JPMorgan Closes Precious Metals Sell Recommendation, Goes “Tactically Overweight” Commodities

Sunday, September 8, 2013
By Paul Martin

by Tyler Durden
ZeroHedge.com
09/08/2013

One of the most underreported sentiment shifts of the past week was JPM’s announcement late on Friday, that the firm quietly went long commodities – specifically base metals and copper (in addition to energy) – and the firm also closed it “sell” (i.e., underweight) in precious metals. This is not surprising: we had noted the ongoing purchasing of gold by JPM over the past two month (in part to restore its depleted gold vault inventory) when the yellow metal not only stabilized but promptly entered a bull market, returning 20% in a short period of time. And as gold was rising, JPM was advising its clients to sell. It seems JPM now has more than enough gold stashed away, and as the September shock is set to unwind, even JPM may be seeking the safety of gold, and the usual other hard asset suspects, if and when events escalate out of control, resulting in another “risk off” phase.

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