The Masters Of Destruction
On Friday, October 10, the price of silver crashed, falling almost 25% from its price level 24 hours earlier. It is down roughly 50% from where it traded a few months ago. While a broad array of markets fell sharply in price that day and over the past few months, from oil to gold to grain to just about every commodity, none fell as sharply as silver. As regular market observers know, this is usually the case. I intend to explore why this is usually the case and what I think readers should do about it.
It is one thing to claim manipulation, and quite another to prove it. But the proof in this case lies in common sense and in the government’s own public data. The simplest proof of manipulation is in asking the question, what would the price have been absent the manipulators’ actions? What would the price of silver have been if one or two U.S. banks hadn’t sold a massive amount short in July? The only answer is that the price would be much higher absent that concentrated selling.
This is a fantastic article and I think does a better job explaining the current situation and most likely outlook for silver than anything I’ve read recently. Thanks for posting the link.
[quote=switters]This is a fantastic article and I think does a better job explaining the current situation and most likely outlook for silver than anything I’ve read recently. Thanks for posting the link.[/quote]
My pleasure .. I hope you wrote to the CFTC, I did. Here is a copy of one of the silver seek guys letter:
I can understand you all are very busy and in need of a vacation. The markets make us all weary and sick right now. I know you are understaffed and overworked and haven’t the budget but you have the power to initiate change. You guys can do this, you can change the world by doing what is right and honorable and true. NEVER give up that belief!!
I want to bring to your attention the gravity of what is happening to us. We are just your average Joe citizen. We invested in Gold in silver in 1996. We took our hard earned money and invested because after a little bit of study, we could see the US dollar was being devalued and that only tangible commodities like Gold and silver and such would maintain their value. Now since the thieves on Wall Street were allowed to write insurance policies and call them swaps we are all suffering. And even now Paulson is saving his Goldman Sacks buddies bacon (and his own I might add) so they will not have to go begging like they really should be doing for their deceptions.
You are allowing these banks to steal from my family. I will not be able to send children to college because you continue to allow the “Masters of the Universe” to rob, steal, pillage and destroy our nest egg.
It is absolutely unfathomable that Gold and Silver have not gone up with the disaster of this stock market. Why should my children be robbed of their education because you guys cannot do the right thing? Why is it that you prevented the banks from being shorted but Not Gold and Silver – Are you all Hypocrites? Level the playing field and let us all have a chance at saving our wealth from these crooks.
One more thing you need to take seriously, Limits on commodities are a joke, and they are only there to steal from the small guys. The big guys drive the market and the small guys like me get fleeced. If you truly want to be American and practice true free enterprise, limit up and limit down should be totally eliminated.
Thanks for reading this,
I hope you do the right thing.
God Bless You!
On Fox News just moments ago, it was stated that 40% of trades made on the market yesterday were ETF’s. It raises the question of how many of them were made simply to manipulate the price of a particular stock or commodity. Naked short selling is the most destructive tool available to those who have an agenda, particularly for those who want to drive down the price of PM’s. With physical metal in very short supply, the price of silver and gold are going down. I don’t have to be a market genius to understand what the is motive for driving down the prices. Gold and silver are the mortal enemy of fiat currency.
I’m starting to agree with Chris and others who suggest that we may see a split in the markets for paper and physical metals. In other words, there’s a paper price and a price for physical. In fact we’re already seeing that now with the 40-60% premiums on physical gold & silver. It’s conceivable that this gap could continue and even grow for a period of time, but I imagine that once people truly start to lose faith in fiat currency the physical/paper price of metals will snap back into alignment.