Silver Market Duality
Commodities / Gold and Silver 2013 Jun 14, 2013 - 04:22 PM GMTDuality in trade in the precious metals markets has existed for decades. The decoupling has never been more obvious with the seeming dichotomy of prices versus demand and production.
We can discuss things below the surface, but it's far different than what we see and try to interpret.Below the surface, fundamentals exist that would be barely recognizable.Above the surface, we are left with phantom markets created out of greed and supported by a seemingly everlasting flow of liquidity and hope.
Many markets share this feature and so far, the world goes on with trillions in stimulus measures by the world’s central banks. The measures have so far kept many nations from falling into a severe depression, but for how long?
Equities are manipulated by HFT and the president’s working group to create a pseudo reality, keeping most people blissfully ignorant of the true nature of our present economic “reality”.
The largest market in the world - the U.S. Treasury market is mainly supported by the fed (up to 80 percent if its issuance), including twisting the yield curve to control longer duration rates. Even energy markets have been long artificially influenced by the oil cartels.
Summarizing the Known Rigged Markets.
With the banking cartel still firmly entrenched, with apparently no significant opposition, the most recent market to be recognized as being manipulated is the forex market, the largest market in the world. Courtesy of Zero Hedge, below are listed recognized manipulated markets.
Libor - Interest rates, the London Interbank Offered Rate or LIBOR is one of the most influential benchmark interest rates in the world and has been manipulated by the banksters for years.
ISDA fix– Swaps, the benchmark for $379 trillion in swaps has recently been found rigging rates.
Platts - Oil prices, the same type of rigging has been done by price reporting agencies in the oil market, Platts, the company responsible for reporting 90% of oil trades has been found involved in the same shenanigans.
WM/Reuters– FX, the latest scandal has WV/Reuters employees front running customer orders in the forex market and rigging exchange rates.
High-Frequency Trading–Equities, HFT can move stock prices through computer generated orders, which can be placed in milliseconds.
What Next?
We know that the Fed and world central banks are engaged in a full blown (and unprecedented) Treasury curve modeling exercise courtesy of both ZIRP (short-end) and QE (long-end), and that courtesy of some $12 trillion in extra liquidity in the past 5 years, stocks are at an artificial "wealth effect" sugar high.
All we can do is watch and prepare - based on reality. Which is painful and slower moving than most would have guessed.Even a manipulated market can stay irrational longer than most can stay solvent
To the opposing view, with regard to precious metals price suppression, cornering a market is age old - be it short or long. And nothing trades as predictably as gold and silver.
In the silver market, price suppression is not a secret at all. It’s been known (and ignored) for decades and officially investigated multiple times over the years - including now. You would have to blind or extremely naive to assume that 30 and 40 percent corrections that come out of nowhere are market driven.
And yes, the price has risen despite desperate attempts to hide the macroeconomic from those whose survival depends on its reality, which of course, is the ultimate crime.
For more articles like this, and to stay updated on the most important economic, financial, political and market events related to silver and precious metals, visit 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 © 2013 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.
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