Precious Metals Manipulation Isn’t Hidden, It’s Right In Front Of Your Eyes

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  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).

Global Conventional Investment Assets Updated 2013 Estimate

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:

EIA Downgrades California Monterey Shale by 96%

By Nicholas Cunningham  of

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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25 Comments on "Precious Metals Manipulation Isn’t Hidden, It’s Right In Front Of Your Eyes"

  1. Adolf Hitler | May 30, 2014 at 6:23 pm |

    Steve, when do you think the oil production in the Middle East will fall off a cliff? When will Saudi Arabia dry up? Thanks.

    • DaleFromCalgary | May 30, 2014 at 9:06 pm |

      That is a misunderstanding of Peak Oil. No oil producer like Saudi Arabia or the USA will ever run out of oil. Rather, the remaining oil becomes more and more difficult to recover and only if the price is high enough.

      Conventional oil production in my home province of Alberta peaked in 1976 and is today one-third of what it was. No one made a profit from the Athabasca Tar Sands until the price rose high enough circa 2007. Fracking has been around since the 1950s but never paid until oil went above $100. Horizontal drilling is incredibly expensive.

      The oil will never run out but there will be more and more fields that companies will stop pumping because it doesn’t pay. The oil becomes what is known as a stranded field. I have had wells shut in because it costs more to service them and pay pipeline tolls than what the gross revenue is. The oil is still there but just too expensive to pump.

      • Outlookingin | May 30, 2014 at 9:28 pm |

        So Dale, in essence what you are saying, is that in future only the very rich will be able to afford oil?

        • That’s exactly right. Not only will the price of gasoline be extremely high, but one must factor in the cost of security for the ride.

          • Is the questions Steve’s website is about – EROEI – when the energy necessary to get oil to the consumer will exceed the energy hidden in the oil pumped out of the well, the era of oil will end and oil no longer will be net energy provider. Then it will be used as rare raw material or expensive energy source for application having no other choice to use.
            It does not matter what is the price of oil as it is expressed in “wodden dollars”, the only thing that matters is EROEI.

    • Based on inflation and ZIRP, what currently is an acceptable price for a barrel of oil where oil companies are making a profit, $125?

  2. Outlookingin | May 30, 2014 at 9:26 pm |

    The American tax payer will be on the hook for any crash in derivatives.

    On February 10, 2010 the Federal Reserve Board approved an application made by the Depository Trust and Clearing Corporation, (which is responsible for ‘clearing’ any and all derivative contracts), to form a subsidiary of the Federal Reserve System, that would be the responsible authority for ‘clearing’ derivatives.

    This new Federal Reserve System entity, The Warehouse Trust Company, would operate through the Trade Information Warehouse, which is an arm of the Depository Trust and Clearing Corporation.

    Round and round she goes! And where she stops? We will all know soon enough when the first derivative blow up occurs. Not a question of if, but of when.

    The old story of privatizing profits and tangible assets, while socializing all debts and losses.

    • ” The American tax payer will be on the hook for any crash in derivatives”

      There are estimates out there that these derivatives could be a $700,000,000,000,000 blowout or even more. How’s Joe Sixpack going to pay for that?

  3. lakemike49 | May 30, 2014 at 9:47 pm |

    steve thanks for the info you provide, more of us need to pay attention.


  4. “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.”

    Your followup remarks to that statement are an excellent precis of the EROI theory you espouse.

    However… it appears that there can NEVER BE TOO MUCH reinforcement of the DISTINCTION between that line of thinking…. and the “fuzzy” conspiracies of the ‘MAINSTREAM ALTERNATIVE MEDIA’ sites which tout the thinking that merely by waiting for a couple of big bullion banks to drop dead from the excessive manipulation of ALL investment possibilities…. at the behest of the so-called ‘FED’ and associated Treasury minions of the moneypower….

    can those who sit upon their gold n silver eggs… in a Sam Beckett style “Waiting for GOFO” theatre of the absurd… hope the hatch their expected transformation into the new McDucks of the C21st!

    Metals manipulation…. whilst systematic… and as you say – in broad daylight- is of the petty variety of Mr Plunketts’ kind –

    “The Authority has concluded that Mr Plunkett lacks the honesty and integrity required to perform any function in relation to any regulated activities carried on by any authorised or exempt persons, or exempt professional firm.” /// FINANCIAL CONDUCT AUTHORITY -Final Notice ///

    The banks themselves are not … as CPMs Commentary says… guilty of ‘coordinated manipu-
    lation across the decades’… they are provably guilty only of attempting to defraud their own clients as a corporate policy. Were it otherwise, of course… they would never hire individuals like Daniel… their HR departments are surely quite professional in executing their departmental mandates.

    Indeed Mr Plunketts example is an excellent representation of the decline and fall of the west … adopted child of the recently decease 20th Lord Dunsany…. Eddie Plunkett… who styled himself an artist” and gentleman, but was forced, like his father before him… to marry into Brazilian money in order to keep the County Meath castle from collapsin!!!… Daniel comes to ‘the City’ with the skewed values and eye for the main chance necessary for the fallen nobility of the English and Anglo-Irish caste to ‘get ahead’ in this cruel world.

    Manipulation on the wider scale… theories of which are so beloved of the ‘cottage industry’ which love to beguile investors into believing that COLLAPSE of the corrupt financial system will lead to a personal KLONDIKE for the lucky metals holder of the west …

    are NOT BUT deliberate counterpro-intel designed to cover up the obvious fact that it is the role of these bullion banks now to simply execute orders originating from the PBOC… in an ongoing process of evacuating all of the remaining wealth of the west to the east. A process which is in no way friendly to the hopes of those western holders! But who cares about nuanced views of reality? STACK DA SMACK JACK!

  5. in the physical asset space, the ratio is mind-boggling too!

    a typical 100 square meters apartment sells for 1 ton of silver in shanghai!

    think about this!

    how many such apts do we have in shanghai, or in all of the largest cities in the world?! 50-100 million apts?!

    how many tons of silver bullion do we have in this world?! 50000-100000 tons!

    1 ounce of silver will be equal to 1 square meter of the apt in the end.

  6. Never read about this:
    Fed is laundering ‘air’- money in ‘real’ – money
    by buying all those assets and bonds. Same for all the riches and companies buying bonds back.
    Because who are the best informed when the markets crash? Those who designed the play and know the rules the best. After it is not a problem to devalue the US$ and be again competitor on worldscale. How longer this play is going on the better will be the reward. The value of the derivatives wiil be much less.

  7. Funny – in an age when no one believes gubamint data – this EIA report pops from the Commie admin looking to pump-up green energy subsidies… Cheap oil gets in the way of that agenda. So we are to believe this but not all the BLS crap?

    Also remember the EIA was way off on their Bakken and Eagle Ford estimates. And they don’t count the Green River formation which has locked down trillions of barrels for decades…or the North slope drilling – which is needed to keep the Alaskan pipeline viable… (Yeah, let’s not drill and let a multibillion asset like the Alaskan pipe lien become worthless.)

    Yeah I believe the gubamint.

  8. Steve,

    Why would anyone take seriously anything coming from “Sister Christian”? He is a total arsehole and a founding member of the manipulation club.

    The fact is that what we call manipulation is known to the CB’s and their BB/Cartel Agents as “Monetary Policy”. And they are above the law.

    So long as the Paper tail continues to wag the Physical dog, nothing will change. And Sister Christian and his ilk will continue to spin.

  9. when will the paid reports be available for purchase?

    • Stu,

      Please contact me via my contact page with an email address that I can reply to.



  10. Steve,

    It is also very obvious that the CB’s are no longer trying to hide their manipulation, isn’t it? Those dumps of HUGE numbers of Naked Short Contracts at 3-8AM ET within minutes are shameless and obviously not made by regular traders with a profit motive but are clearly made with the sole objective of capping PM prices whatever the cost.

    Already, the COMEX has become a circle jerk between the BB’s, with the cyclical losses absorbed by the Fed printing presses because no REAL Trader(s) would engage in such a so obviously rigged market?

    .It seems obvious to me that “THEY” want all to know that they will NOT allow PM’s to appreciate. So “Don’t fight The Fed”. Don’t ever even THINK about trying to preserve your wealth and try profit from PM’s as an alternative to wonderful Fiat!!

  11. RSR,

    One question : do you believe that revolutionnary electromagnetic technologies could happen into the next couple of decades ?
    Indeed, I have read some things about potential huge innovation which could reduce the energy price by 95%. Do you believe it could exist at this stage on a prototype or early stage development ?

    Thank you.


  12. Yes RD, I’m sure someone will pull a Mr. Fusion out of their *ss any day now.

    Just like fusion power that is ‘just around the corner!’ since the 70s…

    Personally, I see nothing on the horizon in energy that is a game changer…other than using less. JerseyJoe has good reason to not believe gubamint figures, heck most of us here don’t, but that does not mean that we are sitting on oceans of oil just waiting to be sucked up with a straw. That said, I would also(sadly) think that we need to let those cornucopians simply ‘drill baby drill!’, otherwise they will likely NEVER believe that its not a liberal treehugger conspiracy to keep them from driving what they want, when they want, as much as they want.

    Steve’s original premise is probably the most correct one: PMs are a concentrated form of energy that is getting increasingly scarce, both as a derivative of energy, and with decreasing ore grades. Grab some now…

    • “we need to let those cornucopians simply ‘drill baby drill!’, otherwise they will likely NEVER believe that its not a liberal treehugger conspiracy”

      LOL — too true

  13. hi, can anyone say something about this … … what does it means for the future price of silver or supply?

    • rade,

      I spoke with the U.S. Mint in the past, and the reason for the allocation was to build up some inventory. Now that they have built up some inventory, they are now able to sell more to their authorized dealers. Furthermore, the U.S. Mint has been working on increasing their production numbers, so now they have more to sell.


      • thanks for the reply Steve,
        from what I understand, now that there are no more limitations on the order limit, it all depends on the demand of the purchasers, so lets wait and see if they will be able to keep up with the demand… if not we all know where it is going.
        However in my opinion on short term it may drop the price of silver belov 15$ … if not lover…
        Ps: God knows what the Bilderberg group came up with at the meeting this weekend…. lets wait and see.

  14. you going to post an article about silver eagles no longer being rationed?


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