smashing PM prices

By ecb on Tue, Jul 12, 2016 - 5:01pm

The best explanation of the mystery middle of the night price smashing is found in an interview with Andy Schectman  from Miles Franklin on the Sprott website. He says that it is JP Morgan, Goldman and the Chinese who are selling paper to smash the price, covering their shorts with Treasuries and dollars and then scooping up the physical when the price is down. He claims that JP Morgan has amassed over 600 million oz of physical silver this way and has more shorts than ever. He offers as proof  that every time the price gets smashed, it's almost impossible to get physical PM. They and the Chinese are cornering the markets in physical goods and divesting themselves of dollars and Treasuries. So when the SHTF, they will have all the "stuff". Very credible interview with a longtime PM expert. Worth the 20 min of your time. Buy now while you can.

1 Comment

davefairtex's picture
Status: Diamond Member (Offline)
Joined: Sep 3 2008
Posts: 5740
cui bono

Hmm.  So let me get this straight:

  • our source is a guy who works for a gold and silver bullion dealer.
  • he says its impossible to get physical silver when the price drops.
  • his advice is to buy gold and silver bullion.  "While you still can."

Lets see, back when silver was $15/oz, there was plenty of big bar silver floating around.  Premiums were normal.  I remember Sprott even did a secondary offering, managing to dredge up enough silver "somehow" to collect on the PSLV premium.  And there was 700 tons of silver in the COMEX vaults, too.   That hasn't changed.

Perhaps our source is talking about Eagles vanishing when price drops.  Are we to imagine that JPM is running around buying monster boxes from all the coin dealers?  Something tells me, they're more into the big bars.

Let me be clear: I like the idea of holding gold and silver.  I just don't think the timing of your buy decision should be driven by a sell-side analyst who - just coincidentally - benefits from your purchase.

I'm sure our source is motivated only by the purest of motives, but all this talk of conspiracies always makes me ask, "cui bono?"

My advice back when silver was $15 was to buy PSLV when those eagle premiums were high, and then sell it again once price had risen - exchanging it for physical silver once those premiums fell again.  Then again, I don't work for a bullion dealer.

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