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Silver Wheaton Corp. Message Board

  • polcatron polcatron Nov 16, 2010 8:38 PM Flag

    CME's Criminally-Timed Silver Margin Increase-They Pulled Out Every Dirty Trick

    Here's what silver analyst Ted Butler had to say about it in his commentary to clients on Saturday... "What's more of interest is what occurred in the volatile sell-off since the cut-off. I'm convinced that since [last] Tuesday's cut-off for the report, we have experienced a significant reduction in the commercial short position, particularly in the big 4 and 8 concentrated net short categories. In fact, this short-covering is why we had such a vicious sell-off on Friday."

    Ted went on to add the following about last week's price action... "The problem for the big shorts was that not only were they experiencing financial stress due to the rising price, they were unable to reduce their short positions, thereby leaving the source of their problem intact. That was a circumstance that threatened to result in financial ruin if permitted to continue. Faced with that... and the growing awareness by many of the predicament the big shorts were in, they resorted to their only alternative to that ruin--create a large and dramatic sell-off. That was what we began to see [last] Tuesday, with the CME's criminally-timed silver margin increase and collusive vicious sell-off on Friday, under the cover of general commodity weakness."

    "Make no mistake--the sell-off in silver did not occur because of any real supply/demand factors, it was strictly a function of 'do or die' for the big shorts. They pulled out every dirty trick in their manipulative bag to get this done, because it had to be done. It was either that, or financial ruin. As painful as these intentional manipulative sell-offs may be, especially to late-entering margined longs, they do improve the market structure, which wasn't that negative to begin with. Now it's better as a result of the intentional sell-off and flush-out."

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • SPANman, never ashamed to make a fool of himself, defending JPM. The dumbest silver investor I ever saw.

    • If you say so. You sound like you have a lot of experience operating at their trading desks. It's not easy to raise your average short price while at the same time driving down the price of silver. I'd love to get some insights into your super secret trading techniques if you wouldn't be violating national security.

    • Sounds as though the CME wants to become part of the RICO lawsuits against JPM.

    • Personally I'm stll looking for the second star to the right..... ;)

    • " ... As painful as these intentional manipulative sell-offs may be, especially to late-entering margined longs, they do improve the market structure, which wasn't that negative to begin with. Now it's better as a result of the intentional sell-off and flush-out."

      Sounds like Ted is saying: What doesn't kill you, makes you stronger!

      Anyway, thanks for sharing the article Polcatron!

    • Llvalue-I'll accept that explanation, but I (almost always) generally do not subscribe to conspiracy theories.
      Yes, the facts are the facts.
      They are short.
      They will either have to cover or pray someday their position becomes profitable.
      They too have the power of the printing press. Remember, they ain't using that money to lend to anyone......except themselves.

      • 1 Reply to cmegladon
      • <<When USA+EU+Japan are in a situation where they cannot pay back their massive debts default is inevitable. Now the issue is not supporting the paper currency system by suppressing PM prices, but closing out the accumulated short positions so as not to be destroyed as very high or hyper inflation is created to stealth default on said debts. The central banks are now net buyers of gold, and they and JPM and crew know its time to transition to the new global monetary system that will come about after the default>>

        Ltvalue: I do subscribe to conspiracy theories (some of them anyway.)

        I find your posts intelligent and insightful. Please continue posting with your views. THEY ARE MUCH WELCOMED BY THE LIKES OF ME!

        Fwiw, I took the silver sell-off to increase my shares of HL and SLW. I was asked to by silver bars and coins, but I don't generally buy bullion - they take up storage space, and generally just sit there - very illiquid. WHAT i CAN BUY PROBABLY WILL NOT HURT JPM MUCH.

    • Perhaps, or so the story goes. No doubt Kennedy was one of the great operators of his time and alot of the early policy and legal frameworks were effective in shutting down some of the worst excesses.

      However, I'm more inclined to think that putting Kennedy in charge of the brand new SEC was an indication of just how ineffective and weak it would be over its lifetime. The SEC is right up there with the EPA as a powerful defender of the public interest who have deliberately closed their eyes and let the underlying industries run rampant most of the time.

    • "2) The documented and publicly announced fact by CFTC Commissioner Bart Chilton that the silver markets are being manipulated and the real world knowledge that large scale manipulation cannot occur without at least tacit consent of the exchanges they occur on."

      Wow...it's not a fact. Even Chilton would admit it's a charge to be investigated, not a fact. Let's see what comes of it...and the myriad of other charges about manipulation on a grand scale in the silver markets. I'll bet you 5 bucks nothing comes of it, or at least not much because it's a good deal more complicated than such simpletons as Ted Butler portray it for the gullible amongst us.

      "Its all good. We will just have to agree to disagree."

      Thanks. That's a refreshing and unusual point of view. I'm used to being physically threatened with a thrashing in cyber-space. We are on the same side of the trade, evidently, and see the future for gold and silver in similiar terms, evidently. I just don't believe that JPM, and it's auditors, are engaged in a giant conspiracy to suppress the price of silver with the aid, I guess, of the CME. I also stopped believing in the tooth fairy a long time ago as an aside.

    • Yet again you fail to address the two issues at hand:

      1) The TIMING and AMOUNT of the first margin increase on Nov 9th, followed by the margin INCREASE on Nov 15th, after silver had FALLEN $4 during the last week.

      2) The documented and publicly announced fact by CFTC Commissioner Bart Chilton that the silver markets are being manipulated and the real world knowledge that large scale manipulation cannot occur without at least tacit consent of the exchanges they occur on.

      Its all good. We will just have to agree to disagree.

    • LT-Please try to explain this.
      Assuming the JPMs of the world were and are short.
      At what price were they short?
      I am willing to bet they are short at prices MUCH lower than $24, $23, $22 on silver and much lower than $1350 1300 and $1250 on Gold.
      But just address silver.
      Thius this "bear raid" couldn't have helped them much.
      They have to cover from much MUCH lower prices.
      The manipulation you speak of doesn't add up to a profit for them.
      Where am I missing out?
      To me, IF they are truly short, they are going to just stay short or take a huge loss.
      "The quarterback is toast".

      • 3 Replies to cmegladon
      • Every bear raid they initiate they average their srort price higher. They are selling and buying all the way down.

      • You are correct. JPM and other major banks have been supporting suppression of PM prices as the agents for the US and european central banks for decades. Their net price on their silver short positions is WAY lower than $25. The objective here is not to make a profit on their shorts, but to cap their losses and ultimately close out these positions.

        What has changed is that we are moving into the endgame phase of this version of the global monetary system. When USA+EU+Japan are in a situation where they cannot pay back their massive debts default is inevitable. Now the issue is not supporting the paper currency system by suppressing PM prices, but closing out the accumulated short positions so as not to be destroyed as very high or hyper inflation is created to stealth default on said debts. The central banks are now net buyers of gold, and they and JPM and crew know its time to transition to the new global monetary system that will come about after the default.

        Watch as the trend continues and the net short position of the major players in silver reduce their position over the coming year....

      • JPM & the other banksters are not only shorting silver for a profit, They are also agents working for the Fed trying to suppress PMs to keep people in dollars. So if they make money or not the Fed will back them, like the (PPT)

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