March 9, 2012
There is only one silver expert in the world. Almost everything we know about silver today comes from him. He has been immersed in the study of the silver market for 30 years. Without a doubt he is the most widely plagiarized financial writer in history. Everything you hear or read about silver in newsletters, investment publications and the internet originated with him. If he didn’t write it then it’s likely not true. His views are the litmus test on silver.
I introduced myself to Theodore Butler almost twelve years ago and I’ve talked with him once a day ever since. He convinced me that silver would make more money for my clients than gold. I was so impressed I arranged to pay him to write for my newsletter. Subsequently, he wrote article after article that pioneered breakthrough insights into the silver market. At first he was a lone voice quickly dismissed by the silver establishment. Now he has a huge following of silver enthusiasts, imitators and self-styled silver experts that echo his views.
Silver was only $4.00 an ounce when he told us to pound on the table to get people to buy it. He insisted it was too cheap and that a price rise was imminent. These early silver buyers are currently up 900% and Ted promises more to come. He was right on the money when he said silver was going up.
It all started 30 years ago when Ted was a commodities broker. He discovered that the billions of ounces held by the U.S. government had been used up by industry and was gone. He determined that industrial demand was exceeding what the silver mines produced each year. He asked why was the price of silver not going up in the face of a potential shortage? For months he studied the futures market searching for an answer. Eventually he determined the price was being held down by a huge short position on the New York COMEX. He figured out that no other commodity in the world had such a high percentage of its annual production sold short. He argued that this was manipulative price suppression and he wrote incessantly to the regulators, the exchange and the big short seller.
Ted Butler concluded that this price suppression of silver would invoke the law of supply and demand and make silver that much more attractive to investors. A low price meant that demand for silver by industry and others would be greater. At the same time the supply would be less. This was setting the stage for a silver shortage sometime in the future. Currently Ted points to the growing signs of this shortage.
Over the years he ridiculed silver and gold leasing and warned the mining company Barrick that their leasing and hedging practices would prove disastrous. Barrick and Anglo-Gold each lost $10 billion on this scheme. He warned silver investors that the silver they owned and stored with the big brokerage firms was not really there. One of his readers sued Morgan Stanley because they refused to give him the serial number of the bars he supposedly owned. Morgan Stanley admitted in court that the silver did not exist and they were charging storage fees on silver that was not in the vault. Their defense was that everybody did it.
For years Ted has assiduously studied the Commitment of Traders report (COT) published weekly by the Commodities Futures Trading Commission. From this study he often predicted the near term direction of silver prices. He also began to hunt for the name of the big short seller that was manipulating the price of silver. He concluded it was a big New York bank. After a number of clues that were revealed in various government reports he determined that the big short was JPMorgan. He began to pepper the regulators and JPMorgan executives with letters and e-mails that pointed out the illegal nature of the concentrated short position in silver. He encouraged thousands of silver investors to write to the authorities. His one man crusade led to a CFTC investigation into silver futures trading that has gone on for 3 ½ years. To this day he follows JPMorgan’s every move and monitors other dealers who act in unison to manipulatively drop the price. He claims it’s like putting the pieces in a huge jigsaw puzzle.
At every major price reversal in silver Ted Butler has made the strongest possible recommendation to buy. Those who followed his advice have, for the most part, seen handsome gains. One of his famous predictions was to suggest that a great investment boom would be forthcoming in silver. He claimed that a large number of new investors would pour into silver and that has certainly happened. If you ever want to verify the amazing track record of Ted Butler all his early articles are listed on our website www.investmentrarities.com under Ted Butler’s archives.
Currently Mr. Butler is more bullish than ever on silver. He believes a buying panic lies ahead. The world’s foremost silver expert claims that silver is the best thing you can own. We don’t think you could have better advice. If you don’t listen to someone with a track record like Ted Butler who do you listen to?
(For subscription information to Ted Butler’s private newsletter, please go to www.butlerresearch.com)