The Who, How, and Why Behind Silver Price Manipulation...Butler

[Serpo]

http://moneymorning.com/2012/04/06/the-who-how-and-why-behind-silver-price-manipulation/

[Serpo]

http://www.tfmetalsreport.com/podcast/3621/tfmr-podcast-16-special-announcement-andrew-maguire

Andrew Maguire starting a trading platform for the little people to take the fight to the cartel

[gunDriller]

http://moneymorning.com/2012/04/06/the-who-how-and-why-behind-silver-price-manipulation/

f'ing A ! great & clear explanation by Ted Butler. Thanks Serpo !!


"Together, the eight largest commercial silver shorts on the COMEX generally account for 50% to 60% of the entire net COMEX silver market, with JPMorgan alone holding around 25% or more of the entire market. I would hold that those percentages of concentration and control constitute manipulation, in and of themselves. By the way, there is no comparable concentration on the long side; only the short side of silver.

What exactly are the dominant players doing to manipulate the price?

The current exact mechanism they use to suddenly rig the price lower is High Frequency Trading (HFT). This is the placing of sell orders in great quantities by computer programs that suddenly appear as legitimate orders, but are really mostly "spoofs," or orders entered and canceled immediately (in the fractions of a second). When the sell orders first appear, they spook others into selling as they give the appearance of great selling about to hit the market. Instead, it is all a bluff, intended only to scare others into selling, as the vast majority of these original sell orders are never executed, nor were they ever intended to be executed. They were designed for one purpose only - to scare others into selling.

Through HFT, the commercials are able to push prices suddenly lower on very little actual volume. But once prices are put lower, the outside selling (from those who are frightened by the drop in prices) hits the market. It is that outside selling from technical traders that the commercials then buy. In a nutshell that's the HFT scam in silver. It is important to grasp the fact that the actual selling (and commercial buying) takes place AFTER the price drops. Most people think great selling is what causes the price to decline, but that's not true. The great selling only comes in after the price has been put lower, which is the purpose behind HFT in silver."


"I've read more suspicious activity just recently took place, on February 29th, in the silver futures market. My understanding is that large commercial traders, using high-frequency trading, manage to influence the price to their advantage. Can you explain what's really going on?

You've described it perfectly. The key ingredient, which many people miss, is that the large commercial traders don't sell heavily on such big down days. They just pretend to sell, by rigging prices sharply lower in order to scare and induce others into selling, in order for the commercials to buy. Everyone thinks the commercials are selling on these big down days, but in reality they are buying every contract they can trick others into selling. That's at the heart of this scam.

The proof of this is in government data, specifically the Commitment of Traders Report (COT), published by the CFTC weekly. These reports show that on every big down move, the commercials are always the big net buyers. This provides the reason and rationale for the sell-offs, namely, they are pre-planned events intended to allow the commercials the opportunity of buying whatever they can trick others into selling. If there's another reason that fits the documented facts, I haven't heard it."


f'ing banksters. not unlike the Rothschild's manipulating English markets after the Battle of Waterloo, 197 years ago.


URL for Cot from CFTC -
all commodities -
http://www.cftc.gov/marketreports/commitmentsoftraders/index.htm

PM's long format -
http://www.cftc.gov/dea/options/other_lof.htm

[Twisted Titan]

I have the ultimate respect for Butler as I owe a debt that can never be repaid.

Much of what I learned was gleemed for reading his archives (when they were free).

My only gripe with TB other than his alter ego Izzy. is that Butler believes that commitees and regulations will bring this manipulation to a end.

Its a fools errands yet TB continues to persue.


Nothing will stop this other than the continued accumlation of physical silver in strong hands