Ted Butler: The smoking gun, Part II


11:18a ET Tuesday, March 3, 2009

Dear Friend of GATA and Gold (and Silver):

Silver market analyst Ted Butler reports today on the latest commitment-of-traders (COT) data from the U.S. Commodity Futures Trading Commission and says the concentration in the short position in silver is now the greatest concentration in any U.S. commodity market, long or short, in history.

Butler concludes: "On the day that this COT data was compiled, Feb 24, the May contract traded as high as $14.61. In the five trading days since then, the price has fallen nearly $2. There is absolutely no coincidence in this sharp selloff and the existence of the largest short concentration in history. This was the intended and actual result of the concentrated short position. The selloff was engineered for the purpose of permitting the big shorts to cover as many short positions as possible, both to eliminate the short exposure on a commodity rapidly approaching a wholesale shortage and to paint a better picture for this week's release of the March Bank Participation Report, due Friday. The rig was successful. That the silver market is being led in the manipulation by one or two U.S. banks receiving taxpayer assistance only adds insult to the real injury being sustained by a wide variety of innocent participants. If you agree, please let your elected representatives and the CFTC know your feelings."

Butler's commentary is headlined "The Smoking Gun, Part II," and you can find it at GoldSeek's companion site, SilverSeek, here:


CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

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