There is no need in trying to prove precious metals manipulation, because it’s out in the open… right in front of your eyes. However, this doesn’t stop the silly games being played by some of the well-known analysts in the precious metal community.
CPM Group came out with a market commentary on May 27th titled “The Real Lesson Of The Barclay’s Fine.” Basically, the commentary stated that a trader by the name of Daniel Plunkett was guilty of manipulating the market, not Barclays. Barclays was just his employer and was as all financial institutions… SQUEAKY CLEAN.
The author of this piece then associates this sort of manipulative activity with silver analyst Ted Butler who worked for Drexel as a broker. Here was the passage about Mr. Butler:
In the middle of the 1980s a Drexel Burnham broker in
southern Florida named Ted Butler manipulated the frozen
and concentrated orange juice market, creating an
unregistered pool of his clients money that he traded on a
coordinated basis to control orange juice prices. (This
was prior to the movie Trading Places.) The CFTC spotted
the strange trades, investigated, and came after both
the broker and Drexel. Drexel paid a fine for nonsupervision
and let Butler go. Trying for leniency with
the CFTC, Butler offered to show the CFTC on-going
misfeasance in the silver market by Drexel. The CFTC
investigated, and found two matched trades which Drexel
had undertaken with another dealer in order to allow the
other dealer to square its silver books at the end of the
trading day, so that it was completely hedged overnight.
Drexel paid a fine for those two trades. Permanently
banned from the futures industry as a result of his orange
juice caper, Butler became the voice crying out against
silver market manipulation, first by Drexel, then Merrill,
and later JP Morgan over the past 26 years or so. He is
the source of the thought that banks have massive uncovered
short positions. Interestingly, the fact that dealers
used match trades back then to square their books at the
end of each day points to the fact that banks run hedged
Now, we don’t know the name of the author of this CPM Group commentary because it wasn’t signed, but we can certainly guess that it would never come from its managing partner, Jeff Christian. Mr. Christian would never stoop this low.
Ted Butler responded to these allegations to his subscribers. I found out about this from Turd at TFmetalsReport.com. Ted replied by saying, “The only thing they got right is that I worked for Drexel at the time of the incident, but everything else was untrue.”
It was due to reading many of Ted Butler’s articles back in 2001-2002 that I started buying silver. I remember buying my first ounce of silver at $4.52. Even though the price of silver is now below $19, I don’t see a better physical asset to invest my fiat currency in… besides gold.
The Manipulation Is Right In Front Of Your Eyes
Even though (as I believe) the major banks and financial institutions are rigging the price of gold and silver on a day-to-day basis in the markets, the real manipulation is taking place in broad daylight.
As the United States moved away from a manufacturing-physical economy, it transitioned to a service-consumption-financial market. The only way this new economy could work is if the United States could LEECH off of the rest of the productive world economies…. and leech it did.
Furthermore, to make this LEECH & SPEND economy sustainable, the banks manufactured financial products called derivatives. Instead of the public investing in physical assets and high quality stocks and bonds, in came the massive DERIVATIVES MARKETS.
It is the siphoning of fiat currency away from high quality physical assets, stocks and bonds and into the huge derivatives markets that creates a great deal of demand for one and a lot less of the other — such as gold and silver.
According to the BIS, there were $710 trillion of notional value derivatives worldwide as of December 2013. Furthermore, global conventional assets under management were forecasted to reach $94.1 trillion in 2013 (TheUKCity Fund Management Report Sept. 2013).
The BIG PROBLEM with $710 trillion in derivatives and $94.1 trillion in conventional assets worldwide is that they need a growing energy supply to continue functioning. Without a growing energy supply, the global economy shrinks which would destroy the value of most of these supposed assets.
This indeed is the manipulation. The top Banks and Financial institutions designed a system to siphon the public’s wealth away from physical assets or high quality stocks-bonds and into a highly leveraged derivatives paper market that has no future.
Unfortunately, the world has been in a plateau of conventional oil production since 2005. Even though the United States brought on a good bit of shale oil over the past several years, it’s not something to count on for a long period of time. The California Monterey Shale was going to save the U.S. (for a while) as it contained nearly two-thirds of the country’s total recoverable shale oil reserves.
Then this JEWEL was released a few days ago:
By Nicholas Cunningham of Oilprice.com
The great hype surrounding the advent of a shale gas bonanza in California may turn out to be just that: hype. The U.S. Energy Information Administration (EIA) – the statistical arm of the Department of Energy – has downgraded its estimate of the total amount of recoverable oil in the Monterey Shale by a whopping 96 percent. Its previous estimate pegged the recoverable resource in California’s shale formation at 13.7 billion barrels but it now only thinks that there are 600 million barrels available.
Isn’t that amazing, the U.S. lost 13 billion barrels of oil… evaporated out of thin air. Now, this wasn’t a shock to me as I read David Hughes presentation on the Monterey shale earlier this year. I knew the estimates were way off.
This is big news as the U.S. lost two-thirds of its supposed recoverable Shale Oil. I believe the world will face peak oil much sooner than later, thus a large percentage of the value in Derivatives and Paper-Digital Assets will evaporate just like the Monterey Shale Oil reserves.
Again, it is the siphoning of the majority of the worlds fiat currency-funds into the Derivative-Paper Market that is guilty of manipulating the values of gold and silver. If a fraction of these funds moved into physical assets such as gold and silver, their values would rise to unimaginable levels.
For some strange reason, a lot of the precious metals investors still don’t see it. Why? Because they don’t understand the ENERGY SITUATION… which is one of my biggest frustrations.
If the public understood that Peak Oil is here and that the value of the majority of paper assets are derived from a growing energy supply, then they would be exiting paper and buying physical. IT’S THAT SIMPLE.
So… CPM Group is wasting its time trying to slander and discredit analysts such as Ted Butler of precious metal market manipulation, when in fact the ENTIRE MARKET IS RIGGED from top to bottom keeping the public from investing in real high quality physical assets.
This is the manipulation taking place right in front of our eyes.
Lastly, those who read my work and continue to send me emails asking “Why is the price of Silver or Gold so low if the fundamentals are so strong?”…. PLEASE WAKE UP and understand the ENERGY CONNECTION fer pete sakes.
The world will be forced to move into Gold and Silver one way or another. My advice is… you better get some before it’s too late.
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