I-Shares Silver Trust (SLV) held in NY by JPMorgan also being reported in the JPMorgan COMEX. Double-counting of publicly reported silver inventories.
Originally posted on March 4 by Mr. Ted Butler, courtesy of our esteemed friends at Silverseek in Europe.
The long-awaited response from the CFTC to my congressman’s office about my concerns of the possible double-counting of publicly reported silver inventories, originally sent to the agency in mid-November was received by me Friday morning, March 1. To refresh you with the issue, I asked the CFTC (along with the S.E.C.) to make clear whether the 103 million oz reported in the I-Shares Silver Trust, SLV, and being held in New York by JPMorgan on behalf of the trust, was also being reported in the JPMorgan COMEX warehouse or whether these were two separate silver inventories. Here’s an article I made public at the time, which included my original letter, as well as some commentary.
https://silverseek.com/article/answer-long-overdue
The S.E.C. responded within two weeks, but avoided answering whether the silver inventories in question were being double-counted. The CFTC has taken more than three and half months to respond and also has avoided answering what was a very simple question on my part, after telling my congressman’s office on several occasions that it was “working on” a response. As is my custom, here is the agency’s response in its entirety for you to review, before I share my thoughts.
Click here to view the CFTC response
The CFTC’s response included a literal word-salad of unrelated information describing the functioning of the agency not all related to my question and designed to put as many words in the response to make it sound like much deep thought went into the response. It did declare that the agency had no direct control of the reporting of silver inventories, but in declaring that, avoided its responsibility to deal with the dissemination of false market data that could mislead market participants. There have been numerous actions taken by the agency in the past related to false data and price signals being disseminated in other markets, so the implication that the sending of false price signals related to the misreporting of recorded silver inventories is disingenuous, at best.
Besides, I am sick and tired of those (particularly bureaucrats) who’s standard knee-jerk response to any question is an automatic “it’s not my job”. WTF? If it is not the federal commodities regulator’s job to answer a direct and simple question about the potential sending of information creating false price signals – then who the heck’s job is it?
Let’s face it, if the silver inventories in question are being double-counted, as now appears obvious as a result of this response, that amounts to the sending of false price signals, period. There is not the slightest hint in the daily publishing of these two silver inventories, one covering the holdings in SLV and under the control of BlackRock, and the other reported by the CME Group, that the two inventories may be one and the same and, in effect, are being double-counted to the vast majority of market observers (including by me in my weekly reviews). Seeking clarity on the matter was why I asked the CFTC in the first place and now its response virtually guarantees the two inventories are double-counted.
Then there is the tantalizing boiler plate language (apparently added as an afterthought, as evidenced by the different type or font settings on each page) which promises that if this were to amount to the sending of false price signals, then the agency is more than capable to deal with it – except, of course, it can’t disclose that. Having heard this line from the CFTC in the past, you’ll forgive me if I don’t take the agency at its word. What I do know is this – the CFTC took the better part of three and a half months to offer a non-response, all the while that the silver price suppression remained firmly in place. It’s hard not to conclude that the agency is up to its eyeballs in prolonging a manipulation that has existed for 40 years.
A number of weeks back, I did raise the ugly possibility that the CFTC was delaying its response to my question, in order to give the crooked and collusive COMEX commercials the time to arrange their affairs as best as possible before it would respond. Considering the week’s results in the silver and gold COT reports, as well as the uneventful passage of the key first delivery days this week, I’d be lying if I said those ugly thoughts of mine had departed.
What to do? Unfortunately, I can’t act in the CFTC’s place, because if I could, then this silver price manipulation would have ended long ago. So that leaves me with trying to work around the agency. Specifically, I have continued to complain to the Department of Justice, as recently as again on Friday. My allegations not only involve the sending of false price signals (now confirmed) by JPMorgan for silver inventories under its direct control (and in direct violation of JPM’s recently-expired deferred criminal prosecution agreement), but also my more recent allegation against JPM for the uneconomic and manipulative dumping of physical silver via SLV. I can’t decide which is worse – the continued sending of false price signals by JPMorgan or its dumping of physical silver.
I do know that both are clearly against commodity law and must come to an immediate halt. As things turned out, I believe the CFTC may have done us all a big favor (quite unintentionally) in its long-delay in responding to the inventory double-counting question, by elevating the matter to a higher level than if it had responded much sooner. This extreme delay allowed me to peruse the data in the interim in SLV, which uncovered my allegation of dumping. I guess what I’m saying is that this response from the CFTC clearly confirms my allegation of double-counting, and thereby elevates my additional complaint about dumping. I’d ask the CFTC about the dumping of physical silver by JPM in the SLV, but Lord knows how long it would take for it to offer a non-response, so I’ll stick to the Justice Department on this matter.
Further, I can’t help but believe that the fairest and most effective manner of dealing with JPMorgan’s continued serious violations in the silver and gold markets is to simply disallow this crooked bank from dealing in these markets. In no uncertain terms, the world would be a better place if JPMorgan and silver and gold were mutually exclusive.
Ted Butler, posted originally by our great friends at silverseek.com
Silver Stackers draft their Declaration of Independence. The Silver Stacker edict Declares Justice for All and Removal of The Silver Institute
Declaratio Independentiae: Justicia Omnibus
Whereas it has been proven and established Silver Institute has disturbing conflicts of interest based on their troubling ties to the Federal Reserve through Mr. Paul Bateman's and Mr. DiRienzo's associations and role at Klein & Saks Group
Whereas it has been proven and established the Silver Institute likewise has disturbing ties to Dept of Treasury through Mr. Paul Bateman's past role as Dept of Treasury Secretary and Bateman, Mr. DiRienzo's associations and role at Klein & Saks Group
Whereas it is proven via the law of associative and implied consent (goes to their motive) proving their covert and overt ties Silver Derivative Trading transactions and activity that smash down the price of Silver through Mr. Paul Bateman's and Mr. DiRienzo's associations and role at Klein & Saks Group, aforementioned ties to Fed Reserve, Dept of Treasury & Economic Club of New York
Whereas their legacy of deceitful practices such as uncovering they have NO EMPLOYEES but are Klein & Saks group with this phone number (202) 835-0952 and the same address as The Silver Institute and Cyanide Management Institute Press 1 for Mike DiRienzo press 2 for Paul Bateman
Whereas, in over twenty years of published material, they have never once advocated for Silver and gold as money.
Whereas, in over 20 years of operation, they have failed at the most fundamental task in promotions. For example, they have never once launched a Public Information Campaign on Silver (but Nail Salons do each week on Instagram, not to mention windows, doors, roofs, dentists, lawyers, burgers, sushi, pizza, cars, insurance, and thousands of other industries, Geico has a green gecko, Mr. Clean has a strongman animated with shiny clean head, etc)
Whereas, in over 20 years of published material, they have never once published a story on why Silver and gold should be money. In stark contrast, there are virtuous organizations that serve the public properly. Advocacy groups in the USA, such as Sound Money Defense League, Citizens for Sound Money, and various other grassroots organizations, lobby State to State and introduce Federal bills. Not once such pro silver activity by The Silver Institute.
Whereas, they have disturbing ties to the Economic Club of New York, now run by NY Fed Chair John C. Williams.
Whereas, Everyone in the Silver business understands that The Federal Reserve note is the villain of the Citizens of the USA and the Globe.
Whereas they have never once mentioned Silver's Massive use in torpedoes, bombs, shells, rockets, silver-zinc batteries, nukes, spacecraft, satellites, space stations, and fighter jets (Military and Aerospace)
Whereas they have been using a template from USGS that has deceptive Silver use criteria such as "wood treatment," "plastics," "dental applications," "mirrors," "inks," and "fabrics" but omits Aerospace and Military. This deceptive template leads to them intentionally misreporting on silver supply vs. silver demand dynamics.
Whereas, they engage a "research" firm called Metals Focus with ties to Bloomberg that is "no bid" to control silver use and supply.
Whereas NO ONE ASKED FOR THEIR ERRONEOUS SURVEY. IT EMERGED TO DECEIVE SILVER INVESTORS AND SERVE THE CLIENTS OF KLEIN & SAKS.
Whereas they have never once written or appeared in public conference or podcast that Silver is the opposite of US dollar, which is the Federal Reserve note
Whereas, They have never once spoken critically or condemned the Federal Reserve's evil monetary policies, including their having no business in monetary policy, interfering with the market by setting interest rates, or being involved in the printing of fiat currency.
Whereas, their practices of:
-Not recognizing Silver as money
-Not painting accurate supply/demand dynamics
- Has caused over 20 years of damage
- This damage and/ or "crime" exceeds over 1 trillion dollars
- This damage is undoubtedly irreversible and unforgivable.
Whereas, Precisely Because of their erroneous World Silver Survey, Silver investors have been demoralized, putting people's livelihoods in jeopardy and causing massive underinvestment in natural resources, specifically silver miners.
Context Below:
First, to Connect the Dots on Silver's use in Military and Aerospace.
4 videos with 2 more cued up. Silver Academy supporters Now Demand “Unconditional Surrender” with Majority Consensus, Expectation and Understanding that the Silver Institute’s 2024 World Silver Survey will be their last deceptive document.
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