The Golden Truth: Anti-Trust Division of the Justice Deptartment To Look At The Silver Market Manipulation

Saturday, May 1, 2010

Anti-Trust Division of the Justice Deptartment To Look At The Silver Market Manipulation

In a stunning development, Ted Butler has shared information he received about an investigation by the Anti-Trust Division of the U.S. Department of Justice into the massive manipulation of the silver market by J.P. Morgan . This is huge and way overdue. This could well effect the market value of the SLV silver ETF, as JP Morgan is the custodian and has been suspected by many of implementing a "fractional bullion" method of silver storage at SLV.

Here is the interview with Ted Butler from http://www.kingworldnews.com/. Click on the link and then click on the "MP3" link in the lower left:

DOJ to investigate silver mkt manipulation

Obviously the ramifications of this for the upside potential for the price of silver are very significant. It will likely take some time for the investigation to happen and conclude. Silver is already substantially undervalued using kind of historical metric and the upside potential has now been turbo-charged. Got gold? Better get a lot of silver while it's still cheap and readily available.

8 comments:

JoeSaturday, 01 May, 2010
Dave,

Check this piece of smothering legislation. Any transaction over $600 generates a 1099 form.

http://www.cato-at-liberty.org/2010/04/26/costly-irs-mandate-slipped-into-health-bill/

Joe M.
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Dave in DenverSaturday, 01 May, 2010
Ya I saw that yesterday. Can you believe what's happening to our country?
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forgot where all my Physical PM is atSunday, 02 May, 2010
I have some mixed emotions on this. How many folks do we know make nice money but, err, do not report it all?

On the other hand, we are reaching the point where we are presumed guilty.

Unfortunately we cannot trust our elected leaders to do the right thing for a variety of reasons.

It probably would surprise us here if say we found out that the money made by the big financial institutions, say in shorting a commodity beyond a reasonable amount, had some tax deferral privledges. Or permanent tax exclusion potential.

You think that money cant buy the best tax planners with a little help from congress.

So while the big fish avoid taxes, our govt will go after the small guy (which is right, but the heavy hitters should pay their own way too).
too late at night to think further.
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AnonymousSunday, 02 May, 2010
I'm long 1 silver futures contract. Is this positive or negative news for my position? Thanks.
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Dave in DenverSunday, 02 May, 2010
"forgot where" - LOL - get some sleep. I agree the potential is there for the Govt to put the screws to the little guy here with gold/silver futures trading, and let the big guys keep doing what they're doing.

HOWEVER, this is not the CFTC, headed by an ex-Goldman guy - looking to investigate his corrupt frat brothers with a wink and a chuckle.

This is the Anti-Trust Division of DOJ. Ordinarily, you would expect Govt incompetence from something like this. But the Anti-Trust Division typically gets very bright, idealistic lawyers looking for a challenge besides making a lot of money.

This could be a big problem for JPM.
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Dave in DenverSunday, 02 May, 2010
Anonymous re: your silver futures postion: double down. this is huge.
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AnonymousTuesday, 04 May, 2010
I doubled down on my long silver futures contract and got my ass handed to me... was forced to liquidate at $17.85
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Dave in DenverTuesday, 04 May, 2010
Sorry to hear that. If you have the funds available, you should look to reload but use the daily RSI as your entry indicator

I stopped trading silver last year after trading it 24/5 for 5 years because it's so fucking manipulated. Gold is a lot easier to trade.
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Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.