Over the last three reporting weeks, the total commercial net short position in COMEX silver has declined by 21,000 contracts, or the equivalent of 105 million oz. Let's put that into perspective. During that time, the world mined less than 45 million oz, recycled an additional 15 million oz and consumed that 60 million oz of total silver production. Investors also added 15 million oz to holdings (SLV and COMEX alone) over that same time period...and the price dropped by $4...or 12%. How in the world could the commercials on the COMEX buy 105 million paper oz on a 12% decline in price with the background I just described in a market that wasn’t manipulated? I’m not kidding – if anyone has a legitimate explanation, please drop me a line. - Silver analyst Ted Butler...02 March 2013
Ted Butler has been scratching his head for three years now trying to figure out the PM sector and urging goldbugs to hold the line until the manipulation ceases. For three years now he (and you Pio) have been dead wrong.