Commodity Trade Mantra

Silver Is The Most Manipulated Market In History

Silver Is The Most Manipulated Market In History

Silver Is The Most Manipulated Market In History

The price of paper silver has been mauled since Janet Yellen and her band of FOMC merry clowns released their policy statement last Wednesday which made the claim that there was strong possibility that the Fed would hike its Fed Funds rate in December.   Silver is now down 8.5% since that statement hit the tape:

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But as you can see, silver is still in a nice uptrend, up over 7% from the bottom it hit in late August.  Of course, in testament to just how manipulated the markets are, the S&P 500 – which should have experienced the same type of sell-off as silver and gold on the threat of higher rates – is up 1.3%.

Part of the reason silver may be getting hit is the news of a report from the investment conference in New Orleans last week that some company had invented an aluminum-based replacement for silver used in solar panels.  Obviously, if this were true, it would impact the amount of silver going into India (see this report in which the U.S. exporting 100’s of tons of silver India).  And it would impact the amount silver China is using in the development of its massive solar program.

However, if you investigate the “beneath the surface headlines” of this claim being made, the Company has not proved its technology works or is practical in commercial applications.  I’ve seen at least two claims by companies over the last 10 years that they’ve developed a pill to cure alcoholism. Still haven’t seen that cure  hit the market.  And for how many centuries has the world had to endure claims from “scientists” who state they had figured out how to convert lead into gold?  As for this company’s claim?  I’ll believe it when I see it in action.  Until then, it’s nothing but hot air.

Feel free to read the source story here:  Natcore swaps silver for aluminum in solar cells.

Until proven otherwise with real life, profit-making applications, I believe that this story will fall into history’s dust-bin of false-flags.  Seems a bit coincidental that this story emerges just as the Fed/bullion banks are in the process of raiding the paper precious metals markets…again.  The only thing missing from this story is Jordan Belfort (the Wolf of Wall Street) resurrecting his old Stratton Oakmont penny stock brokerage and taking this company public.

The anti-gold/silver propaganda is reaching epic levels again.  It also happens to coincide with another multiple-day run on the gold in GLD and a record-breaking run up in the paper/gold ratio on the Comex.   The paper to gold ratio at close to 300 is nothing more than a reflection of how desperate the banks are becoming to keep a lid on the price of gold/silver.

This paper to underlying deliverable physical commodity ratio is many multiples beyond the ratio that the CFTC and CME allow in ANY other commodity market. It completely destroys the purpose of futures markets.  It’s crystal clear that gold futures were introduced in 1974, one year after the U.S. devalued the dollar vs. the yen and Paul Volker admitted over 20 years ex post facto that the Fed made a mistake not preventing the price of gold from moving higher when the dollar was devalued.  They couldn’t manipulate the price of gold in 1973 because gold futures didn’t exist.

When history looks back on this period, one of the biggest official frauds will be the Fed’s empty threat of raising interest rates and the world will understand how and why it was used to help keep a lid on the precious metals. But most of us who have been involved in this market already know the reason…Et tu, Janet?

 

 

Courtesy: Investment Research Dynamics

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