Putting The "Fraud" in "Fraudulent"

Wed, Jul 6, 2011 - 9:43pm

I just wanted to take a moment this evening to share with you an email I just sent to Commissioner Chilton. Here it is, in its entirety:

Dear Commissioner Chilton:

It is out of concern for our "markets" that I write you this evening.
I address this to you as you have been virtually alone at the CFTC in confronting JPM and HSBC regarding their concentrated short positions in silver. Though your persistence has been instrumental in causing these banks to cover some of these positions, I fear they have simply shifted their manipulative sales into the exchange-traded fund, SLV.

Ted Butler recently reported that SLV currently carries a short position that represents almost 12% of all outstanding shares. In fact, the total short position in SLV has grown from around 6,000,000 shares at the end of 2010 to nearly 37,000,000 shares today! Though the evidence is circumstantial, it appears safe to assume that, after covering Comex short positions to satisfy your commission, JPM et al simply shifted their shorts into the SLV.

As you know, one share of SLV is roughly equivalent to owning one ounce of physical silver. Additionally, by prospectus, the custodian of SLV is required to have in storage one ounce of silver for each share outstanding. Therefore, an entity that is short 5,000,000 shares of SLV has the same effective position as an entity that is short 1,000 Comex silver contracts. It would be very simple for banks such as JPM to shift their manipulative positions from the public and reportable Comex to the opaque SLV. Judging by the the rapid increase in the SLV short position and corresponding drop in the commercial short position as noted in the Commitment of Traders report, it is quite clear that the banks have done just that.

Additionally, short sales of SLV should be illegal and not allowed. As noted above, each share of the SLV is required by prospectus to be backed by an ounce of physical silver. When a short seller borrows shares and sells them to a new buyer, the short seller has created two beneficial owners of the same shares. Both longs cannot take delivery of the same silver so, by definition, the short seller has violated the prospectus, broken securities laws and performed a clearly fraudulent act. All short sales in any ETF that purports to back its shares with physical assets should be suspended immediately. I ask that you promptly refer this matter to the SEC and FINRA for their review.

Thank you for your prompt attention to this matter.

"Turd Ferguson"
Editor and President

I think you all know by now how I feel about the GLD and the SLV. If you are not up to speed and wish to educate yourself, the definitive piece on SLV was written last year by Jeff Nielson. Please take time to read it.


SLV was created and began trading of April 28, 2006. With that date in mind, please take a moment to consider this chart:

Hmmm, well, isn't that interesting?

As noted in the email above, the short position in SLV has grown by 6X in just the last six months. Additionally, as Ted Butler has noted, the short position has grown regardless of price. It is abundantly clear that the Forces of Darkness are shifting their manipulative shorting activities away from the Comex and into SLV.

Also, shorting of SLV should not even be allowed!! By shorting shares, the seller has created two beneficial owners of the same shares. By prospectus, each share must be convertible into physical silver. How can that happen when a share has two owners?? This is outright fraud and must be stopped!

IF you feel as passionately about this as I do, please take time to compose your own letter to Commissioner Chilton. His email address is bchilton[at]cftc[dot]gov. Please be respectful as he would seem to be the only commissioner intent on actually creating fair markets. If you're short on time, feel free to simply c&p the note I sent. You might also consider sending it to Ron Paul, Rand Paul, Spencer Bachus, Jeb Hensarling and/or your personal elected representative in Washington. It may seem futile but we must always try.

Thank you for your support. TF

About the Author

turd [at] tfmetalsreport [dot] com ()


Turdle GG
Jul 6, 2011 - 10:47pm

Some see the SLV short as being OK. I disagree.


thanks for addressing this important topic.

Note that Gene Arensberg has also addressed this issue. He sees it as bullish, as those shorts will eventually need to be covered. But he also goes on to criticize the critics of the short position. He doesn't mention Ted Butler, but clearly it's Ted's view that Gene is addressing. Gene does not believe the short position is fraudulent. Please read and judge for yourself:


(Our old friend Kid Dynamite even posted some comments)

Jul 6, 2011 - 10:52pm

Playing with paper

is like playing in a rigged game where you lose every time. Fuck em. By Physical and hold until the Ponsi collapses. We/they/humanity can't avoid reality forever.

Jul 6, 2011 - 11:33pm

happening fast

Its all hitting faster now, it won't be long until it all crumbles down.

Jul 6, 2011 - 11:43pm

If you want to beat these pricks.....

If you want to beat these pricks once and for, just buy bullion. Get out of any paper markets altogether. Their little flim-flam-skim-scam ends abruptly when all physical is removed from dealers' stocks. Just as importantly, remaining bullion needs to land in strong hands. Also, it is extremely important to convert owners of paper, 401k's, seps, mutual funds, stocks, etc....into silver disciples one individual at a time. Do not hold the fundamentals of silver as a closely guarded secret. Share. Get them in the boat! No particular training is needed, just refer them to Turd's site or the myriad of other favorite silver web-sites we have all come to know and love. It is all out there on the web. C'mon let's finish this damn thing!!!

Jul 6, 2011 - 11:43pm

"Look, every damn fundamental

"Look, every damn fundamental favors silver's eventual moonshot, and in my opinion, it will plateau there and slowly grind higher, simply because of scarcity. In 50 years 95% of the earth's mineable resources will be gone. Enough said."

And in case of silver, much sooner that than.

- Markus

Jul 6, 2011 - 11:50pm
Bay of Pigs
Jul 7, 2011 - 12:11am

Gerald Celente interview

Good work Turd. Keep pressing ahead. You are making a difference my friend.

I just listened to this Gerald Celente interview at KWN Daily. It is sobering to say the least, but well worth a listen. Apologies if it has already been posted.


Gil Turdle GG
Jul 7, 2011 - 12:24am

He was actually quite harsh

He (Gene Arensberg) was actually quite harsh toward the unnamed "anti-ETF" newsletter writer.

corbin ¤
Jul 7, 2011 - 12:26am

Re-Valuation Event

DarkPurpleHaze wrote:

I can't wait for the day that the market and the general populace finally realizes that there is very little, if any physical silver or gold available. At some point that will happen.

I hope I'm online, watching financial TV or hopefully on this website when the news comes down. It will be a day to remember. Just picture the craziest upwards chart you've ever seen and that's probably whats going to happen at some point.

If it goes down like you describe, I hope to join you at Turd's.

However, FOFOA offers a different scenario for what the collapse and re-valuation might look like:


Bay of Pigs
Jul 7, 2011 - 12:28am

@Turdle GG

I like Gene Arensberg quite a bit. I think he's pretty sharp.

I openly admit I am biased against SLV and GLD because of their prospectus. I think it resembles Swiss Cheese. I also believe the Banksters are crooks. That is why I consider these vehicles fraudulent in nature, or at the very least manipulated.

Gene says "consider that there are severe consequences for fraudulent prospectus info including a cell in a very unsavory place".

Oh really? How many people are in jail for all the crimes being committed on Wall St.? Sorry, but he loses me there.

Subscribe or login to read all comments.


Donate Shop

Get Your Subscriber Benefits

Private iTunes feed for all TF Metals Report podcasts, and access to Vault member forum discussions!

Key Economic Events Week of 9/16

9/17 9:15 ET Cap Ute & Ind Prod
9/18 8:30 ET Housing Starts & Bldg Perm.
9/18 2:00 ET Fedlines
9/18 2:30 ET CGP presser
9/19 8:30 ET Philly Fed
9/19 10:00 ET Existing Home Sales

Key Economic Events Week of 9/9

9/10 10:00 ET Job openings
9/11 8:30 ET PPI
9/11 10:00 ET Wholesale Inv.
9/12 8:30 ET CPI
9/13 8:30 ET Retail Sales
9/13 10:00 ET Consumer Sentiment
9/13 10:00 ET Business Inv.

Key Economic Events Week of 9/3

9/3 9:45 ET Markit Manu PMI
9/3 10:00 ET ISM Manu PMI
9/3 10:00 ET Construction Spending
9/4 8:30 ET Foreign Trade Deficit
9/5 9:45 ET Markit Svc PMI
9/5 10:00 ET ISM Svc PMI
9/5 10:00 ET Factory Orders
9/6 8:30 ET BLSBS

Key Economic Events Week of 8/26

8/26 8:30 ET Durable Goods
8/27 9:00 ET Case-Shiller Home Price Idx
8/27 10:00 ET Consumer Confidence
8/29 8:30 ET Q2 GDP 2nd guess
8/29 8:30 ET Advance Trade in Goods
8/30 8:30 ET Pers. Inc. and Cons. Spend.
8/30 8:30 ET Core Inflation
8/30 9:45 ET Chicago PMI

Key Economic Events Week of 8/19

8/21 10:00 ET Existing home sales
8/21 2:00 ET July FOMC minutes
8/22 9:45 ET Markit Manu and Svc PMIs
8/22 Jackson Holedown begins
8/23 10:00 ET Chief Goon Powell speaks

Key Economic Events Week of 8/12

8/13 8:30 ET Consumer Price Index
8/14 8:30 ET Retail Sales
8/14 8:30 ET Productivity & Labor Costs
8/14 8:30 ET Philly Fed
8/14 9:15 ET Ind Prod and Cap Ute
8/14 10:00 ET Business Inventories
8/15 8:30 ET Housing Starts & Bldg Permits

Key Economic Events Week of 8/5

8/5 9:45 ET Markit services PMI
8/5 10:00 ET ISM services PMI
8/6 10:00 ET Job Openings
8/8 10:00 ET Wholesale Inventories
8/9 8:30 ET Producer Price Index

Key Economic Events Week of 7/29

7/30 8:30 ET Personal Inc/Spending & Core Inflation
7/30 10:00 ET Consumer Confidence
7/31 8:15 ET ADP employment
7/31 2:00 pm ET FOMC Fedlines
7/31 2:30 pm ET CGP presser
8/1 9:45 ET Markit Manu PMI
8/1 10:00 ET ISM Manu PMI
8/2 8:30 ET BLSBS
8/2 10:00 ET Factory Orders

Key Economic Events Week of 7/22

7/23 10:00 ET Existing home sales
7/23 10:00 ET Richmond Fed Manu Idx
7/24 9:45 ET flash Markit PMIs
7/25 8:00 ET Count Draghi/ECB policy meeting
7/25 8:30 ET Durable Goods
7/25 8:30 ET Wholesale Inventories
7/26 8:30 ET Q2 GDP first guess

Key Economic Events Week of 7/15

7/15 8:30 ET Empire State Fed Index
7/16 8:30 ET Retail Sales and Import Price Index
7/16 9:15 ET Cap Ute and Ind Prod
7/16 10:00 ET Business Inventories
7/17 8:30 ET Housing Starts and Building Permits
7/18 8:30 ET Philly Fed
7/19 10:00 ET Consumer Sentiment

Forum Discussion

by Solsson, 2 hours 21 min ago
by sierra skier, Sep 18, 2019 - 8:38pm
by NW VIEW, Sep 18, 2019 - 4:37pm