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Silver Manipulation To End In Default; $150 Per Ounce Possible - Video
Today’s AM fix was USD 1,305.00, EUR 971.20 and GBP 768.55 per ounce.
Friday’s AM fix was USD 1,292.50, EUR 961.18 and GBP 761.64 per ounce.
Gold climbed $15.00 or 1.16% Friday to $1,307.40/oz and silver shot up $0.37 or 1.82% to $20.74/oz. Gold and silver were both down for the week - 0.24% and 0.53% respectively.
Jan Skoyles interviews Mark O’Byrne of GoldCore about silver - see here
Silver for immediate delivery fell 0.4% to $20.68 an ounce in London this morning. Platinum added 0.4% to $1,485 an ounce. Palladium gained another 0.5% to $885.05 an ounce and is a whisker away from new 13 year nominal highs.
Gold and silver were marginally lower last week but both spiked towards the close on Friday which could be a harbinger for further price gains this week. Gold jumped $15.80 to as high as $1,308.20 in the last minutes of trade and silver surged to as high as $20.727.
Gold is marginally lower in London this morning after gold in Singapore ticked lower overnight. Futures trading volume surged from last week’s turgid trading and were 72% above the average for the past 100 days for this time of day, according to Bloomberg data.
Silver in U.S. Dollars - 50, 100, 200 Simple Moving Averages (Thomson Reuters)
Silver was very resilient during last week’s bout of concentrated selling on the COMEX and remains above its key simple moving averages at $19.99, $20.19 and $20.21 -100, 50 and 200 day moving averages respectively (see chart). The technical picture for silver is text book bullish as are silver’s supply demand fundamentals.
Gold in U.S. Dollars - 50, 100, 200 Simple Moving Averages (Thomson Reuters)
With the move higher late on Friday, gold is back above the 50, 100 and 200 day moving averages (see chart). Options expiration today and geopolitical tension has supported gold at the $1,300/oz level and silver at the $20/oz level.
Once options expiration is out of the way we expect higher prices for both precious metals in August.
Bank Suppression Of Silver Manipulation To End And Price Surge
Allegations of silver market manipulation went viral overnight with Bloomberg, the BBC, Reuters and media companies throughout the world covering the new lawsuit.
Deutsche Bank AG (DBK), HSBC Holdings Plc (HSBA) and Bank of Nova Scotia were accused in a lawsuit of rigging the price of billions of dollars in silver to the detriment of investors globally.
The banks unlawfully manipulated silver and its derivatives, an investor claims in a complaint filed yesterday in federal court in Manhattan. The banks abused their position of controlling the daily silver fix to reap illegitimate profit from trading, hurting other investors in the silver market who use the benchmark in billions of dollars of transactions, according to the suit.
The lawsuit is the latest to be brought against banks alleging manipulation of a benchmark. Suits have been filed against Deutsche Bank and Bank of Nova Scotia, HSBC and other banks in federal court in New York over allegations involving the London gold fix.
Manipulation of the silver market was covered in a just released ‘Get REAL’ Special on Silver presented by Jan Skoyles. Mark O'Byrne of Goldcore.com was interviewed and the interview was an in depth look at this silver market today.
Key topics discussed in the interview include
* The supply demand fundamentals of the silver market
* The manipulation of the silver market
* The importance of “joining the dots” and GATA
* CME and Thomson Reuters to manage new gold and silver fix
* The risk of manipulation through HFT, computer trading and ‘dark pools’
* “Meet the new boss; same as the old boss”
* The fix is in: Old boys, pints of beer, big cigars and top hats
* The importance of owning physical rather than paper or digital silver
* The importance of owning allocated and especially segregated silver
* The outlook for the unique industrial and precious metal that silver is
* Silver at over $150/oz in the coming years
‘Get Real: Silver’ can be watched here
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One silver round is going to buy a Manhattan apartment unit.
One gold round will buy the building.
As long as she had a silver dollar jammed in her snapper to keep it clean, all is well.
Can't do that with an FRN, fellahs.
The event that every Silver investor should be waiting for is the remonetization of Silver in Mexico. I believe there are only 3 more key Mexican politicians to convince and once that is done the law to remonetize Silver will be passed unanimously. Patience, La Raza has this under control.
As the gape between phyz and paper becomes bigger, systemic risk rises. So 'they' have to let the paper price go, before Mexico goes on some silver backed peso, or before the SGE vaporizes the comex.
What about J.P. Morgan Chase?
good for the German and Brit taxpayers as they ready themselves to bail out their own TBTFs. DB, HSBC etc slipping in the league and thus getting more desperate to fix markets.
LMAO
The fix/manipulation is 100% electronic now.
Until we get a legit black swan event, it will be business as usual.
Venezuela, Cyprus, Greece, Argentina...those citizens were and are happy to hold pm.
Ugh. These to the moon calls get tiresome and make these guys look foolish. Only way we get real pricing is if the paper criminals at CME fold their tents. Don't see that happening anytime soon.
Good forum to hang out for us pm investors
http://goldtentoasis.westontechologies.net/wordpress/
Yes yes, it's all true. Silver is going to SKYROCKET any day now, just like it always has been ready to do for the past FIVE GODDAMNNED YEARS.
If you believe this, I also have some super-vitamins to sell you, that will make you smarter and more physically attractive...
it's really just Kool-Aid, but one day it will be worth $150 a bottle, so I sell it to you for $20 a bottle, good deal yes??
Nobody's forcing you to hold silver. Why don't you trade it for T-bills?
What's your dollar bill going to be worth?
we know this is all coming to an ugly end
it's the WHEN that has everybody in a tizzy
Absolutely - point taken.
However, it seems as though everyone assumes they will just get away scott-free when the SHTF.
Just look at what the elite have done over the past 3 years with slamming the price of silver down ("you awakened ones will never propser, so says the devil")
What makes you think they won't do something even more dramatic, in order to prevent savvy investors from profiting from the inevitable collapse of such an obvious ponzi scheme? e.g., gold confiscation in the 1930s.
They already have plans to bring in a new form of currency that will somehow prevent anyone from profiting huge off of PM's. I have no advanced knowledge of this, but I believe this speculation to be more credible than "silver going to the moon...again".
There WAS NO GOLD CONFISCATION . . .
That is a myth,
The gold that was turned in was paid for,
And very, very little was turned in.
I call BULLSHIT on this stupid myth.
It's also possible that it may go to $1. I think about the same probability.
So I have a 19 dollar down side and a 130 dollar upside, I'll take that. I'd say the only way I would stop buying is a major change in monetary policy or the discovery of an economical way to transform tin into silver. If the Fed just went hands off I would say 1 dollar silver would be in the cards but that means the federal govt goes bankrupt, the banks close down, all savings is wiped out, and actually everyone who is in any kind of debt defaults. Don't see that happening, the fed will only be limited by a loss of faith in the currency.
Right, so after the loss of faith comes, they just bring in some new bullshit Fiat Notes, and then peg the price of silver back to 20 units of the new currency.
Yes, the PMs will preserve your wealth. Excellent method for holding some of your savings, and I will always hold some myself. But if you think they will make you super wealthy all the sudden, well... you've been had.
Preserving purchasing power is the main objective but fair sized gains are also possible. Here is what I think they will do, its the only thing that can solve the problem, while at the same time maintaining the unbreakable rule of changing monetary systems increasing the power if the government and banks. The story was originally in Buisness Insider but was syndicated in several other places. I think the title was There is an Electronic Currency that can Save the Economy but its not Bitcoin.
The United States has been marred in slow economic growth and a weak recovery for years now. Unemployment remains high. This is despite extraordinary efforts by the Federal Reserve to stimulate the economy. This drawn out period of low inflation and high unemployment has gotten more and more people talking about a "new normal" of mediocre growth.
Economists have been looking for ways to give central banks more power to combat recessions and prevent these long, drawn out recoveries. Larry Summers laid out this major impending economic challenge in his recent speech at the IMF. Normally, when a recession hits, central banks cut interest rates to incentivize firms to invest and to spur economic growth. But when interest rates hit zero, those banks lose one of their most important tools to combat recessions. This is called the zero lower bound.
Hitting the zero-lower bound means that interest rates cannot reach their natural equilibrium where desired investment equals desired savings. Instead, even at zero, interest rates are too high, leading to too much saving and a lack of demand. Thus we get the slow recovery.
Until recently, we hadn't hit that bound. But since the Great Recession, we've been stuck up against it and the Fed has been forced to use unconventional policy tools instead. What Summers warned of is that this may become the new normal. When the next recession hits, interest rates are likely to be barely above zero. The Fed will cut them and we'll find ourselves up against the zero lower bound yet again and face yet another slow recovery.
So what's the answer?
University of Michigan economist Miles Kimball has developed a theoretical solution to this problem in the form of a new electronic currency that would allow the Fed to bring nominal rates below zero to combat recessions. He's been presenting his plan to different economists and central bankers around the world. Kimball has also written repeatedly about it and was recently interviewed by Wonkblog's Dylan Matthews.
"If you have a bad recession, then firms are afraid to invest," he told Business Insider. "You have to give people a pretty good deal to make them willing to invest and that good deal means that the borrowers actually have to be paid to tend the money for the savers."
But paper currency makes this impossible.
"You have this tradition that as it is now is enshrined in law in various ways that the government is going to guarantee to all savers that they will get [at least] a zero interest," Kimball said.
If the Fed lowered rates below zero in our current financial system, savers would simply withdraw their money from the bank and sit on it instead of letting it incur negative returns. The paper currency itself — because it's something that can be physically withdrawn from the financial system — prevents rates from going negative.
This is where Kimball's idea for an electronic currency comes in. However, unlike Bitcoin, which prides itself on its decentralization and anonymity, Kimball's digital currency would be centralized and widely used. He would effectively set up two different types of currencies: dollars and e-dollars. Right now, your $100 bill is equal to the $100 in the bank. If you're bank account has a 5% interest rate, you earn $5 of interest in a year and that $100 bill is still worth $100. But what would happen if that interest were -5%? Then you would lose $5 over the course of the year. Knowing this, you would rationally withdraw the $100 ahead of time and keep it out of the bank. This is where the separate currencies come in.
"You have to do something a little bit more to get the negative rate on the paper currency," Kimball said. "You have to have the $100 bill be worth $95 a year later in order to have a -5% interest rate. The idea is to arrange things so let’s say $100 in the bank equals $100 in paper currency now, but in a year, $95 in the bank is equal to $100 in paper currency. You have an exchange rate between them."
"After a year, I could take $95 out of the bank and get a $100 bill or if I wanted to put a $100 bill into the bank, they would credit my account with $95."
Got that? After a year of a -5% interest rate, $100 dollars are equal to $95 e-dollars. This ensures that paper currency also faces a negative interest rate as well and eliminates the incentive for savers to hoard dollar bills if the Fed implements a negative rate. Presto! The zero lower bound is solved.
The benefits of this policy go even further though: We can say goodbye to inflation as well.
"Once you take away the zero lower bound, there isn't a really strong reason to have 2% inflation at this point," Kimball said. "The major central banks around the world have 2% inflation and Ben Bernanke explained very clearly why that is. It's to steer away from the zero lower bound."
He's right. Back in March, Ryan Avent asked Bernanke why not have a zero percent inflation target. Bernanke answered, "[I] f you have zero inflation, you’re very close to the deflation zone and nominal interest rates will be so low that it would be very difficult to respond fully to recessions."
But if nominal interest rates are allowed to go below zero, then the Fed has ample room to respond to recessions even if rates start out low. This is another major benefit from eliminating the zero lower bound.
What Kimball, whose blog is titled Confessions of a Supply Side Liberal, is most excited about is moving beyond the demand shortfall the economy currently faces to the supply side issues that hold back long-term growth.
"If you care at all about the future of this country, one of the things you need to realize is we need to solve the demand side so we can get back to the supply side issues that are really the tricky thing for the long run," he said. "The way to solve the demand side issues that is the most consistent with not messing up our supply side is monetary policy and making it so we can have negative interest rates."
At the moment, e-dollars are still only a theoretical concept, but Kimball is hopeful that they could be put into action in the near future. He believes that if a government bought in, it could be using an electronic currency in three years and reap the benefits of it soon after.
"This is going to happen some day," he concluded. "Let me tell you why. There are a lot of countries in the world and some country is going to do this and it's going to be a whole lot easier for other countries to do it once some country has stepped out."
It costs at least $5 an ounce just to dig it out of the ground. /sarc
As long as you accept that FRNs will actually be worth their weight in paper (as in tinder) then fine.
This has got to be BS. C'mon, Blue sky and River Thames in the same photo??
Yup, that's Max Keiser's studio by the look of it.
What's the puzzlement? Jan said she was in Keiser's studio. Also said Keiser's production staff produced the show. No mysteries there.