If you love Free Republic
Donate
Click the Pic
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 ...
I believe you are right dennisw! my thoughts exactly. Most manipulation deniers do not understand the impact that raising margins have on an investment. The Fed sets minimum margin/credit requirements on securities under reg T and reg U. However, with the recent rise in precious metals this threatens there ability to keep yields down on government debt as more are attracted to holding metals than dollars. I believe the Fed nudged COMEX to raise their margin requirements to spank silver investors to show the dollar is the only safe haven. Especially since the powers that be need to sell a boat load of debt at low yields. Mission accomplished for now.
I expect them to continue doing this as long as possible.
You are very sophisticated about Fed Reserve operations.
I also think the New York Federal Reserve is co-equal or more powerful than the Fed HQ in DC which is more ceremonial and the Fed's PR wing whose mission is to schmooze members of Congress and the President. The Washington Fed employs thousands of drones doing a lot of redundant work analyzing economic statistics while the NY Fed is the pro-active branch.
The New York Federal Reserve is bankster central because this is where "open market" operations are done from where primary dealers (the really big banksters) get billions in free money courtesy of the NY Fed open market operations. ZERO NY Fed people are appointed by the President (Obama). Tim Guithner came from the NY Fed. My theory is with the NY Fed situated on the Island of Manhattan where you also have Wall Street and many Bankster headquarters....These guys are all interacting at restaurants, the theater, charity events and over the phone. Their wives know each other and their children are in the same exclusive private schools. Why would they not scheme and collude in favor of themselves? And against average American. What banksters want most in the world is millions and billions with the minimum effort possible. They want free money or as close as you can get to that
This is how I see the Fed Reserve is today. I think it was more of an American institution in the past and less the elitist bankster dominated monster it has become. As other US productive sectors have been greatly hobbled (such as manufaturing) the role of the Fed has risen along with the role of the FIRE sectors (finance, insurance, real estae)
Markets today are ALL manipulated by those who profit by it. Smaller markets, such as gold and especially silver, are easily manipulated by big players who know that the CFTC is a toothless, “captured” regulator.
However, those who hold physical precious metals over the long run will continue to benefit as fiat paper and electronic money supplies are inflated without constraint.
I got you beat. Here’s what I wrote the morning before the highest close in 30 years, with the big correction hitting the next trading day:
“I can’t say what would happen, but in silver, we might see a major short term drop (to $30-35 wouldn’t shock me).
“You should have your dollar amount in mind, and set yourself a plan that is easy to follow, such as: buy $5000 in silver when it gets as low as $42, another $5000 if it reaches $38, and $15,000 more if it reaches $32. Or whatever.
“Then follow your plan.”
22 posted on Thursday, April 28, 2011 9:43:54 AM by Beelzebubba (...a.k.a. “Norm L. C. Bias”)
http://www.freerepublic.com/focus/news/2711821/posts?page=22#22
Sadly, I fear this will be too difficult to unwind as most citizens in this country are distracted with work/school, taking care of their kids and staying ahead of the bill collectors. They have no idea the immensity of the power and wealth shift that has taken place in the last 20 years with the advent of digitized money production, high frequency trading and complex financial instruments which have blown the lid off of the touted buy and hold investment strategies for the 401k investor. The winners and losers are chosen by our Fed and government who in concert have unlimited power to wipe anyone, sector or industry that dares to challenge them. This is done through market manipulation and regulation cloaked as protection for the little guy. The little guy is doomed to remain defenseless as the serfs were defenseless against their lords. The little guy doesn’t have the time, resources or inclination to try to figure out why. They passively are being led to their slaughter destined to being one more citizen dependent on food stamps or other crumbs their master decides to throw on their table.
Sadly, I fear this will be too difficult to unwind as most citizens in this country are distracted with work/school, taking care of their kids and staying ahead of the bill collectors. They have no idea the immensity of the power and wealth shift that has taken place in the last 20 years with the advent of digitized money production, high frequency trading and complex financial instruments which have blown the lid off of the touted buy and hold investment strategies for the 401k investor. The winners and losers are chosen by our Fed and government who in concert have unlimited power to wipe anyone, sector or industry that dares to challenge them. This is done through market manipulation and regulation cloaked as protection for the little guy. The little guy is doomed to remain defenseless as the serfs were defenseless against their lords. The little guy doesn’t have the time, resources or inclination to try to figure out why. They passively are being led to their slaughter destined to being one more citizen dependent on food stamps or other crumbs their master decides to throw on their table.
They know nothing about the current price of gold and silver. There are man in the street you tube videos showing this. Digitized money is their gold. It is all they know. It is all they grew up with. Credit cards. Next Apple iPhone will probably have an embedded RFID that can be swiped at the cash register. Magic money.
They have no idea the immensity of the power and wealth shift that has taken place in the last 20 years with the advent of digitized money production, high frequency trading and complex financial instruments which have blown the lid off of the touted buy and hold investment strategies for the 401k investor.
All large sums are digitized. Are notations on hard drives but paper is always generated and archived.
A smart guy made the point that the really clever players such as hedge funds, equity funds, high frequency traders, derivatives traders& manufacturers have all figured out ways to extract the lion's share of the wealth from "the markets" leaving a lot less for the little guys and the sedate mutual funds. Making the little guy the sucker if he is in the stock market
The winners and losers are chosen by our Fed and government who in concert have unlimited power to wipe anyone, sector or industry that dares to challenge them. This is done through market manipulation and regulation cloaked as protection for the little guy.
What you have is the rise of the Imperial DC government and the rise of Wall Street/bankers
The United States of 50 years ago the power was a lot more decentralized. It was a more libertarian nation w a lot fewer regulators.
We had so many small and large manufacturers. They had a lot of power. The heroes of Ayn Rand's books were manufacturers not Wall Street arse holes
The finance guys made trillions driving manufacturing and manufacturing jobs out of America and into (first) Mexico then Asia/China
They have been pro NAFTA and pro GATT for decades. They killed the backbone of the American middle class (manufacturing) and took its place
The rise of our finance/bankster/insurance/real estate sector started in 1982 when Paul Volker let up on his great interest rate squeeze. Prior to that we either ran a trade surplus or a small trade deficit
The little guy is doomed to remain defenseless as the serfs were defenseless against their lords. The little guy doesn’t have the time, resources or inclination to try to figure out why. They passively are being led to their slaughter destined to being one more citizen dependent on food stamps or other crumbs their master decides to throw on their table.
The list, ping
Let me know if you would like to be on or off the ping list
Soros sold large amounts of holdings just before the drop .. in anticipation of or causing it
Silver has really settled into a “favorite price” of around $35. Meanwhile, the dollar will only continue to fall.
Time to start hording silver again. No, I’m not being sarcastic.
Yep, I agree
I’m confused. Will this increase, or decrease, my odds of hitting it?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.