In A Critical Update, Eric Sprott Dissects This Week’s Mauling of Silver:
What They’re Really After is Silver.  The HUGE Short Position in Silver, if it Ever Got Out of Control, Every Dollar Up is $1 BILLION in Losses. They’re Trying to Get it Under Control, But They Can’t Get the Longs to Capitulate! 


From SprottMoney:

    • if you’d had calls for 18,you would have been out @18.56 last week. this is the period right before expiry where ops usually just lay around after the pull back. way too many folks who  play options who don’t do anything after the move has come, and before it’s gone, wait for another round for the call to go up again.most of the time it doesn’t.hence the “expire worthless routine. op-ex dates are getting to be more like an old wives tale anymore.

  1. My guess is the banks are both the major holders of both longs and shorts.  They’ve got this market rigged forwards and backwards, up and down, left to right.  Wash, rinse and repeat.  No wonder the longs won’t capitulate.  LOL

    These articles have become laughable.  I used to listen to the likes of Sprott, Holter, Sinclair, Hoffman, Kanzler, etc. expecting silver to make some crazy upswing.  Now I just laugh at the usual clowns that somehow cannot figure out this market.  It’s my guess they are useful tools for the establishment and nothing more.

    The establishment needs the public demand for the metal.  That demand has been falling rapidly as everyone figures out their game and tired of being fleeced for the 20th time in a row.  Premiums on gold remain at multi decade lows.  Premiums on gold are lower now then when gold was priced at $250 / oz in the U.S.  This is a clear sign something is about to break.

    • I agree. I don’t think the longs are some hapless, always-being-screwed gaggle of dumb dumb hedge funds, being ever washed and rinsed.

      I agree and the longs ate probably Cayman Island based prop trading desks of the big Banks, shooting up the open interest in order to suppress price via some oblique derivatives calculation.

    • @Strannick, all that needs to be done is to outlaw naked shorting, period! it’s one thing to write puts. it’s another thing when you make up shares that don’t exist, then write puts on said shares. thats whats been done. shit would change if that was outlawed, then truer price discovery could be had.

    • @powerball

      You come across as well someone who has a good grasp of whats going on.

      I think though your little naive .That is not meant as an insult.

      Anyone or entity that tries  to F with these Globalists/Neocons/corportate fascists whatever you wish to call them never comes out on the winning side of the proposition.

      Yea a billion would do it but that aint going to happen at least not while this pricks are in total control which they clearly are.look what happened to Kadafi and that other asshole in Iraq or anyone(im sure there have been countless others) for that matter when they went rogue and attempted to f with these guys nice little arrangement.The Russians and  Chinese could but why would they they are perfectly content to buy undervalued physical for as long as they can.NO Sprott nor anyone of his elk will not rock the boat.If he does I guarantee you will be talking about either he his family or his company in the past tense.Personally I dont see the manipulation ending until they have printed so much paper money that it no longer is considered money but toilet paper on world exchange markets.Once the Us dollar takes that nosedive its game on for silver and Gold.I only hope though the neocons dont get us vaporized first.That should be everybodies biggest concern at this juncture in time.The people  simply  exude the essence of pure Evil. Evil not in the biblical sense but just completely amoral and hegemonic.


    • Bwa-ha-ha-ha-ha-ha-ha-ha-ha !

      What an idiot !

      You’d be better served to listen to Sprott and learn something rather than run your mouth.

    • @PowerBall


      “No wonder the longs won’t capitulate.”

      Perhaps the real wonder here is that the longs continue to play this idiotic game?

      Or is what we see only one face of a closed game in which certain very well funded and backed players hold BOTH sides of these bets?  No, they can’t make money that way but what they could do is earn some under-the-table graft from a government that is terrified that fiat will go POOF! like dust in the wind and are using PM price controls to help prop it up.  Stranger things have happened… and they very likely will continue to happen.


    • Most hedge funds have been going long on metals first as this is their hedges for their long dollar positions. When there is short term dollar weakness they use HFT algos and move price up to usually a reversal or resistance level and when currency traders in London start hammering again the EUR/USD and GBP/USD crosses they jump on the other side of the trade and ride price weakness back down with the commercials who most are already short as this is their hedges not only for production and inventory of metals but also hedges for other financial products traded on other markets. This is why the volume is way greater than inventory of mining production and it is simply absurd as claimed by the metal promoters that this proves fraud or manipulation. This shows that they do not have a clue what causes price movement in markets nor how they really function and their purpose. Futures markets are simply insurance like products that provide hedging for all sorts of financial products and of course physical commodities like wheat, corn. sugar, lumber, oil, pork bellies, etc.  This is why the contracts to inventory is meaningless.

      The hedge funds were bouncing price between the two reversal levels at 1240 and 1272 and recently when London backed off the algos again drove price up to the same resistance level which they were using before the range trading which is the 1300 level. Again when London cranked it up they added their shorts and rode price weakness back down to the 1270s. This is not some “cartel” suppressing prices as metal promoters claim and most stackers have bought in to. Price movement on the futures market is very predictable if you follow price movement in  the above dollar crosses. The hedge funds cause price movement and they trade according to dollar strength or weakness.

      The bullion banks not only trade for their own accounts but represent clients worldwide who need to hedge for one reason or another. It has been rumored for years that some of these clients are Chinese firms who are part of their large industrial and manufacturing base who need low price metals so their products can be marketed and sold across the planet. It is no accident that the Chinese bank ICBC Standard Charter in a part of the London Metals Exchange, (LME), which is the futures markets. Also it is no accident that the Hong Kong and Shanghai Bank is part of the LBMA and the metals fix or auction.

      Those that promote metals have always claimed the the Chinese opened the SGE to control price and move it higher. The reverse is true. They funnel metals thru the SGE and distribute them to their huge industrial and manufacturing base and their large wholesale jewelers. They accomplish this buy placing a 17% VAT, (value added tax), on metal imports that do not flow thru the exchange and of course they have their own twice a day metals fix.

      Silver has simply moved from a monetary based metal to an industrial based commodity where millions of jobs are dependent on a low price so products that contain it can be marketed and sold around the planet like appliances, electronics, TVs, flat screen monitors, autos, retail jewelry, etc. This is from 70 to 89% of demand depending on the industry source. During the last crisis when world trade collapsed demand for silver also collapsed and then the price. Last June and July when prices were hoovering close to $21 July’s retail jewelry sales fell off a cliff and has never recovered. This shows how the metal has moved to an industrial based commodity and demand is extremely sensitive to price. This is why the gold/silver ratio has become meaningless.

      We have the Chinese controlling price on the SGE and their own metals fix. We have a Chinese bank part of the London metals fix on the LBMA. We have another Chinese bank part of the LME. We have rumors that Chinese firms are clients of the bullion banks in London and in New York. Now with everything above does this really surprise anyone and we haven’t got even to the bullion market in Hong Kong, Zurich and Tokyo?

    • Truth is that when the currency is stable or strenthening and stocks are performing well you are not going to attract much speculative demand for metals.  During times like that silver is just an industrial commodity.  When real fear in the currency/bond/stock markets hit silver becomes something else entirely.  It’s the reason the doc’s ilk attempt to manufacture that fear.  They need it.

    • @cork :  Yep, there’s always an idiot on this website.  I’ve listened to Sprott including purchasing his fund upwards of 10 years at this point.  He pumped’ gold and silver all the way down from $49 leading untold amounts of people to financial ruin.  He magically sold an enormous amount of silver right before one of the large take downs when silver was around $37 (something I’m sure he’d wish people would forget about and not mention anymore).  It’s obvious he runs in the circle of the manipulators or withholds information for us surfs on the bottom allowing everyone else to be financially slaughtered.

      I would concur it’s Sprott that’s running his mouth.  Its been noted multiple times on SD and other alternative sites that less than $1 billion would wipe out the CRIMEX physical silver stock and end the manipulation game.  Well, Mr. Sprott is supposed to be a billionaire (as widely touted on this site) not to mention the hedge funds, etc. then add in all of those other rich folks that praise silver like Hugo, etc.  They could end this manipulation overnight and make a killing in the process as the silver they own would triple and quadruple.  Instead they can’t wait to get in front of the microphone again and lead more people to financial ruin.  Listen to him at your own peril..

  2. Charles Savoie and “Silver Stealer” is a
    for ALL of us invested in silver.

    Had I known the extent to which TPTB will go to crush silver I certainly would NOT have invested every penny of my lifetime of hard work into silver. However, in 2010 and 2011 all I could find were articles screaming silver to $750/oz and such.

    The monsters in control will kill us all before they lose any power.

    Regardless of what any of you “think” this is going to end very badly.

    • “Had I known the extent to which TPTB will go to crush silver I certainly would NOT have invested every penny of my lifetime of hard work into silver.”

      This is one of those moves that people continue to make that is a severe violation of proper investing techniques.  Never ever go “all in” with ANY investment, no matter how good it looks to you.  The sad fact is that we are all fallible human beings who make mistakes fairly often.  I know that I have but in each case, it involved a relatively small portion of my wealth.  It still stung, however.  We simply cannot afford to bet our financial future on any one type of investment.  Sure, if we’re right we can make a lot but if we are not we can also lose a lot… and when talking about “every penny of my lifetime of hard work“, there is NO room for error in our financial judgement.  Because of this, asset allocation is critical in anyone’s lifetime financial plan.  It is also routinely ignored by many who are now finding out that there is a significant cost to such ignoring.

      In my case, an allocation of 15-20% in PMs is reasonable and that’s the range I am now in.  The other 80-85% is in other investments, such as stocks, mutual funds, ETFs, cash, and REITs.  The past 6 years have been good for my financial plan and I have no regrets whatever about buying some PMs as my financial “Oh, crap!” insurance, a long-term savings plan, and a hedge against inflation.  As in many other aspects of life, knowledge and moderation are very often the keys to success.


    • Getting away from proper diversification was a massive error many of us made in this space.  The market has done what it can to rebalance for us though lol.  The problem is that prices move in advance of our feelings.  When it felt like time to move all in it was actually time to ease up.  Lessons learned the hard way.  But at least they were learned.

  3. Sprout is no authority on anything, he too has been wrong for 6 years.  However, his mutual funds have done very well based upon the ongoing hype of PM and that is what made him a rich man as we all languish is losses for 6 years!

    • Those who already capitulated don’t come around anymore, those who can’t wait to capitulate visit once in awhile, and those who will never capitulate are regulars.  I can identify with each group as if this website was a bar.  Silver Doctors should initiate a 12 step program, I’ll be the first to admit my addiction… who’s next?

    • “… as we all languish is losses for 6 years!”

      Not ALL of us are “languishing in losses”.  Those of us who invest broadly in multiple asset classes are doing pretty well.  Only the “all in” crowd is feeling the sting of the past 6 years.




      Interesting observations and I agree with them.  SD is more than a bit like the local neighborhood bar… not that I have any personal experience with them but reading, TV, and movies do portray them in ways that seem similar to SD.

      Buying silver IS addicting, no doubt.  I set a goal of how much silver I would buy based on the amount I estimated as being necessary to ride out a SHTF situation of 3 years duration.  A lot of guesswork went into this estimate, so it was by no means any sort of rigorous equation, but it involved the amount thought to be needed per person per day and the length of the need.  I figured that any plan was better than no plan and that I could always modify it later, if necessary.  But once I reached that goal and when silver bargains came along, I continued to buy some.  There is a certain excitement to it when receiving a nice heavy box, opening it, and stacking all the goodies therein.  Right now, however, I am building up some additional fiat after paying off Uncle Sugar’s tax man.  That money will be used to browse the sales in gold in a few more months.  Sigh… it really does seem to be more of a lifestyle than a real plan.  But I refuse to break my allocation max of 20% in PMs!  (or so I keep telling myself!)


  4. This analysis is flawed ( as has been proved by the constant false calls ) for one very simple reason – the huge commercials short position is mostly hedged – Bullion Banks trade arbitrage  – they do not do directional trading – unlike the spec longs who are mainly directional.So the commercials are not going to be forced to cover if the price goes up as they already are covered.However this is not the case for the spec longs who get stopped out on a regular basis if the price falls.That is why you have sharp stop loss selling if the price falls but not stop loss buying when the price rises.


    • @jockstapp

      Is that spelled correctly, or should it be “jockstrap”???

      To my knowledge, JPM is the only one of the bad boys club that has their shorts covered, and probably by a multiplicative factor, with physical.

      The CFTC report shows the extent of hedging with spreads, it is not big, and crashes to nearly nothing every contract/options expiration date.

      If it were the bullion banks covering their positions, I don’t think the would leave themselves uncovered for even a few days.

      Of course, we have no idea what they are doing in the LBM.

      Kindly explain your comment “the huge commercials short position is mostly hedged – Bullion Banks trade arbitrage  – they do not do directional trading –”???

      I disagree, but am open-minded and interested in intelligent, divergent analysis.





  5. When an article of real wealth billionaire Sprott brings the attention of more than 10 trolls then you know this farcical mummery is in its third act.

    Their only way out is more fraud and wars.

  6. The human body is a living battery …. what’s the best conductor of electricity?  _____ ….. That’s why man has such a magnetic draw to silver …  We need to replentish the electrolytes within our living selves.  with the spiritual subconscious desire for the metal and the rarity there of … that’s why silver is money…. and to a lessor extent, so is gold. We as a planetary generation, no longer eat with silverware, drink from silver cups nor handle silver in our daily financial transactions ….. our bodies are starving. Instead we deminish our life-force by eating and drinking from plastics, aluminum and empty calories from non-mineralized food and drink…. thus we keep our selves from spiritually flourishing..

    • @Southern Nobel, the human body is a dipole.

      A dipole is a separation (balance) of positive and negative charges. The simplest example of this is a pair of electric charges of equal magnitude but opposite sign, separated by some (usually small) distance.

      If you are insulted from earth, then remove the insulation so as to balance the negative ions, with the positive ions.

      Earth is negative, all above earth i.e. the air is positive.


    • Maybe.  Or, you could spread them out on a blanket and just roll around in them.  That might be more satisfying then merely rubbing on them.  Try both to see which works best.  🙂


  7. So “lose a billion” is an issue when you have an ashkeNAZI jew owned Federal Reserve Bank Money Printing Press?




    Someone is not thinking these things through before writing these articles.

  8. @Mierda  This brings up the ugly issue that:


    The FED didn’t “print” any such amount of USD…they created such piles/amounts solely within digital accounts/storage… ie: pushed the button they did!

    IF they had actually poured the green ink on proper paper – we wouldn’t be in the fix we are IF/WHEN they decide to try and go cashless… and, the resulting runs on any piles of real paper cash then take place… I read where we have about $200 billion in circulation at any given moment…and, I think there must be about “another 50% value amount” stuffed in overseas’ places and right here in/under mattresses… While there are “TRILLIONS” on “DEPOSIT” in our wonderful banks, etc… Remembering the “legal tender” issue, re: our CONSTITUIONAL TREASURY, any such move to cashless status is going to result in those MSM photo op’s with long lines and fights in front of large stone buildings…eh?

    Long story – short: Keep stacking and hold any “cash” you choose to in $10’s and $20’s for the majority…leaving $50’s to hold that remaining…. Those pesky $100’s are the first target of such actions and will become suspect. Check-6

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