Ted Butler Quote of the Day 11-20-15

I’d like to focus on a familiar topic – what the inevitable rally will look like, particularly in silver, whenever this extreme COMEX futures positioning is completed. As you know, this is where I will invoke my often-made, but-never-realized prediction that it could easily turn into the big silver move up. Perhaps “yet to be,” rather than “never realized” would be a better choice of words. I have some new reasons why we may be looking at a genuinely explosive silver rally soon, but let me first set the background for why we must see a silver explosion at some point.

It has to do with the manipulation that has existed in silver for more than 30 years and continues through today. It is a historically proven and logical fact that all manipulations must come to an end. The free law of supply and demand dictates that any artificial distortion of price must be overwhelmed in time. In what time, of course, is open to debate; but there can be no debate about the inevitable destruction of the artificial price regime of every manipulation. In addition to knowing that all price manipulations must end at some point, we also know that the end of every price manipulation must be dramatic to the point of being shocking – sending prices suddenly in the opposite direction of the manipulation.

Simply stated, if silver has been manipulated lower in price than the actual fundamentals dictate (as I contend), then when that manipulation is broken, prices must soar. It’s even gotten so specific that I have pinpointed in advance what will constitute an end to the COMEX silver manipulation – no additional concentrated short selling by the largest commercial shorts, most definitely including JPMorgan. As you know, since settling into the role of the prime silver price manipulator as a result of its takeover of Bear Stearns in 2008, JPMorgan has capped every silver rally since by adding to short positions. This alone should prove to the regulators that silver has been manipulated, but that’s a separate issue. What I’m talking about now is not whether JPMorgan has capped every price rally in silver over the past seven years, as that’s evident in the historical record; but what this crooked bank will do next. And to be perfectly frank, no one can know in advance (except the crooks at JPM).

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