In Ted Butler's Archive


There is a shocking level of undervaluation for silver compared to gold, even though the ratio had widened out to more than 91 to 1. Considering that there is a pronounced and deepening physical shortage in silver, the silver/gold price ratio should be closer to 9 to 1. That would put silver prices around $225 an ounce. As outrageous as that may sound, let me try to describe where I get off throwing out such a number. Silver prices first hit $50 44 years ago and again 13 years ago. Gold prices ran to over $800 44 years ago and to $1,900 13 years ago, so today’s price for gold is two and halftimes its level of 44 years ago and higher today than it was 13 years ago. Silver, by contrast, is still more than 50% lower than its previous price highs.

As I have contended for nearly 40 years, silver has been manipulated and suppressed in price on the COMEX paper exchange. The principle means of the COMEX silver price suppression has been the unusual and unprecedented concentrated short position of the 4 largest traders. While this concentrated short position is lower today by more than 22,000 contracts (110 million ounces) than it was in 2021, it is still the largest concentrated short position in real world terms of any commodity.

The combined silver holdings in the COMEX warehouses and in SLV fell to 720 million ounces. I am characterizing the withdrawal from the COMEX warehouses as being by silver users needing physical silver immediately and the declines in the SLV as being due to share to metal conversions by a big buyer. It is quite possible the late-week reductions in SLV holdings are also due to demands from users. Yes, it’s hard to discern which reason is more bullish, but there should be no doubt we are deep into a physical silver shortage.

One last comment on physical silver conditions. India imported more than 20 million ounces for November bringing the two-month import totals to 80 million ounces – close to 10% of total annual world mine production. Ask yourself how it would be possible for a single country to import 10% of the world annual mine production of anything in just two months without causing prices to explode.

The question I am asked most frequently is when is this manipulative COMEX scam going to be overcome by the deepening physical shortage? The law of supply and demand guarantees a sudden price explosion in silver but doesn’t include a precise timetable. While I can’t answer in specific timing terms (other than soon), I think it’s of importance to explain what is delaying the coming silver price launch. When silver explodes upward in price, while there will be great joy among the multitude of silver investors, there will be losses and great consternation among those at the heart of the 40-year COMEX silver manipulation; including the banks and financial firms which have promulgated the manipulation, as well as the CFTC and the exchange itself.

Because the risks to these select few are quite serious, there are those who fear what a price explosion would mean. The question is how long can the COMEX shysters and their regulatory protectors keep the scam going in the face of a documented physical shortage? And while I can’t reveal more at this time, I can assure you that I am doing everything I can behind the scenes to put more pressure on the COMEX crooks. No guarantee that I will be successful, but neither is it certain I will be unsuccessful. Either way, I’ll fully-disclose what I am talking about in time.

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