second is his response to Commissioner Bart Chilton's request for specific examples of market manipulation, Murphy's disclosure of the evidence of market manipulation that has been gathered and delivered to the CFTC by London silver market trader Andrew Maguire. Here are the links:

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

+1 Rec. Thanks Binve

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#6) On March 26, 2010 at 12:23 PM, binve (< 20) wrote:

Thanks Starfirenv!

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#7) On March 26, 2010 at 2:01 PM, imobillc (< 20) wrote:

I was totally unaware of this!

I always thought that gold was rarer than silver and it's the other way around. This post was a mini lesson for me at least....

Rec 1+ 

The YouTube videos were also very helpful thanks Starfirenv


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#8) On March 26, 2010 at 2:11 PM, SUPERMANSTOCKS (39.20) wrote:

JP will get caught with their pants down soon enough! You cannot keep a metal like silver beaten down below 20.50 forever!

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#9) On March 26, 2010 at 2:11 PM, binve (< 20) wrote:


Gold is rarer than Silver, at a geologic ratio of about 16:1. But, Silver's *warehouse* ratio is much less than gold (aboveground supply to satisfy investment demand is way out of balance). This will make for some "interesting" dynamics when Silver demand is increased even modestly..


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#10) On March 26, 2010 at 2:14 PM, binve (< 20) wrote:


I am with you on that! It is a dangerous game that is based on backing from the Fed. But debt can't be printed forever and gold and silver not responding to it.

This will fuel a spectacular short covering rally at somepoint in the future, not by JPM but the smaller players who are following JPM but don't have the backing by the Fed..

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#11) On March 26, 2010 at 3:31 PM, Starfirenv (< 20) wrote:

The real pisser is that all this came to light long ago.  there was discussion on this very topic right here last summer. Here is a post from last June by Chris Grayley- worth reading (again for some). Nice to see that the folks over at the CFTC are "on it".

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#12) On March 26, 2010 at 5:18 PM, Starfirenv (< 20) wrote:

More good info, this one from Stockhouse- July '09
WELL worth a moment for anybody having PMs.
"After all, paper silver serves its purpose to manipulate silver prices downwards, only if it serves as an alternative to prevent people from buying real silver"

"the manipulation usually ends when they run out of silver to deliver, and then, people begin to stop trusting in paper promises, such as happened to gold in 1933 and 1971.  If the failure to redeem Canadian silver certificates is any indication, the world is scraping the bottom of barrel for silver"

"when the manipulation ends, with delivery defaults, precious metals prices will rise with shocking speed, and even my own re-supply sources will likely dry up, and you might not be able to buy silver at any price,"

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