If a rational trader found himself massively on the wrong side of a major bull market, one would expect that trader to take extreme steps to COVER his short position during a sell-off of 36% of said commodity. This is only rational.
In perhaps the best evidence of silver manipulation to date, the CFTC’s Bank Participation Report for June shows that from May 4th to June 7th, the silver short position held by 4 large US banks increased from 20,613 to 22,628 short contracts. This means that the 4 largest US banks increased their short silver position from 103,065,000 ounces when silver was trading near $50 in early May, to 113,140,000 on June 7th.
Basically, The Morgue and HSBS ADDED 10 MILLION OUNCES OF SILVER TO THEIR SHORT POSITIONS WHILE SILVER DECLINED 36% IN PRICE!
Lets look at this another way. COMEX silver inventories are down to 28.7 million ounces. This means that in 1 months time, The Morgue and HSBS have added NEW short positions equal to 1/3 of the remaining physical silver supply on the COMEX.
This means that these 4 US banks are currently short roughly 4x the amount of silver remaining on the COMEX.
Even more interesting is that these new silver shorts the large banks have piled on come after a steady decline in their silver short positions during silver’s recent run-up. Notice that on 4/5, short positions stood at 25,412 contracts, and this number was reduced to 20,613 contracts by May 4th.
Essentially the 4 large US banks covered 4,799 silver contracts (24 million ounces of silver) during silver’s “speculative” vault from the mid $30′s to near $50 during April. This indicates that silver’s parabolic move was more as a result of a panic short squeeze covering by the massive silver shorts. Bleeding profusely, the panicked shorts begged the CME to ride to the rescue, and lo-and-behold, 5 successive silver margin hikes in the first 2 weeks of May.
These banks were on the rocks folks. Once they found some breathing room, they RESUMED ADDING TO NAKED SHORT SILVER POSITIONS TO CONTINUE THE MANIPULATION!
This proves silver manipulation, as a trader with HIS OWN best interest in mind would have continued covering his shorts when silver sold off, and would have rapidly attempted to extricate himself from those remaining 20,613 short contracts.
The fact that these 4 US banks DID THE EXACT OPPOSITE, and again ADDED TO THEIR SHORT SILVER POSITIONS is likely the clearest evidence to date of silver manipulation.
Good luck getting the CFTC to do anything about this, its up to us. That’s why SilverDoctors will soon be releasing the Silver Viral project to take silver mainstream before the banksters are ready!