In Jim Cook's Archive


Since we have a number of new readers to our newsletter, it’s important to stress that our silver analyst Theodore Butler is considered to be a genius on the subject of silver. He writes a $400-a-year newsletter on silver and we are fortunate to have him as a paid consultant. His groundbreaking insights have become the mainstream silver and gold story. For example, eighteen years ago he warned the mining companies that gold leasing was impractical and would prove disastrous. Subsequently they lost at least $20 billion through leasing.

He further explained that the prices of gold and silver are set on the COMEX. Little else matters to price other than futures trading. He uncovered the fact that one big short seller was holding down the price of silver. When JPMorgan acquired Bear Stearns in 2008, he discovered that Bear Stearns had been the big short seller and that JPMorgan had assumed that role. In 2013 he noticed that JPMorgan was acquiring large amounts of physical silver and gold. He began to write to the CFTC (Commodity Futures Trading Commission) claiming that JPMorgan was holding down the price of silver through short selling while they accumulated a hoard of physical silver at a bargain price. He chronicled how JPMorgan accumulated one-hundred million ounces of silver each year for eight years. He estimates they now have 850 million ounces, the equivalent of one year’s mining production.

Over time, Ted Butler sent hundreds of his articles to JPMorgan, the COMEX, the CFTC and the Justice Department accusing the big bank of market manipulation and violations of commodity law. Despite the fact that he called JPMorgan dishonest and relayed his accusations to the bank’s president, the board of directors and their legal counsel, no one ever warned him to stop. Shortly before his death the late Bart Chilton, a CFTC commissioner, disclosed that his agency and the Justice Department had been investigating JPMorgan for years without a resolution. This verifies that Mr. Butler was right.

Mr. Butler predicts much higher prices for silver because of the enormous 850-million-ounce hoard accumulated by JPMorgan. If silver were to rise a hundred dollars an ounce, they would make $85 billion. It’s in JPMorgan’s interest to have silver rise in price. Since they are the dominant factor in precious metals trading they have the ability to make that happen. That’s one reason Mr. Butler insists that fortunes will be made in silver.

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