In Ted Butler's Archive


For commodities, the paramount issue is always actual supply and demand, with price serving as the balance in a free economic system. Too much supply and not enough demand and prices are expected to fall. Too much demand and not enough supply and prices are expected to rise. Messing with the law of supply and demand is like messing with Mother Nature and only ensures bigger problems at some point. In the case of silver, allowing price to determine supply and demand has been routinely cast aside. It matters little in determining the price. A case in point – hardly a day goes by when another new article doesn’t appear to highlight the shrinking world inventories, yet the price of silver remains at multi-year lows. It is obvious that the COMEX-generated price we are bombarded with 24 hours a day is artificially-derived and manipulated. Because of this long-running price manipulation, the law of supply and demand has not been able to function properly. The stagnant supply of silver in the face of growing demand continues, misled by the artificial low price. Because the COMEX has persisted in sending false price signals in silver for decades, producers are slow to increase production, while consumers will not curtail demand.

At the core of the artificial and manipulative pricing emanating from the COMEX is that the two principal trading groups actually setting the price of silver are not at all interested in the proper functioning of the law of supply and demand. For the most part, they are not legitimate hedgers, but pure speculators. The bottom line is that these two groups are engaged in a never-ending private speculative betting game that has grown to become the sole price determinant in silver rather than the law of supply and demand.

I am alleging the existence of a long-term price manipulation in silver (and other commodities) and that the crooked trading on the COMEX is at the center of the manipulation. The actual consequences of the end of the 40-year silver manipulation is so profoundly bullish that it’s imperative not to get hung up on all the water that has flowed under the bridge and, instead, position yourself for a resolution that could, quite literally, favorably set your financial future. The COMEX silver manipulation has been a crooked thing that has distorted the proper functioning of the law of supply and demand to the detriment of the world. Nonetheless, its resolution will result in a financial windfall for those properly positioned. The only thing wrong in silver has been the price and, ironically, it is that “wrong” price that makes silver such an attractive investment.

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