‘The key component of the silver price manipulation’

Några rader från en ny artikel av Ted Butler om silvermarknaden: The Silver Conspiracy

”Those involved in the conspiracy are trying to take the attention and heat off of the crooks at JPMorgan by shifting some of the short position from JPMorgan and placing it in other large short accounts. There is no legitimate reason why the 5 thru 8 largest traders on the COMEX hold an all-time record short position at a time of record low miner hedging. As distasteful as I’ve always found the word “conspiracy” to be, I can’t find a more apt description for what has transpired on the COMEX.

I find it fascinating that the best those involved in the silver conspiracy can muster is a shifting of the concentrated short position to other players to shield JPMorgan, rather than a meaningful and absolute overall reduction of the total position. After six years, I would have imagined all these crooks could have done better. It tells me that the concentrated short position is still the key component of the silver price manipulation as I concluded decades ago…..”

”….there is a force much stronger than the collective might of those involved in the conspiracy to manipulate silver prices. That force is the reality of the physical market. It was the developing physical silver shortage of early 2011 that almost brought the CME, JPMorgan and varied US government interests to their knees and it will be the next physical shortage that finishes the job. Aside from the passage of time, the preconditions for a physical silver shortage haven’t changed much since 2011. The world produces a certain amount of silver and after deducting what’s left over after industrial and total fabrication demand, there is a remarkably small residual amount available for investment.’

Yes, I think JPMorgan may have accumulated a good amount of physical silver and that might delay the next shortage, but that assumes the bank stands ready to donate that metal at artificially low prices. Then again, I may be wrong and JPMorgan may not own as much metal as I’ve speculated and, therefore, may not be in position to postpone the coming silver shortage for long.

Superimposed on the inevitable physical silver shortage and more likely to hasten rather than delay it, is the growing awareness of the conspiracy to manipulate silver prices. Yes, it may initially scare some folks off who don’t dig into the issue, but a certain number of potential investors will conclude that such a conspiracy to manipulate prices has created a phenomenal investment opportunity. A certain number of big potential investors may actually be drawn to silver if and when they become intrigued with why do JPMorgan and the CME tolerate being called crooks.

Just yesterday, I almost spilled my morning coffee on myself when I picked up the NY Times. The main front page story was how virtually every investment asset in the world, from bonds to stocks and real estate, were at almost bubble valuations, given the efforts of the world’s central bankers to flood the world with excess liquidity. Investors all over the world were scouring the landscape for attractive investments. Of course, I openly asked the paper – what about silver? The newspaper didn’t respond. http://www.nytimes.com/2014/07/08/upshot/welcome-to-the-everything-boom-or-maybe-the-everything-bubble.html?emc=edit_th_20140708&nl=todaysheadlines&nlid=58270588&_r=2

Maybe I’m reading this all wrong, but sooner or later it is going to dawn on enough new investors that silver is grotesquely undervalued and that there is a verifiable explanation for the undervaluation. Because silver is truly a world investment asset, the realization that the US Government is involved, along with JPMorgan and the CME, in a conspiracy to suppress the price of silver will only serve to whet the appetite of the world’s investors as well as anger the world’s silver producers.

Ted Butler

July 9, 2014

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