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Ted Butler: Don't stop complaining about shorting of SLV

Section: Daily Dispatches

4:45p ET Monday, December 19, 2011

Dear Friend of GATA and Gold:

Silver market analyst Ted Butler, who was complaining about manipulation of the silver market before GATA was formed to complain about manipulation of the gold market, today provides an update about the short position in the major silver exchange-traded fund SLV, which creates a vast but imaginary supply of silver and thereby suppresses the price, a short position that shouldn't be allowed, a short position overwhelmingly concentrated in the hands of JPMorganChase.

Butler concludes: "Concentration on the Comex and the amount of short selling in SLV is stark, verifiable, and visible to all. Both will tell you all you need to know about the unusual behavior of the price of silver when analyzed with a common sense filter. But the greatest lesson of all is what all this short selling should tell you about the future behavior of silver prices.

"More than anything else, this need by a few commercial crooks to resort to excessive and manipulative short selling should tell you about the real condition of the physical silver market. It is because the silver market is so tight and that large quantities of real silver are unavailable that the commercial crooks have to sell short so blatantly. If you can't sell the real thing, you sell the next best substitute. Without the Comex and SLV short selling, the price of silver would be dramatically higher. Since there has never been a legitimate explanation for the concentration on the Comex or the excessive short selling in SLV, I am convinced both forms of manipulation and fraud are coming to an end, as the scrutiny increases. You should not let up in complaining about these crooked shorting mechanisms or in acquiring the cheap silver they have created."

Butler's commentary is headlined "SLV Short Position Update" and it's posted at GoldSeek's companion site, SilverSeek, here:

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


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