Are JP Morgan the new Hunt Brothers?
News
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Posted 09/08/2013
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The Hunt Brothers were sons of a Texas Billionaire. They attempted to corner the Silver market in 1979 and managed to own over a quarter of the entire world supply using heavy borrowings. The price of Silver jumped from $6 per ounce to a record high of $48.70 per ounce (712% increase). In response the exchange changed the rules for owning commodities on margin. As the price began to fall (dropping 50% in 4 days) the Hunts were unable to meet their obligations and caused panic in the markets. The Hunts lost over a billion dollars declaring bankruptcy in 1988, one of the biggest such filings in Texas history. Now consider this quote from renowned analyst Ted Butler and ponder just where this gold market could now go…:
“In simple terms, JPMorgan holds more than 25% of the entire COMEX gold futures market on a true net basis. There has never been a more concentrated net long position in any major regulated futures market in history. Not even the Hunt Brothers in COMEX silver in 1980...or the Sumitomo copper trader, both found to have manipulated markets by means of a corner, held as much of a share of the market as JPMorgan holds now in COMEX gold futures…. If a 25% net share of a market does not represent a corner, then that term has no meaning. I’m not alleging that JPMorgan owns 25% of all the gold in the world, as that would be impossible. Heretofore, I would have insisted that owning 25% of the COMEX gold market was impossible, but no longer.”