New Study Finds Silver Futures Market is Functioning Properly

[webmaster]

Subject:New Study Finds Silver Futures Market is Functioning Properly
By: U.S. Commodities Futures Trading Commission

Overview: The Commodity Futures Trading Commission’s (CFTC) Division of Market Oversight (DMO) today released a report that re-examines long-term and recent allegations of misconduct in the silver markets and finds that there is no evidence of manipulation in those markets for the trading period examined.

Link: http://news.silverseek.com/SilverSeek/1210789738.php

[7nomads]

"For the report, DMO examined trading activity in the silver futures market covering the period 2005-2007."

Ok, Jan 05 - Dec 07, silver went from around $6.50 to around $16 in Nov of 07.

Increase of almost 150%.

So listen to the DMO, buy silver because it went up without help and it'll go up again.

Let's see, 150 % from Jan 08, just about $40 an ounce in three years.

Sounds reasonable DMO, I'm in.

[nuslvrkwen]

"For the report, DMO examined trading activity in the silver futures market covering the period 2005-2007."

Ok, Jan 05 - Dec 07, silver went from around $6.50 to around $16 in Nov of 07.

Increase of almost 150%.

So listen to the DMO, buy silver because it went up without help and it'll go up again.

Let's see, 150 % from Jan 08, just about $40 an ounce in three years.

Sounds reasonable DMO, I'm in.

OK 7Nomads -

But if we believe the CFTC/DMO report then it means Ted Butler and all the commentators who have been investing in silver for decades have been WRONG all these years! Read my thread on the SEC Disclosure I posted yesterday. If the interbanks' lending rates between them were misquoted to EACH OTHER for years and only last August did anyone START questioning if they were in anyway being manipulated. The oversight committee (BBA) did the study of it's practices because of investor complaints! I'd be suspicious about this report. For one thing it only targets a 2 year time frame. And it was released to ease complaints levelled against CFTC/DMO! Silver didn't move very much at all for 10 years prior to 2005.

What has me is how the CFTC/DMO report and the Gold Analysis report I read out of London yesterday BOTH are saying they DON'T see silver rising more than the $40 per oz. in three years! I'll tell you right now; NOBODY can predict anything like that! After reading the Black Swan - this is sounding an awful lot like Sheeple Dip to ME. How come silver ISN'T moving upward? If it has so many industrial uses and gold enjoys the reputation of being used in circuitry and for jewelry making WHY has silver been so cheap all these years? Especially if there's LESS on hand than gold? And Platinum, dispite the energy crisis in mining...

I'm seeing it is possible to really BE in a depression ALREADY. WE are all in a bubble. Man, there were people like this in the '20s. With jobs; not everybody was on a breadline. We are ahead of many because we already own PM. By Christmas time this year people are really going to be buying this as a hedge no matter how many days the dollar is worth more than 64 - to 70cents.

Thanks for telling us about the report though!

[silverbuggy]

yeah, it is a bubble and i dont believe in what Ted Butler repeats over and over again.

[7nomads]

Hey Nuslvkkwen,

I'm not saying silver won't go way beyond $40 an ounce over the next 3 years.

And of course a "Black Swan" event might put silver where Jason Hommel has it going.

However, I buy silver because I know what I know, not what "might happen".

Bottom line the US dollar and all paper currencies will burn up. When I don't know.

The key is not to get greedy with leverage. But I do agree with Ted.

BTW the best book to read IMHO is "Death Grip of Debt".

All the best to All.

[nuslvrkwen]

What I meant by bringing up the book "The Black Swan" had nothing to do with what 'might happen'. It has to do with 'how things work'. It's the process in trading futures prices and actual physical metal purchasing that's being confused by the people who are supposed to oversee how the process works. There's a Deepcaster article that came out May 9th that talks about nothing BUT manipulation, and how people's perceptions of inflation and it's rate are skewed to cover the government's backside! I'm glad there IS such a thing as Shadowstats.com. I'd never heard of that resource before. What stood out for me was how official figures for Consumer Price Inflation have been systematically made to look like inflation grows at an annual rate of 4% when it's really just under 12% - which people on the street can SEE! But the people in the MEDIA are telling people "It's OK! Inflation is only at .4% annually."

The things Jason Hommel wrote answering the Dow Jones Newsservice guy actually back up Ted's statements! His answer showed why the DMO's report being published to 'allay complaints about manipulation' was published when it was so people WOULDN'T question the process! We're supposed to think after reading the CFTC/DMO report: "OK, everything just looks funny. But we should just keep doing what we're doing."

We all of us invest in metals because the way the marketplace is working in general make us believe we should put our funds aside for when things DO get crazy. No matter who's trying to publish a report or study to show the public things in the marketplace are really OK.

I can't see paper money drying up completely, not being able to be spent in the near future. Why? Compared to the '20s and the great depression - this marketplace we're dealing with for commodities and products is over extended. Back in those days, business didn't do as much borrowing from the public as it does. That's what you are doing when you buy stocks, and bonds and trade on futures prices. At the end of a quarter or annually - you'll either get a dividend, or your investment will lose value by a percentage.

Businesses still borrow from other businesses in the course of a specific time frame. (loans for a day, two weeks, month, 3 months and so on). It's that loan the business is not required to disclose - with the hope that by the time they ARE required to disclose the loan, it's paid off. That sounds great in theory. In reality, it happens all the time and by the time the business IS required to disclose it's debt. IT WON'T disclose for fear that business's "public" will feel it's not doing very well and STOP buying shares! (oh dear!)

What I CAN see is people making a choice EVERYTIME they get paper money. How the cash they spend now will help them in the future. I expect some of us will be diverting what we normally put in our 401Ks until the marketplace straightens itself our. Look at how people have been encouraged to invest. Then look at where these same advisors are "herding people's" investment monies. THEN take into account how the businesses we are investing our monies in are actually running, you'd be able to see what I saw when I read that report!

When I first starting reading these Forum threads there were contributors talking about WTSHTF - well 7Nomads! I agree! It WILL! This is probably just the tip of the Quickening that JesterJay's been waiting for! It'll be long and protracted. A lot of corporate finger pointing first. But it will happen and we'll be able to sit back and watch.