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
Adaptive Fibonacci Price Modeling System Suggests Stock Market Peak May Be Near - 15th Aug 20
With Gold Above $2,000, Bulls Triumph! What’s Next? - 15th Aug 20
Stock Market, Asset Price Crash Dead Ahead - 15th Aug 20
NASDAQ vs. DJIA: Does the Recent Divergence Matter? - 15th Aug 20
AMD Ryzen 4900x / 5900x and 4950x / 5950x Zen3 4th Gen IPC and Clock Speed and Core Specs - 14th Aug 20
Stock Market Gap Fills Suggests Market Momentum May Stall - 14th Aug 20
Silver May Be Overextended – But It’s STILL Cheap - 14th Aug 20
A Short Guide To Making Your First Stock Market Investment - 14th Aug 20
Is Tech Reality Affects our Dating Possibilities? - 14th Aug 20
Will You Make Money in the New Silver Bull Market ? - 13th Aug 20
Hyper-Deflation Capital Destruction And Gold & Silver - 13th Aug 20
Stock Market Correction Approaching - 13th Aug 20
Silver Took the Stairs to $21 in 2008, Took Escalator to $29 2010. Is Silver on Elevator to 120th floor today? - 13th Aug 20
President Trump Signs Additional COVID Relief – What To Expect from the Markets - 13th Aug 20
Has Gold's Upward Drive Come to an End? - 13th Aug 20
YouTuber Ads Revenue & How to Start a Career on YouTube - 13th Aug 20
Silver Notches Best Month Since 1979 - 12th Aug 20
Silver Shorts Get Squeezed Hard… What’s Next? - 12th Aug 20
A Tale of Two Precious Metal Bulls - 12th Aug 20
Stock Market Melt-Up Continues While Precious Metals Warn of Risks - 12th Aug 20
How Does the Gold Fit the Corona World? - 12th Aug 20
3 (free) ways to ride next big wave in EURUSD, USDJPY, gold, silver and more - 12th Aug 20
A Simple Way to Preserve Your Wealth Amid Uncertainty - 11th Aug 20
Precious Metals Complex Impulse Move : Where Is next Resistance? - 11th Aug 20
Gold Miners Junior Stcks Buying Spree - 11th Aug 20
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
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

Market Oracle FREE Newsletter

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

Gold and Silver Price Control Limbo

Commodities / Gold and Silver 2013 Feb 14, 2014 - 01:03 PM GMT

By: Dr_Jeff_Lewis

Commodities Nothing matters to anybody until it matters to everybody — and by then it's too late. This could easily be said for the gold and silver price manipulation.

The question is whether the end comes before or after a concurrent monetary collapse, currency crisis, or hyperinflation.


The other adage is that markets can stay irrational much longer than one can stay solvent. We should add that manipulated markets are an entirely different category.

This is not a naturally manifested irrationality. Price controls are distorting in ways that are truly unimaginable -, and seemingly efficient.

Ultimately, the crowning achievement will be to split markets into two, a physical and paper, creating an official and unofficial gray market across the board for all commodities. And this split may be facilitated by alternative and electronic currencies, that sadly, in the end turn all into enemies of the state in the end.

There is a lag between general awareness and the unevenness of monetary expansion.

It is impossible to predict where artificial money will flow initially. The hope has been toward housing and stock prices without a concurrent (dangerous) rise in consumer prices. There is a lag. How long can the lag can last is anyone's guess.

Perception Managed Down the Line

Political capture of the fed was completed years ago once the chairman became hailed by the financial markets and adorned on the cover of popular magazines. The recent political game involving involved the exit of the most dovish of chairman. Yet, on a note of hawkishness, this chairman plowing plowed the way and the political will for his predecessor to complete what must be done in order to maintain the current monetary system.

Inflation Continues To Steal From the Most Vulnerable

Monetary policy inflation targeting hits hard on the most vulnerable of societies, the poor and elderly. But the political elite will not be swayed until the suffering consumes them. It is human nature to feel remorse for the sufferer on the other side of the world -, until one learns of his own impending pain, and thus becomes consumed by it. This is how official numbers with regard to real inflation are able to go on unquestioned.

Consider the implication of quietly reducing portion or package size for commodities, such as coffee, flour, or sugar.

If a 16 ounce package of coffee costs 20 cents, and the package is reduced by 4 ounces to 12, and the price stays the same, then you just inflated the cost of the coffee by 25%. This is a twisted triumph of modern propaganda.

Same Ole Same Ole

The fact that four4 or less large banks hold concentrated positions in any market makes a manipulation an inevitable.

The question remains, whether there we is 'enough' of a lag between the key tipping point of awareness and the ultimate collapse of the monetary system.? History may judge that they went hand in hand. But living thorough this moment, emotions paint a much more extended period and a cheap option before the storm.

While it is true that the typical, and sophisticated mainstream observer or investor is marred in the performance paradigm, it does not require much more than a curious mind to unveil the significance of this brief moment of opportunity.

Regulator Ignorant.

The recent Blythe Masters debacle is an example of this. The head of JP Morgan’s commodity unit was recently offered an advisory position with the CFTC. The knee jerk response to this was severe, and the position was quickly rescinded. It reveals two fascinating aspects of this historic moment. One that so many immediately saw the absurdity and conflict, and secondly, that the powers that be could not readily identify the potential fall out of a move like this. This says everything about the futile grasp of the larger picture.

Price controls ultimately fail, whether directly by political edict occurring in a rapidly devaluing currency (like we are witnessing in South America) or via long term and profitable fraud that parallels the support of a fiat reserve. - Ultimately fail. And the harder they come, the harder they fall.

The geometric expansion of money supply and fractional reserve lending (based on the modest of ratios) ensure that once the math begins to work its way backwards, conditions go from bad to panic overnight.

The sound of precious metals returning to a semblance of normal, whether based on commodity or monetary dynamics, will be nothing like anyone alive has ever heard. It will also be and one that generations going forward will not soon forget.

For more articles like this, and/or for a breath of fresh silver market reality amidst the stench of denial and technically meaningless short term price obsessed madness, check out http://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 © 2014 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