In Ted Butler's Archive


The perverse nature of the COMEX price manipulation is that lower price action strengthens a bullish structure, while higher prices tend to weaken a bullish structure. That’s because the managed money technical funds are always sellers on lower prices, with the commercials always buying. I know this gets old after more than four and a half years of truly rotten price action in gold and silver; but rotten price action can have the most profound consequences of all.

While silver and gold prices have had nothing to do with real world supply and demand and everything to do with COMEX positioning, that just creates a different set of consequences. One potential consequence is the possibility of a melt-up in prices, particularly in silver. I know that sounds crazy considering recent price action, but the metals are configured in the most bullish market structure in modern history.

The best chance for a price melt-up would be now, when the big commercials (JPMorgan) are positioned better than they’ve been in years. The only real question is the extent of the coming rally. That’s not to say the commercials can’t delay the coming rally for a time longer, possibly including slight new price lows, but the main focus should be on the inevitable price rally to come. At some point we must see a genuine divorce in the price of gold and silver from the price ratio prevailing over the past year and longer. Gold will move higher but silver will greatly outdistance it.

As a vital and indispensable industrial commodity, silver could and should be driven into a physical shortage by investors and industrial consumers alike. As a result, the baked-in consequences of the too-low price in silver are more profound than most everyone realizes, as hard as that is to focus on when price action is dismal. Silver should be acquired aggressively now.
Theodore Butler was interviewed by Gold-Eagle on December 7th. Here’s one question and Ted’s answer:

Question:  Assuming the silver market will soon correct the current bear market conditions, do you think an investor will profit more in silver bullion or in established silver mining shares during the next 12 months?

Ted: I could see mining companies outpacing the price of silver when the real silver rally commences, but metal is much surer and less prone to things that could go wrong. After all, metal can’t go bankrupt. Plus I have this vision that someday silver will climb so high in price that the market will disbelieve the high price can be sustained and the price of mining company shares may discount that disbelief and not fully reflect the high price of metal.


A reader of the above interview made this trenchant comment: “All you need to know about the truth of Ted’s assertions is that he calls JPMorgan out by name as the criminal organization they are and has been doing so for years. JPM’s response? Not a peep. Nothing. Nada. Crickets. Ya think they’d want to defend themselves if the allegations were baseless.”

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