GATA: Those Who Deny Gold / Silver Manipulation Won’t Answer Basic Questions

IRD Note: For nearly two decades, GATA has seized on Frank Veneroso’s original research which provided first-hand evidence that Central Banks were actively operating to suppress the gold and has presented direct evidence of precious metals manipulation. Beyond this, there are public admissions from Henry Kissinger and Alan Greenspan acknowledging this fact. Unfortunately, those who deny that gold/silver are manipulated have never offered any response to the direct proof that Central Banks intervene directly in gold trading. The article below presenting just the facts was published by GATA.
Newsletter writer Steve Saville of The Speculative Investor, who long has denied that manipulation of the monetary metals markets means much, has seized on the recent essay by Keith Weiner of Monetary Metals as the conclusive refutation of silver market analyst Ted Butler’s longstanding complaint that JPMorganChase has been rigging the silver market.
Weiner’s analysis, headlined ‘Thoughtful Disagreement with Ted Butler’ and posted here – LINK – argued that JPMorganChase is undertaking only ordinary arbitrage in the silver market, exploiting spreads between bid and ask prices.
Saville, in commentary headlined ‘A Silver Price-Suppression Theory Gets Debunked’ – LINK – cheers Weiner’s essay and goes on to remark: ‘Entering a debate with someone who is incapable of being swayed by evidence that invalidates his position is a waste of time and energy, so these days I devote no commentary space and minimal blog space to debunking the manipulation-centric gold and silver articles that regularly appear.’

This post was published at Investment Research Dynamics on October 9, 2017.

Thoughtful Disagreement with Ted Butler

Dear Mr. Butler, in your article of 2 October, entitled Thoughtful Disagreement, you say:
‘Someone will come up with the thoughtful disagreement that makes the body of my premise invalid or the price of silver will validate the premise by exploding.’
I will take you up on your request. You state your case in this paragraph:
‘Here are the issues. Silver (and gold) prices are set by paper dealings on the COMEX by a few large speculators (banks and managed money traders), to the exclusion of input from real producers and consumers, making the price discovery process and the resultant price artificial. For the past nearly ten years, CFTC data have indicated that JPMorgan has been the dominant paper silver short seller, along with a few other large banks and as a result of that dominance and control none have ever taken a loss when adding short positions. In addition, for the past six and a half years, JPMorgan has accumulated a massive amount of actual silver (650 million oz) at rock-bottom and self-created depressed prices, all while never taking a loss while shorting silver on the COMEX.’
In other words, the four issues are:
the price of silver is set exclusively in the futures market (throughout my article, I will refer to silver but what I say is equally applicable to gold also)

This post was published at Acting-Man on October 5, 2017.

Ted Butler: Eight Crooks Against the World

The gold price began to chop quietly higher starting around 9:30 a.m. China Standard Time on their Friday morning, as the dollar index headed south. That rally ran into ‘da boyz’ about 1:30 p.m. CST on ferocious volume. And although it rallied a bit between the morning gold fix and the noon silver fix in London, it was sold lower until a minute or so before the London close, which was 11 a.m. EDT. It then rallied a few dollars until noon in New York — and then traded pretty flat for the rest of the day.
The high and low ticks are barely worth looking up, but were reported as $1,362.40 and $1,347.10 in the December contract…and $1,358.50 and $1,343.20 in October.
Gold was closed in New York on Friday at $1,346.00 spot, down $2.60 from Thursday. Net volume was over the moon once again at around 353,000 contracts, as ‘da boyz’ were all over the precious metal market yesterday.

This post was published at GoldSeek on Sunday, 10 September 2017.


GOLD: $1259.00 UP $0.30
Silver: $16.27 DOWN 3 cent(s)
Closing access prices:
Gold $1258.00
silver: $16.29
Premium of Shanghai 2nd fix/NY:$6.14
LONDON FIRST GOLD FIX: 5:30 am est $1258.10
For comex gold:
TOTAL NOTICES SO FAR: 3319 FOR 331900 OZ (10.323 TONNES)
For silver:
5,000 OZ/
Total number of notices filed so far this month: 544 for 2,720,000 oz

This post was published at Harvey Organ Blog on August 7, 2017.

GLD bleeds 71.58 tonnes of gold in just over a month — Lawrie Williams

The SPDR Gold Shares ETF (GLD) – the world’s largest gold ETF – saw another 5.03 tonne withdrawal yesterday bringing the total of gold held to only 795.42 tonnes – its lowest level since mid-March 2016 and fully 71.58 tonnes below its recent interim peak of 867 tonnes seen as recently as mid-June – and 58.26 tonnes in the past month. This is a huge fall in such a short period and last time the GLD holding was as low was back in mid-March last year.
The big anomaly here is that similar big withdrawals from GLD are normally accompanied by a fall in the gold price, but in the event gold surged yesterday to over $1,260 an ounce – its highest level since mid-June. Indeed gold has effectively been on the rise for the past three weeks – a period over which GLD has bled close on 40 tonnes.
There have been various attempts to understand this unusual pattern. Ed Steer in his daily newsletter, quoting Ted Butler who follows movements in the silver and gold markets very closely, picks up the following quote from Ted “The most plausible and, in fact, only explanation I can come up with is that some large entity is converting shares into physical metal for the purpose of preventing share ownership from rising to or above reporting levels. When a big shareholder converts shares of SLV or GLD into metal, the shares no longer exist and, therefore, don’t need to be reported to any regulator. Likewise, direct physical ownership of silver or gold needn’t be reported to anyone no matter how large the position may grow. (This is another major factor behind why JPMorgan decided to buy physical silver). Again, a large entity amassing a large physical position in silver or gold on the sly is not bearish for price.”
Whatever the explanation the movement of gold out of GLD at a time of a rising gold prices, if it continues, has to be very worrying for gold bulls. My colleague Julian Phillips writing on my site – – is, however, confident that the GLD gold withdrawals will shortly turn around and we will additions back into the world’s largest gold ETF. It is noticeable that it is appears only to be GLD which has been so affected. The other big U.S. Gold ETF – the iShares Gold Trust (IAU) does not appear to be seeing similar movements and, by all accounts, the European gold ETFs, if anything, have been seeing inflows rather than outflows.

This post was published at Sharps Pixley

Ted Butler Quote of the Day 07-26-17

I have been expecting a price explosion in silver since early May, when the COMEX positioning extremes in silver hit then-record levels (Remember the unprecedented 17 days of consecutive price declines?). But incorporated in my price explosion premise was that the raptors would be ready sellers of their big long positions as prices rose. With the new COT report indicating that not only have the raptors not begun to sell on higher prices, they actually added new longs. If this was no fluke and is indicative that the raptors may be in no rush to sell, then who the heck is going to sell to the technical funds when they plow onto the buy side?

There’s no question that the technical funds will rush to buy (or attempt to buy) many tens of thousands of COMEX gold and silver contracts on higher prices from here; the only question is who will sell to them? If it isn’t the raptors, it is a near-certainty that prices will explode.

This is the perfect set up for a selling vacuum and price explosion that I have long envisioned, but not with such clarity. If there’s ever been a better time to be positioned to the maximum for a silver rally than now, that time is unknown by me.

A small excerpt from Ted Butler’s subscription letter on 22 July 2017.

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

Ted Butler Quote of the Day 07-21-17

“JPMorgan may have been the largest single entity buying COMEX silver contracts over this time (more than 20,000 net contracts), but the raptors were the largest collective buyers. Moreover, JPMorgan is still net short in COMEX silver futures, while the raptors are decidedly net long – meaning the raptors will take profits by selling at higher prices, whereas JPMorgan, should it decide to sell, will be adding to short positions to control and manipulate prices, not to take profits. That’s an important distinction that has been lost on the regulators until now.”

“What this means in practical terms is that it must be expected that the raptors in both gold and silver will sell and take profits on their large net long positions as gold and silver prices rise – this is in their financial interest and is why they trade. Any such raptor sales will have somewhat of a price depressant effect as the contracts are sold, but these traders are also interested in maximum profits and they know how to make the technical funds reach up in price when they move to buy. The raptors, in my opinion, are less interested in capping gold and silver prices than they are in taking as much money as they can from the technical funds. It will be the additional short sales by JPMorgan (or lack thereof) that will determine whether silver prices get capped on this next go-around.”

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

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

Ted Butler Quote of the Day 07-19-17

“History shows that not only are the commercials zooming the technical funds, they have just done so in a manner of unprecedented proportions. Never have the commercials snookered the technical funds in COMEX silver and gold as has just occurred. While I suppose it’s always possible for the commercials to snooker and hoodwink the technical funds into selling even more silver and gold contracts, thus setting the bullish stage even more extreme, that’s not the odds-on bet. The odds-on bet is that the commercials will now look to maximize in monetary terms what they have just created in positioning terms. In other words, it’s time for the commercials to ring the cash register.”

Now that the technical funds are more short in silver than ever and close to the least net long they have been in both silver and gold in history, the best way for the commercials to ring the cash register would be to let prices rip higher. Nothing would hurt the managed money traders or benefit the commercials more at this time than sharply higher prices. Those sharply higher prices will, obviously, also benefit gold and silver investors and producers, but that’s beside the point in the exclusive private COMEX paper betting game. What happens to the rest of the world doesn’t matter to the big COMEX betters, nor does it matter to the regulators (much to their great shame).”

All that matters is that the COMEX commercials appear to be on the verge of extracting great sums of money from the technical funds as silver and gold prices move higher. As I indicated previously, no one appears better positioned than JPMorgan for a price explosion in silver. In fact, I am truly in awe of what this crooked bank just pulled off, as much as any criminal act could ever inspire awe. I know how they did it and why they did it, but I am still amazed that JPM actually did it.”

A small excerpt from Ted Butler’s subscription letter on 15 July 2017.

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

Ted Butler Quote of the Day 07-14-17

But there are other factors that may play into the only question that matters, namely, will JPM add to shorts or not. Among those factors are the widespread and growing attention to the extreme COMEX positioning changes and otherwise unexplainable and weird price action in silver, which can only be explained by COMEX positioning. Throw in the wildcard of the new Enforcement Director at the CFTC, James McDonald, and the game’s outcome goes beyond interesting.

As far as I’m concerned, we’re on the verge of discovering if McDonald will go down as perhaps the regulatory hero of all time or if we’ll be calling for his head on a spike. Again, it all comes down to whether JPMorgan adds or doesn’t add to its silver short positions whenever the next price rally commences. I can’t get more specific than that.

As far as what Friday’s COT report will indicate, the dramatic downside price action and extremely high trading volume point to yet another week of significant improvement – big commercial buying and managed money selling. This is also supported by an increase in total open interest in the reporting week (4,000 contracts in silver and 18,000 in gold). We may even see improvements on the scale of last week’s report, but regardless of whatever the actual reported numbers may be, it sure feels to me that we’re at or passed the point of a downside climax, particularly in terms of extreme contract positioning. Full and maximum exposure is warranted, particularly in silver.

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

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

Ted Butler Quote of the Day 07-08-17

“Whatever Friday’s report indicates, considering the improvement in market structure over the past few weeks and particularly since the silver top of $18.50 on April 18, we have to be close to the maximum extreme of bullish market structures in silver and maybe for gold as well. Not only do the running results from the COT report show that, the price action seems as deliberate and intentional as is possible. We’ve certainly seen larger price drops in silver than the $2.50 drop seen since the April 18 high, but I don’t recall larger positioning changes. The 17 day consecutive silver price decline into early May was the prime catalyst for my price explosion premise and the new price decline since June 6 looks every much as effective in inducing technical fund selling. Between the two back to back declines, it’s hard to see how every technical fund contract that could be sold hasn’t already been sold, or nearly so.”

A small excerpt from Ted Butler’s subscription letter on 05 July 2017.

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

Ted Butler Quote of the Day 07-05-17

I mentioned last week, that the larger the raptor net long position, the more it usually proved quite bullish for the price — and I still feel that way. However, I am bothered a bit by what is still a large Big 4 short position in gold, which usually isn’t indicative of a sustained bull move.

Here’s the dilemma: Back at the price lows going into May 16 — to Friday’s report, the total commercial net short position is now only 7,000 contracts higher. But the Big 4 are roughly 30,000 contracts more short today, while the raptors are more net long by 34,000 contracts. I’m not sure what to make of this.

I would classify gold’s market structure to be bullish, but perhaps not excessively so (as is the case in silver). I’m mindful that gold hasn’t completely penetrated, at least decisively, its 200-day moving average…a classic ‘all clear’ selling signal for the technical funds. Back at the early May gold price lows, the 200-day moving average had been decisively penetrated to the downside. Only a fool would completely disregard the still kind-of-high Big 4 short position — and the chance for a blast below the 200-day moving average more decisively than Monday’s price rig job lower. Since I’m primarily interested in silver, my concern is if lower gold prices will be used to influence silver lower as well.

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

Ted Butler Quote of the Day 06-29-17

The turnover or physical movement of metal brought into or taken out from the COMEX-approved silver warehouse surged to just under 7 million oz this

week, as total inventories rose by 0.4 million oz to 205.8 million oz, another 20+ year high. Even though JP Morgan has not been taking delivery of silver on futures contracts in its own account of late, another 1.3 million oz was deposited in its COMEX warehouse, increasing silver holdings there to 111.6 million oz, another new record high.

The big deal here (apart from the 800 lb. JPM gorilla in the room) is still the unique and unprecedented physical turnover that has lasted for six years running. No other commodity has experienced such physical turnover. The world mines less than 17 million oz each week, why would 7 million oz be moved in six COMEX warehouses in and around New York City? All this movement involves 1,000 oz bars of silver being put onto and taking off trucks. Why is this occurring?

My best answer is the metal is being moved about because it is in high demand and, further, that the turnover is directly related to JP Morgan accumulating physical silver. Let’s face it, the unprecedented silver turnover began six years ago, the same time JPM opened its COMEX silver warehouse and it is over this time that the JPM warehouse came to hold the lion’s share of metal. Let me be clear, the 111 million oz in the JP Morgan COMEX warehouse came from futures deliveries; there’s another 100 to 150 million oz that JPM has ‘skimmed off’ the unprecedented physical COMEX weekly turnover. Admittedly, none of this has had any price impact to date, but in terms of prospective price change, it looks beyond significant.

A small excerpt from Ted Butler’s subscription letter on 24 June 2017.

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

Ted Butler Quote of the Day 06-24-17

In silver, I don’t think the actual reduction in this week’s total commercial net short position

should be the main focus. Instead, I think the focus should be on the price action, in that the price decline over the past two reporting weeks has been so deliberately orchestrated so as to signal that we are very close to an important price bottom in silver, almost regardless of what the COT report indicates. I say this knowing full well that silver is the most rigged market of all and one should never underestimate the manipulative power of JP Morgan and the other COMEX commercial crooks in that new price lows can be created at will. Just to be clear, the market structure is now exceedingly bullish in silver and will only get more bullish on any further price weakness.

A small excerpt from Ted Butler’s subscription letter on 21 June 2017.

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