In Ted Butler's Archive


There’s little question that the silver mining equities have already melted up, with many doubling, tripling and more over the past two or three months. This is the strongest the silver mining company shares have performed in my memory. Admittedly, these shares were truly beaten down into early January as a result of silver’s grinding five-year price decline, so a sharp snap back wasn’t completely unexpected.

The extent of the rally has been astounding given the underlying metal’s lackluster performance (up until the past few weeks). While silver mining investors are tickled pink with the outstanding performance, there has been a surreal nature about the rally. The actual profits made at the price the metal has achieved so far are not in line with the shares’ performance.

The mining share performance has greatly outdistanced metal price performance to date and I’ve uncovered no definitive answer as to why that is so. That is, until a conversation I had over the weekend with Jim Cook, president of Investment Rarities, Inc. (IRI). In the interest of full disclosure, I have written and consulted for IRI for more than 15 years and speak with Cook daily.

As a long time investor in silver mining shares and a firm believer in my take on the silver market, Cook asked me a question that I hadn’t thought about before and that quite frankly threw me for a loop. He asked me if perhaps JPMorgan, or someone close to the bank, was the big buyer of the silver mining companies. It took only an instant for me to conclude he was correct. Even if JPM stayed below the 5% share ownership reporting limit of the Securities and Exchange Commission, or set up dummy proxy accounts to own even more than that, the explanation for the astounding share performance became clear. It was, quite literally, another piece of the silver puzzle. As always, if anyone has a more plausible explanation for why silver mining shares have soared relative to the price of the metal, please send it my way.

Most amazing, Cook’s observation fit in perfectly with all my previous contentions about the silver manipulation and JPMorgan. I’ve made no secret that JPMorgan came to be the dominant and controlling force in the silver market as a result of its acquisition of Bear Stearns in 2008 and was the prime COMEX silver manipulator from that day forward. I further uncovered that JPMorgan began to use its manipulative control of silver to begin to accumulate metal in 2011 and has succeeded in acquiring as many as 500 million ounces, including 100 million Silver Eagles bought on the sly from the U.S. Mint. Every step of the way, I openly labeled JPMorgan and the COMEX as the market crooks I believe them to be, and I sent them my allegations.

I have maintained that JPMorgan had acquired its hoard of silver in order to make the financial score of the ages. The accumulation of massive amounts of shares of silver mining companies fits this premise like a glove. So convinced am I that JPMorgan or one of its affiliates is behind the buying of the silver mining shares, just as the bank was behind the buying of physical silver (after making sure the price of silver was artificially depressed), I have lodged a formal complaint with the SEC. I don’t have any high expectations that the SEC will go after JPM, but this is the first time JPM has trodden into SEC jurisdiction in a silver-related matter.

It certainly makes financial sense for JPMorgan to acquire shares of silver mining companies before the price of silver explodes. It suggests that the timing of the liftoff in silver prices may be much closer as indicated by the share buying. The aggressive buying of these shares hints that something may occur soon. Clearly, no one would bid up the shares so sharply if it thought the metal would not move up.

If JPMorgan were in complete control of the price of silver and looking for a major financial score, as I allege them to be, there would be a logical (if criminal) sequence to be followed. They wouldn’t run the price of the metal up prematurely, before acquiring as large a position as possible. And they wouldn’t put the cart before the horse and buy the appropriate silver investment vehicles out of order. They wouldn’t buy shares or call options or OTC derivatives long before they finished buying all the physical silver possible. They would buy such vehicles only after they had assembled as large a physical silver position as they could. That’s what is so potentially exciting about the share acquisition.

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