In Ted Butler's Archive


There has been a tidal shift in silver commentary on matters related to manipulation, the COT report and COMEX silver trading. The number of commenters and analysts which focus on these matters has never been greater. One thing for sure – there are more people writing about silver today than ever before, mostly on the Internet, but also in more establishment media. The majority write that silver has great supply/demand fundamentals and is destined to climb. The facts about silver are impossible to deny – world inventories down 90% over the past 75 years and 90% of current production is consumed by industrial and fabrication demands, leaving only a fraction available for investment. In a world with record investment buying power and zero interest rates, it’s only a matter of time before silver is “discovered” and its price soars.

When silver has exploded in the past, its gains have far outdistanced any other commodity. The amount of money made on silver is greater than just about anything else. The historical facts point to silver climbing again. The facts show we consume more silver in more varied ways than at any time in the past. Investigate all you want – you will find no compelling case for the price of silver to fall over the long term.

Silver is cheap in price for a reason and it’s not because silver investors have been selling or that there is too much actual silver. There is too much paper silver being sold short on the COMEX by eight traders, none of whom are legitimate silver producers. The concentrated short position by these eight traders, the largest by far in any commodity, is the explanation for why silver is so cheap. This manipulation is what’s wrong with silver. Decades of silver price suppression and manipulation on the COMEX are the most serious market crimes of all.

The largest COMEX silver short seller, JPMorgan, has been buying massive quantities of physical silver over the past five years, 500 million ounces by my estimate, even while maintaining the dominant COMEX silver paper short position. JPMorgan wouldn’t have bought so much physical silver (much more than it has sold short on the COMEX) if it didn’t expect prices to soar. Thus, the biggest rat is abandoning the ship. Throw in the growing number of investors and analysts which have become aware of why silver is so cheap in price and it’s impossible not to conclude that the tide has shifted against a continuation of the silver price suppression.

That’s not to say that the big shorts might not exert price influence for a while longer, but offsetting that is the nature of how manipulations end – suddenly and violently. By my count, the silver manipulation on the COMEX has lasted for more than 30 years and is the only reason prices have been more down than up over that time. But thirty years is a very long time for a manipulation to last, particularly as it becomes more widely known. And when a manipulation ends, history dictates that the price moves violently to the upside. Therefore, what has been the one thing wrong with silver is about to morph into the surest force for higher prices. The key is to be positioned before the transition begins.

For subscription info please go to

Start typing and press Enter to search