Turbo-Charged Collapse - Ted Butler #4759

What has been going on with precious metals prices for the past decade? Much of the price is still dictated by the large traders on the Comex. Price discovery can only take place in a free market with equal representation of both the buy and sell side. What’s actually happening is that a hand-full of paper derivatives traders control the price and control the markets. This is a case of the tail wagging the dog. A few paper traders dictate to the real metal world, what the price will be. However, these large traders are in the process of losing their stanglehold over gold. Not so much for silver. It's still being held down by the big traders. The big players went short in gold a year ago and have been stuck on the short-side ever since. These large traders who’ve never taken a loss are out $6-7 billion. This indicates that they're losing control. JP Morgan is the exception, having broke ranks with the big traders. They have managed to slip out the back and go long. They’ve accumulated an incredible amount of physical gold and silver: 25 million ounces of gold for an unrealized profit of $12 billion, and 1 billion ounces in silver for which they have a small loss.

[drksam]

big fan of Ted Butler...thanks again KL.

[larrymoser]

This was a very enlightening interview. Many thanks to Ted Butler for sharing his insight and to you Kerry for being the coolest smoothest pundit in alt economic media...

[TDUB]

The correct value of Silver in relation to Gold at a 15 to 1 in the Earth ratio is Silver over $110 per oz today .

[ericfox]

Kerry what a great call on your part...
Ted Butler is the man when it comes to truth in the Ag market

[johnschmidt]

Why doesn't JP Morgan buy more longs on silver and take delivery? It seems in their interest to finally let silver run. Doesn't make sense to suppress silver anymore. Any explanation for this Mr. Butler?

[withoutexcuse]

Somebody explain to me how these criminals can be "losing control" when they have an UNLIMITED printing press which means that they can cover all margins, absorb all losses and put out as many paper contracts as they want. I mean, if they are LIMITED then, yes, they can lose control. But with an UNLIMITED well to draw from ... I don't see it.

[yountune]

I believed Keiser's call of $50 silver back in the day and lost my shirt. He barely mentioned bitcoin at that time. In passing in fact while pushing silver. But Rogers is buying silver these days. The premium on coins is crazy. 100% on some sites.

[Breezemike]

I wish Ted had named the eight short banks.

[iancassie]

if oil, the most manipulated commodity EVER can go to minus 40 surely silver will have its DAY IN THE SUN the Z/H ARTICLE on the huge increase in VARS IS ALSO INTERESTING especially in relation to the increased METALs caused breaches by HSBC

[georgekeiser]

If "knowing a collapse has been coming for more than 10 years", is that really knowing anything useful at all? Just asking...

[paulmontgomery]

why does nobody ever mention the military or the arms manufacturers the reason for suppressing silver? i have always thought they are the biggest force on the price.

[applianceanalysis]

Well the real money, not the average Joe, was buying gold. It will rise, but the people with the money will make theirs first then the little guy gets the silver crumbs.

[RedemptionReady]

What drives SLV/GLD is inflation. Always has been. This is why those items always buy relative to currency the objects of desire. But all depressions start with price deflation as everyone sells into a declining market to find a base line. Then all the printed money begins to flood an equalized market and that's when you have price inflation of commodities. Both those metals used to be used for financial transactions but not today so there looked at as a store of value therefor there is no real demand for them on an everyday basis. So always look at them as a commodity. Oil is one as well but it's used everyday as constructive capital expenditure. While both metals have valid use in capital construction of merchandise, with everyone pulling back on spending and opening up the selling taps it's a year or two off once we hit a baseline and that hasn't happened yet.

[chadsiewert]

Ted Butler looks the same as he did 15 years ago.

[lotsofthisandthat]

Butler has been spouting this silver jive for more than 15 yrs and here silver is at $14’s. Don’t give me that jive, Turkey!