Professional Documents
Culture Documents
In part 1 of this series I floated the idea that in addition to buying up 150 million ounces (30k COMEX
contracts) of American Silver Eagles and Canadian Maple Leafs (as Ted Butler claims and no one has
been able to refute in a meaningful may).
that instead of melting down the government-minted coins, they are holding them 'outside of the
COMEX delivery system'.
Thereby sequestering that part of the hoard in an undeliverable format or
Who else could get away with this, without the CFTC stepping in?
*(As both Ted Butler and Ed Steer have elaborated both publicly privately for readers and subscribers, it
is possible that one of the stubborn technical longs - who have maintained positions for much of the
move down over the last 5 years - could a hedged for this strategy).
This might clear the way for JPM squeezing the paper shorts they could soon be leaving behind.
Again, who would stop a client like JPM from buying a few thousand long contracts and then standing
for delivery?
There is only a short seller of last resort or a long corner.
The equivalent of far less than a billion dollars attempting to deliver would disrupt the market and easily
induce a default.
And contrary to popular assumption, defaults have been a reality throughout financial market history.
JPM may have circled the wagons on the silver market.
(Given, the record number of gold contracts taken for their own account over the last month, they are
loading the boat for the subsequent rise in gold prices as well).
In part 3, well continue and address the idea that the CoT in conjunction with ALL governmentgenerated data is itself a fiction (Click here to for early notification and access)...
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*Note Once again, special thanks and credit...
Many of the historical references above were sourced from excellent work of Manipulation of Commodity Futures Prices - The
UN-Prosecutable Crime Professor Jerry Markham, former CFTC enforcement attorney. Intimate knowledge of the inner
workings of price formation and manipulation would not be possible with the work of Ted Butler.