Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24
US House Prices Trend Forecast 2024 to 2026 - 11th Oct 24
US Housing Market Analysis - Immigration Drives House Prices Higher - 30th Sep 24
Stock Market October Correction - 30th Sep 24
The Folly of Tariffs and Trade Wars - 30th Sep 24
Gold: 5 principles to help you stay ahead of price turns - 30th Sep 24
The Everything Rally will Spark multi year Bull Market - 30th Sep 24
US FIXED MORTGAGES LIMITING SUPPLY - 23rd Sep 24
US Housing Market Free Equity - 23rd Sep 24
US Rate Cut FOMO In Stock Market Correction Window - 22nd Sep 24
US State Demographics - 22nd Sep 24
Gold and Silver Shine as the Fed Cuts Rates: What’s Next? - 22nd Sep 24
Stock Market Sentiment Speaks:Nothing Can Topple This Market - 22nd Sep 24
US Population Growth Rate - 17th Sep 24
Are Stocks Overheating? - 17th Sep 24
Sentiment Speaks: Silver Is At A Major Turning Point - 17th Sep 24
If The Stock Market Turn Quickly, How Bad Can Things Get? - 17th Sep 24
IMMIGRATION DRIVES HOUSE PRICES HIGHER - 12th Sep 24
Global Debt Bubble - 12th Sep 24
Gold’s Outlook CPI Data - 12th Sep 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

On the Silver Highway

Commodities / Gold and Silver 2015 Mar 13, 2015 - 02:46 PM GMT

By: Dr_Jeff_Lewis

Commodities

I’ll fly a starship across the Universe divide
And when I reach the other side
I'll find a place to rest my spirit if I can
Perhaps I may become a highwayman again
Or I may simply be a single drop of rain
But I will remain
And I'll be back again, and again and again and again and again. - The Highwayman


Kondratiev waves, supercycles, great surges, long waves, K-waves, the long economic cycle (Elliot waves), or any other supposedly cycle-like phenomena in the modern world economy. 

You can forget all about this. 

Just noise. The real deal is right in front of you. Public data for all to see. 

The irony of blatant silver price manipulation is that it actually makes it easier to see and predict price patterns. The skid marks of uneconomic, nonprofit intervention are visible to all who care to look with only the slightest magnification. 

Of course, rousing the wherewithal and desire to make the effort to look just beneath the surface is a tragedy all of its own.

Technical analysis and other forms of pattern recognition are unnecessary, yet they are revered and worshipped. 

With silver especially, diving just below the surface we see the ebb and flow of the profit mechanism employed by the large traders.

The repetition of history. It’s the grand rhyme of history; integration of trading, physical reality, politics, economics and behavior. 

Because the metals are feared by the elite, they will forever be managed to the extent that they can. 

So they do what ever it takes, using any and all means available to suppress the underlying price. Their methods are effective in the short term and profitable to the commercial investment houses that enable it - immune to common sense regulation and, therefore, the regulators themselves are part of the greater plot. 

The more intervention, the easier it is to read the patterns…like a child’s drawing, if it weren’t so sinister and amoral. 

The cycles of manipulation are there for the observation, marked by the big shorts capping the price on each and every rally. Price is held to percentage gains, never to follow through the afternoons. 

Technical funds liquidate as the price falls and then begin adding shorts, further accelerating the price to the downside. Once there are no more longs to harvest, the price rallies as the commercials cover and profit; the equivalent of taking candy from a baby. Shorts cover and the price rallies. New longs come right back in on the momentum only to be capped again. 

The whole cycle takes about 8-12 weeks to complete. The cycle has repeated itself over and over in the last many decades, with only brief glimpses of where the price will go once the manipulation ends. 

The technicals try and play all of this…the big commercials know exactly what they will do. Technology and the machines make all of this much easier to accomplish. The process has evolved.

High frequency spoofing can push the market in whatever direction — with less and less concentration of positions. But by definition, the power needed to fuel these machines is concentrated.  

The actual short side concentration comes in on the price capping.  Meanwhile, actual inventory movements within the COMEX system have become more frantic, a hidden strain. 
 
We are now sitting at the trough in the current cycle. The big banks have harvested practically all of the weak longs, longs that came in at the end of the last $2 move up in price that began in late 2014. Now the price is well below technically important moving averages and sentiment is horrible. 

Speculative, machine driven funds have or probably will soon begin shorting. This will provide the room for the big banks to cover and profit. The price will rise - until the big boys do it again. 

We keep coming back around and around. This will end and begin and again and again, keeping the whole thing together for a little while longer. But the rallies will come back and there will always be a steady trickle of physical metal off-take. 

The low growth low rates and fiscal debt monetization leading to confidence are all connected to repo, leverage, and derivatives; leading back to silver, COMEX, and default that occurs in parallel as we are gripped in issues elsewhere.

Perhaps the mainstream will not have time to notice the metals rising  - or the impact - the end game of the current world reserve experiment.

For more articles like this, and/or for a breath of fresh silver market reality amidst the stench of denial and technically meaningless short term price obsessed madness, check out http://www.silver-coin-investor.com

By Dr. Jeff Lewis

    Dr. Jeffrey Lewis, in addition to running a busy medical practice, is the editor of Silver-Coin-Investor.com

    Copyright © 2014 Dr. Jeff Lewis- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Dr. Jeff Lewis Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in