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  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.


  1. Dave,

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

    Joe M.

  2. Ya I saw that yesterday. Can you believe what's happening to our country?

  3. 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.

  4. I'm long 1 silver futures contract. Is this positive or negative news for my position? Thanks.

  5. "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.

  6. Anonymous re: your silver futures postion: double down. this is huge.

  7. I doubled down on my long silver futures contract and got my ass handed to me... was forced to liquidate at $17.85

  8. 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.