The dual benefits of Silver being a safe-haven Precious Metal as well as an Industrial Metal seem to be working against its own self of late. Rather than Silver Bullion being in demand in both adverse situations for obvious reasons, these properties of Silver are being well exploited by the manipulators to serve their own vicious purposes. Silver has been hammered along with Gold due to its safe haven status as a precious metal when economic data has shown improvements in the Economy. But Silver has also been hammered along with Base Metals when future prospects for Economic growth dim or when indicators show that economic growth has faltered. So when does Silver rise – Never? Will Silver Price movements ever get to follow the demand & supply fundamentals or will they always remain at the mercy of the manipulators? Investor sentiment in Silver Futures Market has been severely hit in the last few weeks & that is exactly what the Silver Price Manipulation program was intended to do.
The virtual Gold and Silver Futures market seems to bear no resemblance to the real unleveraged, demand / supply oriented physical market. The virtual market was designed to assist the physical market for a better price discovery but of late seems to move against the very fundamentals of its cause. The Bullion Banks take complete advantage of this leveraged trade format to manipulate the markets at will & the daily morning “short sell” hammering carried on without a hitch to create the Perfect Storm. These Banks do realize that they can never control the underlying fundamentals of the physical markets & therefore will be the first to turn buyers after creating the bearish storm & convincing the weaker individuals to be net sellers for some time to come. After all, the markets will need sellers when these manipulators turn buyers. There have to be sellers when one needs to buy something, without which there cannot be a transaction. There will also be a need for a large number of passionate sellers & so the need to totally crush the upside sentiment in Gold & Silver was born. The “Perfect Gold and Silver Market Storm” thus got initiated. Once the masses are completely convinced that Bullion have had a long run up & now need to be sold at each rise to achieve gains, they turn to be passionate sellers. That is then the birth of a seller at each & every rise, who will one day realize that he is doomed by these acts, albeit too late. If not the weak individual, then who would be an easier target to manipulate?
It is always a tempting game for the “Big Money” to engineer a false break below major support levels to run the remaining stalwarts out of their positions ahead of a swift reversal and into a big price rally. The support at the bottom of the large trading range is so clearly defined, so strong and so obvious that we need to be careful regarding the placing of stops. If we can see this you can be sure that Big Money can, so it is just possible that they will run Silver briefly below this support to trigger the stops that are clustered beneath it, and mop up all the remaining holdings that they haven’t already netted before a sudden and dramatic reversal back above the support, but the reality is that they don’t really need to do this – they’ve squeezed most people out already. The amount of “short” or Paper Silver far exceeds the actual amount of silver by close to a year’s worth of mine production. While heavy short selling exists in other markets also, it is unprecedented and extreme in Silver Futures. Market Manipulators have consistently been hitting out at all small rises in order to squeeze the last drop of blood out of the little guy before the next big rally starts.
Why are investors around the world buying physical Silver when futures prices are actually crashing sharply & sentiments are negative? It is not the Real Gold or Silver Investment sentiment that has been hammered, but it’s the trust in Paper Gold & Silver that is getting hit due to price manipulations by big market players out of vested interests. The trust in real paper Currency & governments is what is slowly but steadily being hammered. This hammering of sentiment in Currency & governments is what is, driving people to physical Gold and Silver investment. The US dollar’s current good fortune is due to the Euro’s current misfortune, and certainly not due to the actions of the Fed, which has been working assiduously to undermine it for years. Just because it feels that the economy is improving does not necessarily mean that is actually happening. But in such a scenario, Silver is bound to outperform Gold which is generally looked upon as a “Crisis Insurance.” Covering up of the Massive short positions by JPMorgan in Silver will trigger very violent movements to the upside once Silver Prices start a determined up move. The kind of upside volatility expected may have never been witnessed ever before. That’s the reason why Gold/Silver ratio will swiftly decline. Technical indicators point out towards an eruption of a major Price Rally in the coming months. Moreover, central banks from Japan to Europe & England are looking forward to see higher Inflation as the same would remove deflation fears. Creating a bigger monster to kill the present one – Who will fight the Inflation monster later? You are right – Gold and definitely Silver Investment today!
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