JPM Owns, Controls Approximately $9 BB in Silver-13F

Gold

 

JPM Owns, Controls Approximately $9 BB in Silver-13F

by Soren K.

How Much Silver is that?

JPMorgan owns and/or controls between approximately 430 million- 580 million ounces of silver through its parent company and its affiliates. It is held in various forms:

  1. Comex Vault
  2. SLV and other ETFs
  3. Mining shares

 

Comex Vault (approximations)

  • 75 MM ounces
  • Value is $1.4BB

 

ETFs (approximations)

  • Total Silver  in Trust is approx. 356,800,000 ounces with a value of $6.6BB
  1. SLV= 282,000 shares  (JPM is the custodian of the trust)
  2. PSLV= 12,500 shares
  3. SIVR= 6,500 shares

 

Mining Shares

As of June 30, 2016, according to  JPMorgan Chase & Co ‘s most recent 13F filing with the SEC, it or its investment affiliates owned and/or controlled stakes silver mining companies totaling in value approximately $120MM

 

Silver Eagles

This does not include coins of which there is much speculation. In 2014 it was speculated that JPM held 70MM Silver Eagles. Some estimates put that number over 100MM coins now. We are including it at a 50% haircut (50MM coins) due to the unverifiable nature of the amount

 

Total Silver Owned or Controlled by JPM

  • Combining the Comex Vault, ETF holdings, Mining Stakes and 50% of the believed coin position puts the total ounces over 480MM

  • Combining the approximate value of the  mining stocks (120MM) with value of the Silver bullion = $9.2 BB in Silver

 

Why Control Matters

Control matters because when combined with influence, it can effectively eliminate the power of ownership. Here are 2 examples where ownership does not matter in the Precious Metals markets

  1. China Gold

What does give us a clue if not to the actual amount of Gold held by China is the market structure of the Chinese Bullion Market. That gives us a much better idea of how much Gold they own and/ or control. Controlled assets are a step away from being owned. You may own your house, but the bank controls it via the mortgage.When your house is worth 200% of its current value, and inflation is raging and you are turned down for a home  equity loan, you will feel it.

From the Article: When China Confiscates Gold- Get Silver like JPM

 

  1. The Xetra-Gold Event

Deutsche Bank, the custodian of the Xetra-Gold ETF failed to deliver gold on demand to a person redeeming shares in the ETF. That is a fact.

Here is how a conversation could easily go in which a large consolidated controlling entity wears down a fragmented public when it wants a contract honored.

  • Owner: Db is listed as custodian and guantor of my Gold, So you make delivery on the contract yes?
  • Controller: DB guarantees your Gold. Yes. Absolutely.
  • Owner:  Great, I'd like delivery now please
  • Controller: We don't have any Bullion here. Our safe is too small
  • Owner: Which Branch if not this one please?
  • Controller: Now let me see which branch can handle that for us? Nope not that one....

Listen, do you really need the Gold?

  • Owner: Yes
  • Controller: It seems the other offices managers are out. Can we try this Monday?
  • Owner: Do I have a choice?

The above is not crazy. It underlines the difference between ownership and Control. You own a contract. They control the Bullion.

Full Article:  Is Gold Delivery Being Stalled by Deutsche Bank?

We think JPM knows the difference as well. Gold may be owned. But it is controlled by the government. Silver is a strategic asset and is likely hoarded by the government like Oil. But it is not controlled because it is an industrial item and depends on production by companies. We think that is why JPM is a fan of Silver.-Soren K

 

JPM Controlled Companies

J.P. Morgan Trust Co of Delaware, JPMorgan Chase Bank, N.A., J.P. Morgan Investment Management Inc., J.P. Morgan Securities LLC, J.P. Morgan Securities plc, J.P. Morgan Whitefriars Inc., JPMorgan Asset Management (UK) Ltd, JPMorgan Asset Management (Canada) Inc., J.P. Morgan Private Investments Inc., Isolieren Holding Corp, J.P. Morgan (Suisse) SA, J.P. Morgan GT Corp, JF Asset Management Ltd, JPMorgan Asset Management (Japan) Ltd, JPMorgan Asset Management (Singapore) Ltd, JPMorgan Asset Management (Taiwan) Ltd, JPMorgan Funds (Asia) Ltd, MLP Investment Holdings, Inc., J.P. Morgan International Bank Ltd

Read more by Soren K.Group

Latest