Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
Stock Markets Failing to Give Another AI Mega-trend Buying Opportunity - 6th Jun 20
Is the Stock Bulls' Cup Half-Full or Half-Empty? - 6th Jun 20
Is America Headed for a Post-Apocalyptic Currency Collapse? - 6th Jun 20
Potential Highs and Lows For Gold In 2020 - 5th Jun 20
Tying Gold Miners and USD Signals for What Comes Next - 5th Jun 20
Rigged Markets - Central Bank Hypnosis - 5th Jun 20
Gold’s role in the Greater Depression of 2020 - 5th Jun 20
UK Coronavirus Catastrophe Trend Analysis Video - 5th Jun 20
Why Land Rover Discovery Sport SAT NAV is Crap, Use Google Maps Instead - 5th Jun 20
Stock Market Election Year Cycles – What to Expect? - 4th Jun 20
Why Solar Stocks Are Rallying Against All Odds - 4th Jun 20
East Asia Will Be a Post-Pandemic Success - 4th Jun 20
Comparing Bitcoin to Other Market Sectors – Risk vs. Value - 4th Jun 20
Covid, Debt and Precious Metals - 3rd Jun 20
Gold-Silver Ratio And Correlation - 3rd Jun 20
The Corona Riots Begin, US Covid-19 Catastrophe Trend Analysis - 3rd Jun 20 -
Stock Market Short-term Top? - 3rd Jun 20
Deflation: Why the "Japanification" of the U.S. Looms Large - 3rd Jun 20
US Stock Market Sets Up Technical Patterns – Pay Attention - 3rd Jun 20
UK Corona Catastrophe Trend Analysis - 2nd Jun 20
US Real Estate Stats Show Big Wave Of Refinancing Is Coming - 2nd Jun 20
Let’s Make Sure This Crisis Doesn’t Go to Waste - 2nd Jun 20
Silver and Gold: Balancing More Than 100 Years Of Debt Abuse - 2nd Jun 20
The importance of effective website design in a business marketing strategy - 2nd Jun 20
AI Mega-trend Tech Stocks Buying Levels Q2 2020 - 1st Jun 20
M2 Velocity Collapses – Could A Bottom In Capital Velocity Be Setting Up? - 1st Jun 20
The Inflation–Deflation Conundrum - 1st Jun 20
AMD 3900XT, 3800XT, 3600XT Refresh Means Zen 3 4000 AMD CPU's Delayed for 5nm Until 2021? - 1st Jun 20
Why Multi-Asset Brokers Like are the Future of Trading - 1st Jun 20
Will Fed‘s Cap On Interest Rates Trigger Gold’s Rally? - 30th May
Is Stock Market Setting Up for a Blow-Off Top? - 29th May 20
Strong Signs In The Mobile Gaming Market - 29th May 20
Last Clap for NHS and Carers, Sheffield UK - 29th May 20

Market Oracle FREE Newsletter


Gold and Silver Paper Sellers Conveniently Trapped

Commodities / Gold and Silver 2012 Jul 03, 2012 - 04:08 AM GMT

By: Dr_Jeff_Lewis


The large and mostly naked holders of short positions in precious metals are conveniently trapped, especially in the silver market. Covering in any meaningful way would blow the U.S. Dollar's cover.

The Dollar’s increasingly serious valuation issues are also being ignored, but this may only last as long as the Euro continues to remain in the currency market’s spotlight as a target for selling pressure as Europe’s debt problems deepen.

Financial Repression

Financial repression was implemented after World War II to help melt away the war’s oppressive debt burden. It consisted of maintaining the following conditions:

 1. A moderate rate of inflation
 2. Some amount of growth
 3. A compelling situation for large banks to buy debt
Nevertheless, the extra, and unmentionable, fourth ingredient to the official policy of financial repression is modern day coin clipping. Since physical silver has long been absent from circulating currency, the next best thing is to bury its value in paper.

Basically, large banks have been allowed to enjoy commercial status in futures markets, which has allowed giant short positions to evolve. To be fair, this has occurred in all commodities, although the silver and gold futures markets typically see a far higher concentration of sellers.
This questionable access allowed obvious “not for profit” selling, as well as coordinated and manipulative selling, according to whistleblower Andrew Maguire. The result has helped keep precious metal prices low and sentiment poor to confuse the investing public for years.

Pretending That Regulators are on the Beat

In the meantime, not only have those big banks made easy profits, but they also enjoy the ability to buy, control and build long positions in the physical metals market without having any underlying commercial interest like miners and industrial users. They do this by inducing weak specs to sell on the downside momentum they induce.

The futures markets make this manipulation convenient by legitimizing the banks’ participation, which typically characterize their market manipulation as hedging customer business or over the counter derivative products.

As a facilitator of this manipulative process, government regulators have turned a blind eye since the process keeps metals and other commodity prices low, thereby allowing some political leg-room for more printing of paper money.

The mainstream media would not dare mention market suppression, since the word conspiracy seems synonymous with lunacy or fringe theories at best. Also convenient is the fact that silver has become of substantial strategic importance in modern times as an industrial commodity.

Despite poor economic indicators overall, perhaps this manipulation serves to support a spurious “hope” campaign that a return to better economic times is likely. For those that remain skeptical, physical silver continues to offer a safer haven than paper currency.

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

By Dr. Jeff Lewis

    Dr. Jeffrey Lewis, in addition to running a busy medical practice, is the editor of and

    Copyright © 2012 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.

© 2005-2019 - 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