Cornering the Silver Market

As regular readers know we don’t write often on the COMEX manipulation theories.  Theory or fact, regardless it is compelling reading.  Devoted silver analyst, Ted Butler, estimates (from COT and Bank Participation report analysis) that JPMorgan has amassed a short side corner in the COMEX silver market now at about 18,000 contracts.  If you consider each COMEX silver contract is for 5,000 troy ounces or 156kg, that is 90m oz or about 2,800 tonne of silver!  But what makes it truly amazing is the massive physical long position which he estimated earlier this year at 300m oz.  So, short the market down with paper silver whilst stocking up long on physical… Just last week he had this to say…

“Aside from the massive 7.5 million ounce of silver that JPMorgan acquired in the March delivery month, the key difference between its acquisition of silver and the Hunt Bros. or Buffett’s acquisitions, is that JPMorgan was the largest paper short seller on the COMEX over the time of its physical accumulation. This is manipulation on its face and just today [Wednesday] the federal commodity regulator, the CFTC, brought charges against Kraft for manipulating wheat futures in the same manner as I allege JPMorgan has used in acquiring silver at depressed prices.

JPMorgan is now in position to reap a fortune on sharply higher silver prices and that is almost tantamount to a personal invitation to investors to join in and reap a fortune as well by buying silver. When what is arguably the most powerful and well-connected financial institution in the world sets itself up for a score on the upside by buying more of something than ever bought before, that is an invitation to all investors to buy silver. Of course, JPMorgan is not intending to encourage you to buy silver due to their own actions; that’s just an unintended consequence.

Still, JPMorgan has been in the driver’s seat for silver for more than seven years (since acquiring Bear Stearns) and the unmistakable evidence that they have acquired a truly massive position in physical silver points to the bank driving silver prices higher. That’s as close to an insider investment invitation as it gets.”