Jamie DimonTed Butler recently theorized that JP Morgan is the entity that is the buying 1 oz. silver eagle coins in record quantities this year.
Think about this:  bullion banks and large buyers of gold/silver deal in bars and tonnes. Think about how many silver eagles it would take to piece together enough to re-melt and fabricate into a meaningful quantity of marketable bars. Not-withstanding the expense of doing this, it is an absurd notion that they would even bother with it.  Especially when the Comex and SLV have plenty of bars that are available for hypothecation.  
The enormous quantity of silver eagle sales are going to the growing legion of individuals in this country and Canada who understand that the dollar is going to collapse sooner or later. It is poor man’s gold.   It is more fungible as currency than 1 oz gold coins. Ultimately, it is a possible signal that eventually the people will rise up and overthrow a completely corrupt system of Government and banking.
I believe Butler turned his ability to analyze the silver market – and the fact that he was one of the few people doing it for a long time – into a newsletter selling juggernaut.   Now the only evidence he looks at and evaluates is the evidence that supports and promotes subscriptions to his newsletter.   I stopped “absorbing” his analysis about 5 years ago.
His COT and open interest analysis relies on the all of the data being honestly and accurately reported.  But from where is the data sourced? It’s provided by the big banks who run the Comex.


 

 

 

By PM Fund Manager Dave Kranzler, Investment Research Dynamics:

A reader of my blog – a high profile money manager and market strategist – sent me an email with kind words about my statement criticizing Ted Butler’s  theory that JP Morgan is the entity that is the buying 1 oz. silver eagle coins in record quantities this year.

His comment stimulated a response about my view on the work being done by Ted Butler:

I believe Butler turned his ability to analyze the silver market – and the fact that he was one of the few people doing it for a long time – into a newsletter selling juggernaut.   Now the only evidence he looks at and evaluates is the evidence that supports and promotes subscriptions to his newsletter. Although readers of my blog send me copies of Butler’s newsletter twice a week to ask my opinion, I stopped “absorbing” his analysis about 5 years ago.

1) His COT and open interest analysis relies on the all of the data being honestly and accurately reported. But from where is the data sourced? It’s provided by the big banks who run the Comex. If the COT, open interest data and warehouse stock data are accurate and honest, it would be the ONLY financial reports that come from banks that are honest. What are the odds of that? Butler refuses to question that premise and I’ve exchanged emails with him over the years pointing this out and he refuses to accept even the slightest possibility that the data is corrupt. In fact, he’s outright contemptuous of any thought that the data may be corrupt.

 

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2) He refuses to consider the possibility that GLD and SLV lease and hypothecate their metal. He’s the only person I know who has read every word of either prospectus who is willing to believe that the GLD/SLV metal inventory reports are accurate and honest. In fact, I find it hard to believe that Butler has bothered to even read the entire prospectus of either Trust. Again, ultimately, the reports which are used by the Trust accountants and which are published on a daily basis are generated and sourced from the banks (HSBC and JPM) who safekeep the metal. It states right in the Prospectuses that the custodians are the keeper of the financial reports connected to the custody of any metal. There are strict legal restrictions on ANYONE’s ability to visit the bank premises and inspect the files.

I will say that his method of analyzing the COT data was at one time original and informative. But that time has passed by. I will also say that he did a lot to open the market’s eyes to the manipulation of the silver market. But ultimately, as the exercise of the market looking at, analyzing and absorbing the COT information becomes widespread, the information becomes quickly priced in, right? If a few people use and trade it, it works. If the entire market sees it and tries to use it, it prices in immediately.

I truly believe that, ultimately, the banks distort the COT and Comex data into a shape and form that they want us to see and believe – just like everything else they do. Butler refuses to acknowledge and accept this possibility because it would mean that his work has no value. It also means that there is a distinct possibility that the Comex banks are actually using Butler (unwittingly) as a tool to promote the credibility of the reports.

At the end of the day, our system is growing more fraudulent and corrupt by the day.  And the Government that is supposed to be in place to enforce the laws has actually become a partner with Wall Street and Corporate America in doing whatever it takes to steal as much wealth from the public as they can before the country collapses.   But don’t take my word on it, read a few history books and then read or re-read Orwell and Rand and decide for yourself…

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  1. You know, I always liked reading Butler, but knowing he doesn’t believe in manipulation and thinks COT #s are honest makes me think he’s controlled opposition.  Notice the only solution he ever proposes is to write letters to public officials, who couldn’t give a toss.

  2. Excerpt: “At the end of the day, our system is growing more fraudulent and corrupt by the day.  And the Government that is supposed to be in place to enforce the laws has actually become a partner with Wall Street and Corporate America in doing whatever it takes to steal as much wealth from the public as they can before the country collapses.”

    First off … what we’ve been subjected to all our lives (and that of our parents and grandparents) isn’t our system, it’s their system. Ours is one of plain simple Honest Money of Weights and Measures that had evolved its rationality of inter-related values over many millennia. Theirs is this novel phantasmagoria of derivative ‘values’ all measured on goofy formulae drawn from mercurially defined elements deemed ‘accurate’ by demi-gods of ‘High Academia’.

    Forum members here, know that my two chief passions are Monetary Theory and Law, each substantiated through empirical History. As with both disciplines, I’ve concluded these ‘elitists’ have substituted unjustly inferior systems over which they can exercise complete control, by defining and re-defining complex terminologies in ways that match their self-serving objectives, rather than in simple unmalleable terms impossible of ‘interpretation’ or ‘explanation’ apart from blatant ‘Occam’s Razor’ meaning.

    Together they constitute a ‘Babylonian Confusion of Tongues’.

  3. As I read Kranzler’s piece here, another name kept coming into my head.
     
    A few years back, came upon the punditry scene an oracle from the past, singing the siren song of the SuperCycle… and Gold was about to enter into the greatest SuperCycle Bull Run in over 300 years…
     
    And then… They let him out of Fort Dix.  And Martin Armstrong suddenly sang the SuperCycle soliloquy in a different tune… a flat…  I remain convinced that Martin Armstrong made a faustian deal with the Devil… to join the anti-gold chorus in exchange for the right to continue as a baritone… (actually, he sounds more like a tenor) …if the reader here will get my ‘drift.’
     
    Well, a few years back, well established among the financial punditry, there was the Silver Oracle… the voice of reason and sincerity in the pursuit of the truth as it pertained to the silver markets.  Well regarded and respected among the metals crowd…  convinced that SOMETHING was amuck… with tireless energy, integrity, and dogged determination, he pursued the truth…
     
    Now, the man whose entire reputation was built on an apparently genuine effort to expose a fraud with a strong reliance on accuracy of the COT data has endured the revelations of fraud, manipulation and outright lies and deceit EVERYWHERE around him and yet, he sticks, steadfastly to the belief in the accuracy of the data and the prospectuses he sees….
     
    I wonder what skeletons they found in Ted Butler’s closet that gave them the power to seduce a good and honest man to the Dark Side…
     
    In many ways, the turning of Ted Butler may be seen 100 years from now to have been the milestone marking the moment in history where Wall Street finally reached the point where was no longer even any honor among the thieves which would mark the beginning of the Final phase in the End for Wall Street, the US Dollar, and the United States.
     

    • That’s why you’ll find me reveling in my status as an obscure nobody, able to ‘hit and run’ like a Mohawk woodland fighter on the periphery of the ‘forces’ arrayed. Picking off the SOBs one by one, in ways that systemically and philosophically ‘lay them dead’ in the field for anyone to ‘count up’ is a special feature of my ‘status’.

      I know exactly what you’re saying and I’d watched it happen to Chris Martenson also. ‘They’ appear to be ‘working on’ Mike Maloney, but he still has the resolve to ‘say it loud and say it proud’.

    • “I wonder what skeletons they found in Ted Butler’s closet that gave them the power to seduce a good and honest man to the Dark Side…”
       
      If they didn’t find any, perhaps the placement of a gun muzzle behind his ear one night and a short speech convinced him of “the error of his ways”?
       

    • “We are on our own fellas. Get used to it.”
       
      Indeed so, Bay… and anyone who was waiting for the cavalry to come charging over the hill with bugles blowing and flags flying can jolly well stop waiting for what isn’t going to happen.  You want to see the cavalry?  Look in the mirror.  THAT is who’s coming to save you.
       

  4. I don’t understand the importance of this piece. I don’t understand the relevance of JP Morgan melting or not melting silver Eagles.
     
    Silver is cheap. Silver Eagles are expensive (in relation to silver bars) as they are based on US only produced silver, not world wide. Therefore there are margins in the selling price that make Silver Eagles stupidly expensive for the task of remelting into bars of silver. Just buy bars of silver, its cheaper, easier, and guess what, they are already bars of silver.
     
    Now, if JP Morgan are buying American Silver Eagles, I would suggest that they are doing it for other reasons, probably something to do with taxation, the fact that American Eagles are “Legal Tender”, or some other loop hole trick that obfuscates some other practices they are doing elsewhere.
     
    The Silver Eagle is exempt from IRS 1099B brokerage reporting which makes the American Silver Eagle one of the most private investments in the world.
     

    • WFS…excellent point.  Not only are Silver Eagles exempt from 1099B reporting requirements, so are Canadian Maple Leafs and Austrian Philharmonics. Anything over 1000oz of generic silver bars or rounds triggers a 1099B. This is why I only recommend stackers stack ASE’s(U.S. residents) because this is what the big boys do and this tax reporting loophole is there for a reason and there is no reason that we shouldn’t take advantage of it too if you are a stacker of significant quantities.

  5. “Canada understand the US Dollar is going to Collapse sooner or later”. the Questions is :  1.When?, 2. Is Canada Economy will be a better shape than the US after the Collapse? 3. Why Canada is not Following China, India, & Russia Buying and Stockpiling Gold at this price,if Canada Understand the US Dollar is going to Collapse? 4. Which part of Canada is Good Place for Raising the Family after the Collapse? Is Canada better place to Living than the US after the Collapse? Thank You Everyone. 

  6. I, for one, would believe Ted Butler before I would believe anyone in the media financial world, or a Wall St. fund manager/corporate shill.  Are you fucking kidding me?????
    Ted Butler has been championing the rights of the silver world and we stackers for decades.   

  7. Sovereign Economist.  There is one thing I’ve noticed over the last few years,  that whenever some writes a book, they start shilling like crazy,  saying pretty much anything that will appeal to an audience, any audience, in the hopes that someone will buy their book.  It also appears that any  journalist or opinion writers who creates a subscription system for their opinions quickly becomes compromised if their essays hit home.  They write to the base. The expectation of increased subscriptions starts skewing the message to appeal to additional paying readers. Or the writer hits too close to home, offends a powerful group and is taken down.   Then they start writing to the ‘other base’
    Those who provide details without charging for it appear to be less corrupted than those where FIAT flows reform the banks on the rivers of opinion.
    Waitingforsilver  If JPM was buying ASEs and remelting them, these ASEs may  be the only immediate source for a quick snatch and grab of silver to satisfy some precious metal call.  This is just a guess.
    The benefits of owning ASEs, including the tax ramifications, appeal to the average buyer but JPM would likely have a more nefarious reason for picking up the ASEs.  They talk about BTFD but if they buy physical it probably isn’t for stacking.  JPMs people hate silver.

    • “JPMs people hate silver.”
       
      ALL banksters hate silver.  Silver bullets kill werewolves and silver crosses repel vampires.  Banksters are sort of a cross between these beasts.

    • Sure… but rules like that ONLY apply to the little people like us and not to the anointed on Wall Street or in DC.  They have a completely different set of rules that are MUCH smaller in number.

  8. As Thunderlips once told Rocky (at the top of his lungs) “It’s all FAKE, Meatball! It’s ALL FAKE!”
    The COT reports are just another MOPE tool, like many pundits and their columns.  Tools.
    Now we’re starting to turn over the right rocks.  Crimex inventories are also bogus, IMO.

  9. “Hell hath no fury like a (women) blogger scorned”
    Dave is sounding, and ranting, a lot like Trader Dan these days! 
     
    Sure seems like Ted is firmly in the “bank manipulation” camp in this very recent quote…
    “There was speculative buying in the silver ETFs, particularly the big silver EFT, SLV, that came to be liquidated in the deliberate price smash of May 2011, but that’s my point. It was that physical buying that brought us to the brink of a silver shortage and it will most likely be that type of buying again that will ignite silver to the upside. As for what has accounted for the dismal silver price performance over the past three years that seems abundantly clear. Once the back of silver price momentum was broken in 2011, the big silver investment demand was broken as well. With physical silver investment demand muted, JPMorgan and the other crooks on the COMEX have had an easy time controlling prices with their dirty trading tricks. 
     
    The only question for the future is if silver investment demand will ever revive and overpower the COMEX price control? To me, and for anyone buying and holding silver, the answer is, of course, silver investment demand will grow again to the point where a world shortage is back in the crosshairs. Just like occurred, beginning in late 2010, silver investment demand will squeeze available physical supplies. No one can tell you exactly when that will occur; all we can do is monitor developments most likely to tip us off.”
    -Silver analyst Ted Butler: 10 May 2014

  10. Although I’ve never read an article from Ted that requires a fee paid him, I am a Ted observer. My guess is if Ted has been compromised by the Fed parasites who price fix silver down, it will become exceedingly clear when and if Ted is ever contacted by the GAO or CFTC to give proof of JPMorgan Fed price fixing. If Ted jumps to the defense of JPMorgan and the Fed then we will know the parasites got to him. Hope that does not happen. But hey, that seems to be the Fed parasites MOI. 

    • Why don’t you ask for proof? If one is to give any credence at all to his accusations he should be willing to prove it.
      Sadly, he can’t prove anything concerning JPM because there is no way he could know if they hold a single gold or silver contract. This information is protected and private. It is released to no one…..ever.
      Equally absurd is the notion that he has any evidence at all that the FED is “fixing” commodity prices.
      Every single accusation of this kind made by Commentators on this site lacks  evidence that price suppression of commodities exists. It is all hearsay and conjecture….nothing more.
      The real problem lies with the readers of this nonsense. Unable to recognize the lack of knowledge these Commentators have concerning the futures markets, they believe these Guys are experts and are beyond reproach.
      This is fact, Ted Butler has no working knowledge of the futures market whatsoever. He has no idea what traders dominate the gold and silver markets and his interpretation of the COT reports prove it. He has repeatedly accused the “Commercials” as being the offending party in this price suppression scheme without a single COT report ever showing they could have done it. He doesn’t even know what a Commercial trader is…..ask him to explain it to you  some time. Better yet, ask this simple question….. of the Reportable positions held by traders on May 20, 2014, how many positions were spread trades?
       

    • golden1 … “He has no idea what traders dominate the gold and silver markets”
       
      The whole underlying concept of Free Markets is for … no one … to ‘dominate’ any sector of trade. In times past, people were hanged for it. There’s even specific crimes named for it in both Common Law and Roman Civil Law. They’re respectively Claim of ‘Combination’ and Complaint of ‘Racketeering’.

      The only thing preventing collection of proofs and prosecution of these crimes is … discovery … which ‘captured’ government ‘Regulators’ and ‘Justice’ Departments stymy as a matter of consistent ‘course’.

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