That Time Again: Silver Price Targets JP Morgan Stock Price

The campaign to crash JP Morgan by buying silver will be picking up steam over the coming months as the silver price begins to appreciate amidst a volatile stock market, therefore causing JPM to depreciate and making the most dangerous man in financial media, Max Keiser, even more dangerous.

As the Silver Liberation Army is aware, rising silver prices could put pressure on the JPMorgan stock price. As the JPMorgan stock price and the silver price conflate, investors might perhaps concern themselves, in regards to the bank’s stock price and derivatives holdings, with JPMs risky short position in silver. Usually a firm will short a stock 8-1, whilst JPMorgan holds a short of conservatively 40-1.

For every ounce of silver sold on the COMEX, JPMorgan sells between twenty to fifty ounces of silver, similar to fractional reserve banking. This is called naked short selling; that is, they sell silver that does not exist. In fact, it is estimated that the bank has sold between one billion and three billion ounces of non-existent silver.

With JP Morgan at $37.33 and the silver price at $30.48 currently, this likelihood of conflation grows, likely leading to intensified conversation not only about silver’s prospects, but also that of JP Morgan.

Maybe this time around, Keiser won’t publish a thank you letter, but a celebratory letter of the Most Successful Financial Rebellion in History:

Thanks to the ‘Crash JP Morgan, Buy Silver’ campaign that rocketed silver 100% higher last year JP Morgan has been forced to lean even more on its fragile balance sheet resulting in a 2 . . . er, I mean 5 billion dollar explosion on their balance sheet that wiped out more than 20 bn. from their market cap. We are now closer than ever to taking down this pig. Keep up the pressure. Each $1 of physical silver you take off the market hits JPM’s balance sheet for a $100 loss. We’re winning the war against financial terrorism and JP Morgan. To those who doubted the connection between the naked shorts of JPM’s silver and the risk to the their balance sheet; you have been proven wrong. To those who doubted the connection between JPM’s stock price and the price of silver; you have been proven wrong. The SLA are true patriots. Never negotiate with terrorists like J. Dimon. Be true. Live free.

The first time the two prices truly conflated was during April 2011, when silver demonstrated a monumental rise in value. Back then, the two prices conflated in the mid-forties, before both tumbled. Through the Fall, silver and JP Morgan crossed each other’s stock prices numerous times:

This time around, silver does not have quite the run ahead of it to overtake the JPM stock price as it did leading up to the April 2011 conflation.

Since the company made public on May 10 that it lost billions due to the London Whale, the JPM price has dropped considerably.  By the end of May, it had fallen 20%. It fell as low as 30% off its recent high of $46. Today, it has slow regained some of that drop-off, but still sits about 20% off its high.