Archive for the ‘Ted Butler’ Category

Marc Faber: Physical Gold Trumps Mining Shares

Posted by on November 14th 2014 in CFTC, CME Group, Federal Reserve, General Economy, Gold, JPMorgan, Monetary Policy, Russia, Short Sellers, Silver, Ted Butler, USD, Wall Street | 1 comment

BuyGoldYouCanHold

In a subscriber-only ETF.com interview, excerpted by Hard Assets Investor, Marc Faber weighs in on where gold’s headed and why he prefers the end product over the companies that mine it:

Q:  Gold plunged immediately after the [Oct. 31] BoJ announcement [that it would expand its asset purchases], which came only days after the Federal Reserve announced the end of QE. Where do you see gold headed in 2015?

Faber: I think it will go up. But can it go down first? Yes. In general, I would say the game that central bankers are playing is very clear: They start out with QE1 in the U.S., and then that forced essentially other central banks to do the same, to also go QE. They’re kind of passing each other the ball. One stops, the other one starts. It’s basically a game designed to kill the purchasing power of paper money. I’m not sure they’re aware of it, but in my view, this is the beginning of the end of paper money in this century.

And asked about physical gold vs. mining shares, Faber says: In general, my advice to investors is to own physical gold and not gold mining shares. Because in a disaster scenario, you don’t know what financial assets will be worth, whereas physical gold is in your possession.”…Read more>>>

See also:

Bloomberg/24/7 Wall St.:  Gold inches up, silver flat, as jobless claims rise more than forecast

Dan Norcini/WGC:  World Gold Council issues its latest report

Acting Man:  Gold market sentiment – A contrarian’s dream?

Forbes/TradePlacer:  Are small investors right about silver?; Ted Butler to silver miners – COMEX is responsible for low silver prices

Telegraph/RBTH:  Putin stockpiles gold as Russia prepares for economic war

Gold Market Macro: Eastern physical demand versus Western financial supply – who will win out?

Sorry, For the Moment

Posted by on November 8th 2014 in CFTC, CME Group, Gold, JPMorgan, Media, Quants, Short Sellers, Silver, Ted Butler, Wall Street | Be the first to comment!

By James Cook

President/Investment Rarities

It’s hard to extoll the virtues of silver in the face of a price decline. We anticipate gains for our clients and are disappointed in the recent results. A lot of people rely on our advice and we don’t want to let them down. We all do better when our clients experience gains.

That said, are we ever going to get to the promised land? Right now the byword is patience. A clear understanding of what’s causing the recent decline will be helpful in plotting the future. As you know, we rely on silver analyst Theodore Butler to chart our course and fashion our advice. I happen to know that all his personal investments are in silver so he is definitely eating his own cooking. Because of his all-out bullishness on silver we have to stress that he operates with a care and cautiousness befitting of a mature and shrewd analyst. He understands the futures market like few others. Despite his profound and pioneering analysis of silver, surprisingly few gold and silver editors have embraced his breakthrough opinions. Either because of ego or stubbornness other precious metals analysts are invariably barking up the wrong tree. Mr. Butler has for years been the sole purveyor of the truth about silver….Read More »

Ted Butler’s Silver Sales Pitch

Posted by on November 8th 2014 in CFTC, CME Group, Gold, JPMorgan, Quants, Short Sellers, Silver, Ted Butler, Wall Street | 1 comment

This memorandum was written by Ted Butler

for the  Investment Rarities’ broker staff on October 28, 2014

ted-butlerThere is a flip side to everything and mainly as a result of the terrible beating it has taken over the past few years, the upside cycle for silver appears to be at hand. Not only is silver at a stupid cheap price, it has everything necessary to rally sharply and soon. This week, for the first time in my memory, the CEO of a leading silver miner, First Majestic, called on fellow silver miners to withhold production to break the back of the manipulation. If there’s one clear signal that a commodity’s price is too cheap, it is just that.

To an investor, a cheap price means low risk and a good time to buy. But what about the reasons for silver to rally and rally soon? Start with the largest speculative short position in history. You’ve heard me complain about a massive silver short position by JPMorgan and other banks for years, but I’m talking about something different now. While there is still a very sizable commercial paper short position on the COMEX, that is separate from the new historical short position in COMEX silver held by technical funds or traders who rely on chart signals alone to buy or sell….Read More »

Ted Butler: Tight Physical Market Leaves Shorts Vulnerable

Posted by on November 5th 2014 in CFTC, China, CME Group, Federal Reserve, General Economy, Gold, Interest Rates, JPMorgan, Quants, Short Sellers, Silver, Ted Butler, USD, Wall Street | Be the first to comment!

 VulnerableSilverShorts

“All of the things I look at in silver seem to be aligned for a sharp move up,” says Ted Butler, in an interview with Investment Rarities’ President Jim Cook.  Butler explains that “The big commercial traders, led by JPMorgan, have managed to get all the technical hedge funds to plow into the short side of COMEX silver. The technical funds must buy back their thousands of short silver contracts since they can’t possibly deliver real silver.”

And in a more extended conversation, with Peak Prosperity‘s Chris Martenson, Butler reiterates that the technical funds “have no ability whatsoever to deliver physical metal and at the same time they’re shorting like crazy into a physical environment where there’s nothing but indications that the market on a wholesale, physical basis is very tight. And that’s a combination that you can just blow sky high in price.”

See also:

Reuters/SafeHaven:  Gold rises as dollar drops, breaks 4-day fall; Yen massacre and gold muscle

Mining.com/Bullion Star:  Chart – Silver price weakness won’t last; Insatiable Chinese gold demand continues unabated

Jim Rickards:  The difference between currency wars & financial wars

Zero Hedge:  Interest rates cannot rise – here’s why; Goldman shows “equity bust” risk highest since 2008

Bloomberg:  Singer’s Paul Elliott Says U.S. growth optimism unwarranted as data ‘cooked’

Sharelynx/Money MetalsGold manipulation at the LMBA fixes; Why your stockbroker hates gold – The ugly truth

‘Plunge Protection Team': Everywhere or Nowhere?

Posted by on October 23rd 2014 in Bailout, Federal Reserve, General Economy, Gold, Interest Rates, JPMorgan, Monetary Policy, Short Sellers, Silver, Ted Butler, USD, Wall Street | Be the first to comment!

PlungeProtectionTeam

Gold and silver futures ended off 0.5% and 1.8% on Wednesday, with the drop attributed in some quarters to a “firming dollar and subdued inflation,” which an analyst cited by MarketWatch sees as “a normal trading correction.”  And while a post at Jesse’s Café Américain agrees, suggesting that the metals “may have taken a pause at support,” he also finds it “interesting to see them run with stocks today, in the face of some exogenous risk events. They are certainly acting oddly. One has to wonder if this is a related action by the “Plunge Protection Team” which feels free to purchase stocks at key points apparently to help restore confidence.”

David Stockman’s Contra Corner advances the argument that there is a “Plunge Protection Team,” and “It’s called the FOMC.” This as Bloomberg reports that Citigroup analysts “have put a price on how much liquidity central banks need to provide each quarter to stop markets from sliding. By estimating that zero stimulus would be consistent with a 10 percent quarterly drop in equities, they calculate it takes around $200 billion from central banks each quarter to keep markets from selling off.”

Ted Butler has also raised the issue of the “Plunge Protection Team” meddling in the metals, alleging that it gave JPMorgan the greenlight to manipulate the silver market.

Metals Trade In Narrow Range; More Upside Ahead?

Posted by on October 15th 2014 in CFTC, CME Group, Federal Reserve, General Economy, Gold, JPMorgan, Short Sellers, Syria, Ted Butler, USD, Wall Street | 1 comment

MetalsUpsideAhead

Gold and silver futures gained 0.3% each on Tuesday, while spot prices fell a similar percentage, reports Reuters, noting that global growth anxieties “sent U.S. 30-year bond yields below 3 percent for the first time since May 2013, while benchmark 10-year yields fell to a 16-month low of 2.18 percent. ‘U.S. Treasury yields at these levels are not pointing to a rosy economy,'” according to a COMEX gold options trader, who predicted that “Gold and silver should have more upside after they have spent a long time in the bear market.”

See also:

MarketWatch/Coin News:  Global growth concerns bring gold new shine; Gold nears 4-week high; Silver Eagle sales top 35 million y-t-d

Daily Reckoning/Seeking Alpha:  Jim Rickards   A win-win scenario for gold investors; Silver to rocket but when?

Gold Silver Worlds:  Ted Butler’s silver price outlook – Why this time could be different

Reuters/SRSrocco Report: Silver price-fixing lawsuits consolidated in Manhattan federal court; Bankers manipulation of gold & silver – Proof in the demand data

Wall Street on Parade/IRD:  The stock market has lost confidence in central banks as gods; Is the money printing facade cracking?

Zero Hedge:  What the Fed does next; The QE4 countdown has begun

Ted Butler: How Silver Could Bubble Up

Posted by on August 27th 2014 in China, Federal Reserve, General Economy, Gold, JPMorgan, Short Sellers, Silver, Ted Butler, Ukraine, Wall Street | Be the first to comment!

SilverBubbleIn making the case for a “coming silver bubble,” Ted Butler explains that “an asset bubble develops when an undervalued asset which has a compelling investment story and there exists an overall financial environment of sufficient buying power, catches the collective interest of the crowd. For example, by the mid-2000’s and after years of steady appreciation, residential real estate developed into an asset bubble amid the self-fulfilling cycle of continued gains and the availability of easy credit.

As far as great stories go, silver has the best potential story to develop into a bubble. First, there is little argument BubblingUpthat it is among the most, if not the most undervalued asset of all by objective relative historical price comparison. In addition, it is at or below its primary cost of production, as evidenced in recent quarterly earnings reports. Remember, most bubbles start out with an asset that is undervalued – on this score silver more than qualifies as being undervalued. Aside from extreme undervaluation, the silver story is multi-faceted.”… Read More >>>

See also:

Coin News/SRSrocco ReportGold, silver rise; Silver Eagle bullion coins top 28M;  Shanghai silver warehouse stocks fall 24% in one week

Bloomberg/LA Times: Gold advances most in two weeks on Ukraine tension

GoldCore/GoldSeek:  Russia coordinating gold reserve accumulation with ex-Soviet states?; Will the U.S. succeed in breaking Russia to maintain dollar hegemony?

Mineweb/SafeHaven:  Is Asian gold demand really slipping so much?; Road sign says – Pot of gold ahead

Daily Reckoning/Zero Hedge:  As the Fed prints money, buy gold and brace for impact; Council on Foreign Relations – “Central Banks should hand consumers cash directly

Gold Up and Down on Crises Fluctuations

Posted by on August 9th 2014 in ECB, Federal Reserve, General Economy, Gold, Iraq, Middle East, Monetary Policy, Russia, Short Sellers, Silver, Ted Butler, Ukraine, Wall Street | Be the first to comment!

Gold&Crises

Reuters reports that before ending off 0.3% on Friday, “gold rallied to a three-week high on news U.S. aircraft bombed Islamic fighters marching on Iraq’s Kurdish capital of Arbil.  But safe-haven buying dried up after Russia’s Defense Ministry said it had finished military exercises near its border with Ukraine.” And after also losing a fraction on Friday, silver was down 1.8% for the week, while gold logged a 1.4% gain. But when it comes to 2014 bullion coin sales, silver’s thumping gold.

See also:

BullionVault/Yahoo Finance:  The dollar, gold & Middle East oil; Why this is the moment of truth for the gold trade

Dan Norcini:  Ukraine events supporting gold, but for how long?

Bloomberg/Time: World war on Russia’s mind when U.S. duels over Ukraine; Putin’s popularity soars to 87% in the face of adversity

Bloomberg/Telegraph:  Draghi says geopolitical risks to economy increasing; Germany close to recession as ECB admits recovery is weak

GATA/Zero Hedge:  Alasdair Macleod:  No market crashes anymore, just currency risk; Marc Faber – By printing money, the Fed has delayed the inevitable ‘cleaning’ process

King One Eye/Ted Butler:  Two precious metal must-sees; Oh, Oh – The dangers inherent in gold and silver pool accounts

Coin News/Numismaster:  U.S. Mint suspends in-person sales of Kennedy gold coin; JFKa Ching – First four gold Kennedys go for $20,000

Metals Retreat; West Bank Palestinians Advance

Posted by on July 25th 2014 in CFTC, China, CME Group, General Economy, Gold, IMF, Middle East, Quants, Short Sellers, Silver, Ted Butler, Wall Street | Be the first to comment!

MetalsRetreatPalestiniansAdvance

Gold and silver ended down about 1% and 2.5% respectively on Thursday, representing a buying opportunity for one scribe, as global strife took a back seat to what was seen as positive economic news from the eurozone and China, and on U.S. jobless claims hitting an eight-year low.  But citing earlier “negative surprises” from the U.S. and Chinese economies, and ongoing geopolitical risks, the IMF lowered its global growth forecast for 2014.

With gold dropping below $1,300 and stalling at its 200-day moving average, Reuters quotes one observer as saying, “To be fair, I think some people have a right to be disappointed that the stresses around the world haven’t led to a continued rise in the price of gold. We’re probably in oversold territory right now where gold is concerned, but we also seem to be pulling into an area between $1,290 and $1,280 that should offer some support to the market.”

See also:

Dan Norcini/Reuters:  China gold demand slumps 19.4 pct on yr, but output rises

Ted Butler:  Silver tightness

Hard Assets Investor:  Gold’s fair value – bear says $800, bull says $5,000

Investing.com/SafeHavenHappy markets in an unhappy world; Clear and present danger zone

Bloomberg/Business Insider:  Don’t tell anybody about this story on HFT power Jump Trading, one of 10 being eyed by the SEC

Wall Street On Parade:  Lawsuit stunner – Half of futures trades in Chicago are illegal wash trades

Metals Nixed, but News is Mixed

Posted by on July 15th 2014 in CFTC, CME Group, Federal Reserve, General Economy, Gold, Janet Yellen, JPMorgan, Monetary Policy, Quants, Short Sellers, Silver, Ted Butler, Wall Street | Be the first to comment!

MetalsSlammedLower

Spot gold and silver dropped more than 2% on Monday, with one stated reason being an easing of problems in Portugal’s banking sector, which may still be far from solved. But arguably having little to do with Portugal, there was “massive selling in the futures market. Reportedly, 2300 futures contracts, with a notional value of $1.4 billion, were sold at the New York open,” according to USA Gold:  “We’ve seen such raids in the paper market in the past. Throwing this kind of volume at the market all at once is reflective of someone not interested in getting the best price, but rather someone looking to generate shock and awe.” But while gold was being shocked and awed to its worst day in 2014, U.S. Mint bullion coin sales jumped, and GLD, the major gold ETF, was said to have seen its largest inflow since August 2011.

See also:  

Ted Butler:  The silver conspiracy

Bloomberg:  Goldman stays gold bear as bullish wagers increase; Individuals pile into stocks as pros say bull is spent

Reuters:  Yellen says Fed easy money needed even after recovery – New Yorker

Business Insider/Zero HedgeNew Yorker article seen igniting CNBC shouter; Rick Santelli goes beserk

BullionStar.com:  Koos Jansen – For how long will people trust fiat money?

Metals Rangebound: Any Breakout In Sight?

Posted by on July 9th 2014 in CFTC, China, CME Group, ECB, Federal Reserve, General Economy, Gold, JPMorgan, Monetary Policy, Short Sellers, Silver, Ted Butler, Wall Street | Be the first to comment!

GoldBreakout?

Spot gold and silver saw the slightest of gains on Tuesday while futures were slightly off in what Gold Forecaster‘s Julian Phillips brands a “strange” market, where gold demand is “steady and solid in a relatively thin market, but not swayed by speculators,” who, along with and dealers, “are trying to move gold around with the euro, which keeps going stronger as the dollar weakens.”  But, he added that gold “keeps drifting higher as U.S. investors are now net buyers of the SPDR gold ETF in the last three weeks.”

As for the prospect of gold drifting even higher, CNBC, under the headline “These 3 charts tell you to buy gold,” highlights a note from Sterne Agee.  The author contends that the investment advisory “remain new buyers and would be new buyers right here, in anticipation of the current ‘bearish-to-bullish’ reversal continuing and gaining urgency as new participants are drawn in.”  It goes on to predict that gold will rise to $1,500/oz, but with no timeline, before running into resistance….Read More >>>

See also:

Barron’s/Bloomberg:  Gold, silver – The speculators are back; Gold shines again as hedge funds boost wagers on advance

Expected ReturnsI’m back!; Do you remember? Why gold?

Eric Sprott:  The physical buyers will overwhelm the paper sellers

Mining.com/SilverSeek:  Reports- CME/Thomson Reuters to run the silver fix; Ted Butler – CME’s Comex- Why it’s corrupt

Zero Hedge:  Stock buyback shocker; Debt – Eight reasons why this time is different; Is the Fed going to attempt a controlled collapse?

Reuters/New York Sun:  Fed’s Yellen to deliver monetary policy report to Congress next week; Congress eyes rules for the Fed

Silver Takes Quarter; Gold Wins Half

Posted by on July 1st 2014 in CFTC, China, Federal Reserve, General Economy, Gold, India, Iraq, Janet Yellen, JPMorgan, Monetary Policy, Russia, Short Sellers, Silver, Ted Butler, Timothy Massad, Wall Street | Be the first to comment!

SilverQuarterAfter spot gold and silver added a fraction of a percent on Monday, silver ended up 7% for the quarter, its highest gain in three quarters, reports Reuters, and gold gained about 3.5 percent on the quarter after a nearly 7 percent gain in the first quarter, making gold the best-performing asset in the first half of 2014.

Reuters attributes gold’s gains to tensions over Ukraine and Iraq, and going forward, geopolitical tensions are alsoGoldHalf seen as the “wild card” for gold and silver, according to one analyst quoted by MarketWatch.  He adds North Korea as a potential third hot spot, and says that “Any flare up in these areas could quickly lead to another round of ‘safe haven’ buying in the precious metals.”

See also:

BullionVault/Mining.com:  Gold & silver beat stocks, best first-half since 2011 after “surge in bullish hedge fund bets”

Mineweb:  Silver the star performer in recent precious metals rally; Silver – The irresistible force

Jesse’s Café Américain/Ted Butler:  Comex silver stockpiles at the end of 2Q 2014;  Comex – Why it’s corrupt

Financial Times/GATA:  Singapore seizes on soaring Asia gold demand; Koos Jansen – Chinese gold demand remains robust and in an uptrend

Telegraph/Peak Prosperity:  BIS – Ultra low interest rates could make global economy permanently unstable; Axel Merk – The Fed’s next move

MarketWatch:  Taper Time? Janet Yellen’s Georgetown neighbors complain about ‘doughnut bellies’ of security detail