Silver Price Scandal
The comments below are an edited and abridged synopsis of an article by Ted Butler
The Justice Department’s announcement of a guilty plea by one of JPMorgan’s former traders is the first solid connection between Butler’s allegations of the past 10 years about JPM and a finding of wrongdoing by a trader for the bank in COMEX silver and gold. This goes a long way towards vindicating Butler’s narrative of the past 10 years.
The Justice Department apparently asked a judge overseeing a civil antitrust case against JPMorgan to postpone the case for six months “to protect the integrity” of its ongoing criminal probe. This indicates that the Justice Department is serious about
Inside the bank, this must come as a bombshell. Further indictments appear inevitable. What they have been doing for years is clearly illegal. Nobody can use tactics like spoofing to suppress the price of a commodity in the futures market while loading up on the physical asset itself.
JPM acquired its 150 million ounces of silver by suppressing the price in the futures market and scooping up physical silver at prices it manipulated lower. That’s a far more serious crime than spoofing. Another major crime in silver and gold committed by JPM: It hasn’t taken a loss in more than a decade when adding to Comex short positions. Maintaining a perfect trading record over adecade in something as hazardous as shorting silver impossible. Only if the game were rigged could such a feat occur.
The fact that JPM has essentially eliminated its manipulative short position may mean it is turning over a new leaf. That has profound implications for the silver market.