Precious metals analyst Ted Butler returns to the podcast this week to discuss the long-suffering silver price.
Will the beatings continue? Or is there finally reason to believe that, after seven painful years of languishing, silver may finally see a brighter future?
Butler predicts a turning point is nigh. And ironically, he thinks silver's savior will be the same culprit responsible for keeping the price suppressed for all these years:
Every time we’ve had a rally in the last 10 years, ever since J.P. Morgan took over the investment bank Bear Stearns, J.P. Morgan has added aggressively to its paper short division on the COMEX as speculators, technical fund,s and what-have-you come in to chase rallies higher. J.P. Morgan has always been the seller of last resort, and they sell whatever is required to satisfy all buying. And, ultimately, after that buying is satisfied, the prices roll over and come back down. This is the "wash, rinse, repeat" cycle that many people have become aware of. J.P. Morgan adding short positions has stopped every rally in silver — and gold, for that matter — over the last 10 years.
J.P. Morgan never sells on the way down. They only sell and add short positions on the way up. So, the manipulation in essence takes place on the rally. And, when J.P. Morgan adds short positions, once they’re done selling and the buyers are done buying, the price stops going up and people turn to sell.
by richcabot