Silver’s price level is and has been artificially depressed due to JPMorgan’s concentrated short position. In addition to the negative publicity that has been attached to JPM, this concentrated paper short position has impacted the underlying host physical market in a manner that can’t be sustained. By artificially depressing the price, JPMorgan has set in motion a more powerful counter-force of stronger physical silver demand and weaker physical supply than there would have been otherwise. The artificial low price makes it a certainty that physical demand must overwhelm real silver supply and at that point, additional paper short sales by JPMorgan will not matter. If the market is demanding physical silver and that metal isn’t available, paper silver will not be accepted as a substitute. The minute that occurs, there will be a radically different price structure in silver; quite literally almost overnight. That hasn’t occurred yet, despite the long term climb in the price, but the signs are growing that we are drawing close, mainly in the form of unusually frantic movements in the big silver depositories. The important thing to remember is that regardless of how many years and decades that the silver manipulation has been in place, when it ends, it will end in a virtual instant. That’s why it’s better to be positioned early in silver, rather than late.
Ted Butler is da man!
