How Silver Miners Should Help Solve Silver Price Manipulation
Theodore Butler | May 28, 2015 | Category: Physical Market
Let me explain how the price manipulation is becoming more obvious and then what mining companies can do about it.
Before I do this, please know that I am deliberately intending to make what must be considered a fairly complicated circumstance to be as simple and specific as possible and will leave out all manner of allegations of corruption by those responsible for the manipulation or the regulators or what many believe to be the hidden motives behind the manipulation. That doesn’t mean that I don’t have such strong sentiments, it just means I am putting those thoughts aside for the purpose of keeping things as unemotional and simple as possible.
As I indicated on Saturday, there can be no clearer proof of manipulation in COMEX silver and gold than was documented in the Commitments of Traders Report (COT) as of the close of business May 19, 2015. In just one reporting week, more managed money contracts were bought and more commercial contracts were sold in COMEX silver and gold futures than ever in the more than 30 year history of the COT report.
In COMEX silver, there was net commercial selling of nearly 24,400 contracts which is the equivalent of 122 million ounces and managed money net buying of more than 28,200 contracts, which is the equivalent of 141 million ounces. Since the world produces 2.3 million ounces of silver each day through mining, this means the commercials sold 53 days and the managed money traders bought 61 days of world silver mine production in one five day trading week.