Submitted by Ted Butler:

I’ll save the good for a moment, but the bad and the ugly seem to permeate the silver and gold and other markets. On Wednesday, I mentioned that one reason gold and silver failed to move higher after the Cyprus news was such a rally would have interfered with a planned takedown in copper, platinum and palladium, which was evident on Monday and Tuesday. For the record, there was the expected substantial commercial buying in copper and platinum, a bit less in palladium. My point is that commercial positioning on the NYMEX/COMEX is the strongest short term price influence, way ahead of anything else, including actual news and developments in the real world of supply and demand. This is so contrary to commodity law that I believe the regulators must be thought of as corrupt.

Even worse is that silver (and gold) investors seem to be confronted on a daily basis with the proposition that the US Government is working against the interests of silver investors. While every conceivable effort is undertaken by the USG to help push bond, equity and real estate markets higher, there appears to be an effort to depress silver prices that goes beyond ugly.


2013 Silver Eagles As Low As $2.59 Over Spot at SDBullion!

It’s not that silver investors are asking for or expecting any of the special favors and incentives doled out to investors in other markets; it’s more a case of silver investors being discriminated against by the US Government. This discrimination gets old and I sense that is what many must feel. I know I do.

The prime discrimination is the failure of the federal regulator to address credible allegations of wrongdoing by JPMorgan in the COMEX silver market. No one has asked the CFTC for any special favors or that is outside their direct jurisdiction. Market concentration is not something I invented or suggested be included in COT and Bank Participation Report data; it is the main safeguard of the CFTC against manipulation. For anyone to raise legitimate questions about existing bedrock regulatory matters shouldn’t result in silence behind a phony 4.5 year investigation. By the CFTC not speaking up or ending a continued silver price manipulation brought about by JPMorgan’s controlling market share, the agency is discriminating against silver investors and undermining trust in the institution. It further undermines everything good that America used to stand for.

Every day, silver (and gold) investors are subject to whatever daily pricing the big COMEX paper hangers decide to dictate, irrespective of what the real supply/demand fundamentals would suggest. HFT and computer-driven algorithms have come to dominate COMEX silver pricing to an absurd and uneconomic level. The reason we are witnessing unprecedented silver investment demand and unusual movements in COMEX silver warehouses and the SLV is because corrupt COMEX pricing has set the price of silver too low. If the price of silver was not set too low by JPMorgan’s outsized short position and the daily computers gone mad games, I doubt we would be seeing all the unprecedented developments in silver that I write of constantly.

To experience these unnatural forces of JPM and the computer trading madness on a daily basis over many months and years, all while other investment markets are buoyed by government actions, is debilitating; it wears you down, as it should if you are human and alert. So my first offering is one of empathy and to tell you that I feel it as well. More importantly, an objective analysis of the discrimination by the CFTC and their failure to rein in and terminate an increasingly obvious price manipulation is good beyond measure. In simple terms, the bad and the ugly add up to an overpowering good. The bad and ugly are why silver prices will soar. If silver prices weren’t set so low and if the CFTC had cracked down on JPMorgan, there would likely be little reason or urgency to buy silver.

Certainly, I know I wouldn’t be pounding on the table to buy silver if the manipulation didn’t exist or if the regulators hadn’t gone off the rails and into a ditch. I don’t think I ever suggested buying silver for reasons unrelated to the manipulation or actual supply and demand. I’m not saying that all the other reasons, like currencies, economic conditions, other markets and money printing, etc, don’t have a bearing on silver prices; but I am saying those reasons are not specific enough to silver for me to write about them. As debilitating and painful as the ongoing silver price manipulation has been, if the manipulation didn’t exist, neither would the prime reason for buying silver. No pain, no gain and all that jazz.

Therefore, I can’t rule out further silver price stabs to the downside before a dramatic and final resolution to the upside because both stem from the same cause – the manipulation. What I can say is that while those stabs at new price lows may occur, it is mandatory that silver prices will explode at some unknown point. Considering how far along we are in the silver manipulation in terms of time and considering the emerging signs of physical tightness and developing shortage, I think it’s best to concentrate on the certainty of the coming price explosion and not the uncertainty of near term pricing. Don’t let the crooks at JPMorgan or the negligent and discriminatory regulators convince you otherwise.

Ted Butler

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  1. I have to commend the market manipulators.  They are doing a wonderful job of keeping metals capped at the current prices.  
    And, they are keeping market sentiment in the toilet.  They are true professionals and there doesn’t seem to be anything at the moment that can stop them.  
    I will continue to wait.  Will a few more months be a sufficient amount of waiting Mr Manipulator? 

    • Good thinking, Pollo.  While we are at it, we can also be thankful for these nice stack-friendly prices.  We won’t always have these.  I agree with Butler that at some point the manipulation game will fail and that when it does we will have true price discovery in both silver and gold… and MUCH higher prices for both.

    • I seem to recall when the Portugese didn’t like their government in 1974 the army marched in and started shooting at politicians,certainly changed a few attitudes. Not suggesting this could happen in America of course, looks like the PTB have already thought of that. The game will only stop when all the wealth has been siphoned off.

    • M45,
      Loved the cartoon,sent it to one of my grand daughters! You are right M45, Hap Happy, Happy Days are right around the corner IMO!

  2. How in the hell long has it taken Mr. Butler to come around to the admission that the government and it’s phony ‘regulators’ are theives and charletans? Far  … FAR … too long for my sense of confidence. It’s great he’s finally ‘got religion’, but the long delay has me frankly peeved, Yeah, I still read his columns and take his commentary with a level view. This one failing of his, though, just really sticks in my craw.

  3. Good ole Jim, telling us what we already know. IMO the end game has started rolling and it will be only months and not years before the Bank Tsunami rushes the shores of the world Banksters. The rising stock market is a freakin’ joke, Hell we all know that, and Bonds, no one else buys our bonds but Uncle Ben. Screw the CFTC, Chilton, Dimon, Bernanke, BOE, IMF and all other criminal figure heads. The law of mathematics will ultimately prevail.
    To help it along take your savings out of the bank, cash in your IRA, 401k as you have nothing to lose except your money. Gold and Silver will sooner than later take care of their precious selves as the Free Market explodes and the paper will be gone! Stand back and look at the financial condition of the world. World GDP is 70 Trillion, World debt is 200 Trillion. Derivatives 100 Quad Trillion. Connect the dots my friends, the end game is right around the corner!
    God Bless America!

  4. Memorable scenes from  Dirty Gary   Starring Gary Gensler
    Det Callahan   “Did I fire 5 rounds or 6.  Well, I just can’t seem to remember”
    Dirty Gary.  “Please don’t shoot me, I’m innocent of everything”
    Callahan   “Do you feel lucky, punk?  Well, do ya!”
      Fade to black. Body of Dirty Gary floating face up in the river.

    • Lol, AG.  The scene that I loved was when the lights came on in the stadium.  That was soon followed by, “HALT!  BLAM!!”.

  5. “This is so contrary to commodity law that I believe the regulators must be thought of as corrupt.”
    Indeed so.  Of course, other words also come to mind, such as:  incompetent, paid off, disinterested, fools, etc.

  6. Our government is corrupt, DHS just ordered another 360,000 rounds of hollow point ammo. They refuse to answer to congress on this so time to cut their funding off totally. You expect CFTC to be any different than the rest?

  7. At least Butler gets it now.   I always thought his ideas that the “authorities” were actually going to be honest and do the right thing and uphold the law was, shall we say, naive.    These dirtbags are bought and paid for CROOKS.   They have no honor and no shame.   They are lower than vulture vomit.    Absolute power corrupts absolutely.   Surely, their parents and children wouldn’t be too proud of them if they knew how many people they screw over, and how much money they assist in stealing.   They are guilty of capital crimes, no pun intended.   In many countries, they chop off people’s heads for this stuff.   A lot of sociopathic criminals get away with it for a long time before they are captured and brought to justice.
    If having a large quantity of drugs or stealing a car calls for a long prison sentence, I think stealing the life savings of countless people calls for having fucking heads chopped off, pardon my fran-shwa LOL. 

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