An Interesting Week

[webmaster]

Subject:An Interesting Week
By: Theodore Butler

Overview: Over the past week, important news continued to develop in silver. Let me try to touch on some of it, before getting into today’s topic. There was the sharp sell-off in price, which occurred after the cut-off for the weekly Commitment of Traders Report (COT). It’s always difficult to pinpoint precise lows, in terms of price and time, but I am still of the mind that the sub $17 price level in silver represents great long-term value.

Link: http://news.silverseek.com/TedButler/1209492774.php

[george]

Can anyone provide address, email and phone information for the CFTC so that we can speak out on the concentrated silver short position? Any tips on how to get our letter to make a difference? Thanks,

[silverlight]

george, spend some time reading Butler's archives, he has discussed contacting both the SEC and the CFTC. Here is something to get you started.

[Holidaysilver]

http://www.investmentexecutive.com/c...ection=8&cat=8

After reading the first two posts, I wondered if there might not be a "Backdoor" approach to contacting these regulatory organizations. I wondered if Former Directors might not "spill the beans" and tell us who the 4 big short traders are. I found the above link during my first search. This is the first I have heard of this arrest and conviction.

Here is a quote from the article:

"CFTC acting chairman Walter Lukken said, “As today’s actions show, civil and criminal agencies achieve powerful results when they work together to stamp out fraud. The CFTC will continue to coordinate our civil prosecutions with local, state, and federal criminal authorities to protect the investing public from wrongful activity in our markets.”

In response to the charges, NYMEX president and CEO, James Newsome issued a statement, saying, "NYMEX is very grateful to District Attorney Robert Morganthau and the CFTC for their diligent work in investigating these matters. Today's action should serve as an unmistakable notice to our market participants that NYMEX will not hesitate to work with law enforcement authorities, or take whatever steps are otherwise necessary, to protect the integrity of our markets." "

If you write to them make sure you quote them.

Maybe you should contact the FBI or Homeland security about the danger these silver shorts present to national security.

You might want to contact your State regulator too. The following is from the SEC site:http://www.sec.gov/about/commissioner/levitt.htm

"If you're still not satisfied, contact one of these offices that oversee the securities industry:

The SEC's Office of Investor Education and Advocacy. If you have a complaint, please use our online complaint form.

The nearest office of the Financial Industry Regulatory Authority (FINRA), which regulates most securities firms and brokers. You can also fill out a complaint form on FINRA's website.

Your state's securities administrator. You can find links and addresses for your state regulator by visiting the North American Securities Administrators Association's website. "

Hope this info is helpful.

[Holidaysilver]

Even the FBI brags about stopping commodities crime: "With losses totaling approximately $40 billion per year, combating Securities and Commodities Fraud remains a priority for the FBI."
The CFTC brags about working with law inforcement to stop fraud. Sound like a marriage made in heaven to you? Here is the information I got from the FBI site http://www.fbi.gov/publications/fina...htm#securities (Italics and bold print mine.)

You can contact the Economic Crimes Unit. https://tips.fbi.gov/ They claim (in 2006) to have 157 Agents devoted to the problem.

"FINANCIAL CRIMES"


"The Federal Bureau of Investigation (FBI) investigates matters relating to fraud, theft, or embezzlement occurring within or against the national and international financial community. These crimes are characterized by deceit, concealment, or violation of trust, and are not dependent upon the application or threat of physical force or violence. Such acts are committed by individuals and organizations to obtain personal or business advantage. The FBI focuses its financial crimes investigations on such criminal activities as corporate fraud, health care fraud, mortgage fraud, identity theft, insurance fraud, mass marketing fraud, and money laundering. These are the identified priority crime problem areas of the Financial Crimes Section (FCS) of the FBI."



"The Economic Crimes Unit is responsible for significant frauds targeted against individuals, businesses and industries to include: corporate fraud, insurance fraud (non-health care related), securities and commodities fraud, mass marketing fraud, telemarketing fraud, Ponzi schemes, advance fees schemes, and pyramid schemes."



"Commodities Fraud: Commodities fraud is perpetrated by firms or individuals that sell futures and options through illegal means. For example, investments in precious metals or commodities may be sold based on fraudulent sales pitches claiming high rates of return, with little risk, if clients purchase commodities through a financing agreement. Sometimes the perpetrators will offer the opportunity to speculate on movements in the price of commodities, without ever actually taking delivery of the commodity. Traders may also illegally manipulate the price of a commodity. In these cases, the traders report fraudulent pricing information or corner-the-market on certain commodities in order to inflate the price for their profit. "



If you want to contact them, you can file a tip here: https://tips.fbi.gov/

[Kelly]

Holidaysilver, you've posted some really excellent research here. Thanks a bunch for all your effort. These are just outstanding posts!

Additionally here is where you can email the SEC to make complaints about suspected commodity price fixing...

enforcement@sec.gov
Complaints and reports from any member of the public concerning possible violations of the federal securities laws can now be sent directly to the electronic mailbox of the Division of Enforcement. If you believe that you have been the victim of a securities-related fraud, through the Internet or otherwise, or if you believe that any person or entity may have violated or is currently violating the federal securities laws, we would like to hear from you. You can e-mail us directly at enforcement@sec.gov or you can submit the Enforcement Complaint Form located in our Enforcement Complaint Center. Our mission is to enforce the securities laws that seek to protect investors and ensure that the securities markets are fair and honest. By reporting suspected instances of fraudulent activity relating to securities, you may be able to prevent future losses to investors.

It's about time these folks realize that they not only have a responsibility to protect investors; they also have a responsibility to protect the general public from price fixing scams in the commodities markets. It's obviously effecting the silver market by driving prices down, but it is also effecting your home budget because the same jerks are manipulating the prices of food commodities and oil up. Complain like crazy about it! Hint: when you do complain, don't call it "speculation", because that is legal. Call it "manipulation" or "price fixing" instead; that's illegal.

[JohnMD]

I understand why the government wants to manipulate gold prices downward, but why silver? Taking short positions in a market that is going up, as the article claims is the case with silver, results in severe losses to the position holder. So, why do it? If you are a private business, like eight big banking related institutions, unless the Fed is going to reimburse you for your losses, you wouldn't take huge short positions, unless you think silver is going to go down, or unless you are hedging existing long positions in silver or calls written on silver. The Fed won't reimburse you for silver short losses, as would be the situation with gold short losses. Silver, after all, has not been a monetary metal for over 100 years, having been replaced by gold at about that time. So, I don't buy the premise of this article, unless someone gives a good motive.

[Drumblebum]

Originally Posted by JohnMD

Silver, after all, has not been a monetary metal for over 100 years, having been replaced by gold at about that time.

Maybe I misunderstand, but wasn't 90% coinage actual money into the 1960's?

[mikeck]

Originally Posted by Drumblebum

Maybe I misunderstand, but wasn't 90% coinage actual money into the 1960's?

Indeed it was...makes one wonder about the motives of the poster.