Despite having the best investment fundamentals of any commodity today, and arguably the best fundamentals for any commodity in history, silver hasn't been so under-produced since it was discovered in the New World nearly 600 years ago, and it has never been so under-owned.
As we will see in this installment, it is the relentless suppression of the price of silver that is at the root of the metal being both under-produced and under-owned.
Any discussion of price-manipulation in the silver market must begin with the relentless sleuthing of noted silver authority Ted Butler. It was his shocking discoveries in the silver market that originally attracted the attention of small numbers of far-seeing contrarians and commentators such as myself.Among Butler's revelations were the outrageous/absurd short positions in the silver market of a handful of bullion banks. Five of these banks hold approximately 80% of the global short position (year after year) in the world's largest silver market (the Comex) -- another smoking gun. The magnitude of these short holdings is grossly disproportionate to the size of short positions in any other commodity market -- yet another smoking gun. Even more outrageous, the largest of these short positions (held by JPMorgan (JPM)) is always roughly twice as large as the size of the Hunt brothers' long position in the silver market when they were convicted of silver manipulation. This is beyond a smoking gun, it's a smoking cannon. The banksters tell us they are "hedging" for anonymous clients with these short positions, and the blind/deaf/dumb CFTC parrots that drivel. This excuse is nonsensical on many levels. Hedging is an activity done to protect an entity from a sudden, severe price-reversal (lower) in the market. However, as noted in Part I, relentless price suppression in the silver market has already taken the price of silver to a 600-year low (in real dollars). Precisely what sort of "sudden, severe reversal" were these banksters hedging against with the price of silver already at a 600-year low?
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