© Reuters.
Investing.com – One of America’s largest investment banks, J.P. Morgan, will be in a major crisis if new events (a black swan) or any crisis push up nearly $1,000 in the coming weeks and months.
This rise will dive into JPMorgan Chase because of the large number of short positions in gold derivatives. Dr. Stephen Lipp, one of the world’s top money managers, says that JPMorgan’s gold derivatives short positions are so large that they potentially exceed the bank’s total available assets. It is a very dangerous situation for the giant American bank.
Lieb added that the exposure of a large bank such as JPMorgan to gold is very huge, even if it is not a secret of its own, but it is a secret known to all that JPMorgan has short-selling positions against gold derivatives, which they were previously punished for, but they continue to try Control the prices of the yellow metal with all their might.
Short selling.. How to profit when gold falls?
When a stock or commodity is sold short, the short seller is on the hook to deliver that stock or commodity at a later date. The goal is to make a profit between the current price and the lower price in the future. In this case, JPMorgan appears to be shorting the precious metal using derivatives, keeping it artificially low.
“I mean, when you look at JPMorgan’s short positions in these derivatives, you can imagine their gold positions, which I think outweigh the company’s assets overall,” Leib asks.
And if gold rose unexpectedly, at this moment one of America’s largest banks would be in great danger. Lieb says he suspects that JPMorgan knows the extent of the threat its short positions pose. After all, a short sale deal comes with unlimited risk, which means that the bank could get into serious trouble once the markets discover the true price of gold.
Why doesn’t gold take off to $3,000?
Lieb said in his speech on the King World News program that this is the secret of the fact that gold did not rise strongly above $ 2000, nor was it able to exceed $ 30. He says that is mainly related to the amount of shorting by major US banks against the yellow metal. And if you ask yourself how they manage to maintain the massive short-selling positions against the yellow metal, Lip’s answer is that the US Federal Reserve is the one who finances its primary traders, as the huge banks control the work of the US Federal Reserve, which never wants to maintain certain levels of gold and maintain American too.
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2023-05-07 09:27:00
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