Hint of Gold: JP Morgan Sells Debt Derivative Tied to Gold As Copper Interests Look To Undermine Copper ETF
Thinking about JP Morgan’s sale of a gold-tied derivative note is like thinking of a rainbow. So many colors, so many different phenomenon coming together all at once to create oneness, something. The central difference is that, instead of beauty, this note is a chimera from hell, seemingly. The note is a form of derivatives trash that is being served up like infomercial products: with the subconscious.
JP Morgan owns useless stuff and things and nonstuff and nonthings. They need to create some sort of product that is going to catch the eye of modern investors. And so, they come up with this note: 99.9% fine crap, and .o1% gold. Tops. JP Morgan Chase & Co has sold $35 million of one-year notes linked to the gold price, marking the bank’s largest offering of such an asset in three years. Issued January 2, the securities yield three times the gains of the price of gold in London up to 15.6 percent, devoid of protection against losses and all capital risk, according to the prospectus filed with the US Securities and Exchange Commission.
The bank sold $82.5 million worth of the notes tied to gold in eight separate offerings last year, according to Bloomberg. JP Morgan issued $27.8 million of one-yearsecurities on Oct. 26, the next-largest deal since 2010. The banks has declined to comment on the sale. These structured notes are created by packaging debt with derivatives to offer bets for retail investors. Derivatives are contracts who value is derived from stocks, bonds, commodities and currencies, or events such as changes in interest rates and even the weather.
Shit, might as well have thrown in a bet on increasing weather into this note while they were at it.
Coming soon to a market near you: A note tied to silver, and also rainbows and golden paths to utopia.
JP Morgan’s specious history has made it controversial from the perspective of metal management. It is widely believed within the major investing community of silver and gold, that JP Morgan have been irresponsible as custodians for silver. The SEC recently gave JP Morgan the permission to run a copper ETF. This has been considered quite a sleight of hand considering the investigations ongoing into JP Morgan’s silver manipulation scheme.
Eaton & Van Winkle LLP, a New York-based law firm very well could be looking into representing US top copper consumers. The firm has already called the Sec’s decision “arbitrary and capricious.” The comment has not manifested into a formal appeal as yet. If it did, it would likely slowdown the launch of JP Morgan’s deliberated XF Physical Copper Trust Fund. A previous law firm which represented the copper industry’s interests found the the Commission’s decision will likely “grossly and artificially inflate prices for an industrial commodity short in supply…and wreak havoc on the US and global economy.”