Why does JP Morgan buy so much silver?
JP Morgan, the largest U.S. commercial and investment bank, is increasing its stockpiles of silver, betting that prices will move higher as inflation begins to take hold. Silver historically outperforms during the later stages of a growth cycle and prices are poised to outperform riskier assets.
Butler's calculations show that JPMorgan (JPM) has piled up the largest holding of physical silver in modern world. Since the silver price peak in May 2011, the bank has accumulated between 100 and 200 million ounces of physical silver (if not more). The equivalent in metric tonnes is between 3,110 and 6,220 tonnes.
Peru, Australia and Poland lead the world with the highest silver reserves, but there are many other top silver countries by reserves to know. Here's a quick look at where other nations stand: Russia — 45,000 MT. China — 41,000 MT.
JP Morgan Chase
JP Morgan now holds 133.1 million ounces of physical silver and the world record for most silver held under one name. Today, it also owns 50% of the world's COMEX silver bullion.
Silver, like gold, can be viewed as a safe-harbor investment during the end of a long bull run because it's a hard asset and a store of value. It can also be viewed as an alternative currency to fiat currencies such as the U.S. dollar or euro. Also similar to gold, silver can be viewed as a hedge against inflation.
A $500/month supplement would need 300 ounces of silver to get through one year, or 1,500 ounces for five years. If you want $3,000/month, you'll need 1,800 ounces for one year, or 9,000 if it lasts five years.
He is an expert on personal finance, corporate finance and real estate and has assisted thousands of clients in meeting their financial goals over his career. Warren Buffett does not invest in gold. He has invested almost $1 billion in silver, so the reason for his aversion is not simply a dislike for precious metals.
The short-term price prediction for silver is set at $16.91/toz by the end of 2019, according to the World Bank. The long-term prediction to 2030 forecasts a significant drop in the commodity's price, reaching $13.42/toz by then.
New Survey Reveals 10.8% of The American Population Owns Gold, While 11.6% Owns Silver. A new survey highlights what the average American feels towards ownership of the precious metals.
How Much Silver Is Left in the World? About 560,000 in metric tons of silver reserves remain around the world, the USGS reports.
Will silver hit $100 an ounce?
If inflation continues to rise and reaches double-digit values through 2022 and 2023, the price of $100 an ounce for silver could be possible. Consider that in 2021, we saw inflation rates averaging around 5%, which was the highest rate since 2008.
That is because the U.S. dollar would essentially be worthless if it were to collapse in value. In a sense, the price of silver would be infinite if measured in terms of the U.S. dollar!
1. Mexico. The number-one silver-producing country in the world is Mexico. The country produced 5,600 metric tons in 2021.
Though prices have gone down in these periods for the year, it has also been observed that the lowest price of gold and silver have been higher than the lowest price of gold and silver in the previous year. So, the gold bar price in mid-June 2022 will still be higher than the price of gold in mid-June 2021.
And silver ETFs rose by 150 million ounces to close at a record high of 1.21 billion ounces. In other words, demand for silver's two main functions—industrial and investment—is growing. This means… We should expect higher silver prices in 2022.
Silver demand is rising
Investment, industrial, and jewelry demand totaled 1.05 billion ounces was 19% higher in 2021 than in 2020. The Silver Institute expects the demand to increase by 5% in 2022 to the 1.10 billion ounces.
This data has led many silver industry commentators to publicly speculate over JPMorgan's motivations as their silver warehouse now holds close to 50% of all deliverable silver bullion on the COMEX (the largest silver price influencing commodity exchange in the world).
In 2011, JP Morgan has little or no physical silver. By 2012, they had acquired 5 million ounces of silver bullion. This is a huge bout of deliveries in a very short space of time. It's such a large amount, that it even creates a spike on the long-term chart of JP Morgan's silver stockpile (see chart).
Gold Holdings at the JP Morgan London vault
JP Morgan has been the custodian of IAU since the second half of 2010. IAU holds its gold in 3 vaults in 3 different countries, namely the JP Morgan vault in London, the JP Morgan vault in New York, and the Scotia Mocatta vault in Toronto, Canada.
The short-term price prediction for silver is set at $16.91/toz by the end of 2019, according to the World Bank. The long-term prediction to 2030 forecasts a significant drop in the commodity's price, reaching $13.42/toz by then.
