17 April 2010

Weekly Metals WrapUp with Ted Butler on King World News

Ted Butler April 16 Metals Review mp3

  • The weekly change all occurred on Friday, related to the Goldman Sachs fraud scandal.

  • GLD holdings are high or near the highs. But there are continuing noticeable withdrawals in SLV making a sharp decline in the metal claimed to back the silver exchange-traded fund SLV. This may signify that the metal is needed somewhere else amid a worsening shortage of metal that is at worst neutral and most likely bullish.

  • Market analyst Jim Rickards' interview last week with King World News was important for citing the lack of transparency of the London Bullion Market Association and confirmed Ted's judgement. It's as "far away from transparency as you can get without being completely opaque." "You can't depend on anything the LBMA says," Butler complains, adding that the LBMA discloses "nothing verifiable" and "I wouldn't trust anything from the LBMA."

  • Having sued Goldman Sachs for fraud on Friday, the U.S. Securities and Exchange Commission may give some backbone to the U.S. Commodity Futures Trading Commission to act against Goldman and J. P. Morgan and other banks in their manipulation of the precious metals and commodities markets. The SEC action is a real 'cage rattler' in the financial reform discussions in Washington.

  • The only question is that maybe the 'commercial crooks' can work the metals market lower in the short term, but silver looks well set up to take off in the not too distant future.