*

*
*

Monday, February 8, 2021

Squeeze Play


As an antique dealer I usually have a good amount of silver in my shop and I watch the markets rather closely. Rarely does the melt value match the price point of beautifully crafted silver but if the price goes up high enough, almost anything will burn.

I always find it curious that just when silver or other metals are about to take off, they get reigned back in so easily. Even when the supply of physical silver is practically nonexistent. Doesn't make sense, does it?

There is obvious manipulation going on and this man does a pretty good job explaining it. The government does not want the price of gold and silver to go up. And so people start playing and trading with invisible metals that do not exist, the big guys and hedge funds manipulate the market and the government looks the other way and pretends not to see because its purposes are being served.

J.P. Morgan was caught "spoofing" precious metals last year. Their fine was a mere slap on the wrist, the rather cheap cost of doing business. And then it was back to business as usual.

I saw an interesting comment on the subject this morning from a reader over at one of the financial columns, don't remember which:
How would people feel if horse racing allowed you to bet on which horse would finish in last place? That wager is not allowed because there's far too much much potential for abuse by the owner, the trainer and the jockey. Short selling is an anachronism that dates back centuries to an era when paper certificates were the legal proof of ownership of stock in a company. People were given a grace period after a stock sale to produce a valid certificate. Clever traders figured out that if a company was falling apart financially they could sell shares that they didn't have and buy them back later during the grace period when the share price had fallen. Short selling is an idea 20 years ahead of its time. Unfortunately, its time was 1850.

This is a good video. This man gets it. As he points out, the bullion banks are acting as a cartel, in league with the big banks. And in order to supposedly save the monetary system they are more than willing to hurt the chumps in the game who are dumb enough to think it is being played straight.

8 comments:

Kent said...

I believe the margin requirements for silver were recently tightened. That would tend to reduce speculation and provide more price stability.

Blue Heron said...

Well Kent, it will certainly help keep the little reddit guy from messing up the scam.

Anonymous said...

I'm hearing and seeing myself, the stock market being "pumped" and I believe it. It's great for index fund re-investors like me who see it bounce around 300-500 points at a time, which it is doing very often these days. I noticed since 2008 that the stock market seemed not to be linked to any actual value or anything that was actually happening in the world, and I find it amusing every morning to look at the stock market sites and read what excuse they have thought up for why the market is either up or down at a particular moment. I'm just a tiny mouse scurrying around under the feet of giants trying to keep as much out of the way as possible. Fox "news" ads for buying gold and silver as safe investments give me a pain for every fool who buys into it.

Anonymous said...

Ted Butler on blatant price manipulation in silver - https://www.youtube.com/watch?v=gL0VfudSx3M

Anonymous said...

seeking alpha : ...if you can’t raise interest rates, the only way to stop a dollar run and a flight into precious metals as a monetary reserve is to push the paper price of silver down by shorting silver futures. Banks have a vested interest in doing this because if the dollar falls too fast, the value of the bonds on their balance sheet plummet, causing a systemic banking crisis. If silver stops rising in dollar terms though on the paper markets, the demand for it as a monetary reserve tends to eventually ebb, stabilizing the dollar that way.

Jolly Curmudgeon said...

I don't know what your policy is regarding re-posting to FB. I thought "...How would people feel if horse racing allowed you to bet on which horse would finish in last place? That wager is not allowed because there's far too much much potential for abuse by the owner, the trainer and the jockey. Short selling is an anachronism that dates back centuries to an era when paper certificates were the legal proof of ownership of stock in a company. People were given a grace period after a stock sale to produce a valid certificate. Clever traders figured out that if a company was falling apart financially they could sell shares that they didn't have and buy them back later during the grace period when the share price had fallen. Short selling is an idea 20 years ahead of its time. Unfortunately, its time was 1850."I thought this was worth sharing, but certainly would not post without your permission and attribution.

Blue Heron said...

Go for it. I borrowed it from somebody else. Worth sharing.

Jolly Curmudgeon said...

Thank you.