April 28, 2011
Mr. Laurence D. Fink
Chairman and CEO
BlackRock
55 East 52nd Street
New York, NY 10055
Dear Mr. Fink,
I am writing to alert you to a possible circumstance of fraud and manipulation in your popular ETF, SLV, due to the excessive short-selling of its shares. Current reports indicate the most recent level of total short sales now exceed 36 million shares. This is an increase of more than 14 million shares from the previous reported amount. ShortSqueeze.com
Each share of SLV requires that one ounce of silver be held at the Trust's custodian (minus accumulated ed management fees), according to the prospectus. Since short sellers of SLV shares do not deposit metal with the Trust's custodian, this means that the buyers of the more than 36 million shorted shares of SLV do not have metal backing, as required by the prospectus. It is my belief that many of the shares shorted have been shorted precisely because no physical silver was available to deposit. If I am correct, this may constitute fraud and manipulation, possibly on the part of Authorized Participants (APAs) who make deposits and redemptions of metal in the Trust.
I am a silver analyst and a fan of SLV. I had raised this issue with the previous owner and sponsor of the trust, Barclays Global Investors (BGI). I never did receive a satisfactory answer from BGI about the shorted shares issue, although they did agree to list and publish the bar serial number and weights held in the Trust after I publicly urged them to do so. I am hopeful that BlackRock might be more responsive to this issue.
Publicly-traded ETFs that have specific metal backing are highly unique securities. Perhaps a small short position may be overlooked on a temporary basis until the metal is deposited in the Trust due to logistical considerations. But a short position that represents more than 10% of the outstanding shares issued means that many buyers of the shares have no metal backing. This is clearly not in keeping with the spirit of the prospectus that each share issued be backed by one ounce of silver on deposit with the custodian.
I trust you will look into and rectify this circumstance.
Sincerely,
Ted Butler
Butler Research, LLC
www.butlerresearch.com
Don't hold your breath Ted....even if Fink is an honest guy, the dishonest are going to prevail here for the short term.
ReplyDeleteAll the manipulation of fraud in Silver is going to end, very suddenly, and w/o much warning. Could be tomorrow or 6 months from now. But we aren't far away.
Gotta give it to Ted, he's like a Shepard on a meat bone with all of this manipulation. I say: GO TED!!
ReplyDeleteI emailed this letter to O'Reilly Factor asking for him to look into this. If everyone who reads this sends the same request, maybe he will expose this fraud.
ReplyDeleteoreilly@foxnews.com
I was driving by my local Scotiabank the other day and I saw one of those advertisements they put in their windows that I feel entirely encapsulates the fiscal mentality of North America. It read, "Borrow to get ahead". LOL is that not one of the biggest oxyMORONS you have ever read? Who the hell is in charge of their marketing? I can just picture some douche financial advisor recommending this and the sheep accepting it as a genius idea. Here is a picture of it:
ReplyDeletehttp://expeditionoftruths.com/wp-content/uploads/2011/04/Borrowtogetahead2.png
Your richer than you think.
ReplyDeleteSILVER JUST PLUNGED $2.00!!!!
ReplyDelete3
ReplyDeleteIf this keeps up, APMEX will be out of business by morning.
ReplyDeleteDamn "they" are desperate.
44.81
This is great to watch. Im hoping it goes to 42 so I can load up the boat
ReplyDeleteBTFD!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
ReplyDelete10% drop! Time to back up da truck, its a big sale
ReplyDeleteJust dropped $5.69; desperate attempts to keep it in check.
ReplyDeleteFukin Hulk Hogan SLAM! Damn! Come on $39!
ReplyDeleteGot my order in! 100 oz on the way!!!! Yippeee!!!!!
ReplyDeletesilver plunging....down to 42.
ReplyDeleteDown a cool 20% in 3 seconds. WTF happened? Oh, that can't possibly be manipulation. If the fucker drops to 3 dollars I'll buy 50 monster boxes!
ReplyDeletelol, score, I had a stink bid in for 100 if the price dropped to 43, it did for a few secs, my order placed and now moving up again. Yeeeee Hawwwwwwww
ReplyDeleteThat stink bid on:
http://www.golddealer.ca/gallery.cfm?type=Silver
is pretty cool.
lol, look at the chart on top right of page,looks like someone pissing off a cliff.
ReplyDeleteWHAT THE FUCK JUST HAPPENED?!? FUCK YOU BLYTHE
ReplyDeleteWhat a slaughter!
ReplyDeletevisionvictory called this volatility in his most recent posting...
ReplyDeletehttp://www.youtube.com/user/visionvictory
*anybody* please humor me a moment. I'm really trying to learn this stuff. WTF just happened and why? Thanks in advance.
ReplyDeleteagThug it is silver; this is what it does! BTFD!!!
ReplyDeleteKIND OF KNEW THIS WAS COMING
ReplyDeleteSilver: Much Higher Margins Ahead for CME?
In what could be a precursor to much higher margins at the Chicago Mercantile Exchange, MF Global on Friday raised its margins on one contract of silver from $14,513 to $25,397, an increase of 75 percent.
"I would anticipate that the CME will be raising margins again due to the volatility of the daily trading range as well as to reflect the contract's intrinsic value," he said. McGillivray suggested markets could see some selling in silver when Comex electronic trade starts Sunday night at 6pm ET.
http://www.cnbc.com/id/42828370
Well, we got that in SPADES right now.
its because the dollar is making a dead cat bounce
ReplyDeleteThey're tryin to get everybody to dump their shares/physical for US Dollars most likely.
ReplyDeleteDear Sir SGS
ReplyDeleteThank you for the videos and the blog (as well as your posts at Turds and ZH).
Times like this it is good to remember the message from the bear videos and keep the faith.
Ignore the trolls, they are about to show up in spades.
Z
Gold and Silver DOWN!...Yawn, yawn and once more - yawn...
ReplyDeleteHow can the chart go straight down on a Sunday afternoon? Ever wonder why?
ReplyDeleteDeath Race
who the fuck is betting on the dollar? WTF!!
ReplyDeletethis thing will be over like a summer storm....
ReplyDeletefuckin robots
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ReplyDeleteThis stuff always happens outside of normal trading times. Isn't that convenient? All you can do here is buy physical. But I'm not buying between 40 and 50 until we see what's going on here.
ReplyDeleteI'll buy above 50 but not here. Obviously I'll buy below 40 too.
This is going to get volatile. I had mentioned that we can expect large intraday swinging around. The only caveat is what they are pulling with the US DOLLAR. This could get really stupid and probably will.
c'mom silvergoldsilver,we need some insite!
ReplyDeleteI'm on a separate platform here and I shouldn't even post this here the way you mock me. It might be my last post on your site but here is the information you don't have:
ReplyDeleteA "S.A." trading company sold a huge
number of naked silver shorts all at once. Did it on Sunday so the USA
couldn't react. I'm guessing it will recover about 50%. The JPM's who are getting killed by silver won't go down without a fight. They have drawn a
line in the sand at $50. It may take a while to break it. When it does it
means they have shot all their bullets and silver will then find it's true
price. Very high. They are fighting a long term losing battle. Gold
barely dipped meaning the MM action was in silver. No news to make it
happen. Just a big trader took a huge gamble selling naked options. If they
buy they back quickly they'll recoup some losses they've incurred. If they
think they can keep driving silver down I think they will encounter
resistance and lose money instead.....more if you want to "REMEMBER HOW YOU CAN THANK ME"....developing...
The News UNIT Blogspot: You know where it is by now.
@NU Well finally we get a decent post with some actual insight. Maybe that's the key.
ReplyDelete