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Ted Butler: "JPM Buying Back as Many Short Silver Positions as They Can"

JUL 24, 2018

Interview excerpt (full audio interview embedded below):

"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. That’s when J.P. Morgan rings the cash register and buys back all the shorts that they’ve added at lower prices than where they sold, meaning they always make a profit.

J.P. Morgan has never taken a loss in 10 years when adding short positions in silver like I just described. They’ve only made profits -- to varying degrees, but never a loss. This is the essence of the manipulation.

When is their stranglehold of paper control on the price ever going to break? The answer to that important question gives me tremendous reasons for optimism. In fact, it’s the mirror image of the pessimism that is naturally generated by these prices that do nothing but go down for no legitimately explainable reason. J.P. Morgan by virtue of its giant physical silver holdings now, has positioned itself and may be done positioning itself -- we won’t know that until after the fact -- but, the same causes that have driven prices down in a bewildering, unexplained fashion, are going to cause those prices to explode."