Submitted by Cleburne61:

The self-doubting going on around the metals community recently about the facts of manipulation are, after all this time, downright annoying.

Ted Butler’s point has always been that what’s occurring is manipulation not because the spread positions and hedges are unbalanced, or because it’s naked shorting, but because there exists a grossly disproportionate concentration and collusion of positions within the bullion bank activities in silver.

As of two weeks ago, JP Morgan alone held more than 1/3 of ALL short positions in COMEX silver.  THAT is concentration that would’ve blown the Hunt brothers’ minds.

If the positions that existed by the bullion banks(BB’s) were just evenly, non-concentrated spread hedges as Jim Sinclair claimed this weekend.….silver wouldn’t have killed Bear Stearns, and consequently the 2008 financial crisis wouldn’t have gone down at the time it did.

In the 70′s when Sinclair et al were doing what they did best….the US govt didn’t have a debt to GDP ratio of 110%.   Now it does.

In the 70′s when Sinclair et al were doing what they did best….most US debt was held by Americans.  Now it’s held by foreigners and the Fed.

In the 70′s when Sinclair et al were doing what they did best…..the 1.5 quadrillion OTC derivative market didn’t exist, and wasn’t weighing down every major bank’s balance sheet to the nth degree.

Remember what Sinclair said?  Do you remember who was the plaintiff in the lawsuit that shut down the CFTC’s silver position limit ruling in the first place?

It was the ISDA.  Now….why would the ISDA care enough about the lil ole $30 billion silver market to personally launch a court case to get an emergency ruling to stop position limits in silver?  That’s simple: because the silver(and gold) shorts ARE dangerous, they AREN’T just “smart trading policy”, they ARE a government policy to maintain the con just a bit longer, and because a silver spike CAN kill fiat money faith faster than one look at Hillary Clinton can kill a perfectly good buzz.

Did we not read a dis-info piece from another mystery trader who said that the BB’s can and should be able to hold a 25% position of the entire market, simply because those banks are 1 to 1 offset and balanced with phyzz to paper?  Well, they’re not.  Citi does not have 300 million oz of phyzz (which is what it would take to offset their $9.5 billion silver derivative play.)

Did we not see Andy Maguire expertly remind us that that the mystery trader’s position was nonsense because it ignored the grossly disproportionate silver and gold derivative numbers?

Have we not heard repeatedly from GATA and Bill Murphy that JPM is having serious, deathly issues with its silver short position?  Doesn’t sound like an ingenious move, or good trading to me.

This isn’t the 70′s.  Things are totally different this time.  It’s not about simply maximizing profit: holding these things down is foundational to keeping the system going even one more quarter. 

JPM has been found guilty of manipulation by governing officials in cotton.

JPM has been found guilty of manipulation by governing officials in energy.

And JPM is well-known to be guilty of manipulation by governing officials in silver.

The bullion bank traders are not merely brilliant, ingenious folk doing good business…..these people are criminals with a license to kill.

  1. Sinclair didnt say they were ”evenly non concentrated spread hedges”, implying that the silver market is legitimate, which it isnt (not COMEX, not LBMA, not SLV, not unallocated silver accounts).

    He said that these spreads are one of the means by which they perpetrate their manipulation and so tease out leveraged longs to stretch their necks on the bullion banks blocks, and how they evade detection in the CFTC’s COT Reports.

    If you think Sinclair believes bullion banks are playing a fair game in a fair, regulated market, you havent been reading Jim Sinclair.

    Jim Sinclair has been a great asset to the precious metals community. His timing is precise (1980 top, calling for 1625 gold within two months of it occuring 3 years before the fact), which is a rarity in this field. His recent article gives further expert clairification to the complex means of manipulation and it doesnt help in this struggle for truth and transparency to misinterpret his meaning.

  2. Don’t forget the pattern of selling – even if the size and concentration of the futures positions comport with actual physical holdings (doubtful), then why is there high volume of selling consistently at specific times day after day, week after week, month after month?

    • Exactly. Look at Adrian Douglas graph onbuying the LBMA PM fix, then selling the LBMA AM fix, or Turd’s ”Happy Tuesday’s” which refer to book squaring before the COT Report is due.

  3. wow!! let’s wait what Mr. Sinclaire has to say about this!!! i dont know much about short, long, spreads. But i think both,
     mr. Butler and Mr. Sinclaire are right. I find both observations helpful, althoug Mr. Sinclaire has been more helpful for so long now to the comunity in regard of PMs. 

  4.  A silver spike CAN kill fiat money faith faster than one look at Hillary Clinton can kill a perfectly good buzz.
    Now, that’s funny.  What’s wierd is what can’t kill fiat money faith, kinda like the way religion isn’t killed by its own bullshit.  I think just want to drive around in an armored truck with a loose back door dropping chinese tungstens on the road, see if I can attract a following.  
    “Here we are, on the evening of the Apocalypse, and I can’t think of anything to do.”
    Fritz the Cat

  5. Until people fully accept the blatant fact that these paper claim-ticket ‘exchanges’ are wholly divorced from the reality of supply-demand characteristics of physical commodities, their contrived image of hugely over-stated banknote ‘valuations’ will persist.  These claim-tickets, in truth, have as much true’value’ as any other such instrument … like a dry-cleaner’s laundry ticket, or a movie theatre ticket, or a train ticket … they’re only temporary transaction instruments. The transaction bringing banknote tickets into existence, that is purchase with actual money of silver and gold, had occurred long ago. The coresponding ‘laundry’ has been collected; the ‘movie’ showing is years past and that ‘train’ doesn’t even run anymore. Like those tickets, banknote tickets belong in the landfill as food for bacteria.

  6. Jefferson warned us: “banking establishments are more dangerous than standing armies”. These scum truly are criminals. They would wipe out our lives with no more forethought than stepping on an ant. We must stand and fight. Losing is unthinkable.

    • Even if Jefferson warned us about it, people don’t care about it. Americans can’t start a Second American Revolution because they are scared to get mocked by the others saying that they are terrorists. Although, we can still start it peacefully by simply buying physical gold and silver. :)

  7. Talk about the Hunt Brothers, I wonder what happened to them after they lost a lot of their wealth. We don’t hear about them afterward. Also, I’m wondering if the Hunt Brothers are still accumulating some silver even after their loss.

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