Silver Manipulation: Who Benefits?

by DH

Hi, it's Jeff here...thanks for the contribution. I thought I would go ahead and address this using this format...

Hello Dr Jeff & fellow reads.

I love silver and the promises / predictions that silver will reach $100, $150 or more is exciting. And, so what if this takes 5, 7 or 10 years: the longer the better because it gives me more time to buy more silver while I can afford it.

What puzzles me is, if there is so little silver (less than gold by some accounts) within our ability to economically mine and the uses for silver keep increasing in number, why is silver so cheap?

Yes, I understand that there has been suggestions that some big players have been using their considerable wealth to short the market and keep the prices down. But, wouldn't doing this cost them a fortune?

They make a killing inducing longs into selling and buying back those positions at a profit. This has gone on for years. Who do you suppose steps in to buy when the market craters 10,20,30% out of no where, for no reason? The shorts may be trapped, but they are not stupid.

And, silver miners and the major silver investors (who would be financially missing out as a consequence) are not without considerable influence either.

The miners depend on the bullion banks for financing - which is almost impossible to come by these days given that the entire sector is considered risky at best. Only a handful have had the 'where with all' (or cash flow) to speak out against the blatant manipulation.

So, presumably they didn't know about, couldn't do anything about it, or didn't want to do anything about it. This doesn't make sense.

Is it paper silver that kept the price down? '


Silver promises'?


Are these certificates, and the like, keeping the prices down by artificially increases the amount of available silver available for trading?

Price discovery happens at the COMEX. The bullion banks make up (practically) the entire short side of the market against a huge variety of longs. That's concentration and it's illegal.

The increase in available silver occurs by creating pretend, or paper, silver. Paper silver, along with shares in silver mining companies, provide the average investor with a range of alternative options for investing in, what might be loosely classed as silver related products. (Presumably, long after the world has run out of physical silver, people will be still investing in paper silver?) My point being that, if it wasn't for the paper silver, people wishing to invest in silver would have to invest in the much more limited physical silver; hence, the price of silver would better reflect the demand for silver.

Yes, cheap silver has made it available for those of us who figured it out and went against the grain of poor sentiment all these years. Of course, a lot of people have known about this are gone now and that's a shame. Many more have become disillusioned by the counter-intuitive trading and have left, bitter, and resentful.

Chris Powell of GATA said it best...

...the manipulation of precious metals prices is a cosmic deception and fraud, and the great enabler of all sorts of vast evils -- from what U.S. Rep. Ron Paul has called "the welfare/warfare state" to the expropriation and grinding down of the working class and the developing world by the financial class, a vile national and class imperialism -- in the here and now. People are suffering and even dying every day all over the world because of this fraud, and no eventual profit to gold and silver investors can ever undo that.

If a large number of investors are investing in paper silver and it is this artificial increase in the amount of silver related products that is helping to keep the price down, then doesn't follow that all of these paper investors are, at least in part, participating in a form of price fixing?

Yes, indeed most derivatives are sham - silver or no - yet another reason to get out of paper denominated assets.

Comments for Silver Manipulation: Who Benefits?

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Oct 20, 2015
That was my comment about 17 yr old w/20 1/2 dollars NEW
by: jlgoblue

That was my comment about 17 yr old w/20 1/2 dollars. It is more true today 1 yr later.

Oct 20, 2015
Silver Manipulation: Who Benefits NEW
by: Anonymous

Your these ideas for buying silver are so workable. You are innovative in your ideas and it will help you to retain more silver till the time you will finally decide to sell it out. buy custom essay is also the best to help the students in their education.

Sep 20, 2012
by: Anonymous

Great article by all.

Sep 18, 2012
Clarify shrts vs longs manipulang the ditonemarket
by: Dennis

I didn't understandyour answer to Jeff's qestion.

Sep 18, 2012
Bullion or Coins
by: Tommy

I was recently talking with a friend who has been taking his silver with him to an undisclosed foreign country. His feelings are that we will need to leave the USA in the not to distant future. Right or wrong, he brought up an extremely useful point I had not yet considered.
When it comes to import taxes in foreign lands and this is very important.
A HUGE difference in taxable amount for sure.
A $1,000 bags of 90% silver quarters has a spot price of almost $25,000, so taxes would be 25x higher than the tax on face value. Same holds true for a monster box of Eagles as their legal tender facevalue is $1.00 each. Something to consider....

Sep 18, 2012
Is Bullion better then silver coins?
by: Ken

Is Bullion better then silver coins?

I have been stocking up on 1oz Bullion Rounds & 10oz bars, Is my reason sound? Silver Eagles and the like are government issued, You will need government permission to melt them down, and to get the silver content. If silver is to come into such a short supply (as I believe it will) because of its monetary, medical, and industrial uses wouldn't bullion become more in demand over it's government issued counterpart?

Sep 18, 2012
Bide your time with SILVER
by: Anonymous

When I was 17 and worked in a gas station someone used silver half-dollars to buy $10 worth of gas. I took ten dollars of my own money and exchanged it for the silver. Today the 20 half-dollars are worth about $440 and the $10 bill I gave the gas station will buy me two gallons of gas. Back in 1968 it bought 30 gallons. I can buy over 100 gallons with those same half-dollars. Which would you want to have? This is taking into consideration the fact that really silver should be about $100 per oz. In that case I could buy 300 gallons of gas which will soon be the case and maybe even 600 gallons in a few months or years depending how long the facade lasts. Let's face the facts the stock market is doomed. In our town there used to be four malls now there is one and they can't keep those stores profitable and the people who work there cannot afford to pay there bills now much less when inflation erodes their meager income even more and good luck raising the minimum pay. If you doubled it it wouldn't help and would fuel inflation even further. Hang tight and your silver will go up like a kite. Beware of gold though it is only worth what people will pay for it unlike real metals that have a need to fill!

Sep 17, 2012
Manipulation time is limited
by: Carlos

From the late 1990's to around 2008 with the start of the financial crisis, silver prices were kept deliberately low and very few saw it as a decent investment. The paper market and comex flooded the market with huge artificial amounts of silver to keep the price down. This was ideal for the US dollar since as long as gold and silver which are and were always the best forms of money, were kept low and insignificant, the dollar would stay in high demand. Since 2008, many people realised that physical silver was an absolute bargain and demands for physical silver reached all time high's year after year. Many commentators believe that the manipulators such as JP Morgan are mere agents for the federal reserve and even the US Government. This manipulation goes as far back as 1965 when president Johnson announced that silver warders beware, they will loose big time. So why was it then so important to ensure that people don't ward silver. The manipulators find themselves in a catch 22. If they suppress the silver price too low, demand for physical silver will increase so much that physical supply will not be able to meet demand. On the other hand if silver is allowed to rise, they will loose out big time with their short positions. Either way in the long term they are f***** . I believe that the whole corrupt system will fall apart and silver will definately not rise gradually it will explode overnight as the artificial financial system falls apart.

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