The Latest From Uncle Ted

As most of you know, Ted Butler runs a subscription service and he usually sends out updates twice per week. At the conclusion of today's update, Ted mentioned that he was considering making it "public", given the overall nature of the post. I immediately emailed him and seconded the suggestion. He has since given his OK. What follows is his midweek update, "Knowing The Game", in its entirety. THANKS, TED!!!

Knowing the Game

Especially at times of price pressure like now, it can be reassuring to know how the game is being played. I’m not speaking of the day to day price movements, but of the dominant forces that generally cause both short term and long term price movements. The price of world silver and gold is mostly set on the COMEX. Over the longer term, of course, other things will influence the price, such as production and consumption and investment demand. But these longer term influences don’t change radically from day to day and it is usually unproductive to link those influences to short term prices. And sometimes, like now, world events would strongly favor a rush towards precious metals were it not for price-setting on the COMEX.

So how is the price of silver and gold set on the COMEX? The price is set as a result of the continuous competition between what are called commercial traders and speculators (aka non-commercials). However, the term commercial trader is a misnomer for the most part as these traders are usually just speculating.  The way US futures markets are supposed to work is that hedgers (real producers and consumers) transfer price risk to speculators. In reality, it hardly works that way at all. Very few silver miners hedge production. Additionally, real hedgers don’t trade excessively on a short term basis and such short term trading makes up over 90% of daily trading volume in silver and gold on the COMEX (and in other markets). Therefore, the trading is between two competing speculative groups, one being called commercials.

Perhaps the best way to view the commercials is as market makers who take the opposite side of any trade the speculators desire to buy or sell as a group. There must be a long for every short and vice versa and the commercials will take the opposite side of whatever side the speculators choose. The problem is that the speculators generally are influenced by technical price signals and even those speculators who aren’t purely technical also tend to buy as prices rise and sell as prices fall. Almost all of the speculators are fiercely independent traders with no affiliation with other speculators. Even though there is no reason to suspect collusion among the speculators, the fact is that these very independent traders generally buy and sell en masse; buying on the way up in price and selling on the way down. The speculators are not trading as a group intentionally; that’s just an unintended consequence of them all relying on price changes to buy or sell. The speculators take positions because they believe each trade has the potential to be profitable.

Very much unlike the speculators, the commercials have a completely different objective. Instead of focusing on the profit potential of any individual trade, the commercials’ mission is to master and manage the speculators as a group. It’s kind of like men are from Mars and women are from Venus; the speculators and the commercials have two completely different mindsets in their respective approach to the markets. The speculators are focused on the next trade and their positions; the commercials are focused on mastering the speculators. In my opinion, the speculators have no clue or may not care that they are the target of the commercials. This gives the commercials a big advantage.

Because the commercials have a leg up on the speculators in knowing how the game is played, the commercials have been able to develop a market approach very different from the speculators’ approach. Unfortunately, many of the techniques developed by the commercials would appear to be flat-out illegal. In fact, I believe a strong case can be made that because the commercials’ approach is of managing the speculators, the net result is market manipulation pure and simple. The first definition for manipulation I uncovered on Google says it all, “exerting shrewd or devious influence especially for one’s own advantage.”

The commercials, particularly in COMEX silver and gold, have perfected a number of techniques to aid themselves in manipulating the speculators, including the ability to set prices on a short term basis, particularly when the markets are thin (overnight) and by High Frequency Trading (HFT) at other times. These techniques have been discouraged by the regulators in many markets, but not in gold and silver. Having the ability to set prices at will gives the commercials a big leg up on controlling the speculators behavior. Think of it – one group of traders (the speculators) relies on price signals to buy or sell and the other group of traders (the commercials) has gained control of the price signals. It would not be an exaggeration to view the speculators as puppets and the commercials as the puppeteers. That this set up is anti-free market goes without saying.

Perhaps the simplest proof that what the commercials are doing is illegal lies in the fact that the commercials are collusive in their actions. In fact, collusion is required for the commercials to pull off their scheme. Let me define collusion as Merriman-Webster does, “a secret agreement or cooperation especially for an illegal or deceitful purpose.”  What simple proof can I give to show that the commercials are collusive? I think government data should do the trick.

It’s no secret that I’m a student of the Commitment of Traders Report (COT) and other reports published by the CFTC for more than 30 years. These COT reports break down the weekly changes in positions held overnight (not day trades) by various categories of traders. Principally, the categories break down into commercials and speculators, large and small. Since we know that the speculators rely on price signals or emotion in buying or selling positions and are not affiliated in any way with one another, they can be eliminated as behaving in a collusive manner. Yes, speculators buy and sell at the same time generally; but there is no question that they are not colluding to bring financial harm to themselves. What about the commercials?

99% of the time, all the commercials buy and sell in unison. Some commercials may have long positions, other commercials have short positions; but they all buy and sell in unison. Each week, when I review the latest COT report, invariably the three categories of commercials that I use to monitor trading all buy in varying amounts or sell in varying amounts (last week marked a rare departure by the raptors in silver – that’s why I said 99% of the time). There is very rarely any competition among the commercials; they all buy or they all sell. One for all, all for one.  Because the commercials’ game plan is to game the speculators, they must collude, as there would be no other way for the commercials to take on the speculators without collusion. Let me give you some examples of commercial collusion.

For one thing, the commercials never compete among themselves when buying or selling. That’s because competition is the opposite of collusion. Because all the commercials are aligned against the speculators by choice and design, the commercials never reach for price. Why would they? The commercials know if they rig prices higher or lower, the speculators will react and come to them. In very simple terms (and this sell-off is a perfect example), the commercials just rig prices lower overnight and with HFT during the day and then wait for the speculators to come in to sell. It is simple cause and effect. The commercials put prices below recent levels on very low volume and then the commercials just sit and wait until the speculators sell in increasing volume. There is a tacit agreement among the commercials not to compete on price; they all know how to be patient and let the speculators come to them. The idea is for the commercials to demoralize the speculators and create the conditions that will force them to sell. Falling prices force speculators to sell. This is how the commercials can buy great quantities of silver contracts on lower prices and sell great quantities on higher prices, as they have over the years. It’s quite the scam and made possible through the magic of collusion.

Some may say that this is just how markets work. That may be true, but it is not how markets are supposed to work. Futures markets are supposed to be for hedging of bona fide price risk, not as a collusive scheme for New York banks to rig prices and cheat speculators. The ironic thing is that US commodity law precludes such collusive gamesmanship and there exists a specialized federal agency, the CFTC, expressly created to prevent the collusion. To their and our great shame, this agency is truly out to lunch.    

Let me be very clear about something. I write about the illegal collusion on the COMEX because that is where the price of silver (and gold) is set and any analyst not looking at the COMEX will not see the true story. But I have never encouraged or intended anyone to trade COMEX futures on margin. To do so is foolhardy. The only real chance a silver investor has is based upon full cash ownership of metal for the long haul. It’s hard enough for many to hold through times like these on a full cash basis; margin makes it almost impossible. Please understand I’d prefer that the COMEX didn’t allow the price of silver to be manipulated and I point out the illegality there as a way of getting it corrected. Short of that, I’d shed no tears if the COMEX ceased to exist. Such an occurrence, as I’ve written previously, would be wildly bullish for the price. No COMEX means no collusion and no manipulation.

Since I don’t speculate on the COMEX (I did, many years ago), I don’t have a built in bias favoring the speculators there. The speculators don’t have a right to make a profit and neither do the commercials. But every market participant has a right that the game is played on a level playing field and according to the law. Concentration and collusion are not compatible with fair and free markets.

On the current price decline from Feb 28 (when silver was at $37 and gold at $1785) thru last week’s COT, the commercials have collusively purchased 22,000 net contracts of silver (110 million oz) and as many as 75,000 net contracts of gold (7.5 million oz) on the COMEX. Speculators were duped into selling these quantities to the commercials on rigged prices through collusion.  There were no verifiable silver or gold transactions in the world during that time that comes close to the quantities that changed hands on the COMEX. There were no supply/demand developments in the world to account for the price decline. Therefore, it is proper to claim that the COMEX set the price by virtue of the outsized change in positions, as documented in the COTs.

Let me try and demonstrate from a different perspective why this recent commercial buying of 110 million ounces of silver was clearly collusive in nature. In 1997, Warren Buffett bought a similar size amount of silver for Berkshire Hathaway. It was one of the most skillful purchases ever, as Buffett bought the silver while barely causing the price to rise one dollar from when he started to buy. He explained afterward how he never bought on new price highs and only bought on sell-offs. He did everything possible not to disturb the price, as would be expected. It took him 9 months or so to complete the purchase. It is impossible for Warren Buffett or any single trader to be accused of collusion while acting alone and independently. Now let’s compare Buffett’s purchase to the similar-sized position bought by the commercials on the COMEX over the past 2 months or so.

In the case of the recently purchased 110 million ounces (undoubtedly more than that now, given the price action this week), the silver was bought by as many as 40 different commercial entities, not just one. Therefore, collusion is possible, if not probable. Unlike the case with Warren Buffett who, as the world’s most accomplished investor, was able to buy with only a 20% or so increase in the price, the 40 different commercials on the COMEX bought on a significant decline in price, as much as $8 lower or more than a 20% decline. Buffett, acting alone, caused silver prices to rise 20%; the 40 COMEX commercials, acting as a cohesive unit, completely outdid Buffett and bought on a big decline in price in a fraction of the time. And not only that, whereas Buffett’s purchase was a single one-time transaction, the multiple commercial entities on the COMEX have done this an incredible number of times in silver, both buying on the downside and selling on the upside. I would contend that such commercial feats would not be possible without collusion and without gaming the speculators. There is no other plausible explanation for how the commercials always buy together on lower prices and always sell as a group on rising prices; it’s simply price rigging and collusion. I’m serious – if anyone has a legitimate sounding explanation for this continuous phenomenon of commercial trading uniformity that doesn’t include collusion, I’d love to hear it.

Make no mistake; the silver (and gold) market is manipulated by the illegal trading practices, concentration and the collusion of the COMEX commercials. A manipulated market is a crooked market. The biggest single commercial crook in the silver market is JPMorgan, one of our nation’s most important banks. JPMorgan has bought at least 50 million of the 110 million ounces bought so far, reducing their big short position to perhaps their lowest level since they inherited the position from Bear Stearns in 2008. There is no way that JPMorgan is not involved in the current silver smash and in every collusive move by the COMEX commercials over the past four years. The chief enabler of the silver manipulation is the CME Group, which has created and encouraged the HFT trading devices used to rig prices and has ignored the easy to verify collusion on the part of the commercials, their most important constituents. Without JPMorgan and the CME, I doubt the silver market would be manipulated. But silver is manipulated in price and we have to come to grips with that fact. Silver was manipulated when it was $4 and at $49 and at today’s price. It will remain manipulated as long as the short concentration exists and collusive trading practices continue.

What can we do about this as investors, market participants and citizens? I can only speak for myself, but I am not selling silver here or lower. I don’t know how low we may go from here and there is nothing I can do to prevent a decline, so I’m not going to obsess over it. As new funds become available, I’ll buy more silver.  I’m in it for the long run or until I see signs that silver is free of manipulation and exhibiting signs of overvaluation. That’s very far from the case presently. The COT structure was bullish before this last sell-off and is even more bullish now. Try to remember that the collusive COMEX commercials are buying, illegally in my opinion, but buying nevertheless. No one, not even a crook, buys anything that he doesn’t expect to rise in price. Certainly at past extremes of commercial buying, it invariably turned out to be a good time to buy. The key test will be if JPMorgan sells short additional contracts on the next meaningful silver rally. Although that rally may not feel close at hand, I can assure you that we will get it eventually and the answer to what JPMorgan will do. When the rally does come it should prove to be explosive if JPMorgan decides to quit manipulating the price.

As market participants and citizens, it doesn’t cost anything to contact the regulators. You don’t have to put yourself at risk by labeling JPM and the CME as crooked, but you have every right and obligation to petition the regulators about the pertinent questions. I’m emphasizing something relatively new here, the impossibility of the commercials’ behavior being anything other than collusion. This goes along with previous questions of mine concerning the level of concentration on the short side of silver that resulted in the CFTC initiating the stalled investigation. The “impossible” 30% to 35% price declines last year also involved commercial collusion, but this recent sell-off seems every bit as collusive. It is amazing that more and more new proof is revealed that silver is manipulated on the COMEX all while a formal investigation is open.

Three years ago, Gary Gensler became Chairman of the CFTC. I was effusive in my praise for him, calling him the greatest chair in agency history. I still don’t doubt that he is the smartest and most market savvy chairman ever, but when it comes to silver, he has been an unmitigated disaster. He ignored the clear will of the people in disregarding their thousands of petitions for a 1500 contract position limit in silver and didn’t have the decency to have the agency explain why. Gensler has not uttered one word about the two massive takedowns in silver last year and how that can’t happen to a world commodity without manipulation and collusion. If it was any other commodity, he and the Commission wouldn’t have remained silent, indicating a disregard for the equal application of law. Worse, he has allowed a crime in progress to continue to infect our regulated markets, even though that is the agency’s prime mission.

The director of the Enforcement Division, David Meister, has been in office for almost one and a half years. The silver investigation was initiated two years before his arrival, but it’s his responsibility now. The allegations of manipulation in silver are unusual in that they have been made based upon public data from the agency, in the form of concentration and collusive trading. But most unusual of all is the continuing nature of a crime in progress; every officer of the law should know that priority must be placed upon eliminating current and future damage to the public ahead of retribution and fines for long completed transgressions. If Director Meister doesn’t see the collusion I have described above, perhaps he can explain how the COMEX commercials continuously pull it off. Or how out-sized market concentration doesn’t matter anymore.

(Subscribers overwhelmingly requested this be made public when I asked them)

Ted Butler

May 9, 2012

ggensler@cftc.gov          Chairman Gensler

bchilton@cftc.gov           Commissioner Chilton

jsommers@cftc.gov        Commissioner Sommers

Somalia@cftc.gov            Commissioner O’Malia

mwetjen@cftc.gov           Commissioner Wetjen

dmeister@cftc.gov           Director Meister

For subscription info, please go to www.butlerresearch.com

59 Comments

printmemoney's picture

FIRST!!!!

FIRST!!!!

iceman321_2k2's picture

Thanks!

Thanks for sharing, Turd and Ted.

Eric Original's picture

A half hour, and i can still

A half hour, and i can still grab Thurd?

ORD in GDX today yes

I Run Bartertown's picture

Thanks!

for the continuing education Professor TF.

Turd Ferguson's picture

Current OI analysis

MODERATOR

In the price smash of yesterday, gold price fell $35 but total OI surged by 4,000 (+1%), most of it coming in the August12 contract. Without question, these are new shorts being added. In large numbers, too, as the 4,000 net total is inclusive or what was definitely some liquidation due to the technical breakdown.

Silver total OI rose, as well, by 1,400 contracts (also +1%), mainly in the front-month July12.

Who are these fresh shorts? I doubt they're Cartel shorts. More likely spec/mgd money following momentum and trend near the bottoms just as they do at the tops. Remember, for each seller there is a buyer and who might that buyer be? Most likely a Gold Cartel member.

This week's CoT should help clear this up. For the week, gold fell by $58 yet total OI expanded by nearly 6000 contracts. In silver, price fell by almost $1.50 and total OI expanded by 2700.

Lanikai's picture

Thanks Turd, just keep stacking

For those who just read the comments, my cut and paste from the post:

The only real chance a silver investor has is based upon full cash ownership of metal for the long haul... margin makes it almost impossible.

Make no mistake; the silver (and gold) market is manipulated by the illegal trading practices, concentration and the collusion of the COMEX commercials. A manipulated market is a crooked market. The biggest single commercial crook in the silver market is JPMorgan, one of our nation’s most important banks.

The chief enabler of the silver manipulation is the CME Group, which has created and encouraged the HFT trading devices used to rig prices.

I can only speak for myself, but I am not selling silver here or lower. I don’t know how low we may go from here and there is nothing I can do to prevent a decline, so I’m not going to obsess over it.

Big L's picture

The crooks are running the show

There is no rule of law.  What they do is legal because they make the rules now.

Jimymac's picture

Where is the outrage

We only have our ambivalence to blame and a lack of a cohesive strategy.

We make it easy for the blatant manipulators to visibly steal our money without rage.

Bless Ted on his tireless efforts, however those strategies are not working.

We need the majority of producers, miners to change the game. Hold production until the laws are changed. Where are they?

We need investors to take all physical off the market, for without which the paper dies. Sell stocks, options at the next up move and go physical all the way. There will be two markets, one working, the other dying.

Then the leverage for change happens. He who has the marbles calls the game.

Jimymac

meddle magic's picture

no confidence

in the direction the metals just flop, having been thru  08 it dosen't take a lot to scare the hell out of me. 01.03,06 those were much better for trading; it seems as if all the money has dried up and not much effort is needed to swing one way or another. I was thinking the EE could trick everyone into thinking they are going long (by using bad COT reports); and getting everyone to pile on send it up again and crash it again, rinse repeat.I just think the COT report can't be trusted. And, the q, where's the outrage? really what can be done write Bart and Blythe and ask em to play fair? march on Washington? talk to your neighbor? IMO, you can play or not play well I for one am getting pretty sick of playing. I sure hope I'm wrong here and we enter the mania phase, I just don't see it. 

SRSrocco's picture

THOSE DARN FALLING ORE GRADES...(repeat post)

Wholesale grade drop pummels Harmony profits

Author: Christy Filen
Posted:  Wednesday , 09 May 2012

JOHANNESBURG (Mineweb) - 

An across the board decrease in grade at all its operations meant gold producer, Harmony, reported a 62% drop in gross profit for its third quarter to R501m.

Overall grade dropped 20% from 2.36g/t in the previous quarter to 1.90g/t in the third quarter with the underground grade decreasing 13% to 4.24g/t.

As a consequence, gold production was 18% lower at 281 415oz. This pushed cash costs up to US$1,182/oz from US$958/oz in the previous quarter despite good cost control.

--------------------------------------------------

Falling Ore Grades Strike AGAIN.  I know of at least ZERO ANALYSTS looking at this issue going forward.  Talking about the BLIND leading the BLIND.

Dr G's picture

Why in the hell would I have

Why in the hell would I have outrage over lower PM prices? Somebody please enlighten me. I DON'T WANT THE COST TO RISE. I want to buy more and more and more at lower and lower and lower prices. 

Well, you might say, I'm in the paper game and want to make some money.

Well, I would say, if you are in the paper game and haven't figured out how to short silver, than you are a dunce.

Well, you might say, THE CARTEL is screwing with the free market.

Well, I would say, we should be grateful and send them a bouquet of flowers for being stupid enough to keep gold and silver within the financial reach of all mankind. But we should only send them said bouquet if they actually exist. So do they? I don't know but I do know that if they exist their game plan seems to help my game plan along!

I just don't see a damn thing to complain about here.

bernard's picture

We need to band together

and come up with a solidified, silver stacker PLAN to CAMP OUT infront of the CFTC with signs. Or something of that sort. I have sent these clowns dozens of emails, and no one has ever followed up.

CAN WE PLEASE ORGANIZE AN EVENT TO PEACEFULLY BLOCK ACCESS TO THE CFTC (sit infront of the main door en masse) until they introduce POSITION LIMITS on contracts?

I Run Bartertown's picture

Dr G

I'm with you. I want the goose to lay a few golden eggs my way before she flies away. 

I don't like, overall, that there's a system that enables criminality. But here and now, we just try to be better positioned for what may come. I don't see anyone convincing them to stop. But if they're forced to stop abruptly (even if not immediately) because they can't juggle it all anymore, we all stand to gain.

Bsong's picture

1000 Turd March

We need 1000 of us showing up at the CFTC, of course, wearing the big gold hat.  Obviously have a few alternative media sources covering it.  That's just for starts as it will make an unforgettable first impression and positive curiosity from the dormant.  From there I do believe, "build it and they will come", we could attract many of the sound money proponents and astute politicians.  Good publicity for a politician going into November. 

So I purpose we have our convention at the doorsteps of the CFTC and that RT(Max K) or some other Media outlet sponsor the hat purchases.  The Old Old West forges the New West. 

I see Bestever  is thinking the same... yes

Or we can wait for a complete banks sponsored police state and wish we had done something angry

meddle magic's picture

Bsong

you may be on the right track. ted butler has been saying common play fair guys for years, they must think it's funny.

¤'s picture

How Silver Is Mined

Enjoy! 

Lanikai's picture

Sprott on CNBC

Dr G's picture

Silver mining has always

Silver mining has always amazed me. So much effort and out pops a little thing that weighs 1/10 oz. Unbelievable. 

SV's picture

Silver Liberation Army

At Silver Liberation Army we can plan coordinated attacks on the banksters!

Xty's picture

Going back home on the train, mum in tow

Made it to the coin store.  Had to let him take a photo of my driver's licence or no sale!  That is new - used to be able to make up a name and address - I was all prepared, but nope.  This did not deter me.  The price of silver almost did.  Gold, one oz, 1625 canadian - for a bar.  Wanted 32.50 for maples, spot at the time was 29.05ish.  I hemmed and hawed, and then the lad behind the window said, well I have some Mexican coins.  31.29 and they are lovely.  Got two different faces, each .999, and interestingly, they have a 'face value' marked on them of 10$ (maybe I am ignorant, but I am pretty sure it is dollars), whereas the Canadian mint one oz coins have a 5$ face value.  Diversifying was the work of an instant, and after the deal was done (and I am chatty) he said, wait I have some with a different colour sleeve, and went and got them and they were a different striking.  So three different gorgeous strikes. 

To get the fiat I had to wander through many bank towers in  Toronto, looking for an actual branch of my bank.  After getting bits of paper from the teller, and finding my way to the hidden shoppe, and coming out without my pieces of paper, but with a heavier knapsack, I felt elated.  And short of thinking today's price might prove good, I honestly didn't care.  Paper is paper, and metal is metal - trading one for the other felt great!

Dr Bob's picture

its going lower

gold to $1500? i think so. silver going lower? i think so too. the euro is screwed, therefor the dollar is going up. PM's will go down. this drop isnt over yet. "freegold" will be interesting to see, how much will it be worth. who knows, since currency will be going digital.

¤'s picture

Sunshine of Your Love ~Jimi

Good story Xty! 

album: Valleys of Neptune

balz's picture

TITS

I've never seen this blog so quiet.

From a contrarian perspective, the bottom should be now.

TITS, please !

Lanikai's picture

shorts selling into demand

from:  http://jessescrossroadscafe.blogspot.com/

"The total gold comex open interest baffled everyone as instead of falling badly surprisingly it rose by 3906 contracts. The raid orchestrated by the bankers somehow did not cause any gold leaves to fall from the gold tree...no liquidation of metal of any kind in a huge price downfall and yet more stood for delivery?

...The total OI for silver was even more baffling to our bankers. With silver falling on its sword to finish in the low 29's one would have thought that many silver longs would throw in the towel. Nope!! The total OI actually rose by 1410 contractions from 112,139 to 113,549. Both Ted Butler and I agree that some strong entity is after physical silver. There is no other explanation for this.

Icarus's picture

DrG writes:  Why in the hell

DrG writes:  

Why in the hell would I have outrage over lower PM prices? Somebody please enlighten me. I DON'T WANT THE COST TO RISE. I want to buy more and more and more at lower and lower and lower prices.

Well, you might say, I'm in the paper game and want to make some money.

Well, I would say, if you are in the paper game and haven't figured out how to short silver, than you are a dunce.

Well, you might say, THE CARTEL is screwing with the free market.

Well, I would say, we should be grateful and send them a bouquet of flowers for being stupid enough to keep gold and silver within the financial reach of all mankind. But we should only send them said bouquet if they actually exist. So do they? I don't know but I do know that if they exist their game plan seems to help my game plan along!

I just don't see a damn thing to complain about here.

Good doctor I have something to complain about.  Reread your post, it's all about me.  How many times do you write "I' in the above post?  Start thinking about others for a change.  All of our situations are not identical to yours.  The cartel has destroyed my investment business.  I've lost 30% of my clients over this 9 month cram down exercise since last August.  You and I might understand what is going on in the metals markets, but Joe Sixpack (my clients) has lost patience with the decline in metals prices and the meteoric rise in the S&P 500.  By placing my bets on the conservative, wealth protecting metals we are now DOWN 35% versus the market since September.  OUR under performance is astounding and frankly I don't blame them one bit for bailing on me.  I'm now virtually bankrupt because of the corrupt cartel and the manipulation.

Makes me sick when I hear people like yourself spout off, "But it's great, I can now buy at lower prices!!!"  You fail to understand the PAIN inflicted by the cartel on people who have bet on gold/silver and have now LOST, and have no recourse.

Regards,'

Icarus

¤'s picture

Wicked World

TomMack's picture

hurting here too

it is hard to stay calm.  future outlook is changing my business which is changing my situation.  i will fight to keep dry powder and not let them take my metals, they will not win.  the metals will be guarded as best as i can, even thought they are at the bottom of a lake.

donnojackshit's picture

Must be time......?

Must be about time for El Sprott to buy some more silver for PSLV?

He has a billion left to spend hasn't he?

Dr Jerome's picture

March on the CFTC?

I am interested!

Dr G's picture

"Good doctor I have something

"Good doctor I have something to complain about.  Reread your post, it's all about me.  How many times do you write "I' in the above post?  Start thinking about others for a change.  All of our situations are not identical to yours.  The cartel has destroyed my investment business.  I've lost 30% of my clients over this 9 month cram down exercise since last August.  You and I might understand what is going on in the metals markets, but Joe Sixpack (my clients) has lost patience with the decline in metals prices and the meteoric rise in the S&P 500.  By placing my bets on the conservative, wealth protecting metals we are now DOWN 35% versus the market since September.  OUR under performance is astounding and frankly I don't blame them one bit for bailing on me.  I'm now virtually bankrupt because of the corrupt cartel and the manipulation.

Makes me sick when I hear people like yourself spout off, "But it's great, I can now buy at lower prices!!!"  You fail to understand the PAIN inflicted by the cartel on people who have bet on gold/silver and have now LOST, and have no recourse.

Regards,'

Icarus"

Icarus, I appreciate your post, but it makes no sense to me. Of course I used "I" in my post. I'm the one writing it. Why would I speak for everybody here (using "we") when many disagree with me?

It sounds like your clients were hoping to use the metals as a quick investment. I'm shocked that you didn't steer them clear of that choice. Sounds like you agreed they could make some quick cash, similar to the stock market, and then let them take the plunge. Did they not understand that the metals protect wealth in the long-term?

To be honest I don't understand what your beef is with me. You are blaming me because others didn't do research before purchasing gold and silver?! I'm not surprised. That pretty much sums up the state of our country. Let's blame everybody else.

Corrupt Cartel and manipulation? Laughable. This is a LIQUIDITY event. In case you haven't noticed, the ONLY thing rising is the USD. Everything else is being sold and having the bottom fall out of it. Go ahead and blame your losses on a magical entity that may or may not exist. You can blame it on Blythe Masters, The Cartel, The EE, or The Ghost of Christmas Past. It doesn't matter. Every shred of evidence shows that the metals move violently in both directions, and most often in the down direction. It is what it is. Don't cry to me because some of your clients thought they could get rich on a long-term investment in the short-term.

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