Re: Silver
in response to
by
posted on
Feb 24, 2011 11:37AM
We may not make much money, but we sure have a lot of fun!
Well a contrary view is always welcome as it will only help the masses see both sides.
At this time though the evidence is overwhelming that the price suppression scheme has been in full force for over 20 yrs. Please go back through the fed minutes the last 20 yrs and you will see that they have admitted as much, freedom of information requests have shown this. I have read through these and ask you to do the same, it will take you awhile. The U.S has too much to lose if they lose the dollar as the worlds reserve currency, this is happening now. To lose the hegemony which will happen if precious metals rise is just a chance they are not wiling to take.
Afterall when asked Volker said the only thing he would do different from the late 70's would be to suppress the price of gold, since then this has been accomplished but is being overrun buy the buying throughout the world.
As for manipulating the price upwards i would say just ask the hunt brothers how that works, study this event and see how they wre bankrupted and jailed for this.
Since the first of jan 2 out of the 36 trading days have closed above a 1% move and none closed above 2%. All with the worlds oil basin on fire and deteriating to oblivion. Gold is lower than it was since all this turmoil started. The largest country in the middle east falls and gold gets sold off for 100 dollars.
What you have seen is a slow retreat and suppression, which is becoming much harder because of the overwhelming buying throughout the world. They do not have enough physical gold to keep the price down and paper derivatives can only go so far. They have zero silver physical which is why there are 95 trillion in paper derivatives out in the silver trade with jp morgan and blythe holding almost all. They took over the silver shorts from Lehman brothers when it fell. That;s why they were bought out over the weekend because a bankrupcy court would have opened the books wide open for all to see.
If you look you will see gold down 95% of the time 2 days before a jobs report, and before option expiry to make sure the longs always finish out of the money to discourage this buying and to dampen the excitement. This goes back yrs, any bad news comes out that would normally lift gold it is sold down 10 to 15 dollars to start the day....coincidence....not 5 or more yrs worth. You are seeing the attempted sell down right now before expiry on the 28th...it is not as easy now for them as it has been in the past. People are on to them and are standing for delivery. I am surte you have noticed margin increases every time silver is about to break out, this worked a few times and now that does not work anymore because more want the physical. I am sure you noticed the backwardization going out a yr now, never happened in history. People want their silver now.
Check out the wti oil price[u.s price used for calculating inflation and such in the u.s] see the spread with brent, check the history on these spreads. Amazing that it got to 18 dollars....hmmmmmmm do you know what it does to gdp and inflation stats if wti oil price is too high??...it is now coming back becauase they can't lie about this forever, especially since Libya lit up. My opinion is this is all manipulated and everyone will know this eventually, it will blow up in their faces.
Why would they not cap gold and silver prices, it would as i said allow the gov to keep interest rates at zero and allow them to pump trillions into the system and allow them time to cleanse the trillions of toxic debt from the banking system. The banks especially the large ones are insolvent and allowed to keep the toxic debt off the books. Imagine if we could do that ourselves. That's why there is no trickle down effect to the economy, it's called extend and pretend. If gold and silver and commodities prices got out of hand every economist in the world knows lowering rates and printing money is the exact opposite aproach to this. So why not suppress these small markets. Check how much money the shorts [jpm goldman and others] have lost since they began shorting these in earnest, it can be calculated. They would not be able to afford these losses without backing by the fed.
There is just too much money sloshing around the system, the fed wants this money to go into houwsing and consumer spending as the economy is 72% based on this rather manufactoring, the jig is up, there comes a time where they can print the money but cannot control where it goes. We are there, but they can hide the fact somewhat that we are there.
Open interest is down from 58k contracts to 38 k contracts with a few days to go before option expiry. Funny thing is 89,257 contracts were traded in one day, twice the volume of the actual contracts. This is a very telling, manipulation through paper derivatives. See blythe and jp morgan doing gods work as Blankfein from Goldman has been quoted as saying.
Now my opinion is you are seeing them slowly losing control of this suppression scheme as the world wants physical, this is why we see the slow controlled melt up.
As far as being manipulated upward this is possible coming from the Asians [recent]as they are pissed that the U.S has devalued the dollar and cost them many losses in their dollar holdings over the last ten yrs and why they are buying up all resources to counter this. The dollar will continue to falter and the U.S will allow this. Better to devalue the currency you pay your debts in when there is no way ever to pay off these debts.
Rising commodity prices will put the nail in the coffin of the feds policies so we could say the chinese who are pushing their people to buy gold and silver after it was outlawed for a 100 yrs. Reminds me of the great book THE ART OF WAR by tzu.....win the war without firing a shot.
Rumor has the chinese lent te u.s gov tons and tons of silver to be allowed into the wto. This was to be returned but was sold into the markets. The rumor is that it is the Chinese are doing the buying on the comex and will one of these days stand for delivery. This will ventually overrun the comex. You will notice gold and silver goes up and the gld and slv are sold down with physical offtakes. Rumor is the physical is being used to cover redemtions from the comex. The comex is use to people who just roll over contracts and never standing for delivery, this way they can sell 100 ounces for every ounce they hold, fractually accounting. When people ask for delivery as they are now they need to source physical to keep up the farce that there is lots of supply. Check and see who owns the gld and the slv. The off take in the gld and slv are rumored to being used to supply the gold needed for those who are asking for delivery on the comex. I know for a fact that they are offering 25% premiums in cash to not take delivery. That is absurd. Also see the margin requirements that are crazily raised each time gold and silver moves up. Check the times these are announced to maximize the effect on the price.
It is common thought[not conspiratorial anymore] now that all this is happening and has been admitted by central banks around the world. Ever wonder why Gordon Brown sold all Englands gold under 300 dollars and announced it first. Just the announcement sent gold down over 20% when it happened.
Thanks for making me think but no thanks for making this one finger typer spend an hour here at the computer after losing my first response to cyber heaven somehow.
There is so much more to add as factual info but i am not here to debate, just to give info for those who would find it of interest.
Cheers.....