View Full Version : Why Is JPMorgan So Eagerly Acquiring Bars of Physical Platinum?

14th April 2011, 05:39 PM
This article is huge. Only posting the beginning.

Why Is JPMorgan So Eagerly Acquiring Bars of Physical Platinum? (http://seekingalpha.com/article/263252-why-is-jpmorgan-so-eagerly-acquiring-bars-of-physical-platinum)

JPMorgan Chase (JPM) is the biggest derivatives issuer of all U.S. banks, but it is busy below the radar, loading up its vaults with 50 troy ounce platinum bars. JPMorgan has been a large net physical platinum buyer in 2011, and it was also a big buyer in 2010.

In 2010 the bank "stopped" a total of 975 platinum contracts, while delivering only 463, resulting in a net accumulation of 512 contracts, representing 25,600 troy ounces of platinum. In 2011, the delivery pace increased substantially. In January, 2011, JPM took delivery of 333 contracts, representing approximately 16,650 troy ounces of platinum. That month, a sum total of only 527 contracts were delivered to all clearing members, leaving JPM with 63% of all the delivered platinum at NYMEX. Then, in March, JPM took delivery of 12 more contract, even though it was a nonstandard “off-month” for platinum futures contracts. The off-month adventure added another 600 troy ounces to its kitty.

As of April 8, 2011, about 680 total platinum contracts were delivered at NYMEX. Of those, 307 contracts, 15,350 troy ounces, or over $27 million worth of platinum went to JPM. There are still over 100 April contracts left to be delivered, so it is likely that JPM’s gross intake will likely rise further this month. Set against these stoppages[i], are a mere 101 deliveries, so net 2011 intake has been 551 contracts, 27,550 troy ounces, more than $49 million worth of the precious white metal - even though the year has barely begun! [ii] So far, combining this year and last, noting that the April NYMEX delivery month is not yet over, JPM has accumulated approximately $76 million worth of physical platinum bars. That does not count any bars that may have been delivered to it at the secretive London Platinum and Palladium Market Association (LPPM).

The platinum "market" is bigger than that, but most of it is actually made up of a combination of derivatives and unallocated storage schemes. In other words, $76 million in physical platinum is a huge amount for anyone, except, perhaps, a big international auto/truck manufacturer to buy in about 12 months. This raises a few questions. Who exactly, within the JPM-Universe, is accumulating physical platinum through NYMEX deliveries? Is it the bank itself? Or, is it one or more of its customers? According to the bank, it closed its proprietary trading division back in October 2010.

15th April 2011, 06:50 AM
There's no reason an outfit like JPM would need platinum for any industrial reason, so I propose they use it for fractional reserve for a JPM platinum ETF. ;D

2c, R.

15th April 2011, 06:52 AM
They are going to use it to fake silver when silver reaches $3000 an ounce.

15th April 2011, 07:06 AM
wasn't jpm also buying tons of copper?

15th April 2011, 07:12 AM
wasn't jpm also buying tons of copper?

Think so.

Copper filled platinum. Or are they going for a chocolate filling. :oo-->

27th April 2011, 07:00 AM
I can't find any real Platinum for sale anywhere. All I see is fractional rounds of the Platinum Eagles and no bars. Maples still exist, but no one gives a fuck about those, amirite?

Large Sarge
27th April 2011, 07:18 AM
the higher ups realize a dollar collapse is coming, and are getting greedy/scared

Platinum is a semi-hedge, that is not political like gold and not super scarce like silver