Theodore Butler writes a $400 newsletter on silver. He is considered by many to be the world’s foremost authority on silver. Eighteen years ago he predicted that silver would go up ten times, which it did. We caught up with him at his home in Florida.
Q: As the world’s leading silver bull, are you expecting fireworks in silver?
A: More so than ever.
Q: You know of course that a lot of people who own silver have grown impatient. What do you say to them?
A: I feel the same impatience, however my expectations are based upon an extremely bullish set of facts. Impatience has nothing to do with it.
Q: How do you arrive at your bullish facts?
A: I study the Commitment of Traders and Bank Participation reports and numerous other statistics, trends and reports. There are any number of bullish arguments for why silver is a great buy right now.
Q: What are some of those bullish arguments?
A: Silver has never been more necessary. It is a vital component of just about every modern product. Production of silver has been flat for years. Quite simply, there will not be enough silver to go around and price rationing will be required.
Q: Anything else?
A: What makes the case for buying silver so compelling is the current low price. If silver was priced at $30 or $50 or $100 an ounce, the argument for buying would be much less compelling.
Q: Why is the price so low?
A: Because the price has been rigged by excessive paper speculation on the COMEX, largely at the hands of JPMorgan. For 11 years, JPMorgan has been the largest paper short seller and for the past 8 years it has also been the largest physical silver buyer. It is the financial manipulation of all time and I believe totally illegal.
Q: I know you have maintained this for years, but nothing’s come of it.
A: It certainly explains why silver has been down for so long.
Q: People want a reason for this long period of depressed prices to end. Do you see any reason?
A: Yes I do. On Nov. 6, the Department of Justice announced it was conducting an investigation of manipulation of precious metals prices on the COMEX. It came as part of a guilty plea by a former trader of JPMorgan. To me, this represents the greatest single opportunity for busting JPMorgan’s manipulation of silver prices.
Q: What if the Justice Department doesn’t see what you see?
A: We’re talking about both the Justice Department and the FBI. I consider it highly unlikely that either would conclude differently. Instead of asking me what if the DOJ and FBI don’t see what I allege, you should be asking what happens if they do agree with me.
Q: What happens if they agree?
A: It means the silver manipulation comes to an end and the price is set free. Consequently, you would be much better off owning it now because afterwards it will be obvious to the world what has been going on in silver.
Q: What happens if you are wrong?
A: If I’m wrong and the Justice Department doesn’t step up to the plate and end the manipulation, the downside is limited because the price of silver is already in the gutter and close to the cost of production. It’s not often one gets such a low risk and high profit opportunity.
Q: So you’re saying that things would stay the same?
A: No, I’m quite certain the Justice Department will act to some degree. In any case, JPMorgan’s role is going to diminish because the world is finding out what they have been doing. For one thing, they have accumulated 800 million ounces of physical silver. They know silver’s potential. That fact will prove to a lot of investors just how bullish the future is for the price of silver.