http://www.kingworldnews.com/kingworldnews/Broadcast_Gold+/Entries/2010/5/15_Ted_Butler_on_the_Metals_Market.html

With apologies to Ted Butler for any inaccuracies in my summary of his interview with Eric King.

In terms of the COT report, gold did deteriorate a little with more shorts added. Silver had an outright improvement with a 2800 contract reduction. The startling news was the massive decrease in the Big Four (read JP Morgan) silver contracts with a reduction of 6,800 (short) contracts. This is the biggest 1 week decrease in a long time and results in the Big Four (read JP Morgan) being at its lowest silver short position for 1 year. Ted is very optimistic and feels that pressure has built up on JP Morgan to start exiting its massive short position and they are unlikely to add more short contracts because of the scrutiny and public perception.

I am not so sure Ed Steer agrees with Ted Butler on the de-fanging of the Cartel as he wrote "Well, dear reader, if CFTC chairman Gary Gensler is looking for blatant market management in both gold and silver... I do believe that I found some on Friday. This was a full frontal assault by the bullion banks... and I'm sure they didn't do as well as they hoped... as more than willing buyers showed up to 'buy the dip'. Volume was enormous... but that won't be published on the CME's website for many hours yet, as it's late on Friday evening as I write this particular paragraph."

Butler also said he is seeing a large increase in silver/gold buying in the physical market. He noted that the Central Fund of Canada is buying 8 million ounces of silver for $375 million and that should put upward pressure on the price of silver.