Best of the Week
Most Popular
1.Spain Ignores Scotland Lesson as Catalan Independence Referendum Could Spark Civil War - Nadeem_Walayat
2.Used Car Buying From UK Dealer Top Tips, CarMotion.co.uk Real Customer Experience - N_Walayat
3.Spanish New Civil War Begins as Madrid Regime Storm Troopers Quell Catalan Independence Rebellion - Nadeem_Walayat
4.Virgin Media Broadband Down, Catastrophic UK Wide Failure! - Nadeem_Walayat
5.Are the US Markets setting up for an Early October Surprise? - Chris_Vermeulen
6.The Pension Storm Is Coming To Europe—It May Be The End Of Europe As We Know It -John_Mauldin
7.Stock Market Crash 2018; Will it Prove to be Another Buying Opportunity - Sol_Palha
8.The Profoundly Personal Impact Of The National Debt On Our Retirements - Dan_Amerman
9.Stock Market as Good as it Gets; Like 2000 With a Twist -Gary_Tanashian
10.1987 Stock Market Crash 30th Anniversary Greatest Investing Lesson Learned - Nadeem_Walayat
Last 7 days
Bitcoin Hits $6,000, $100 Billion Market Cap As Helicopter Ben and Jamie Demon Warn The End Is Near! - 22nd Oct 17
Time for Caution in Gold Miners - 22nd Oct 17
“Great Rotation” Ahead; Will it Be Inflationary or Deflationary? - 21st Oct 17
The Trigger for Volatility, Rates and the Next Crisis - 21st Oct 17
Perks to Consider an Agent for Auto Insurance - 21st Oct 17
Emerging Megatrends Hurting Consumers - 21st Oct 17
A Catalyst of the Stock Market Bubble Bust - 21st Oct 17
Silver Stocks Comatose - 21st Oct 17
Stock Investors Ignore What May Be The Biggest Policy Error In History - 20th Oct 17
Gold Up 74% Since Last Stock Market Peak 10 Years Ago - 20th Oct 17
Labour Sheffield City Council Employs Army of Spy's to Track Down Tree Campaigners / Felling's Watchers - 20th Oct 17
Stock Market Calm Before The Storm - 20th Oct 17
GOLD Price Creates Bullish Higher Low - 20th Oct 17
Here’s the US’s Biggest Vulnerability in NAFTA Negotiations - 20th Oct 17
The Greatest Investing Lesson Learned from the 1987 Stock Market Crash - 20th Oct 17
Stock Market Time to Go All-in. Short, That Is - 19th Oct 17
How Gold Bullion Protects From Conflict And War - 19th Oct 17
Stock Market Super Cycle Wave C May Have Started - 19th Oct 17
Negative Expectations, Will the Stock Market Correct? - 19th Oct 17
Knowing the Factors Affect your Car Insurance Premium - 19th Oct 17
Getting Your Feet Wet In Crypto Currencies - 19th Oct 17
10 Years Ago Today a Stocks Bear Market Started - 19th Oct 17
1987 Stock Market Crash 30th Anniversary Greatest Investing Lesson Learned - 19th Oct 17
Virgin Media Broadband Down, Catastrophic UK Wide Failure! - 19th Oct 17
The Passive Investing Bubble May Trigger A Massive Exodus from Stocks - 18th Oct 17
Gold Is In A Dangerous Spot - 18th Oct 17
History Says Global Debt Levels Will Lead to Another Crisis - 18th Oct 17
Deflation Basics Series: The Quantity Theory of Money - 18th Oct 17
Attractive European Countries for Foreign Investors - 18th Oct 17
Financial Transcription Services – What investors should know about them - 18th Oct 17
Brexit UK Vulnerable As Gold Bar Exports Distort UK Trade Figures - 18th Oct 17
Surge in UK Race Hate Crimes, Micro-Racism, Sheffield, Millhouses Park, Black on Asian - 18th Oct 17
Comfortably Numb: Surviving the Assault on Silver - 17th Oct 17
Are Amey Street Tree Felling's Devaluing Sheffield House Prices? - 17th Oct 17
12 Real-Life Techniques That Will Make You a Better Trader Now - 17th Oct 17
Warren Buffett Predicting Dow One Million - Being Bold Or Overly Cautious? - 17th Oct 17
Globalization is Poverty - 17th Oct 17
Boomers Are Not Saving Enough for Retirement, Neither Is the Government - 16th Oct 17
Stock Market Trading Dow Theory - 16th Oct 17
Stocks Slightly Higher as They Set New Record Highs - 16th Oct 17
Why is Big Data is so Important for Casino Player Acquisition and Retention - 16th Oct 17
How Investors Can Play The Bitcoin Boom - 16th Oct 17
Who Will Be the Next Fed Chief - And Why It Matters  - 16th Oct 17
Stock Market Only Minor Top Ahead - 16th Oct 17
Precious Metals Sector is on Major Buy Signal - 16th Oct 17
Really Bad Ideas - The Fed Should Have And Defend An Inflation Target - 16th Oct 17
The Bullish Chartology for Gold - 15th Oct 17
Wikileaks Mocking US Government Over Bitcoin Shows Why There Is No Stopping Bitcoin - 15th Oct 17
How to Wipe Out Puerto Rico's Debt Without Hurting Bondholders - 15th Oct 17
Gold And Silver – Think Prices Are Manipulated? Look In The Mirror! - 15th Oct 17

Market Oracle FREE Newsletter

3 Videos + 8 Charts = Opportunities You Need to See - Free

Silver, But No Silver Lining

Commodities / Gold & Silver Dec 12, 2008 - 06:39 AM GMT

By: Robert_Singer

Commodities

Best Financial Markets Analysis ArticleThe end of our consumer society is on the horizon, which should be no surprise to anyone who took Economics 101. Do we really expect to spend our way out of this mess by buying and selling each other useless cheap stuff from China ?

As the financial collapse gathers steam, gold and silver oracles like Butler , Friedman, Morgan and Turk who have been predicting for years the launch of the price of silver to the moon will see their prophecy fulfilled, but a celebration is not in order.


Being wealthy during the last 60 years of unprecedented prosperity at the expense of the Third World and the environment is one thing, but profiting from a bull market in silver when millions of hungry Americans are living in tent-cities next door is quite another.

A default at the Comex that will ignite the explosion in the price of silver and gold is in progress. Investors turned away from the bullion and coin dealers who refuse to sell silver at the $9 paper price opened commodity futures brokerage accounts. They hope to take delivery of the real thing--silver bars with serial numbers--at the manipulated price of $9 an ounce before the Comex has to shut down and admit they never had enough real silver.

Silver delivery at $9 per ounce is courtesy of The Shorts, the largest concentrated short position by four or less dealers in financial history.

Ted Butler, a brilliant researcher, has been writing about the concentrated short position in silver for years and initially thought the default at Comex would come when the dealers ran out of liquidity, but his research suggested otherwise: “Even when holding extremely large short positions and incurring massive unrealized paper losses, measuring in the many hundreds of millions of dollars, the dealers have never collectively turned tail and bought back their short positions to the upside.”

Shorts to Comex and the regulators: The dramatic price decline in August from $21 to $ 9 is our parting gift to you for looking the other way during our obvious manipulation of prices in the War on Precious Metals. We had to prevent gold and silver from gaining legitimacy as stores of value or consumerism would not have become hyper-consumerism. Mopping up our mess will be easier at $9 instead of $21.

The Comex maintains a guarantee fund and insurance policy to meet a clearing member default, but it has only about $250 million, which is insufficient to cover the losses, but imagine a default at $50 or more per ounce.

Why has the price of silver historically been suppressed, stuck for years in th e $4 to $5 trading range?

The downward price manipulation of silver caused by the excessive and uneconomic short position on the Comex has been the subject of most of Butler 's research. His explanation for market fluctuations are often greed-and-profit but he just as often contradicts himself and writes: “It is my contention that this uniquely large and concentrated short position in silver explains why the price is still cheap. Therefore, in spite of the open losses the shorts are experiencing and the great profits accruing to silver investors, the price manipulation is still in place.” James R. Cook, president of Investment Rarities, credits Ted Butler for the vast majority of investment silver purchased in the past seven years, but when Cook asks the obvious question, “Isn't the manipulated downward price consistent with a strategy to encourage the purchase of silver?”, Ted is unable to provide a greed-and-profit motive and repeats what has become his mantra, “My main motive has been and still remains doing what I can to end this manipulative crime in progress.”

It is manipulative and it is a crime, but Ted Butler is unable to consistently support a profit motive because there isn't one. The Puppet Masters manipulate the paper price of the precious metals downward to prevent gold and silver from gaining legitimacy as stores of value instead of the fiat currencies we call money.

Behind every consumer society is the reality of a credit-based monetary system and a fiat currency. There is not enough gold and silver in the world to back the trillions of dollars required for the industrial revolution and the global consumer economy. Behind every fiat currency is a Federal Reserve or a Central Bank controlled by the same men: Rothschild, Rockefeller, Kuhn, Loeb, and Ted Butler's prime suspect in the “ongoing intentional not accidental” great crime of keeping the price of silver low so investors can “buy a lot more metal”: JP Morgan Chase. "The paper margin calls and technical selling in silver was intentionally planned and forced on us by those who held big short positions.”

One of the more absurd notions that found its way into the history books and the writings of economic experts is that somehow these men were made wealthier from the Monopoly money they printed, the same money that enabled consumers to buy houses, cars, furniture and electronics, i.e. the cheap “stuff” we use on a daily basis. Recall that in 1910 these men already controlled one-sixth of the entire world's wealth, and it was real wealth: gold, silver and raw materials in a world before we had a “throw away" mentality and the planet's ecological structures were still in balance.

The Federal Reserve puppet masters orchestrated the Industrial Revolution, the Great Depression, the stagflation of the 1970's and the dot-com and the housing market bubbles, all of which resulted in unprecedented prosperity.

Consumers can thank the puppet masters for all that “stuff” they have because as Ron (sound money) Paul puts it, “Our current system gives us a free ride, our paper (fiat) buys cheap goods from overseas, and foreigners risk all by financing our extravagance.”

Thank them also for the unprecedented environmental damage and pollution caused by our hyper-consumer society.

We have consumed the resources of our planet; and it's time for a change to a sustainable, non-consumer society. When people still had jobs and weren't scared to go shopping, I recommended The Story of Stuff but, thanks to the financial meltdown, consumerism is on the way out, so now the video to watch is the sequel: The Power of Community – How Cuba Survived Peak Oil.

By Robert Singer

Information about Robert Singer and other articles he has written are on his Authors page: http://www.opednews.com/author/author20310.html

Robert Singer is a retired information technology professional and an environmental activist living in southern California. In 1995 he and his cousin Adam D. Singer founded IPC The Hospitalist Company, Inc., where he served as chief technology officer. Today the company manages more than 130 practice groups, providing care in some 300 medical facilities in 18 states. Prior to that he was president of Useful Software, a developer and publisher of business and consumer software for the personal computing Industry.

© 2008 Copyright Robert Singer - 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.

Robert Singer Archive

© 2005-2017 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

Jan Williams
13 Dec 08, 10:29
Robert Singer

Your readers may want to read other interesting and thought provoking articles by Robert Singer

http://www.opednews.com/author/author20310.html


Laurie Mitchell
13 Dec 08, 13:02
Survive Peak Oil, grow your own food

The Power of Community: How Cuba Survived Peak Oil

Cuba adapted, survived, and thrived because they mobilized their entire culture. They made changes requiring cooperation, adaptability, and openness to alternatives. As one Cuban in the film remarks, “When told they needed to reduce energy use, everybody did it.”

http://www.powerofcommunity.org/cm/index.php


Post Comment

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

Catching a Falling Financial Knife