Skip to content

The END of Gold/Silver Manipulation could be Near!

December 2, 2013

As the spot price of gold and silver continues its downward trend (now some 27+ months) the likelihood for a huge purchase at these low prices becomes likely. This huge purchase could be initiated by a major Nation (like China, India, or Russia) or it could be initiated by a single investor or a precious metals fund. After all, we all know that gold/silver bars and coins to not disappear or lose their physical nature…with a downward price trend. The ‘price’ of gold and silver could go to ZERO and yet the physical bars and coins would remain. This means that the ‘value’ of gold and silver metals can be much different from the current spot price. In fact, if the spot price were to continue downward for another 12 months or so, a major investor (person, company, or nation) could choose to accumulate a huge supply for the eventual day of reconstruction of our monetary system. This suggests that the declining spot price (manipulated as it is) is not all bad.

This chart reveals that electronic price nature of our current Digital currencies. Prices change in milliseconds (in real-time trading)! These ‘prices’ are subjective and artificial. We can also call these prices ‘imaginary’! A gold and silver coin could reflect a ‘price’ of ZERO…yet the metal coin would continue to have ‘value’!

What we now need to understand is that the price of silver or gold does not reflect the underlying ‘value’ of the metals. Price is an artificial and subjective construct which emerges from our on-line trading strategies. Prices are derived from human consciousness and may not reflect the ‘value’ of these commodities in the longer run. As market situations change the subjective ‘value’ of gold and silver will change. When our digital economy changes direction and trading strategies change, we will likely witness the digital price of gold and silver reach historical levels (much higher than current prices). Digital money is what creates the ‘prices’ of these metals today. These digital prices are really imaginary and subjective at the core. Gold and Silver (bars and coins) are not imaginary nor are they subjective. This means that the real underlying ‘value’ of these metals will eventually reach a level reflective of their long-term demand. History demonstrates that gold and silver can not be created ‘out of nothing’!

This image reveals the transition of our paper fiat money units into numerical digits (now within our computer screens). Today, some 96% of all monetary transactions are completed using digital money units (4% are paper and metal coins)!

The vast majority of market traders and pundits (as of today) do not seem to understand the real ‘nature’ of our digital money units. If and when they become fully aware of the ‘imaginary’ nature of these virtual units, I suspect that the demand for something real and tangible will emerge. Human nature will reject an imaginary unit (our current digital dollar) when they realize that these units have zero staying power when a major deflationary environment develops (a crash of the global stock/bond markets could set-off this deflationary environment). When our current bubble environment (our stock/bond markets) have run their course, I suspect that emotions will change dramatically and when this happens gold and silver will emerge as the choice of the masses. This new trend could develop within the next few months (or sooner).

Most pundits and traders recognize the virtual nature of the Bitcoin. Are they AWARE, however, that all the global currencies are now mostly VIRTUAL units (digits within the computer screen)?

Now may be a great time to dollar/cost average into silver/gold coins, bars, and select mining companies. The current market situation (of real-time manipulation) will change when the physical supply of gold and silver is controlled by STRONG hands. I sense that this trend is now developing globally. Those who have patience and hold their current positions (in the gold/silver sector) should experience a major up trend soon. This means that they could recoup all or most of their recent losses. That is my sense/opinion of our current situation. HOLD and then Dollar/Cost average into some new positions (if the current downward price trend continues). I intend to do the same. This blog, however,  is not an investment advice blog. Keep in mind that the above words are merely my view and opinion of our current market situation (as of today). Enjoy and Watch the Markets as we could witness some ‘heavy’ WAVES (my old Navy saying) in the next few months! I am:

No comments yet

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: