Posted on 05/14/2011 5:25:42 AM PDT by Heuristic Hiker
LAS VEGAS (MarketWatch) -- Silver has been manipulated down in recent weeks, Eric Sprott, head of Sprott Asset Management, said Thursday. Silver slumped by $6 in 13 minutes late on a recent Sunday, when the market was thinnest, Sprott noted during the SkyBridge Alternatives Conference in Las Vegas. That was followed by four margin increases, Sprott added. Sprott recently launched a silver fund and has been a gold bull for at least a decade. Despite the recent drop in precious metals, Sprott reckons they are a good way to protect against trouble in the banking system and a potential devaluation of the U.S. dollar and other paper currencies. "The market has judged the world's reserve currency as gold," he said on Thursday.
(Excerpt) Read more at marketwatch.com ...
Sounds like a big time whiner! Heaven forbid that a commodity market might actually go down too!! Must be those evil government manipulators! There should be position limits on commodities that are strictly enforced, just like we had in the old days when this ridiculous volatility DIDN’T EXIST. You could still own the metal but there was a reason we didn’t let a few big boys corner a market.
Small gas engines have carburetors. To achieve the best performance it is necessary to make minor adjustments to one of two or three jets and springs.
So it is with the silver market. Minor adjustments were made to get the best market performance
Government manipulation of silver prices are being investigated for keeping silver prices so low for so long (over a decade!). The recent parabolic surge of silver has just been a reversion to the mean. Keeping silver prices artificially low has made it uneconomical for silver companies to produce more for an extended period of time. This has decreased the silver inventories and created shortages. The silver price spike is the result. The current price will now encourage more production, which in turn will reduce silver prices. The free market at work.
The price of silver and gold are manipulated down by the government because when they get too high people see it as a lack of confidence in the dollar. That means you get the chance to buy it cheaper than it should be. Buy physical in your hands silver while it is on sale!
I have found this website to be a very useful source of information on the economy, gold, and silver.
http://goldismoney.info/forums/
Government manipulation of silver prices are being investigated for keeping silver prices so low for so long (over a decade!). The recent parabolic surge of silver has just been a reversion to the mean. Keeping silver prices artificially low has made it uneconomical for silver companies to produce more for an extended period of time. This has decreased the silver inventories and created shortages. The silver price spike is the result. The current price will now encourage more production, which in turn will reduce silver prices. The free market at work.
Same thing with the oil prices. Margins increased and VOILA!!!!
When you give a thought to commodities be sure to think CATTLE FUTURES before you make a decision.
Gold and silver were both manipulated up and down. That’s the short and long of the situation.
He'd studied how that market worked ~ and realized it came down to whether or not it rained in Kansas a few weeks before harvest ~ so the plants could make that final push to produce more starch.
I gather he'd done this in November or something. Next thing you know he'd set a radio to pick up Kansas weather reports on a 24/7 basis ~ and he'd listen to the radio every evening for several hours to pick up on the signs of rain.
His bet was on "no rain".
He did this for months and months. His wife complained. The dog whimpered. He wasn't getting enough sleep, and even started listening to the radio weather reports from Kansas while brushing his teeth in the morning.
Spring came ~ summer was near ~ just a few weeks ~ and then it rained!
He was crushed. We all felt some degree of sympathy, but no more than we'd give to an habitual gambler just back from another losing trip to Las Vegas.
Any time someone who loses other peoples' money for them blames the regulators, be very wary.
The manipulations (if the allegations are true, and I imagine they are) are offensive. Of course, for the little guy, heed the advice to “buy on the dips.” In this case, “buy on the manipulations.”
If you can locate the original plunge in silver you will see that the move down was precipitous and was not occasioned by an increase in purchase or sale activity. Its as though you held stock in AX Widgets which closed one day at $50 and without explanation opened the next at $40. Stockholders would demand to know what is going on. I don’t hold silver, but I thought the fall was due to manipulation. However, I still have no understanding of who was behind it.
Several among us here predicted this selloff, almost to the day, when silver neared fifty.
Every market is manipulated. Deal with it, get over it, and learn how to profit from it. This is the formula:
Accumulation
Mark up/Mark down
Distribution
That’s how it works. The big boys rule the market, learn their tricks and profit along with them instead of whining about manipulation.
Silver market manipulated, Remember the Hunt brothers? Just what in our lives is not manipulated?
This is the big reason I haven't sold what I no longer wear. And I do buy silver on sale to the point where people think I'm nuts, but someday, my family may have to eat out of my jewelry box.
http://www.freerepublic.com/focus/news/2710034/posts?page=19#19
http://www.freerepublic.com/focus/news/2710107/posts?page=6#6
That market was almost a gimme. Silver went too high too fast.
Sprott is right IMO. You had collusion between COMEX, the Federal Reserve, JP Morgan, HSBC and other large silver shorts. They are all in collision to jam silver down via raising margins and shorting it at just the right time
The Federal Reserve hates high gold and silver prices. It makes what they sell (the US Dollar) look bad. JP Morgan has been deputized to short silver. What do they get in return? They get billions in free money from the Federal Reserve when the FR buys Treasuries from them instead of directly from the US Treasury like any slob in America can do if he has $10,000. JPM is a “primary dealer” in US Treasuries which is a big deal.
COMEX want to keep the Federal Reserve happy too. They raised margins to bail out JP Morgan which is what the FR wanted. Federal Reserve and JP Morgan are all thieving banksters. They all know each other and talk to each other.
In fact the Federal Government via the US Treasury is somewhat pro-gold and pro-silver because it is always minting gold and silver coins (American Eagles) Amusingly enough the US Government is selling gold and silver while the Federal Reserve only sells US Dollars, paper and otherwise via supplying bank reserves
The Federal Reserve banksters are not the government. They are a private bank in cahoots with other banksters. Federal Reserve and its bankster buddies such as JPM have been shorting silver and gold for years
And it is done for the reason you mention. The Federal Reserve has a product they are always creating out of thin air, always marketing and selling. This product is the US Dollar. That product looks like shyte when gold and silver prices are rising. Dittos for oil and a range of other commodity prices
The Federal Reserve will take Obama and his minions requests into account but ultimately they will do as they please and do what pleases their thieving bankster constituencies
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