by Theodore Butler
Today, I would like to take a stroll down memory lane and revisit an issue that dominated the endless and often heated daily conversations I had with my dearly departed old friend, Israel Friedman. In the early days (circa the mid-1980’s), Izzy’s interest in my allegations of a short selling scam on the COMEX went to the motivations behind the price suppression and not so much the mechanics of the manipulation. He did issue me the challenge to come up with the explanation for why silver was so cheap in the face of a documented physical shortfall between supply and demand and it did take me a year to come up with the answer – but for some reason, Izzy didn’t latch onto it immediately (not many –or actually any – people did).
So Izzy looked instead to the motivation, sort of accepting my COMEX short selling explanation, but shifting the conversation to who was benefitting from the depressed silver prices under the assumption that those benefitting the most were the likely forces behind the paper short selling on the COMEX.