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The Rigging Comedy Continues! Notice!

February 6, 2015

The commodity called Ag (silver) gives us a real clue as to how our markets now work. Prices are now digital (within cyberspace) and the rigging of select commodities (like silver, oil, and gold) has been ubiquitous now for nearly 4 years. The clarity of the rigging can be witnessed by looking at the below ‘tick’ chart  reflecting the spot price of silver. Take the time to reflect on this chart!  (click on this link to get the correct chart)!

The above chart shows how the price of silver is determined daily. Traders (using mostly algorithms) can enter and exit trades (in milliseconds) to affect price. Notice the green (and blue) ‘tick’ chart line. Precisely at 8 a.m. (New York time) the price of silver was orchestrated down from $17.30/ounce to $16.55/ounce on either the London electronic exchange and/or the New York Globex electronic exchange. Did this price drop of some $0.75/ounce (4.3%)reflect the supply/demand forces within the physical silver market? I would suggest, NO! This entire dumping of ‘naked short’ futures contracts (via computer trading) was continued for some 3 hours of trading (see above). All this trading was electronic trading within our cyberspace markets. Prices of all our commodities are now determined by electronic trading (with a few exceptions). What causes this price manipulation?

The tick chart from January 30, 2014, shows a similar price drop from computer trading. We need to recognize that trading today is mostly electronic/digital/and within cyberspace. This makes all our markets volatile/subjective/meaningless for planning retail investment strategies! Our markets are mostly ‘rigged’ today!

What happens (it appears to me) is an orchestrated strategy to dump ‘naked short’ futures contracts in a rapid fire trading strategy to electronically ‘suppress’ the price of silver. This type of algorithmic manipulation of price has been happening now for nearly 4 years. This is possible today as all our money is now cyber money and all our trading is now mostly electronic. Computers (via algorithms or similar coded programs) can change prices irrespective of supply and demand for the commodity. This can happen to other commodities as well as silver. I use the above chart merely to show the comedy which we witness daily in all our cyber markets (now for nearly 4 years). The silver price is obviously rigged and manipulated by computer trading strategies. This should be clear and EVIDENT to any student of economics and money who has been observing our markets! Enjoy today! I am:

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