Ted Butler Interview:
<Q: Do you think position limits will be changed downward?
A: Yes, in silver. At a minimum, the position limits in COMEX silver will be adjusted downward relative to gold.
Q: When might this happen?
A: My feeling is after the price has moved up a lot. And I think that will be soon.
Q: What about exemptions to position limits?
A: Everyone knows that is the key. If they don’t crack down on JPMorgan and the other big shorts, the CFTC will be discredited.
Q: Do you think the big short sellers expect these changes?
A: I think JPMorgan does. I think the others may be missing what’s coming.
Q: They must be taking actions to protect themselves, don’t you think?
A: I think JPMorgan is taking action, not the others.>
He likes silver:
<Q: You’ve expressed to me privately and to our broker staff why you think people should buy silver now. Would you state the case here?
A: A number of factors have converged, in addition to the regulatory matters. The most important of these factors involve strong signs of an emerging wholesale shortage of silver.
Q: What signs?
A: Over the past 5 or 6 weeks, there have been unusual movements in COMEX warehouse silver stocks and deliveries by JPMorgan, as well as the withdrawal of a significant amount of silver from the big silver ETF, SLV. Taken together, these unusual movements suggest the big dealers are scraping the bottom of the barrel to come up with the timely delivery of silver to their wholesale customers. It appears to me that the big dealers are borrowing silver from Peter in order to pay Paul. This is a juggling act in which one misstep will unravel the whole silver scam.
Q: How much silver has been taken out of the SLV?
A: 9.5 million ounces in five weeks. Frankly, it’s beginning to look like there isn’t enough silver to go around.
Q: I know you think silver is better than gold. Why?
A: I don’t sense the same juggling act taking place in gold. The critical difference between gold and silver is that gold is not consumed industrially, while silver is. As a result of this critical difference, there is less silver bullion in the world than gold. Silver’s industrial consumption sets up the likelihood of a shortage, a condition not present in gold. Silver has investment demand on top of industrial demand. Gold has mostly investment demand.>
<A: I can see gold rising in price 20% or so, under the right circumstances, say up to $1,300. I can see silver easily rising 100% to 200%, to $35 or $70. In almost any scenario, I can see silver outperforming gold by five or ten times. With silver you are going to get the biggest bang for your investment dollar.>
news.silverseek.com
note:
Thanks to loantech |
