James Joyce table
Ted Butler Commentary…attached.
Good morning Ladies and Gentlemen:
I am not going to bore you with details on yesterdays trading. As I promised you on Thursday, we knew that Bernanke was speaking and gold and silver had to be taken down.
Rumours of a pending deal to safe Lehman Brothers brought the Dow up by 192 points. If any of you believe this story, I have a great piece of land to sell you in the
I have attached Ted Butler`s commentary which was released on Friday instead of Monday due to its importance. The title speaks for itself: `the smoking gun``.
For years, the weekly COT report issued by the CFTC has indicated large comex traders have manipulated the price of silver and gold. And for years, CFTC has resisted public pressure over the issue of manipulation with blanket denials of any wrongdoing. Brokers have agreed with the CFTC officials explaining the massive short position in both metals in a manner that defies all known economic laws.
During the months of July and August, we have seen a widespread shortage of silver for retail purchase corresponding with a complete collapse of that metal. All silver dealers are out of metal as the mint cannot find enough to mint the coins. The physical market is
The Wall Street Journal reported yesterday that the
Yesterday, Ted Butler released a paper that will shake the boots of the investment community. The data is taken from a monthly report issued by the CFTC called the Bank Participation Report.
The link is in the bottom of the paper: re cftc.gov.
I will try and explain its significance:
The report is only for a change in action on a commodity for the month. It is not a total quantum, only a change or a delta in a commodity. The total short position on both silver and gold rose exponentially.
However, the report only lists the change in the months of July and August for silver and gold. The data speaks for themselves;
On July l.08, the opening inventory short, two
On August 5.08 , these two banks who are still nameless were short 33,805 contracts or 169 million oz of silver. The increase is 131 million oz of silver or 5 fold increase. This is the largest data change in the history of the CFTC. Corresponding to this of course, the price of silver dropped from 19.55 an oz to 12.22 an oz. at its nadir and now trading at 13.40.
For gold: 3 usa banks who are nameless, held a short position of 7787 contracts of gold or 778700 oz of gold short. On August 5.08 when this report surfaced, these same 3 banks increased their short position to 86,398 contracts or 8,700,000 oz of gold an 11 fold increase in their short position. Please note that there are other banks who are massively short gold. However they did not participate in their dealings with the commodity gold for the July-august period so these guys are not in the report. As you all are aware, the price of gold fell by 150 oz per oz. Also this is the largest delta change reported in the history of the comex. This was put on as one massive short position just hours before the market collapsed in price in gold and for that matter silver.
The banks need cover in order to carry out their fraud. They probably (we will need police or special authorities to determine this) leased the silver metal from the SLV in
There is going to be many questions regulators must answer. Is there a connection between the 2
The silver short is equivalent to 20% of world production. It is greater in quantum than the entire comex silver stockpile. It is almost equivalent to the supposed stockpile at the SLV in
The gold short is equivalent to 10% of annual world production. In dollars, the amount of gold sold short is 7 billion dollars. To give you an idea of the short, the
The losses to the world to silver holders is estimated to be more than 2.5 billion dollars. Long holders of silver futures also suffered a similar 2.5 billion decline in the value of their contracts. If they cashed their losses they would record a loss of approximately 2.5 billion dollars.
The losses to the world in gold is much greater due to the higher dollar amount of gold..probably in the order of hundreds of billions of dollars. To this we must include losses in holdings of gold and silver shares.
We can only conclude that the losses in both of these metals was caused by the two banks for silver and the 3 banks for gold.
What real legitimate business do the 2 or 3
Do the traders who lost money in the recent price collapse of silver and gold have a reason to believe that their money is now in the pockets of these two or 3 banks.
The data on the CFTC report is clear and compelling.
The short positions initiated by these banks remain today. I can assure you that
They already own comex positions and they will not roll but take delivery in December.
Years ago, when
In the meantime
Hang onto your hats…this is going to be very stormy.
Have a great weekend
TED BUTLER COMMENTARY
August 22, 2008
The Smoking Gun
(This essay was written by silver analyst Theodore Butler, an independent consultant. Investment Rarities does not necessarily endorse these views, which may or may not prove to be correct.)
For years, the data contained in the weekly Commitment of Traders Report (COT), issued by the CFTC, have indicated that several large COMEX traders have manipulated the price of silver and gold. For an equal number of years, the CFTC has reluctantly responded to public pressure over this issue with blanket denials of any wrongdoing. Many analysts have agreed with the CFTC’s position, conjuring up various ways to explain why a massive short position held by a handful of traders is not manipulative.
The recent widespread shortage of silver for retail purchase coupled with a price collapse appears to have shaken these analysts’ confidence that the COMEX silver market is operating ‘fair and square.’ Well it should, since there is no rational explanation for a significant price decline going hand in hand with product shortages other than collusive manipulation.
For any remaining doubters that COMEX silver and gold pricing is manipulated, the following CFTC data should be considered. This data is taken from a monthly report issued by the CFTC, called the Bank Participation Report. Here’s the link for the report -
http://www.cftc.gov/marketreports/bankparticipation/index.htm The relevant data is found in the July and August futures sections. I will condense it.
These facts speak for themselves. Here are the facts. As of July 1, 2008, two
For gold, 3
This data suggests other questions should be answered by banking regulators, the CFTC, or by those analysts who still doubt this market is rigged. Is there a connection between 2
Is there a connection between 3
Because prices fell so sharply after the short sales were taken (with the appropriate dirty tricks as I have previously explained) holders of known physical silver in the world suffered a decline in value of more than $2.5 billion and long COMEX silver futures holders suffered a similar $2.5 billion decline in the value of their contracts. In gold, because the dollar value held is much greater than silver, investor losses were much greater, on the order of hundreds of billions of dollars on their physical holdings. Declines in the value of mining shares adds many billions more. Was this loss of value caused by the concentrated short selling of 2 or 3
What real legitimate business do 2 or 3
Do the traders who lost money in the recent price collapse of silver have a reason to believe that their money is now in the pockets of these two or three
The data in the Bank Participation report is so clear and compelling that it is hard to conclude anything but manipulation. It is beyond credulity to conclude other than two or three banks caused one of the most severe price collapses in precious metals history. The CFTC has a lot to answer for as the regulatory agency responsible for preventing this type of blatant manipulation.