A Few Questions, One Answer
By Ted Butler
June 15, 2012
Please read this article carefully because I’m disclosing for the first time that the U.S. government has given JPMorgan the green light to manipulate the silver market. This fact explains the shenanigans in the silver market. It answers all the questions and exposes this tawdry affair for all to see.
The scandal recently became more outrageous. The June Bank Participation Report, as of Tuesday, June 5, along with the COT confirmed that JPMorgan’s silver short position has increased by at least 5,000 contracts in the past two reporting weeks. That is the equivalent of 25 million ounces of silver, truly an enormous amount in a two week period and about equal to all the silver produced and consumed in the world in the same period. I calculate JPMorgan’s net short position in COMEX silver futures to be between 16,000 and 17,000 contracts. JPMorgan has been the sole net commercial silver short seller over the past two weeks. That is the clearest proof yet of manipulation. A market dominated by one buyer or seller is the ultimate definition of manipulation...
The President’s Working Group on Financial Markets answers all my questions. It explains why JPMorgan and the CME remain silent about allegations of manipulation. They have been given legal cover by the Working Group. This also explains why the CFTC says they are conscientiously investigating silver when it is clear they are not. The agency can’t come out and disclose silver was smashed with the full knowledge of the Working Group, so it pretends to go through the motions of investigating. What is going through Gary Gensler’s mind? Is he not tormented by the blatant silver manipulation which runs contrary to all his public utterances? Commodity law is being broken.
If my analysis is correct, what does this mean for silver from here? It will prove to be wildly bullish for the price; maybe not immediately, but on a long term basis. It sets the stage for the really big move in silver. This overt government interference in the silver market will boomerang at some point, just as every attempt at artificial price setting has failed...
Read the rest here
This is an interesting piece by Ted Butler and well worth reading in its entirety. But he does not paint the complete picture for the circumstantial case, which includes motive. GATA does a much better job in their detailed analysis of government interference in the gold market. But Ted's added voice is welcome.
The Greek elections will be Sunday and it is unlikely that any party will win enough votes to establish a stable government on their own, making a difficult coalition a requirement.
The markets were banking on massive and decisive action by the central banks early next week.
Let's see if that is what happens.
Later: A Special Message From Jim Sinclair:
Have you had enough of the manipulation of your gold and silver shares? The more noise we make the closer we come to getting the light shined on these evil people.
Complain about the raids of your investments by short sellers if you have witnessed it.
Looking at quite a few issues this afternoon, this same phenomenon occurred with huge volumes right at the close or even trading after the close. THIS is the biggest, most blatant and in your face manipulation since this whole fiasco started. I entered the PM arena in 1998 and thought that I had seen it all. Apparently not! Of course, we will not hear anything from the regulators but we must yell louder and louder. To suffer in silence is madness and cowardly.
I am asking my readers that if any gold shares they hold were sneak attacked after the close tonight that they raise total hell with both the regulators and the exchange.
I am asking for 400,000 complaints on Monday morning. Suffering in silence is madness. These people do not want sunlight on themselves so our only weapon is to turn as much light on as we can.
Please complain about the blatant manipulation of your company today to the following:
SEC – http://www.sec.gov/complaint/select.shtml
Amex – http://usequities.nyx.com/customer-support