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Don’t Squeeze The Silver
When there isn’t enough of X and excess demand exists for X, the price of X rises. The casino aggravates the cycle, and things can get wild when those betting against X’s rise
decide to get out of their bets. To suggest that JPM and others aren’t sitting at the table with bets against silver is a bit wigida wack. Nothing new really, the game has been going for a hundred years.
The ESF
According to GATA (2000), associate Reg Howe published “The ESF and Gold: Past as Prologue?”, which revealed some good information about the Exchange Stabilization Fund (ESF), a quasigovernmental agency that reports to only the president and Treasury Secretary. Created behind to the 1933 gold confiscation, and subsidized by the paper profits arising form the 1934 devaluation of the dollar against gold, the ESF is cloaked in mystery and has the exclusive domain of the executive branch and operates largely outside of congressional oversight.
In GATA (2000), Howe notes that unexplained losses were appearing in the ESF’s quarterly reports to Congress in quarters when gold prices went up, while profits were earned in quarters when the gold price fell. The result was probing because, the Treasury both in the public statements and letters in response to queries, maintained that no interventions in the foreign exchange markets were taking place. Howe explains, “There were no other obvious activities that might explain these losses.” Conclusion: The ESF was intervening in the gold and silver market.
Game On
In 2000 irrefutable evidence of the U.S. government’s intervention in the precious metals market was available from its own public reports. The reports reveal reoccurring discrepancies month after month. Although denied this was indeed proof the U.S. government’s intervention in precious metals prices.
In February of 2001, the Federal reserve began covering it’s tracks, not only dropping all reference to the ESF in future U.S. Reserve Assets reports, but going back and changing already published reports (Turk & Rubino, 2004). Not only were the figures changed, but all previous references to the ESF were eliminated.
Why?
Why would a central bank bother to try and manipulate silver’s exchange rate in the first place?
Here’s Why:
Because among other things… silver is money.
Silver and big brother gold, together are yardsticks by which the world’s currencies, and the central banks that manage them are measured. When a precious metal’s exchange rate is low relative to a currency, the central bank appears to be doing a good job of keeping inflation down and the value of their fiat currency up. If a bank can keep precious metals undervalued they can make their currency look fancy nancy.
Small
The precious metals market is mega, mega tiny and accounts for less than one percent of total worldwide assets. As the silver price continues to rise, those on what is increasingly looking like the wrong side of the bet to be on, will cut their losses. Silver is set up to surf to even higher levels. There could be a time soon when silver is not available for purchase. Hold on for the ride.
~MV
GATA. (2000). Gold Anti-Trust Action Committee. Retrieved from http://www.gata.org/node/1179
Turk, J., & Rubino, J. (2004). The coming collapse of the dollar. New York, NY: Random House.
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The black market...or a big fat VAT tax if the COMEX does default would help them for the pesky people who refuse to own SLV shares in leiu of the real deal. Then they could say look how valuable FRN's are. $10 dollars will buy you an oz....except if you want to actually hold it yourself then it then it's still 10 dollars plus a global warming surcharge of $90 since minning silver causes climate change we have to do this to save the planet.
[....except if you want to actually hold it yourself then it then it's still 10 dollars plus a global warming surcharge of $90 since minning silver causes climate change]---Dr. Gonzo
Good post. Thanks, Dr.
Wrong, the link in the article elaborates the uses of silver, so many, how can that not be traded - lots of lovely tax for the government.
http://thevictoryreport.org/2010/05/04/silvers-exceptional-qulaities/
And of course - silver is money.
When you accept gold and silver is currency then it is clear 'they' are struggling to set the price of silver and gold too.
I still like gold the best but Silver at 30 dollars.....look at platinum and palladium they all have to be mined. Mexico or China monetize Silver....It will go to the moon. It will probably go to the moon anyway even if it makes palladiums heights thats a hell of a return.
I've been trying to think of the speech when gold and silver are monetized and got there true value what will be the explanation? That they were not monetized before and out of the system for 40 years?
To those of you who BTFD - well done.
You have cojones. It feels good, now wait for the next one.
I love the smell of burnt JPM in the morning.
Smells like.... M Victory....
Some day this silver price manipulation is going to end...
yes... buying in the recent 26 dip was splendid
...and for those long-suffering Elliott Wave subscribers, my condolences, you LOST again, you MISSED the ride from $19.50, you missed the ride from $26.00, the EW team of clueless 'Cry Wolf' monkeys fuked-up again
Steven Hochberg maintains his miserable 100% failure rate and had to throw out yet another set of his useless fuking Elliot Wave charts (no apologies for your complete ongoing incompetence Steven?). The bin is FULL of your crap charts Mr Hochberg
Robert Prechter has proved himself so incompetent over the past 8 months he's now given up completely even talking about PM's this month after last month saying he hasn't got a fuking clue where the PM's are going!! Boo Hoo Robert, think how much your devotees have lost out on with your constant pressing the 'Panic' button of over-confident top calling
Wave theory has been proved beyond all reasonable doubt with its near 100% failure rate to predict as a totally fuked theory
I'll see you, and I'll raise you one Nicole Foss and one Illargi.
I just wonder if JPM who holds the physical stock and is notorious for having big short...doesn't have a retaliatory position to swing the market when its ripe for it...just a thought.
Oh, yesssss. If they can manipulate it down, they can manipulate it up - and certainly will, when up provides the bigger profit.
i bet the wicked bitch is long physical with her own money.
If the government wants to create a 'wealth effect', it should get behind silver, not try to keep it down. Silver is something owned among the common people; the administration could benefit from it's rise. This is how Obama can siphon votes from the rising tea party movement... simply by appealing to their pocket books. I would be bold enough to say that silver's rise will directly correllate to Obama's "popularity" with the tea party PM holders.... on a level not talked about or even aknowledged. Call it a form of self fulfilling prophecy. It means Obama really does have a chance of winning in 2012; as long as silver goes up.
Only Ron Paul could even challenge him. The MSM and the establishment are simply in denial to try to create another scenario besides RP vs BO. Look at the exploitation of fox news after they framed up the ron paul win... everyone saw through it.
Alternative media reighns supreme...