You are here

Ted Butler: Why silver went down when it should have gone up

Section: Daily Dispatches

By Ted Butler
Butler Research, Jupiter, Florida

Two weeks ago it looked to me like silver was about to take off, following months of sharp price declines, yet we experienced the worst selloff in a couple of years.

Most puzzling was the cause of the sharp price declines. It didn’t appear to reside in Comex futures positioning. It was something else entirely. I've been (quite literally) agonizing over what was behind this completely unexpected selloff to no avail, almost to the point of questioning my sanity, until a simple question from Jim Cook, president of Investment Rarities, appeared to provide the answer.

Jim asked if the highly-counterintuitive selloff I was moaning about could be related to the short position in the exchange-traded fund SLV, and my head nearly exploded because it was so obvious that I couldn't conceive why I hadn't thought of it.  

Talk about being too close to the trees to see the forest. I had been so pre-occupied with the excessive short position in SLV that I failed to make the most obvious connection.

Simply put, the most plausible explanation for the selloff in silver this week was the short position in SLV that I have been writing about. 

The excessive short position in SLV is the explanations for the truly putrid price performance in silver over the past two weeks.

What makes the short position in SLV such a big deal is that the most plausible reason for its existence is a wholesale shortage in silver of thousand-ounce bars. ...

... For the remainder of the analysis:


First Majestic Produces Silver and Gold in the United States and Mexico

First Majestic is a publicly traded mining company focused on silver and gold production in Mexico and the United States. The company owns and operates the San Dimas silver and gold mine, the Jerritt Canyon gold mine, the Santa Elena silver and gold mine, and the La Encantada silver mine.

In 2022 these mines are projected to produce between 32.6 and 34.6 million ounces of silver equivalent with an all-in sustaining cost of $17.68 to $18.42 per payable silver-equivalent ounce.

For more information about the company, visit:

The company offers a portion of its silver production for sale to the public. Bars, ingots, coins, and medallions are available for purchase online at First Majestic's bullion store at some of the lowest possible premiums:

Join GATA here:

New Orleans Investment Conference
Wednesday-Saturday, October 12-15, 2022
Hilton New Orleans Riverside Hotel
New Orleans, Louisiana

* * *

Toast to a free gold market
with great GATA-label wine

Wine carrying the label of the Gold Anti-Trust Action Committee, cases of which were awarded to three lucky donors in GATA's recent fundraising campaign, are now available for purchase by the case from Fay J Winery LLC in Texarkana, Texas. Each case has 12 bottles and the cost is $240, which includes shipping via Federal Express.

Here's what the bottles look like:

Buyers can compose their case by choosing as many as four varietals from the list here:

GATA will receive a commission on each case of GATA-label wine sold. So if you like wine and buy it anyway, why not buy it in a way that supports our work to achieve free and transparent markets in the monetary metals?

To order a case of GATA-label wine, please e-mail Fay J Winery at

* * *

Support GATA by purchasing
Stuart Englert's "Rigged"

"Rigged" is a concise explanation of government's currency market rigging policy and extensively credits GATA's work exposing it. Ten percent of sales proceeds are contributed to GATA. Buy a copy for $14.99 through Amazon --

-- or for an additional $3 and a penny buy an autographed copy from Englert himself by contacting him at

* * *

Help keep GATA going:

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

To contribute to GATA, please visit: