JP Morgan - Sell Shares Buy Gold

JP Morgan - Sell Shares Buy Gold

Last week we reported Ted Butler’s findings on JP Morgan’s silver positions in both COMEX and in physical.  Friday’s Commitment of Traders and Bank Participation reports show that whilst the 5 biggest US banks reduced their silver short position, they increased there gold shorts, now at a near 3 year high 72,867 COMEX gold contracts (72.9m oz!)

So it is quite ‘interesting’ that just late last week JP Morgan advised clients that:

“Equities, credit and commodities have all rallied in the last three weeks, as some of the immediate threats to the world economy have faded from attention, possibly only because the bad earnings season has wound up. But, to us, the fundamentals of growth, earnings and recession risk have not improved, and if anything have worsened. We remain wary of the near-empty ammo box of policy makers.

Our 12-month-out US recession odds have risen to 1/3….The eventual recession should bring US stocks down some 30%, creating a strong downward risk skew to returns over the next few years.”

They then go on to say, for the first time this cycle, they are now ‘underweight’ (sellers of) equities and, wait for it…. ‘overweight’ (buyers of) gold.

Suppress the price, load up, and then what?