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Let’s speculate: Who might be manipulating the Silver/Gold markets?

October 31, 2013

It seems to me that the silver and gold markets are being manipulated on a regular basis. This seems obvious as the price does not seem to reflect ‘supply and demand’. So who might desire that the ‘price’ of silver be bracketed within a fixed range? Since April of 2013 the silver price has been bracketed between $19 and $24. If the ‘price’ increases to the bracketed ceiling of $24 or near this level the manipulators will drive the ‘price’ down into the low $20’s. After the ‘price’ declines into the low $20’s, the manipulators seem to allow a small increase before another sharp downward manipulation occurs. For some strange reason the ‘price’ of silver appears to be controlled by some financial SOURCE which desires that this metal not reflect real supply and demand statistics. Who might be these manipulators? Why this manipulation?

Computers and trading strategies can manipulate silver/gold prices today!

There are now numerous pundits who also sense that the silver/gold markets are manipulated. The most prominent source is GATA (http://www.gata.org/). Other pundits who sense manipulation are regularly espousing their views on King World News (http://www.kingworldnews.com/kingworldnews/King_World_News.html). One of the most creditable sources in my mind is Economist, Paul Craig Roberts (http://paulcraigroberts.org/). Mr. Roberts holds the view that the Fed and the Treasury Department are at the core of this manipulation. Since Mr. Roberts officially worked within our Treasury Department during a prior administration, he seems like a creditable source on this issue. What Mr. Roberts proposes is that ‘naked shorts’ are being used within our real-time markets to manipulate and control the ‘prices’.

Roberts believes that ‘naked shorts’ are at the core of price manipulation of silver/gold! I agree!

Why would a source like the Fed and/or our Treasury Department desire that the gold and silver ‘prices’ be held within bracketed levels? What MR. Roberts proposes is that it all relates to the ‘confidence factor’ around our fiat digital Dollar. The key to confidence is that NO real competition to the Dollar emerge in our real-time markets. The price of gold and silver (which are historical currencies) are the real competition for our fiat/digital Dollar. If there is a persistent trend of rising gold/silver prices, then this reveals a ‘lack of confidence’ in our fiat/digital Dollar. This logic makes lots of sense to me. Our official Authorities do NOT desire that confidence in their ‘funny money’ be stifled by high and growing price increases in either gold and/or silver. Can these ‘prices’ be manipulated indefinitely?

The trading strategy called ‘naked shorts’ allows select financial trading desks (like our Fed and our Treasury) to knock down the prices of silver/gold whenever they desire. All it takes is a click of the computer mouse and a cooperating broker. This strategy which is anathema for retail traders can be viewed as proper and officially necessary for our Central Financial Authorities. Keep in mind that our Central Authorities must maintain a level of ‘confidence’ in their fiat/digital currency so that the System will not collapse. The potential collapse of the entire System over-rules any moral sense of what may be ‘right’ or ‘wrong’. The System must prevail and those in charge of our System will do whatever is necessary to maintain the illusion of confidence within the global markets.

The ‘dollar’ index must be favored to maintain ‘confidence’ in our digital currency. Silver and Gold are historical currencies which are real-time competitors to our ‘funny money’ Dollar!

Personally, I don’t expect any change in this manipulation going forward as long as our Authorities desire to use this strategy of the ‘naked short’. The evidence in our Futures Markets demonstrates that trading strategies can bracket prices of a commodity like silver and/or gold indefinitely. What is needed to stop this manipulation is more awareness in the overall gold/silver markets and then some type of new alternative to counter the strategy of selling shares short via the ‘naked short’ operation. Our speed of light trading markets makes selling short (without any covering) a great strategy for manipulating prices in real-time. Selling millions of shares short to drive prices down (without taking position of the metal) creates phantom selling to maintain a bracketed price level.

Evidence shows that the real physical demand for silver and gold is growing even as the ‘prices’ are not allowed to reflect this demand. What is now needed is some new ALTERNATIVE to counter this strategy of ‘naked shorts’ by official Authorities. We may need to create a new market for price discovery which bi-passes all the Central Authorities. This may or may not be possible as of today. At some point down the road I do believe that silver and gold prices will be manipulated upwards by our Central Authorities. Until then, however, we may not witness and real price increase that reflects real ‘supply and demand’. I hope I am wrong on all this speculation, but I do sense that manipulation is prevalent in today’s computer driven markets. That is my view! I am:  https://kingdomecon.wordpress.com

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