Largest Paper Short Seller also a Largest Physical Buyer of Silver
In a everlasting hunt to possibly determine or plead one’s possess findings, I’d like we to cruise something opposite today. I’m going to ask we to set aside my rarely specific allegations of wrong-doing in a china and bullion markets, mostly centering on JPMorgan, and concentration instead on either if what we lay is unequivocally wrong or even matters much. Even yet my allegations are formed on information published by a CFTC and CME Group, we would ask we to put that aside and cruise that we competence have been creation a towering out of a molehill about china (and gold) cost manipulation.
The best approach of final either there is anything wrong in china is to do a tranquil experiment, namely, by stealing it from a equation (along with any discuss of JPMorgan) and surrogate any other universe commodity or entity in a place. In other words, would it be plainly and outrageously bootleg or no vast understanding during all if what is transpiring in china occurred in any other commodity? I’ll benefaction a contribution and leave we to be a judge.
Pick any and each commodity with an active futures derivatives marketplace that comes to mind and plugin a contribution that are famous to have existed in COMEX china over a past 10 years. Any and each commodity – corn, copper, wanton oil, no exceptions. Now let’s block in what we know in terms of contribution that exist in silver.
First, we know from COT news information that a singular entity has hold a consistently vast strong brief position in COMEX silver, incomparable in terms of tangible universe prolongation than in any other commodity. We serve know that this vast entity has always been a largest futures marketplace brief in COMEX china over a whole decade; never flipping to net long. Next we know from COT information that while this singly vast strong brief seller has always been net short, a brief position has both stretched and engaged frequently over a years and – get this – it has never mislaid income as it combined or bought behind brief COMEX futures contracts. Never a loss, always customarily gains, a stunningly ideal trade record. This is dynamic in china from watching changes in a strong brief position of a largest brief entity.
Finally we know, from a same source information used in a COT news though published alone in a Bank Participation report, that a widespread brief seller in COMEX china is a vast US bank. Although this fact, by itself, wouldn’t be indispensably convenient to a doubt if a strategy exists or not, it does assistance tie in other facts.
You should now be envisioning any universe commodity that comes to mind carrying had a singular dedicated and widespread futures marketplace brief seller who has been consistently brief for a decade and who has a ideal trade record – never pang a detriment and customarily carrying done increase from a brief side. Wouldn’t we be during slightest a small questionable that something was wrong or that a marketplace was rigged? Or would a existence of a singular vast trader, always brief and never prolonged or wrong for 10 years regulating in corn, copper or wanton oil or any other commodity not worry we during all?
Before we make adult your mind, let me supplement in a few associated facts. What if we told we that a same singular browbeat futures marketplace brief seller had spent a final 7 years, in further to progressing a ideal paper trade as a largest brief seller of all, also appropriation a large earthy store of a same commodity? And get this – this same paper marketplace dominator had managed to acquire a largest earthy batch raise in story of this same commodity.
Wouldn’t a suspicion cranky your mind that maybe this vast entity was milking this sold commodity in an underhanded manner, not customarily achieving a initial ideal trade record ever and afterwards holding advantage of a altogether reduce prices a large brief offered caused by shopping all it could of a same commodity in a opposite form? Wouldn’t this sound like a ideal commodity cost manipulation, namely, a pimp creation on both sides, milking a paper side and afterwards regulating a cost change to buy a earthy side in large quantities and during vexed prices?
But wait, there’s more. What if we told we that there was a sovereign regulator, as good as a self-regulating entity in existence, in a form of a CFTC and a CME Group, who were privately mandated with preventing such a intrigue as we only summarized as their primary mission? Neither regulator has pronounced anything about any of this for 10 years, nonetheless a CFTC sealed a grave five-year review into china strategy in 2013, that was vague to contend a least. Oh, and a financial establishment identified as a vast china manipulator, JPMorgan, hasn’t pronounced a sight about being publicly indicted of rapist wrongdoing. Most usually, financial institutions are meddlesome in progressing a top repute probable and immediately residence any issues discordant to their best interest. Not so with JPMorgan and silver.
So, we make a call. If a contribution that are famous to exist in china were benefaction in any other commodity, would this consecrate strategy in your opinion? Or if a contribution were sufficient adequate so as to need a CFTC, a CME, and JPMorgan to during slightest try to explain because strategy wouldn’t exist in silver, given a verifiable facts? You competence wish to remember this a subsequent time someone declares that no strategy exists in china or even better, that all markets are manipulated, so who cares? Just ask them that marketplace facilities a largest paper brief who also happens to be a largest earthy customer of that same commodity? – Ted Butler
Please check behind for new articles and updates during Commoditytrademantra.com