Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
The S&P 500 appears ready to correct, and that is a good thing - 18th Sep 20
It’s Go Time for Gold Price! Next Stop $2,250 - 18th Sep 20
Forget AMD RDNA2 and Buy Nvidia RTX 3080 FE GPU's NOW Before Price - 18th Sep 20
Best Back to School / University Black Face Masks Quick and Easy from Amazon - 18th Sep 20
3 Types of Loans to Buy an Existing Business - 18th Sep 20
How to tell Budgie Gender, Male or Female Sex for Young and Mature Parakeets - 18th Sep 20
Fasten Your Seatbelts Stock Market Make Or Break – Big Trends Ahead - 17th Sep 20
Peak Financialism And Post-Capitalist Economics - 17th Sep 20
Challenges of Working from Home - 17th Sep 20
Sheffield Heading for Coronavirus Lockdown as Covid Deaths Pass 432 - 17th Sep 20
What Does this Valuable Gold Miners Indicator Say Now? - 16th Sep 20
President Trump and Crimes Against Humanity - 16th Sep 20
Slow Economic Recovery from CoronaVirus Unlikely to Impede Strong Demand for Metals - 16th Sep 20
Why the Knives Are Out for Trump’s Fed Critic Judy Shelton - 16th Sep 20
Operation Moonshot: Get Ready for Millions of New COVAIDS Positives in the UK! - 16th Sep 20
Stock Market Approaching Correction Objective - 15th Sep 20
Look at This Big Reminder of Dot.com Stock Market Mania - 15th Sep 20
Three Key Principles for Successful Disruption Investors - 15th Sep 20
Billionaire Hedge Fund Manager Warns of 10% Inflation - 15th Sep 20
Gold Price Reaches $2,000 Amid Dollar Depreciation - 15th Sep 20
GLD, IAU Big Gold ETF Buying MIA - 14th Sep 20
Why Bill Gates Is Betting Millions on Synthetic Biology - 14th Sep 20
Stock Market SPY Expectations For The Rest Of September - 14th Sep 20
Gold Price Gann Angle Update - 14th Sep 20
Stock Market Recovery from the Sharp Correction Goes On - 14th Sep 20
Is this the End of Capitalism? - 13th Sep 20
The Silver Big Prize - 13th Sep 20
U.S. Shares Plunged. Is Gold Next? - 13th Sep 20
Why Are 7,500 Oil Barrels Floating on this London Lake? - 13th Sep 20
Sheffield 432 Covid-19 Deaths, Last City Centre Shop Before Next Lockdown - 13th Sep 20
Biden or Trump Will Keep The Money Spigots Open - 13th Sep 20
Gold And Silver Up, Down, Sideways, Up - 13th Sep 20
Does the Stock Market Really "See" the Future? - 12th Sept 20
Basel III and Gold, Silver and Platinum - 12th Sept 20
Tech Stocks FANG Index Nearing Critical Support – Could Breakout At Any Moment - 12th Sept 20
The Tech Stocks Quantum AI EXPLOSION is Coming! - 12th Sept 20
AMD Zen 3 Ryzen 4000 Questions Answered on Cores, Prices, Benchmarks and Threadripper Launch - 12th Sept 20
The Inflation Mega-trend is Going Hyper! - 11th Sep 20
Gold / Silver Ratio: Slowly I Toined… - 11th Sep 20
Stock Market Correction or Reversal? The Jury Isn't Out! - 11th Sep 20
Crude Oil – The Bearish Outlook Remains - 11th Sep 20
Crude Oil Breaks Lower – Sparking Fears Of Another Sub $30 Price Collapse - 11th Sep 20
Inflation by Fiat - 10th Sep 20
Unemployment Rate Drops. Will It Drag Gold Down? - 10th Sep 20
How Does The Global Economy Recover After This Global Pandemic? - 10th Sep 20
The Best Mobile Casino - 10th Sep 20
QE4EVER! - 9th Sep 20
AMD Ryzen Zen 3 4800x 10 Core 5ghz CPU, Cinebench Benchmark Scores (Est.) - 9th Sep 20
Stock Traders’ Dreams Come True – Big Technical Price Swings Pending on SP500 - 9th Sep 20
Should You Be Concerned About The Stock Market Big Downside Rotation? - 9th Sep 20
Options Traders Keep "Opting" for Even Higher Stock Market Prices - 8th Sep 20
Gold Stocks in Correction Mode - 8th Sep 20
The law of long-term time preference and Gold ownership - 8th Sep 20
Gold Bull Markets: History and Prospects Ahead - 8th Sep 20
Sheffield City Centre Coronavirus Shopping Opera Ahead of Second Covid-19 Peak - 8th Sep 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Silver Manipulation – Because They Needed the Eggs

Commodities / Gold and Silver 2016 Jul 25, 2016 - 11:58 AM GMT

By: Dr_Jeff_Lewis

Commodities

“It reminds me of that old joke- you know, a guy walks into a psychiatrist's office and says, hey doc, my brother's crazy! He thinks he's a chicken. Then the doc says, why don't you turn him in? Then the guy says, I would but I need the eggs. I guess that's how I feel about relationships. They're totally crazy, irrational, and absurd, but we keep going through it because we need the eggs.” - Woody Allen

While there is no question of government enabling, (by decree or inaction), market manipulations haven’t really changed all that much in character over the centuries. 


The players have morphed into giants. So large that they obscure general perception by virtue of nearly complete diffusion. 

Even those of us who see it, document it, and rise up against it, are all too often left with only one clear solution:

  • If we could simply wrest it from the clutches of the system, we would push the button and make every thing go away.
  • If the Commodities Futures Trading Commission 'acted' now to stop it, simple awareness of the event would create chaos. 
  • If a few large traders decided to stand for delivery, equal chaos while the 'rogue trader' meme would spread as the trades were cancelled. 

The ultimate reality is that despite the ineptitude of leaders and officials, the system of finance will implode into a currency collapse. 

Is it any wonder that the largest, most concentrated trading position of all commodities is held short on 'money'?

All we can really do is stand in our individual monetary provinces and take shelter from the inevitable storm. 

All price manipulation ultimately ends with suffering. 

Hand in hand with suppressing the rate of interest assigned to fiat, no greater obfuscation is that which (cannot be named) falsely backs the value of the legal tender of the moment.

In the meantime, there is profit for the chosen.

Do they really need the eggs?

If we follow the money, we see that the same applies to the commercial bank suppression of precious metals.

(Note: These are not banks in the traditional sense. They are massive hedge funds - giant nodes of risk in a massive worldwide system of currency and credit flows. They give real banking a bad name. But we call them banks a concession to the propaganda. They are nearly indistinguishable and as result, they hate each other fiercely).

Make no mistake; price manipulation of silver by the large concentrated short on the COMEX is a profit center for the big bullion banks that inhabit the commercial category of futures traders.

Yes, the mechanisms and tactics are fully enabled, but by virtue of this fact, direct government intervention is not required to function. It only needs tending to from time to time which simply tightens the noose further.

Are these commercial banks intervening in all markets on behalf of government?

Given the nature of the Federal Reserve and the blurred political lines between the Treasury, Wall Street (along with the 'legal' mechanisms by Exchange Stabilization Fund and Working Group), yes, of course they stand ready and do intervene in many markets.  

Spend a few hours looking over documentation from GATA for enlightenment. 

But silver is the big accident waiting to happen. 


The silver market doesn't need hands-on government intervention because the CFTC allows the giant banks to build massive concentrated positions as prices rise, and then periodically cover those positions via HFT-facilitated spoofing, banging the close, etc.

No need for swaps or leasing in the silver market because it's been so easy to enable banks to play the role of market maker while being the only short, letting the price action drive the perception of supply and demand.

And of course, silver is not officially stockpiled by central banks.

Again, for precious metals and commodities traded on futures exchanges, it is far easier to simply enable through lack of enforcement. Especially when enforcement itself was captured as soon as it was conceived. 

As Peter Warburton pointed out so many years ago:

Central banks are engaged in a desperate battle on two fronts: 

What we see at present is a battle between the central banks and the collapse of the financial system fought on two fronts. On one front, the central banks preside over the creation of additional liquidity for the financial system in order to hold back the tide of debt defaults that would otherwise occur. On the other, they incite investment banks and other willing parties to bet against a rise in the prices of gold, oil, base metals, soft commodities or anything else that might be deemed an indicator of inherent value. Their objective is to deprive the independent observer of any reliable benchmark against which to measure the eroding value, not only of the US dollar, but of all fiat currencies. Equally, they seek to deny the investor the opportunity to hedge against the fragility of the financial system by switching into a freely traded market for non-financial assets. 

It is important to recognize that the central banks have found the battle on the second front much easier to fight than the first. Last November I estimated the size of the gross stock of global debt instruments at $90 trillion for mid-2000. How much capital would it take to control the combined gold, oil, and commodity markets? Probably, no more than $200 billion, using derivatives. Moreover, it is not necessary for the central banks to fight the battle themselves, although central bank gold sales and gold leasing have certainly contributed to the cause. Most of the world’s large investment banks have over-traded their capital [bases]so flagrantly that if the central banks were to lose the fight on the first front, then the stock of the investment banks would be worthless. Because their fate is intertwined with that of the central banks, investment banks are willing participants in the battle against rising gold, oil, and commodity prices.

This enabling allows to the banks agency to do what they like. With silver in particular, they enjoy 'market maker status' on the surface while building positions that cannot be resolved without inescapable and permanent damage -- with or without any amount of intervention including confiscation and taxation. 

The converging legacies of the state and money centers never fully merge. They serve each other in a bizarre symbiosis that ultimately drains both to death.

If we factor in the dawn of a new massive war, then we can look at two possible scenarios:

  • The COMEX eventually becomes obsolete or symbolic, and the pricing mechanism reverts to a physical-based price discovery. Paper accelerates in loss of value in parallel.
  • Or as an agent of power, the Big Four commercial banks who essentially control price based on the nature of concentration, decide they’ve accumulated enough to let the price - and the value of their hoard - return toward and beyond equilibrium.

However it plays out - it’s not likely to happen in isolation. And it will be temporary as the fourth branch guides the story toward some other parallel agenda.

All we can do use the moment to our advantage - for our survival. 

Low silver prices currently benefit the big banks - the profit motive sought by virtue of enabling and price control.

Low prices benefit the users in the near term, which essentially allows for the continuation of and exploitation of an otherwise much more valuable resource.

Lower silver prices also quiet the monetary canary in the coal mine.

Of course, low prices potentially benefit those who perceive this for what it is - a brief opportunity. 

If it feels better, or more palatable, dress it up with fancy investment language.

1. To receive early notification for new articles, click here. 

2. Or to view all of our products and services, click here. 

3. Or...support the cause, and buy me a cold one! 

By Dr. Jeff Lewis

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

    Copyright © 2015 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

© 2005-2019 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

6 Critical Money Making Rules