Ted Butler Quote of the Day 05-12-17

While the biggest single change in the composition of the concentrated COMEX short position has been the defection of JP Morgan to becoming net long by virtue of its physical metal accumulation, there are some other more subtle changes, including the complete absence of any economic legitimacy to the current short position. In essence, there are no legitimate shorts on the COMEX, in terms of miners hedging future production or those hedging against existing physical inventory. The big shorts, apart from JP Morgan, appear to be mostly foreign banks according to CFTC data and definitely not miners from the earnings statements from public mining companies. The speculating foreign banks are precisely the type of short sellers most likely to panic when silver prices start to rally and it begins to take hold on them that JP Morgan is no longer the shorts’ protector and short seller of last resort

I have been studying the silver manipulation for more than 30 years — and over that time I have seen it spread to other commodities, certainly to gold, copper, crude oil and just about every market where the technical funds have risen as a potent market force to be manipulated and harvested. But no market has been as manipulated as has COMEX silver, thanks to the level of concentrated short selling compared to real world supplies. The recent selloff has affected many commodities and I do expect a vigorous turn up in gold, copper, crude oil, platinum and other markets once the technical fund selling is complete, but the rally to come in silver should far outdistance any other commodity rally.

A small excerpt from Ted Butler’s subscription letter on 10 May 2017.

More precious metals news & information available at
Ed Steer’s Gold & Silver Digest.
 

Gold & Silver Manipulation Explained – How & Why Market Manipulations Occur

The following video was published by McAlvany Financial on May 11, 2017
This week we discuss Gold & Silver Manipulation, How & Why It Occurs. Learn how you can take advantage of when a big player intentionally triggers downward market movement. Insider Trading & Market Manipulations are becoming more common each day, learn about how these events occur and what to do in response. Thanks for listening

Gold, Commodities and Economic Confidence

To believe that the gold market is influenced by the manipulation of a banking cartel to the extent that the gold price doesn’t reflect the true fundamental drivers it is necessary to have almost no understanding of what those price drivers are and how they should affect the market. There are many fundamental relationships between gold and other markets that I could show in chart form to support this statement, but in this post I’ll focus on a chart that illustrates the relationship between gold, commodities and economic confidence.
The change in the average credit spread, that is, the change in the average difference between yields on relatively high-risk and relatively low-risk bonds, is a good indicator of changes in economic confidence. Specifically, when credit spreads are widening it means that confidence is on the decline and when credit spreads are narrowing it means that confidence is on the rise.

This post was published at GoldSeek on 10 May 2017.

Ted Butler Quote of the Day 05-05-17

My letter to the CFTC included this passage – “Almost without fail, on every past occasion where the concentrated short position in COMEX silver futures reached extreme levels, it was only a matter of time before the price of silver gets rigged lower by these big shorts to induce speculative selling from traders operating on technical price signals. In fact, COT report data indicate that JPMorgan has never taken a loss, only profits on every silver short position it has added over the past nine years. Such results would not be possible in a market that wasn’t manipulated in price. In essence, speculators have taken over the price discovery process in silver because there are so few real hedgers trading on the COMEX, only speculating banks betting against other speculative traders.”

Considering that several hundred individuals took the time to contact the CFTC on this matter, it is not possible for the agency to have failed to notice that silver prices were deliberately rigged lower just as advertised beforehand. The Commission’s own data confirm and will confirm that technical fund traders were the big sellers and the bank shorts, led by JP Morgan, were the big buyers on the recent price rout. The necessary ingredients for manipulation were all present and accounted for – means, motive and opportunity.

Another undeniable conclusion is that JP Morgan has done it once again, namely, teamed up with the other big COMEX commercial shorts to rig silver prices lower and has begun to buy back recently added short positions with profits. Thus, a nine year perfect trading record has been extended and preserved. Nine years after taking over Bear Stearns, JP Morgan has established the perfect record in only buying back any added short positions in COMEX silver at a profit and never, ever at a loss

  More precious metals news & information available at
Ed Steer’s Gold & Silver Digest.

Protect Your Assets From The Establishment Agenda | Golden Rule Radio #17

The following video was published by McAlvany Financial on May 4, 2017
This week we review the price movements in the Gold, Silver, & Platinum Markets. The globalist agenda is threatened by Trump and they are pressing harder than ever to accomplish their goals. Learn how you can safeguard what you’ve worked your whole life to earn and to protect your assets from paper driven manipulation. Thanks for listening.

What should the gold/silver ratio be?

The price of gold is dominated by investment demand* to such an extent that nothing else matters as far as its price performance is concerned. Investment demand is also the most important driver of silver’s price trend, although in silver’s case industrial demand is also a factor to be reckoned with. In addition, changes in mine supply have some effect on the silver market, because unlike the situation in the gold market the annual supply of newly-mined silver is not trivial relative to the existing aboveground supply of the metal.
Given that the change in annual mine supply is irrelevant to the gold price and is not close to being the most important driver of the silver price, why do some analysts argue that the gold/silver ratio should reflect the relative rarities of the two metals in the ground and therefore be 10:1 or lower? I don’t know, but it isn’t a valid argument.
A second way of using relative rarity to come up with a very low gold/silver ratio is to assert that the price ratio should be based on the comparative amounts of aboveground supply. Depending on how the aboveground supplies are calculated, this method could lead to the conclusion that silver should be more expensive than gold. It would also lead to the conclusion that gold should be the cheapest of all the world’s commonly-traded metals, instead of the most expensive. For example, if gold’s relatively-large aboveground supply was a reason for a relatively low gold price then gold should not only be cheaper than silver, but also cheaper than copper.
Another argument is that the gold/silver ratio should be around 16:1 because that’s what it averaged for hundreds of years prior to the last hundred years. This is also not a valid argument, because changes in technology and the monetary system can cause permanent changes to occur in the relative values of different commodities and different investments. For example, when monetary inflation was constrained by the Gold Standard the stock market’s average dividend yield was always higher than the average yield on the longest-dated bonds, but the 1934-1971 phasing-out of the official link to gold permanently altered this relationship. In a world where commercial and central banks can inflate at will, the stock market will always yield less than the bond market (except when the central-bank leadership goes completely ‘off its rocker’ and implements the manipulation known as NIRP). This is because stocks have some built-in protection against inflation. The point is that the ratio of gold and silver prices during an historical period in which both metals were officially ‘money’ does not tell us what the ratio should be now that neither metal is officially money and one of the markets (silver) has a significant industrial demand component.

This post was published at GoldSeek on 2 May 2017.

Silver price manipulation, is regulation putting a stop to it?

Fear of regulation may impede bank’s from manipulating London’s silver benchmark
New regulations in 2018 have spooked bullion banks and silver fix operators Lack of liquidity in silver fix auction has lead to high volatility in the market Silver benchmark has strayed from spot price multiple times since 2016 No new silver benchmark operator lined up to take over in the Autumn No smoke without fire as actions point to silver price manipulation Silver remains suppressed and at a low price for investors stocking up ***
Simple economics tells us that markets and prices are driven by demand and supply. Unfortunately, this isn’t always the case in the silver market. However, the threat of new regulations may be putting a stop to some bullion banks from fiddling the London silver benchmark.
Silver price manipulation is always a thorny issue and one that has been taken on by academics, lawsuits, by veteran silver analyst Ted Butler and by the Gold Anti-Trust Action Committee (GATA). As we have reported previously, allegations of silver price manipulation are far past the point of rumours, in the last couple of years bullion banks have been called to account for their behaviour. Deutsche bank even agreed to settle out of court and pay $38m, in response to a class-action lawsuit.

This post was published at Gold Core on April 28, 2017.

TRUMP’S TAX PLAN TO TRIGGER DOLLAR COLLAPSE? | David Morgan

The following video was published by SilverDoctors on Apr 26, 2017
Silver guru David Morgan joins us for the SD Midweek Metals Report. Gold and silver prices are falling this week. Morgan thinks prices will fall a bit more in the short term. Longer term, he sees a rush into gold that will overwhelm the manipulation.
Morgan also comments on Trump’s tax plan that lowers corporate taxes to 15%. MarketWatch reported such a tax plan could cost the government $2 trillion in lost revenue. How will these trillions of dollars be paid for? Morgan says it will be printed, devaluing the U. S. dollar.
What are the solutions to prepare for a collapse? ‘Control what you can control,” Morgan says.

Where There’s Smoke…there’s central bank manipulation — Chris Martenson

Central banks around the world have colluded, if not conspired, to elevate and prop up financial asset prices. Here we’ll present the data and evidence that they’ve not only done so, but gone too far.
When we discuss elevated financial asset prices we really are talking about everything.
We’re talking not just about the sky-high prices of stocks and bonds, but also of the trillions of dollars’ worth of derivatives that are linked to them, as well as real estate in dozens of countries and locations. All are intricately linked together. For instance, stocks are elevated, in part, because bond yields are so low. Same for real estate.
These are important questions to consider because if central banks have been too involved and gotten themselves mixed up in trying to ‘wag the dog’ by using elevated financial asset prices as a means to drive economic expansion — then the risk is a big implosion in financial asset prices if their efforts fail.
The difficulty, as always, is that you can’t print your way to prosperity. It’s never worked in history and it won’t work this time either. You can, however, print (or borrow) to delay a correction, after which a boost in real economic growth (or additional income) had better materialize to save your bacon. But if enough growth does not emerge to both pay back all the old outstanding loans plus all the newly created debt and currency, then you’re going to experience a worse correction than if you had not tried to print/borrow your way to prosperity.
As I’ve outlined before, that economic boom the central banks have been staking everything on been MIA the entire time during the ‘recovery’ following the Great Recession. And there’s no sign of it showing up any time soon.

This post was published at Peak Prosperity

Ted Butler: A Secret and Illegal Agreement

There has to be a good reason why the CFTC won’t openly address the clear evidence of a COMEX silver manipulation, as well as why JP Morgan and the CME Group would turn away from direct accusations of wrongdoing that would constitute slander and libel if such allegations weren’t true. Something has to be holding the CFTC back from addressing that which should and must be addressed. Actually, I think there are two reasons.
One, as I’ve long held concerns the agency rejecting any thought of a COMEX silver manipulation early on, more than 30 years ago when I first alleged such a manipulation. Basically, it’s nothing more than a continued doubling down of manipulation denial because how does a government agency openly admit to failing in its prime mission for decades despite increasingly clear evidence of such failure? This denial doubling down is reflected in the unusual circumstance of the agency being forced to argue with every single point I ever raised about silver. But it’s simply not possible that everything I say about silver to be 100% incorrect. At a minimum, that would be insulting to those who find value in what I write. Besides, I rely, almost exclusively, on the agency’s own data to make the case and it almost ends up with the agency arguing against its own data.
But there’s an even more compelling reason for the CFTC to deny allegations of a silver manipulation that burst onto the scene nine years ago – the takeover of Bear Stearns by JP Morgan in March 2008. As the public record indicates, this was at the start of the financial crisis and came about with the U.S. Treasury Dept. and the Federal Reserve requesting JP Morgan’s assistance in rescuing Bear Stearns. You can be sure that since JP Morgan was being asked by the U.S. Government to, in effect, do it and the country a favor in taking over Bear that the bank would, in return, solicit and arrange for as many protections for JPM as possible. JPMorgan’s CEO, Jamie Dimon, has since lamented that he ever agreed to the takeover, but when it came to subsequent dealings in COMEX silver over the next nine years, it’s hard for me to see how it could have turned out any better than it did for the bank.
What no one knows is what private guarantees and assurances were granted to JP Morgan that have left it immune from the CFTC moving against JPM’s clearly illegal activities in silver over the past nine years. There’s no other way to explain how the crooks at JP Morgan continue to manipulate and fraudulently abuse the silver market for its own gain. Undoubtedly, JP Morgan was given a free get-out-of-jail card from future violations of commodity law when it came to it agreeing to acquire Bear Stearns. But after nine years of JP Morgan dominating the silver market in every way possible, was JPM’s immunity from having to behave legally in silver granted in perpetuity?

This post was published at Silverseek

Silver, Platinum and Palladium as Investments – Research Shows Diversification Benefits

– Silver, platinum and palladium see increased role as investment vehicles
– Increase in academic output on the white precious metals is in line with this
– Silver and particularly gold are safe haven assets
– Silver was a safe haven at times during which gold failed to be
– Platinum and palladium less so but have diversification benefits
– Silver manipulation is possible and indications of, if not legal proof
– Benefits platinum and palladium could provide as money not been fully addressed
– Main focus in investment drivers is price – not on drivers of physical demand
– Platinum, palladium and silver have different relationships with other assets and divergent abilities in hedging risk
– White precious metal investors should employ a buy-and-hold strategy
– Silver markets have become more efficient since 1977
– White precious metals are increasing in investment importance
– Research shows hedging role and diversification benefits of precious metals
by Jan Skoyles, Editor Mark O’Byrne
A review of the academic literature on the financial economics of silver, platinum and palladium has recently been conducted by Vigne, Lucey, O’Connor and Yarovaya.
***
The review surveys and covers the findings on a wide variety of topics in relation to the White Precious Metals including Market Efficiency, Forecast-ability, Behavioral Findings, Diversification Benefits, Volatility Drivers, Macroeconomic Determinants, and their relationships with other assets.
For those asking whether or not they should invest in precious metals or to increase their allocation, it can be of use to read some academic research into the role the white metals can play in hedging risk in their investment and pension portfolios. There are many strongly held opinions regarding gold and silver and precious metals and some mathematical and economic analysis can go a long way in helping us to understand how and why we should consider investing in these less popular precious metals.

This post was published at Gold Core on April 21, 2017.

Ted Butler Quote of the Day 04-21-17

To advance its prime mission, the CFTC actively solicits tips from the public in its quest to uncover wrongdoing and has instituted a formal whistleblower program designed to reward those who step forward to report wrongdoing. Sounds like a fairly formidable effort against market manipulation and fraud – a quarter of a billion taxpayer dollars annually, 700 full time employees and programs designed to generate tips and complaints from the public. One might think with resources like that, market manipulation wouldn’t stand a chance. Think again.

Those raising the allegations of a silver manipulation, like myself and others, have, basically, zero funds and zero employees budgeted towards raising the allegations of a silver manipulation. The allegations are driven simply by observing price action and COMEX positioning changes, as reported in the COT reports. Despite the programs designed to encourage and generate tips from the public, the record indicates that the CFTC has become downright hostile and unwilling to openly discuss any allegations of a COMEX silver manipulation, even though the allegations are based upon Commission data. Talk about upside down.

I’m told from those who know of him personally, that the new director of the Enforcement Division, James McDonald, is as straight and honorable as a June day is long. Certainly his public service record attests to that. McDonald has a strong legal background and, get this, his last position at the U.S. Attorney’s office in New York involved successful prosecution against public corruption. Sounds like his experience might be put to good use should he not succumb to orders from above to forget about the silver manipulation. Someday, someone new at the agency will refuse to go along with orders from above to ignore what is a market crime in progress. Hopefully, McDonald will prove up to the task.

A small excerpt from Ted Butler’s subscription letter on 19 April 2017.

More precious metals news & information available at
Ed Steer’s Gold & Silver Digest.
 

A Secret and Illegal Agreement

There certainly doesn’t seem to be a shortage of outrageous behavior recently, when looking at reports of an older Asian-American doctor being dragged off a plane. But where visual images cap a sense of outrage that has crept into the flying experience, sometimes bad behavior is not always captured on phone cameras. Sometimes you have to step back and think about things by reading and considering all the facts.
Last week, I asked you to consider writing to the CFTC and your elected representatives yet again in regard to a letter I sent to the two key appointees who are primarily responsible for guarding against market manipulation. In the letter, I highlighted the case for a silver manipulation. Today, I would like to point out just how upside down this whole thing has become.
The CFTC’s main purpose or primary mission is to prevent manipulation and ensure market integrity. Neither you nor I chose this as the agency’s prime mission, it was assigned by congress and commodity law. While not large by government standards, the CFTC is allocated more than $250 million annually and employs around 700 full time employees to fulfill its mission against manipulation and fraud in the regulated commodity markets.
To advance its prime mission, the agency actively solicits tips from the public in its quest to uncover wrongdoing and has instituted a formal whistleblower program designed to reward those who step forward to report wrongdoing. Sounds like a fairly formidable effort against market manipulation and fraud – a quarter of a billion taxpayer dollars annually, 700 full time employees and programs designed to generate tips and complaints from the public. One might think with resources like that, market manipulation wouldn’t stand a chance. Think again.
Those raising the allegations of a silver manipulation, like myself and others, have, basically, zero funds and zero employees budgeted towards raising the allegations of a silver manipulation. The allegations are driven simply by observing price action and COMEX positioning changes, as reported in the COT reports. Despite the programs designed to encourage and generate tips from the public, the record indicates that the CFTC has become downright hostile and unwilling to openly discuss any allegations of a COMEX silver manipulation, even though the allegations are based upon Commission data. Talk about upside down.

This post was published at SilverSeek on April 20, 2017 –.

There’s a Gold Cartel Aimed At Keeping the Price Supressed! – Bill Murphy Interview

The following video was published by FutureMoneyTrends on Apr 15, 2017
We have Bill Murphy with us today to share his thoughts on why Gold’s sentiment is at a twenty year low and the constant manipulation of precious metals.
Bill explains if the Dollar could suffer from the geo political tensions going on and also the potential of Silver breaking out and becoming a Silver Bug’s dream!

Ted Butler Quote of the Day 04-15-17

I’d prefer not to be wishy

washy when it comes to COT market structure analysis, but in COMEX gold futures, we are about midway between the historical extremes of the past year and that’s just another way of saying neutral. Price momentum could easily carry gold higher, but it’s just as likely that the commercials might look to soon ring the cash register and rig a downside flush out of some unknown proportions. Gold did just as it was expected to do price-wise in climbing higher on managed money buying this year, but having done so, that changed the market structure from extremely bullish to extremely neutral.

Like Las Vegas, it’s different in silver, as its market structure is as bearish as it has ever been. With no big increase in total open interest for the reporting week, I wouldn’t expect another very large increase in technical fund buying and commercial selling in Friday’s report, but considering the large increases over the past two weeks, that’s not saying much. The COT market structure points to lower silver prices ahead and, as is usually the case, this is also the only bearish factor, as can be seen in most current market commentary.

While I’m as prepared (mentally) for a deliberate silver price take-down on COT considerations as I suppose I can ever be, there are other factors present, not the least of which is the growing awareness and knowledge that silver prices are manipulated on the COMEX. This COMEX positioning fraud and manipulation will fail when it is sufficiently exposed, just like all scams and frauds, and that day is closer than ever. But there are other considerations driving me to maintain a full investment exposure, not the least of which is JP Morgan’s continued grab for physical silver and the chance for an unexpected double cross involving the other 7 big COMEX silver shorts

A small excerpt from Ted Butler’s subscription letter on 12 April 2017.

  More precious metals news & information available at
Ed Steer’s Gold & Silver Digest.

Ted Butler: Another Opportunity

Commitments of Traders (COT) Report for COMEX silver futures featured the largest ever concentrated short position by the four largest traders and a new record large total commercial net short position. As I have been intoning for years, nothing suggests a possible market manipulation being in place than a large concentrated position. This is not my opinion alone; I’ve basically learned this from the CFTC. The only reason the agency calculates and publishes concentration data in every regulated futures market weekly is because an extremely large concentrated position is the first tip-off of potential market manipulation.
A concentrated position is a large market position held by a small number of traders that could grow large enough to overly influence price. Think Hunt Bros. in silver or Mr. 5% in the Sumitomo copper manipulation, where a few buyers caused prices to be much higher than warranted by actual supply/demand fundamentals. While it’s easy for most to understand how a concentrated long position could result in a price considered to be artificially high, it’s harder for many to understand the concept of concentration on the short side, due to the nature of short selling being difficult for most to grasp.
Commodity law does not distinguish between an upward or downward price manipulation and the CFTC calculates and publishes concentration data on both the long side and short side of all regulated futures markets. The problem is that while the CFTC publishes the data that indicate that COMEX silver has the highest level of concentration ever seen on the short side of COMEX silver futures, thus providing the strongest possible evidence of a downward price manipulation, the agency refuses to do anything about it or even acknowledge it in any way. But thanks to the unexpected confluence of events as described above, there may be an opportunity for you to pressure the regulators to address the concentrated short position in COMEX silver futures. And let me not beat around the bush – silver would be substantially higher in price were there to be no extreme concentrated short position. That’s a personal guarantee based upon simple market mechanics.

This post was published at Silverseek

Bank of England Rigging LIBOR – Gold Market Too?

– Bank of England implicated in LIBOR scandal by BBC
– ‘We’ve had some very serious pressure from the UK government and the Bank of England about pushing our Libors lower.’
– ‘This goes much much higher than me’ -UBS’ Tom Hayes
– Libor distraction as all markets are manipulated today
– Central bank’s ‘rigging’ bond markets and likely gold
– Risks of bank ‘holidays’, capital controls and of course bail-ins remains
The LIBOR scandal reemerged yesterday as the BBC’s Panorama uncovered a secret recording implicating the Bank of England in the interest rate manipulation saga.
According to the BBC the central bank pressured commercial banks during the 2008 financial crisis to lower their settings for LIBOR.
In a telephone recording, aired last night in the UK, a senior Barclays manager, Mark Dearlove, can be heard instructing Libor submitter Peter Johnson, to lower his rates.
Mr Johnson: ‘So I’ll push them below a realistic level of where I think I can get money?’
Mr Dearlove: ‘The fact of the matter is we’ve got the Bank of England, all sorts of people involved in the whole thing… I am as reluctant as you are… these guys have just turned around and said just do it.’

This post was published at Gold Core on April 11, 2017.

Ted Butler Quote of the Day 04-07-17

Let me make it easy for those who refuse to acknowledge the silver manipulation. Simply explain why 8 traders, mostly domestic and foreign banks, would hold short the equivalent of 40% of the world’s annual production—and a third of all the silver bullion that exists—at prices below the average primary cost of production and nearly 70% below the price levels of four years ago.

How could such a concentrated short position be explained in legitimate terms — and what would be its purpose? What effect would such a large short position have on the price of any commodity — and how do you see it being resolved if it wasn’t permanent?

I don’t expect any serious answers to such questions, as it appears to be easier to malign the questioner as a conspiracy theorist instead, but I know these questions have never been addressed in a straightforward manner by anyone who denies the silver manipulation.

A small excerpt from Ted Butler’s subscription letter on 07 February 2015.

More precious metals news & information available at
Ed Steer’s Gold & Silver Digest.
 

The Fed’s Emerging Balance Sheet Plan

Now that the Fed has tinkered the Fed Funds target range to the upside on a handful of occasions over the last year, they are slowly turning more focus to the Fed’s balance sheet. Before the financial crises, the balance sheet stood below $1 trillion. Now, just 8 years later, it sits above $4.5 trillion. That’s a lot of purchased assets and interest rate manipulations. Since they are claiming to have saved the global economy, it is time to prove it by unwinding all these positions.
Their emerging plan is to complete two more rate hikes this year and then address the balance sheet, likely starting by slowing or halting the reinvestment of their proceeds from their current assets. Of course, they don’t want to go too fast, lest the markets panic. The Wall Street Journal observes:
How it proceeds is of great importance to market participants. In 2013, when the Fed signaled it would stop adding to the portfolio, stocks fell, interest rates rose and emerging stock and bond markets sank – an event known as a ‘taper tantrum’ on Wall Street, driven by investor worries about the implications of a less accommodative Fed.

This post was published at Ludwig von Mises Institute on April 3, 2017.