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Silver Option Price Timeline: Gaming the System. By Ted Butler

Manipulation Timeline by Theodore Butler ~ November 26, 2012

A friend and long-time subscriber who intends to write a book about the silver manipulation asked if I could provide him with a bit of history. To my mind, the silver manipulation dates back to early 1983, when the commercial traders grew confident that they could sell any quantity of paper short contracts to the technical fund buyers on the COMEX ®. By that time the commercials learned that technical fund buyers would never take physical delivery and could be counted on to buy or sell based upon price signals that the commercials could easily influence and control. In essence, the game has remained remarkably similar ever since. ...

Silver’s price level is and has been artificially depressed due to JPMorgan’s concentrated short position. In addition to the negative publicity that has been attached to JPM, this concentrated paper short position has impacted the underlying host physical market in a manner that can’t be sustained. By artificially depressing the price, JPMorgan has set in motion a more powerful counter-force of stronger physical silver demand and weaker physical supply than there would have been otherwise. The artificial low price makes it a certainty that physical demand must overwhelm real silver supply and at that point, additional paper short sales by JPMorgan will not matter....
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Keiser Report: Colossal Collapse Coming! Gold & Silver manipulation. Documentary newsreel.

Link starts 18 minutes into program: In the second half, Max Keiser talks to Ian Williams of Charteris Treasury Portfolio Managers about his forecast for silver prices to rise five fold in the next 3 three years while US Treasury bonds and UK gilts will face collapse. Ian Williams also suggests that it is commercial banks rather than central banks that will return us to a new style of gold standard.
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Related DailyPaul Links:

Gold & Silver Price Suppression: Mechanics of GLD and SLV, by Andrew Maguire 11/21/2012

CFTC Charmnan Gary Gensler Squirms While Live Callers Ask About Silver Manipulation & Investigation! 06/13/2012

Constantinople reigned 1,000 years, w/ Gold & Silver... After Rome fell. 04/24/2012



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What will happen with all the metal ETFs?

What will happen with all the metal ETFs? A metal ETF represents the value in dollars of something with intrinsic value. The thing, the metal may or may not exist. The assumption for the ETF is that it exists. Compare that with currency trading where one trades paper that represents only an idea, with no intrinsic value. There is never a fixed amount of fiat money because it can be "loaned" into existence, or printed into existence, etc. but yet somehow the currency trading markets keep on rolling.

Given the information shown in this article and the two videos from this comment --> http://www.dailypaul.com/265036#comment-2852953
would we expect the metal ETFs to be a better investment than in dollars?

I guess my question is what is the little guy to do? Clearly the little guy is not going to buy silver and gold futures and take delivery. . .

Cyril's picture

"With a little help from my friend"

Just an example, "with a little help from my friend" (a.k.a. - dear wife) :

http://www.ebay.com/itm/LOT-EIGHT-DIFFERENT-EARLY-WASHINGTON...

... whenever one can save a few bucks.

(She won! :)

P.S.
Friend s. Yes. I don't give into polygamy ;)

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Save US Nickels. By weight: 25% nickel; 75% copper.

Nickel coin is worth its weight in metal. No fee. No commission. No sales tax.

Our lowly Nickel is the last coin in common circulation that is worth its weight in metal. The last remnant of what we call our monetary system in common circulation.
_____________________________________________________________

Remarks at the Signing of the Coinage Act, July 23, 1965

President L B Johnson: When I have signed this bill before me, we will have made the first fundamental change in our coinage in 173 years. The Coinage Act of 1965 supersedes the act of 1792. And that act had the title: An Act Establishing a Mint and Regulating the Coinage of the United States.

Since that time our coinage of dimes, and quarters, and half dollars, and dollars have contained 90 percent silver. Today, except for the silver dollar, we are establishing a new coinage to take its place beside the old. [Out with silver money; in with token of esteem.]

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

SLV has the metal

Problem is, you cannot get at it.

The only people who can take physical delivery from SLV are the designated traders. I forget what they call them. They trade silver and SLV shares back and forth with the ETF in big baskets. Fifty thousand ounces? I forget. If you have SLV shares and want metal to have and to hold, you must try to sell your shares and exchange the FRN's for metal with somebody like APMEX. In a SHTF situation, the traders might not be interested in buying your SLV shares, or the metal retailers might not sell you the metal for the price anywhere near what the SLV traders will give you for your shares. That is assuming the markets are liquid at all.

You do not have to buy futures and take delivery in order to get gold or silver right now. Just go to APMEX.com and click your mouse.

Ĵīɣȩ Ɖåđşŏń

"Fully half the quotations found on the internet are either mis-attributed, or outright fabrications." - Abraham Lincoln

If you can't hear it clink, it is not yours.

Paper silver and gold are just waiting for the spark that will burn everyone holding them. Check this out - ONE MAN owns 21% of the GLD fund.
http://dailybail.com/home/strange-gold-trading-when-one-guy-...

Love or fear? Choose again with every breath.

Cyril's picture

I guess my question is what is the little guy to do?

"I guess my question is what is the little guy to do? Clearly the little guy is not going to buy silver and gold futures and take delivery"

The little guy can do something. It's not too late. Really. He just needs to stop sitting on his hands.

Stack on. Or start NOW. A few hundreds silver ounces WILL preserve his wealth.

Peace.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

ETF: GLD & SLV have little metal to cover their gambling debts.

What is a GLD or SLV investment backed by? Why do list times each month for paper settlement of options & futures?
(see links in this forum header listing this year's option & future calendars offered by Mark Twain; note case settlement; read the GLD & SLV prospectus.)

ETF invested in ming will follow mine stock prices. If all a mine goes bankrupt, creditors are paid before shareholders.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

according to Butler today,

according to Butler today, JPM has 34.5% of all silver short contracts. I think there will be one more big sell off, then quickly it will rocket. End of December to end of January? Take into account what GATA says about JPM being exposed as the big silver criminal short, this could get interesting.

Don't skip past 10:00

Max and Stacey call for a Jubilee!

Love or fear? Choose again with every breath.

Lauren Lyster of capital account recently interviewed

The head the regulatory body who is conducting a four year investigation into the price of silver.
He stated he believes there is manipulation but the results of the investigation won't be released just yet
http://www.dailypaul.com/264380/cftc-commissioner-on-silver-...

Please subscribe to smaulgld.com

Cyril's picture

The beach ball, the water resistance, and water level :

It all seems like JPM and others have enjoyed their game of holding the beach ball under the water level; but when the ball will leave the latter, the only resistance left will be that of air, which is much weaker :

http://hubertmoolman.wordpress.com/2012/09/17/silver-price-f...

I want the ball to stay in the water just a little longer !

Pretty please, JP...

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Cyril's picture

BUMP

BUMP

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Cyril's picture

Fascinating.

Fascinating.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Opportunity to suck big bux out of J.P.Morgan

If J.P.Morgan is systematically manipulating the silver price by selling, before the expiration of options, a large volume of shorts to artificially lower it, they are creating an opportunity for others to suck big money out of them:

Buy silver contracts during the artificial dip, and TAKE DELIVERY.

One small investor might not make a profit that way. (Though if the contracts are producing a sufficient periodic distortion in the price to cover the trading costs it is a handy opportunity to make some profit off the knowledge of future price moves.) But if some big investors, or enough little ones, suck down enough of their shorts and demand they pony up the silver, they can corner the market with Morgan on the short end, obligated to pay whatever is asked to get the silver to cover their obligations.

Manipulating the price of a commodity by selling short is a very risky business. Enough calls and you're toast, no matter HOW big you are.

(Unless you can get the government to change the rules because you're finally losing - and do it fast enough to keep you alive.)

= = = =
"Obama’s Economists: ‘Stimulus’ Has Cost $278,000 per Job."

That means: For each job "created or saved" about five were destroyed.

I suggest

to read Rothbard on the matter.

JP Morgan and the founders of the FED were fighting against gold-silver standard and, in fact, were able to establish gold standard.

The dual silver-gold was manipulated mainly by USA government that fixed the conversion rates. Targets for the rip-off were foreign countries.

If you don't have any physical Silver by now...

Shame on you. Regardless if the dollar makes a comeback or not, people on this Earth will always see Silver has having value. Same with Gold.

Dr. Paul: "Mr. Bernanke, is Gold money?"
Bernanke: "No."
Dr. Paul: "Then why do banks have it?"
Bernanke: "It's tradition."

LOL....yeah. 'Nuff said.

Lima-1, out.

If you don't know your rights, you don't have any.

Physical

is getting more difficult to obtain, at least in my area.

Before when I went to yard sales, people were selling PMs, especially silver, like they were nothing. Now, people are holding on to every last plated teapot they can find.

A signature used to be here!

Now here's a fascinating post!

Thank you for this little history lesson.

"Hence, naturally enough, my symbol for Hell is something like the bureaucracy of a police state or the office of a thoroughly nasty business concern." ~~C.S. Lewis
Love won! Deliverance from Tyranny is on the way! Col. 2:13-15

I'm shocked! I have reports Too-Big-To-Fail Banks failed here.

Dear Libera_me,

I'm shocked! I have reports here that there is gambling going on in this cafe.

JP Morgan, AIG....

Best to ya.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul