They Know a Bargain When They Make It

This title comes from a comment on Ted Butler's undisputed claim of JP Morgan's accumulation
of upwards of 500 million ounces of physical silver (or nearly 11,000 tons) over the last four to
five years.
This accumulation occurred during a time of horrible sentiment and subdued retail demand. They
Know a Bargain When They Make It puts the whole issue of manipulation into perspective. Its
almost perfect, capturing, in essence, what the great conspiracy all comes down to in the end. They
are making themselves a bargain, because they can.
The issue of gold and silver price manipulation has been circulated and documented among the
backwater of blogs and alternative (world-local) publications for decades, led by Ted Butler and
the Gold Anti-Trust Action Committee.
For now, the COMEX is the center of price discovery. The most volume. The most inventory. The
most well developed. One of the largest known stockpiles.
Paper futures are derivatives of physical metal held within a complex system of warehouses
moving incredible amounts of inventory and huge percentages of annual production each day and
week. Silver movement far outstrips every other commodity.

For paper, there is a long for every short. Its a zero sum game. There are 100s of traders holding
contracts. As of June 12th, there were over 179,471 open contracts. The holders on either side,
short or long, are 99% speculative. In other words, they exist for price direction and momentum,
and nothing else.
Of the two main categories of traders - commercials (banks) and managed money funds (hedge
funds) - the 4 largest commercial traders hold a massively concentrated short position relative to
any other commodity.
The general belief is that these postions are largely held for clients as 'hedges' or an insurance
for another bet some place else. Some are swaps between months.
But even if it were true, it doesn't matter, because concentration, first and foremost is the tail that
wags the dog. The monthly Bank Participation Report reveals JP Morgan Chase as the consistent
big short - having taken over the position from Bear Stearns in 2008.
Again, the largest of the commercial category make up a huge percentage of the short side. The
longs represent a much more diversity. These are paper, electronic managed and seemingly
impersonal positions.
Actual silver supply is tiny by practically any measure, from actual available supply to its largely
horribly misunderstood investment and industrial demand character.
Since May of 2011, JP Morgan has led the way, rigging the price lower of one of the (already)
most undervalued assets in existence and profited.
And then they bought it all back.
They purchased silver in coin form from Mints all over the world and took delivery of futures
contracts (bar form) on their own behalf.
Its under the radar, because even when presented with the evidence, most people refuse to believe
it. Theyve long bought and continue to pay their way out of prosecution and lawsuits. Theyve
been given literal and implicit government guarantees. They took over Bear Sterns big
concentrated short because it was part of the rescue bargain.
So why not make the big grab? They almost have to. Would it be a stretch to hear the conversation
go down like this?
Look, see - we have all the physical we need - right here. Dont worry. That short position isnt
a problem at all. Its backed.
What? What do you mean we rigged the price lower? The price went down like all other
commodities.

Besides, prove it. The CFTC already said nothing was the matter. They threw out that class
action lawsuit a few years ago. Thats the age-old conspiracy. Come on, those positions are
hedged. And you know what? Without us, everything would come unglued. So stop complaining.
We are keeping the wheels of industry turning by providing the means for capitalism. We
facilitate the liquidity. We are like plumbers. You like running water and indoor bathrooms, dont
you?
Without us, you wouldnt have your electronic food stamps. Can you imagine what it would look
like if all these people couldnt eat? This system of capital goods and services - the shuffling needs
order and efficiency - thats what we do. Without us, it will all fall apart.
Why are we the best? Because we always been committed to the highest principles and standards.
We advise governments and the most important institutions in the world. We are a partner in every
industry. We are pervasive.
We see opportunities and we seek them on behalf of our responsibility to shareholders, investors,
and clients. And we make big money for them. In fact its our legal obligation to do so.
Ask a trader, an investor, and politician about silver price manipulation and what little interest or
curiosity you may find will be shrouded in primitive social memes surrounding wealth and money.
The Hoarder. The doomsday seeker. The MadMax worshipper. The conspiracy theorist.
The irony is that all these memes are echoes from the literal forest fire of demand lurking beneath
the canopy.
The presence of paper futures long and/or short side concentration makes it the primary price driver
by nature. It doesnt even matter if the positions are naked. If you have the market cornered, you
control the price direction.
You can lower while buying up all that remains of the visible stockpile.
They make it by using a dominant position in both technical and actual positions. The concentrated
short position (massive relative to every other commodity) is almost unnecessary at this point. The
technology provides the ultimate capability to wag the tail -- control price movement and direction.
Watch what they do, not what they say. And while they are inextricably tied to the monetary
authorities, by legal or surreptitious capacity, they are first are foremost out for themselves - their
true nature.
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