Long fourth dimension precious metals analyst Ted Butler has started a drive to essay to halt toll manipulation inwards the silverish markets past times shout out for everyone to re-create in addition to glue a missive of the alphabet he wrote to 2 novel exceed executives taking over at the U.S. of A. Commodities Futures Trading Commission (CFTC).
In the letter, Mr. Butler points out the years of allowed fraud in addition to toll manipulation that has gone on inwards the futures markets of precious metals, in addition to inwards item silver, in addition to cites information from the Comex in addition to CFTC's ain websites that validate the manipulation going dorsum to a greater extent than than a decade.
So, for anyone alongside an involvement inwards higher silverish prices or who is a believer that costless markets, non controlled past times large traders gaming the system, is the correct way, in addition to hence in that location is something you lot mightiness consider doing. Now is an ideal fourth dimension to elevate these really of import issues well-nigh concentration in addition to manipulation inwards COMEX silver. The 2 officials most responsible for uncovering manipulation at the CFTC merely started inwards this capacity on Mon in addition to should live to a greater extent than opened upwards to the facts than otherwise. I tin sympathise how many mightiness experience that contacting these officials in addition to others mightiness live a waste materials of time, given the agency’s failed tape over the years inwards this regard. Still, I’m non talking well-nigh whatsoever burdensome effort, merely sending a few emails or letters to larn similar a shot answers to some really adept questions.
I’ve already written to the 2 novel officials (both past times electronic mail in addition to difficult copy) in addition to experience costless to usage what I sent. I would inquire you lot non to improvise in addition to include other issues, such every bit golden manipulation. Besides, zippo would demeanour on golden prices to a greater extent than than having the silverish manipulation terminated. The best approach is inwards beingness every bit specific in addition to factual every bit possible hence every bit to pivot the way down. They may turn down to reply in addition to 1 way of insuring maximum describe per unit of measurement area is to write to them through your elected officials. Here’s the missive of the alphabet I wrote that you lot are costless to copy. I’ll include pertinent emails address at the end. - Silver Seek
And hither is the missive of the alphabet to copy, paste, in addition to electronic mail to the addresses in addition to commissioners below.
April 10, 2017
Andrew B. Busch via Email
Chief Market Intelligence Officer
James McDonald
Director - Enforcement Division
Commodity Futures Trading Commission
1155 21st Street NW
Washington, DC 20581
Dear Sirs,
Congratulations in addition to best wishes on your appointments to telephone substitution positions at the Commission at this critical fourth dimension inwards marketplace seat history.
I’m writing concerning a affair that the Commission has considered on a number of past times occasions – allegations of a silverish toll manipulation on the Commodity Exchange, Inc. (COMEX). The argue the Commission has considered the number of a silverish toll manipulation several times inwards the past times is because the agency’s ain world information in addition to guidelines dot strongly to such a manipulation. Never receive got the information been to a greater extent than convincing than what was merely published Friday, inwards the Commission’s unloose of its weekly Commitments of Traders (COT) Report, for positions held every bit of Apr 4, 2017.
That study indicates that the concentrated cyberspace curt seat held past times the 4 largest traders inwards COMEX silverish futures hitting an all-time extreme inwards numbers of contracts of 78,021, the equivalent of 390 1 grand m oz. of silver. The concentrated cyberspace curt seat of the 8 largest traders was indicated at 104,978 contracts or the equivalent of nearly 525 1 grand m oz., or to a greater extent than than 60% of globe annual mine production. No other commodity comes around COMEX silverish futures inwards terms of a larger concentrated curt seat when compared to existent globe production. On its face, the large concentrated curt seat inwards COMEX silverish futures would seem to live an artificial toll depressant.
As you lot know, the Commission monitors in addition to publishes concentration information inwards all regulated futures markets every bit the prime number front end business defence against toll manipulation. After all, it would live nearly impossible to manipulate whatsoever marketplace seat without a concentrated position. But non alone practise COMEX silverish futures stand upwards out every bit having the largest concentrated curt seat of whatsoever commodity, inwards terms relative to existent globe production, consumption in addition to existing inventories, the concentrated curt seat inwards COMEX silverish futures is notable for other reasons.
For 1 reason, the large curt traders practise non seem to live engaged inwards whatsoever form of legitimate hedging, since in that location are no signs they correspond actual producers or hedgers of physical holdings. Separate way data, contained inwards the monthly Bank Participation Report, betoken that the largest shorts are to a greater extent than oftentimes than non domestic in addition to unusual banks essentially operating every bit speculators, inwards a pseudo-market making capacity against other speculators. Publicly-owned mining companies are required to give away whatsoever hedge action in addition to few, if whatsoever receive got disclosed whatsoever hedging inwards silver. The large curt sellers inwards COMEX silverish futures are fiscal firms, to a greater extent than oftentimes than non banks, speculating against other large speculators in addition to receive got no legitimate economical or hedging usage inwards dealing inwards COMEX silverish inwards the outset place. As I’m certain you lot know, Congress allows futures trading for the usage of encouraging legitimate hedging, non to encourage excessive speculation.
The largest COMEX silverish curt seller for the past times nine years is JPMorgan. That has been the representative e'er since it acquired the failing investment banking company Bear Stearns, the one-time largest COMEX silverish curt seller, according to Commission information in addition to its correspondence alongside lawmakers. The especial manipulative twist hither is that since 2011, JPMorgan has engaged inwards an epic accumulation of physical silverish at prices much lower than would receive got existed if the banking company had non likewise been the largest silverish curt seller on the COMEX. In the of late completed COMEX March silverish futures delivery period, JPMorgan stopped (accepted) 2689 contracts inwards its ain proprietary trading account, addition some other 739 contracts on behalf of a client(s), considerably to a greater extent than than the 1500 contracts allowed according to substitution regulations. This spell JPMorgan was the largest curt holder inwards COMEX silverish futures. It is non possible to imagine a to a greater extent than compelling motive or intent for manipulation than to larn a massive amount of whatsoever commodity at depressed prices, where the acquirer is responsible for the depressed prices.
Almost without fail, on every past times occasion where the concentrated curt seat inwards COMEX silverish futures reached extreme levels, it was alone a affair of fourth dimension earlier the toll of silverish gets rigged lower past times these large shorts to get speculative selling from traders operating on technical toll signals. In fact, COT study information betoken that JPMorgan has never taken a loss, alone profits on every silverish curt seat it has added over the past times nine years. Such results would non live possible inwards a marketplace seat that wasn’t manipulated inwards price. In essence, speculators receive got taken over the toll uncovering procedure inwards silverish because in that location are hence few existent hedgers trading on the COMEX, alone speculating banks betting against other speculative traders. Even assuming the electrical flow extreme concentrated curt seat leads withal 1 time again to a abrupt selloff inwards silver, in that location is some other number that goes to the center of regulatory concern.
In improver to the clear way information pointing to a silverish toll manipulation, the presence of such a large in addition to non-economic curt seat necessarily enhances the likelihood of disorderly marketplace seat atmospheric condition 1 time it becomes clear to plenty marketplace seat participants that unbacked concentrated curt positions on the COMEX receive got been the argue why silverish prices are hence depressed.
I receive got communicated all this to the Commission, JPMorgan in addition to the CME Group (owner-operator of the COMEX) for many years, alongside hardly whatsoever acknowledgement or rebuttal. I am hoping you lot volition consider this affair differently in addition to deed to lastly halt the manipulation. I’m certain how you lot handgrip this affair volition define your tenure. If I tin live of whatsoever farther assistance, delight practise non hesitate to telephone phone on me.
Sincerely yours,
Ted Butler
Let me closed past times telling you lot that I am really thankful for the unique chance created past times the novel senior appointments at the CFTC, along alongside the simultaneous publication of the most concentrated information inwards silverish shorting inwards history. I assure you lot that I am non asset my breath waiting for the CFTC to lastly pace upwards to the plate in addition to practise the correct thing; non subsequently thirty years of denial in addition to obfuscation. I know total good that the agency’s denials upwards through today receive got alone hardened it to keep the façade that zippo is incorrect inwards COMEX silver, despite glaring in addition to growing evidence to the contrary. Still, it would live a waste materials non convey wages of an unexpected opportunity.
Ted Butler
Apr 12, 2017
www.butlerresearch.com