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
Has the Fed Let the Inflation Genie Out of the Bottle? - 10th Aug 20
The Strange Food Trend That’s Making Investors Rich - 10th Aug 20
Supply & Demand For Money – The End of Inflation? - 10th Aug 20
Revisiting Our Silver and Gold Predictions – Get Ready For Higher Prices - 10th Aug 20
Storm Clouds Are Gathering for a Major Stock and Commodity Markets Downturn - 10th Aug 20
A 90-Year-Old Stock Market Investment Insight That's Relevant in 2020 - 10th Aug 20
Debt and Dollar Collapse Leading to Potential Stock Market Melt-Up, - 10th Aug 20
Coronavirus: UK Parents Demand ALL Schools OPEN September, 7 Million Children Abandoned by Teachers - 9th Aug 20
Computer GPU Fans Not Spinning Quick FIX - Sticky Fans Solution - 9th Aug 20
Find the Best Speech Converter for You - 9th Aug 20
Silver Bull Market Update - 7th Aug 20
This Inflation-Adjusted Silver Chart Tells An Interesting Story - 7th Aug 20
The Great American Housing Boom Has Begun - 7th Aug 20
NATURAL GAS BEGINS UPSIDE BREAKOUT MOVE - 7th Aug 20
Know About Lotteries With The Best Odds Of Winning - 7th Aug 20
Could Gold Price Reach $7,000 by 2030? - 6th Aug 20
Bananas for All! Keep Dancing… FOMC - 6th Aug 20
How to Do Bets During This Time - 6th Aug 20
How to develop your stock trading strategy - 6th Aug 20
Stock Investors What to do if Trump Bans TikTok - 5th Aug 20
Gold Trifecta of Key Signals for Gold Mining Stocks - 5th Aug 20
ARE YOU LOVING YOUR SERVITUDE? - 5th Aug 20
Stock Market Uptrend Continues? - 4th Aug 20
The Dimensions of Covid-19: The Hong Kong Flu Redux - 4th Aug 20
High Yield Junk Bonds Are Hot Again -- Despite Warning Signs - 4th Aug 20
Gold Stocks Autumn Rally - 4th Aug 20
“Government Sachs” Is Worried About the Federal Reserve Note - 4th Aug 20
Gold Miners Still Pushing That Cart of Rocks Up Hill - 4th Aug 20
UK Government to Cancel Christmas - Crazy Covid Eid 2020! - 4th Aug 20
Covid-19 Exposes NHS Institutional Racism Against Black and Asian Staff and Patients - 4th Aug 20
How Sony Is Fueling the Computer Vision Boom - 3rd Aug 20
Computer Gaming System Rig Top Tips For 6 Years Future Proofing Build Spec - 3rd Aug 20
Cornwwall Bude Caravan Park Holidays 2020 - Look Inside Holiday Resort Caravan - 3rd Aug 20
UK Caravan Park Holidays 2020 Review - Hoseasons Cayton Bay North East England - 3rd Aug 20
Best Travel Bags for 2020 Summer Holidays , Back Sling packs, water proof, money belt and tactical - 3rd Aug 20
Precious Metals Warn Of Increased Volatility Ahead - 2nd Aug 20
The Key USDX Sign for Gold and Silver - 2nd Aug 20
Corona Crisis Will Have Lasting Impact on Gold Market - 2nd Aug 20
Gold & Silver: Two Pictures - 1st Aug 20
The Bullish Case for Stocks Isn't Over Yet - 1st Aug 20
Is Gold Price Action Warning Of Imminent Monetary Collapse - Part 2? - 1st Aug 20
Will America Accept the World's Worst Pandemic Response Government - 1st Aug 20
Stock Market Technical Patterns, Future Expectations and More – Part II - 1st Aug 20
Trump White House Accelerating Toward a US Dollar Crisis - 31st Jul 20
Why US Commercial Real Estate is Set to Get Slammed - 31st Jul 20
Gold Price Blows Through Upside Resistance - The Chase Is On - 31st Jul 20
Is Crude Oil Price Setting Up for a Waterfall Decline? - 31st Jul 20
Stock Market Technical Patterns, Future Expectations and More - 30th Jul 20
Why Big Money Is Already Pouring Into Edge Computing Tech Stocks - 30th Jul 20
Economic and Geopolitical Worries Fuel Gold’s Rally - 30th Jul 20
How to Finance an Investment Property - 30th Jul 20
I Hate Banks - Including Goldman Sachs - 29th Jul 20
NASDAQ Stock Market Double Top & Price Channels Suggest Pending Price Correction - 29th Jul 20
Silver Price Surge Leaves Naysayers in the Dust - 29th Jul 20
UK Supermarket Covid-19 Shop - Few Masks, Lack of Social Distancing (Tesco) - 29th Jul 20
Budgie Clipped Wings, How Long Before it Can Fly Again? - 29th Jul 20
How To Take Advantage Of Tesla's 400% Stock Surge - 29th Jul 20
Gold Makes Record High and Targets $6,000 in New Bull Cycle - 28th Jul 20
Gold Strong Signal For A Secular Bull Market - 28th Jul 20
Anatomy of a Gold and Silver Precious Metals Bull Market - 28th Jul 20
Shopify Is Seizing an $80 Billion Pot of Gold - 28th Jul 20
Stock Market Minor Correction Underway - 28th Jul 20
Why College Is Never Coming Back - 27th Jul 20
Stocks Disconnect from Economy, Gold Responds - 27th Jul 20
Silver Begins Big Upside Rally Attempt - 27th Jul 20
The Gold and Silver Markets Have Changed… What About You? - 27th Jul 20
Google, Apple And Amazon Are Leading A $30 Trillion Assault On Wall Street - 27th Jul 20
This Stock Market Indicator Reaches "Lowest Level in Nearly 20 Years" - 26th Jul 20
New Wave of Economic Stimulus Lifts Gold Price - 26th Jul 20
Stock Market Slow Grind Higher Above the Early June Stock Highs - 26th Jul 20
How High Will Silver Go? - 25th Jul 20
If You Own Gold, Look Out Below - 25th Jul 20
Crude Oil and Energy Sets Up Near Major Resistance – Breakdown Pending - 25th Jul 20
FREE Access to Premium Market Forecasts by Elliott Wave International - 25th Jul 20
The Promise of Silver as August Approaches: Accumulation and Conversation - 25th Jul 20
The Silver Bull Gateway is at Hand - 24th Jul 20
The Prospects of S&P 500 Above the Early June Highs - 24th Jul 20
How Silver Could Surpass Its All-Time High - 24th Jul 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