Options
The real problem with silver manipulation
cladking
Posts: 28,351 ✭✭✭✭✭
Silver is getting used up.
There will be a growing geometric demand for silver going forward because
of its many unique properties. More and more high tech uses will be found
but many of these will not be commercially feasible because the price will be
astronomical. It is being consumed for low priority items now because greedy
and short sighted individuals are making money by suppressing the price. Fu-
ture generations will pay a heavy price for our greed and foolishness.
The manipulators may already be in so deep that they can't extricate them-
selves. But this must happen anyway. If it requires a government bailout
then do it but this time don't give them a bonus in return.
There will be a growing geometric demand for silver going forward because
of its many unique properties. More and more high tech uses will be found
but many of these will not be commercially feasible because the price will be
astronomical. It is being consumed for low priority items now because greedy
and short sighted individuals are making money by suppressing the price. Fu-
ture generations will pay a heavy price for our greed and foolishness.
The manipulators may already be in so deep that they can't extricate them-
selves. But this must happen anyway. If it requires a government bailout
then do it but this time don't give them a bonus in return.
Tempus fugit.
0
Comments
have already been laid off on Chinese concerns and that the Chinese govern-
ment has already repudiated that risk.
This will greatly complicate a bailout since the banks will need to repurchase
the derivatives which comprise that risk.
The current situation is a powder keg that could destabilize a very fragile re-
covery. Silver isn't like nickel. When nickel defaulted there were substitutes
and now we have stainless that isn't. But most applications of silver have no
substitute. But there's a far graver risk with silver; it is still intimately tied to
the concept of money. You can't destabilize silver or gold without destabilizing
currencies.
If they think the real estate derivative crash was a problem wait till they see
what happens when money is bumped.
Papabear
<< <i>Silver is getting used up.
There will be a growing geometric demand for silver going forward because
of its many unique properties. More and more high tech uses will be found
but many of these will not be commercially feasible because the price will be
astronomical. It is being consumed for low priority items now because greedy
and short sighted individuals are making money by suppressing the price. Fu-
ture generations will pay a heavy price for our greed and foolishness.
The manipulators may already be in so deep that they can't extricate them-
selves. But this must happen anyway. If it requires a government bailout
then do it but this time don't give them a bonus in return. >>
I'm not sure I follow the reasoning behind the bailout. Why would or should the govt. offer another bailout?
Would that be to again surpress the price of future silver so it's affordable for new technology usage?
Click on this link to see my ebay listings.
<< <i>
I'm not sure I follow the reasoning behind the bailout. Why would or should the govt. offer another bailout?
Would that be to again surpress the price of future silver so it's affordable for new technology usage? >>
The current situation is the status quo. The big banks are short many million of ounces
of silver and it's like they have a tiger by the tail. If they let go they get destroyed. As
soon as they stop seeling worthless paper silver the price will head up sharply causing
massive losses in their holdings of shorts.
Losses are large enough to take down any entity that holds this risk and most of it has been
palmed off on Chinese entities. The Chinese government has already announced that they
will not prosecute Chinese companies or individuals who don't pay off in case of losses.
This is an odd situation just waiting to blow up in our faces as we use up vast amounts of
silver at heavily manipulated prices.
Most silver will evaporate if prices head higher causing implosive change in supply as the
price moves higher. Much of the silver that evaporates and will not be made good by Chi-
nese concerns will actually manifest in demand since this is "silver" "owned" by industrial
concerns which require delivery.
I suspect the only reason that this didn't blow up a couyple years agoi is that wev'e begun
melting the vast amount of US silver coins which has kept the redfineries busy for a couple
years. There's a great deal of this silver but it's not infinite. So long as price stays down
demand and consumption will continue to grow right up until the refineries don't have e-
nough silver left to make up the difference. This is likely only about three years but it might
be as much as seven or eight.
I don't see the advantage of tip toeing on the edge of disaster so a few bankers can make
a few more million while using up the world's supply of silver. Even if I considered bankers
making a few more million a good thing the risk to ourselves is great and the damage to
the future is ongoing.
move as the banks make one last ditch illegal maneuver to try to get
their assets out of the fire but more likely it's will be $1.50 upward. Any
move after this to suppress the price will become blatantly obvious and
paper longs will rush to convert to physical which will destroy the shorts.
I really suspect that there will need toi be government intervention and
there will be trials for the perpetrators of this mess. If this doesn't hap-
pen the bnond market can be shaken which is the last thing a house of
cards needs.
Give Me Liberty or Give Me Debt
<< <i>We're looking at a big move Monday I believe. It could be a $4 down
move as the banks make one last ditch illegal maneuver to try to get
their assets out of the fire but more likely it's will be $1.50 upward. >>
A $4 sell off on Monday? In silver? I doubt it. In event that does come to pass, it will definitely be bought hand over fist.
My Adolph A. Weinman signature
I want to see what two weeks of intense physical demand does to the silver supply.
I bet it runs dry...
Free Trial
Its fairly abundant if you compare it with other white metals such as platinum and palladium, and those are needed in industry just as much and perhaps more for auto and avation.
In the 1950's the USA alone had a stockpile of around 3.5 BILLION ounces, that was just one country add, everything that has been minted since then plus Europe, Asia and the rest of world's reserves and we talking maybe 20 to 30 billion ounces of avaible silver and we keep mining about a billion ounces a year.
Silver does have some nice and unique properties but copper can do pretty much anything silver does, it would obviously do it in an inferior way but silver its far from "must have" in industry.
and remember even though silver gets used up ..it does not dissapear ...if the price goes high enough supply will come out.
Between the usual horrible spreads in physical ( for small purchases ) and the space and weight silver takes , i just dont care for it.
I still have some regardless...but i view as a lottery ticket rather than wealth preservation.
what was the price of gold when silver hit 21 dollars an ounce a couple of years ago?
Groucho Marx
<< <i>Maybe its just me ...but i am tired of silver.
Its fairly abundant if you compare it with other white metals such as platinum and palladium, and those are needed in industry just as much and perhaps more for auto and avation.
In the 1950's the USA alone had a stockpile of around 3.5 BILLION ounces, that was just one country add, everything that has been minted since then plus Europe, Asia and the rest of world's reserves and we talking maybe 20 to 30 billion ounces of avaible silver and we keep mining about a billion ounces a year.
Silver does have some nice and unique properties but copper can do pretty much anything silver does, it would obviously do it in an inferior way but silver its far from "must have" in industry.
and remember even though silver gets used up ..it does not dissapear ...if the price goes high enough supply will come out.
Between the usual horrible spreads in physical ( for small purchases ) and the space and weight silver takes , i just dont care for it.
I still have some regardless...but i view as a lottery ticket rather than wealth preservation.
what was the price of gold when silver hit 21 dollars an ounce a couple of years ago? >>
Silver peaked at a little over $21.20 during overnight trading between March 16 and 17 of 2008. During that same night gold peaked at around $1,032-33.
TD
<< <i>Maybe its just me ...but i am tired of silver.
Its fairly abundant if you compare it with other white metals such as platinum and palladium, and those are needed in industry just as much and perhaps more for auto and avation.
In the 1950's the USA alone had a stockpile of around 3.5 BILLION ounces, that was just one country add, everything that has been minted since then plus Europe, Asia and the rest of world's reserves and we talking maybe 20 to 30 billion ounces of avaible silver and we keep mining about a billion ounces a year.
Silver does have some nice and unique properties but copper can do pretty much anything silver does, it would obviously do it in an inferior way but silver its far from "must have" in industry.
and remember even though silver gets used up ..it does not dissapear ...if the price goes high enough supply will come out.
Between the usual horrible spreads in physical ( for small purchases ) and the space and weight silver takes , i just dont care for it.
I still have some regardless...but i view as a lottery ticket rather than wealth preservation.
what was the price of gold when silver hit 21 dollars an ounce a couple of years ago? >>
Silver is money. 20-30 billion ounces won't be enough once things get rolling. Remember there are 6 billion people on the planet. Are you going to limit each one to only 5 ounces? Besides enough studies have been done to show less than 1 billion ounces are left above ground. According to this, world supply is 889 million ounces - that's all known sources. Click here
Free Trial
Silver makes for a great story ...but It has been a good story for a long time ...its been decades since silver "peaked" and nothing happens.
Dont get me wrong ...its still a better alternative than fiat ...
Groucho Marx
<< <i>Maybe its just me ...but i am tired of silver.
Its fairly abundant if you compare it with other white metals such as platinum and palladium, and those are needed in industry just as much and perhaps more for auto and avation.
In the 1950's the USA alone had a stockpile of around 3.5 BILLION ounces, that was just one country add, everything that has been minted since then plus Europe, Asia and the rest of world's reserves and we talking maybe 20 to 30 billion ounces of avaible silver and we keep mining about a billion ounces a year.
Silver does have some nice and unique properties but copper can do pretty much anything silver does, it would obviously do it in an inferior way but silver its far from "must have" in industry.
and remember even though silver gets used up ..it does not dissapear ...if the price goes high enough supply will come out.
Between the usual horrible spreads in physical ( for small purchases ) and the space and weight silver takes , i just dont care for it.
I still have some regardless...but i view as a lottery ticket rather than wealth preservation.
what was the price of gold when silver hit 21 dollars an ounce a couple of years ago? >>
Are you going to short some SLV?
Successful Trades: Swampboy,
<< <i>Maybe its just me ...but i am tired of silver.
Its fairly abundant if you compare it with other white metals such as platinum and palladium, and those are needed in industry just as much and perhaps more for auto and avation.
In the 1950's the USA alone had a stockpile of around 3.5 BILLION ounces, that was just one country add, everything that has been minted since then plus Europe, Asia and the rest of world's reserves and we talking maybe 20 to 30 billion ounces of avaible silver and we keep mining about a billion ounces a year.
Silver does have some nice and unique properties but copper can do pretty much anything silver does, it would obviously do it in an inferior way but silver its far from "must have" in industry.
and remember even though silver gets used up ..it does not dissapear ...if the price goes high enough supply will come out.
Between the usual horrible spreads in physical ( for small purchases ) and the space and weight silver takes , i just dont care for it.
I still have some regardless...but i view as a lottery ticket rather than wealth preservation.
what was the price of gold when silver hit 21 dollars an ounce a couple of years ago? >>
Silver gets used up. It's not sitting in stockpiles anywhere. In the old days you
could buy silver foil in the grocery store. What percentage of that might still exist?
I'd be very surprised if over 2% was recovered or is still recoverable or will ever be
recovered.
I used to believe there were many billions of ounces out there but if this were true
then where is it? Nobody has large quantities so all the exists exists in small hoards
scattered far and wide. But it involves few people and small quantities. Many of
those who "own" silver actually only have depository receipts or promises. More
and more silver is something on paper rather than something that clangs. There are
vast warehouses full of gold as well as significant amounts in museums and worn by
people as jewelry. Where's the silver?
In the run-up of 1979 most household silver was scrapped out and it was melted and
refined into large bars for industrial uses. Sure only 25% or so of US coinage was de-
stroyed in this melt but this combined with all melting and losses probably accounts for
about 50% and large quantities are rare valuable coins that are not going to be melted
except at far higher prices. Silver would have to get up to $280 per ounce just to start
melting common XF barber dimes.
I believe there are only a few hundred million ounces at play and this is less than a
single year's production. This is a very high tech metal and demand should continue
to advance despite the fact that supply is highly inelastic because it's a by-product of
other mining.
The refiners can melt plenty fast enough to stave off a shortage with only industrial
demand but this is not all the demand. And soon enough we will run out of coin to melt.
mines that predominently operated to produce silver. When silver production
first soared back in the 1860's most silver came out of silver mines.
Today I believe less than 25% of silver comes from mines that primarily produce
silver. The bulk comes from copper, gold, and zinc mining. Usually silver is a small
component of profits and costs so even large run-ups in silver price would have
no effect on production.
Supply is inelastic for this reason.
Demand too is quite inelastic to price because most products that use silver re-
quire silver. These products can be quite expensive but contain only a few pennies
worth of silver. Manufacturers aren't going to switch to another material even if
the value of the silver in their product goes up astronomically.
This is a very explosive situation and every day that this farce goes on more silver
is destroyed that shouldn't have been.
Most of silver that gets "used up" ends up in electronics , right now Japan is basically the only country refining small electronics...again if the price goes up you should see Germany and the US joining them.
I could buy at least 2000 ounces of silver at my small local coin show ....i could enever find that much gold and forget finding more than 2 ounces of platinum.
The gold to silver ratio has been in an uptrend since 1980 ...short of your prediction of a silver shortage I see no reason why that would chance.
Groucho Marx
<< <i>There are plenty of old silver mines ...all it would take is a higher price to open them up again.
Most of silver that gets "used up" ends up in electronics , right now Japan is basically the only country refining small electronics...again if the price goes up you should see Germany and the US joining them.
I could buy at least 2000 ounces of silver at my small local coin show ....i could enever find that much gold and forget finding more than 2 ounces of platinum.
The gold to silver ratio has been in an uptrend since 1980 ...short of your prediction of a silver shortage I see no reason why that would chance. >>
I agree that some of the rare earth metals might be bargains even
in relation to silver but investing in most of these is nearly impossible
for the average investor. Platinum is an interesting metal and very
well might have some use someday that drives it very high since it
is so rare.
But silver is a very remarkable and unique element. It will have more
and more uses as time goes on and many of these will require only
silver.
Please name a single industry which to which silver is a critical metal? ( ie. can not be easily replaced)
Groucho Marx
<< <i>Please name a single industry which to which silver is a critical metal? ( ie. can not be easily replaced) >>
Commemorative silver coins.
My Adolph A. Weinman signature
<< <i>We're looking at a big move Monday I believe. It could be a $4 down
move as the banks make one last ditch illegal maneuver to try to get
their assets out of the fire but more likely it's will be $1.50 upward. Any
move after this to suppress the price will become blatantly obvious and
paper longs will rush to convert to physical which will destroy the shorts.
I really suspect that there will need toi be government intervention and
there will be trials for the perpetrators of this mess. If this doesn't hap-
pen the bnond market can be shaken which is the last thing a house of
cards needs. >>
???
The web is full of conspiracy statements like the one above, as overblown and stretching the truth as most are, there is just enough validity in them to make you wonder or think...is it really going to happen?
<< <i>The best thing silver got going for it is the high price of gold ...
Please name a single industry which to which silver is a critical metal? ( ie. can not be easily replaced) >>
it conducts electricity better than all other metals and highest thermal conductivity, but yes i can't directly answer your question
I like the monetary history of silver, but Cladking was linking silver's rise due to its "vital" role in industry...i just dont see it.
I am not anti silver ...I own some, i am just tired of the same old " to da moon " crap.
Groucho Marx
<< <i>I am not anti silver ...I own some, i am just tired of the same old " to da moon " crap. >>
It's like reading forums of those trading penny stocks. Every small movement (or even not so small) means they're going to be richer than Bill Gates.
Me, I just like old coins.
<< <i>Silver has a slightly better conductivity than copper ...but copper doesnt tarnish like silver does ..so..its about even.
I like the monetary history of silver, but Cladking was linking silver's rise due to its "vital" role in industry...i just dont see it.
I am not anti silver ...I own some, i am just tired of the same old " to da moon " crap. >>
So long as the price is being suppressed by the mountains of paper
silver then many of the people who are long silver are really just long
on paper.
It's not that I want the price to explode. I'd far rather see rational markets
determine true supply and demand. If the price had been allowed to go to
natural levels after the 1980 fiasco then it would have been enough higher
over the intervening years that there would have been some diminuation of
consumption due to those high levels. There would have been at least some
additiuonal mining and productioon to bring these markets into balance at
those higher prices.
But instead the banks were able to manipulate these prices for the benefit
of the few and at the expense of many while the silver was being irretrieva-
bly destroyed.
There are a very limited number of ways manipulated markets can return to
a semblance of sanity and they all involve a blow off of one sort or another.
In this particular case the demand will increase as the price increases and
the supply will derease as the demand increases. The degree to which the
demand can increase is simply staggering in these days of just in time deliv-
ery. Factories simply don't lay in supplies of things. To protect themselves
against price increases they buy paper but when this paper becomes worth-
less there will be huge buying by industry to obtain the metal they need to
keep operating. Many people paying storage fees on silver will learn the pap-
er that backed the pyramid scheme is worthless. A few of these will also seek
to buy real silver. Meanwhile the whole thing could become a bubble since
investors and the general public do tend to behave as a herd. This will all oc-
cur as one paper promise after another disappears because the issuer can't
honor it.
This warning has been issued by many people for many years as the world's
silver is being depleted. And all this is taking place at a time when in all prob-
ability is the beginning of a parabolic increase in silver demand.
I don't know what's going to happen any more than anyone else but I can say
that the longer this goes on the more dynamic will be the explosion. The more
damage will be done to individuals and companies. It's already pretty sure to
be the biggest shift in any major commodity in history.
<< <i>The best thing silver got going for it is the high price of gold ...
Please name a single industry which to which silver is a critical metal? ( ie. can not be easily replaced) >>
All of them.
I can't think of any industry that will be unaffected. Silver is not a major component
of any necessary product other than superconductors but it is a necessary component
of thousands of products especially in medicine, electronics, and optics. Even factories
that don't have anything to do with silver need it in their machine tools, control equip-
ment and electronics.
There may even be a whole new world opening up in reverse spin heavy metals. Due
to silver's reactivity it will prove rare in nature probably and due to its full outer elect-
ron bands it will probably also have many unique properties.
The world is going to keep changing and as in the past it will demand increasing a-
mounts of silver in all probability.
I knew it would happen.
manipulating silver for their own personal gain would eventually try to turn the situation
around and make it look like investors and other silver buyers were the cause of the pro-
lem.
Let's not allow them to do it.
<< <i>
<< <i>We're looking at a big move Monday I believe. It could be a $4 down
move as the banks make one last ditch illegal maneuver to try to get
their assets out of the fire but more likely it's will be $1.50 upward. Any
move after this to suppress the price will become blatantly obvious and
paper longs will rush to convert to physical which will destroy the shorts.
I really suspect that there will need toi be government intervention and
there will be trials for the perpetrators of this mess. If this doesn't hap-
pen the bnond market can be shaken which is the last thing a house of
cards needs. >>
???
The web is full of conspiracy statements like the one above, as overblown and stretching the truth as most are, there is just enough validity in them to make you wonder or think...is it really going to happen? >>
Back in September when this thread was started the shorts could probably have gotten out
of silver with heavy losses. Now it might be too late. Rather than back off from this illegal
and wasteful of resources activity, they've increased ther exposure. It may no longer be pos-
sible to extract themselves.
The silver has been wasted through low prices while the bankers have given themselves
huge bonuses and exposed their shareholders to enormous, potentially total, losses. Now
with the silver gone they'll ask their friends in government to pull their chestnuts out of the
fire.
My only point here is that we have to call this situation what it is. It has been the wanton
destruction of 5000 years of silver production to enrich a few wall street bankers.
Give Me Liberty or Give Me Debt
<< <i>There is no problem with manipulation. Not as long as you understand it and take advantage of it. >>
The problem with manipulation is that JPM will try to get the government to step
in and take steps to extract them from the market and make a profit. There are
numerous ways to do this but the most obvious is to confiscate silver. Of course
this would be grossly unfair and would result in much of the remaining silver be-
ing wasted as well but JPM believes they are too big to fail so don't seem to be
very concerned. They get more profits and are essentially rewarded for bad be-
havior. I think we just have to be sure not to let them try to take the high ground.
They dug a hole for themselves and pulled it in behind them.
<< <i>Part of the reason I started this thread is I assumed the people breaking the law and
manipulating silver for their own personal gain would eventually try to turn the situation
around and make it look like investors and other silver buyers were the cause of the pro-
lem.
Let's not allow them to do it. >>
cladking, interesting article. Do u know when it was written?
Great article.
<< <i>
<< <i>Part of the reason I started this thread is I assumed the people breaking the law and
manipulating silver for their own personal gain would eventually try to turn the situation
around and make it look like investors and other silver buyers were the cause of the pro-
lem.
Let's not allow them to do it. >>
cladking, interesting article. Do u know when it was written? >>
A quick google says March 14.
JP Morgan won't be bailed out. But try to tell the Republicans in the House that good old JPM needs a trillion dollar bailout because of
silver market losses. Epic fail. Their only hope is to declare force majeure...void the contracts.
Free Trial
<< <i>Part of the reason I started this thread is I assumed the people breaking the law and
manipulating silver for their own personal gain would eventually try to turn the situation
around and make it look like investors and other silver buyers were the cause of the pro-
lem.
Let's not allow them to do it. >>
The article claims that "global silver stockpiles" of silver have shrunk "from 6 billion ounces to only a few, hundred million." While I think that silver is underpriced, the world's stockpile of above-ground silver has to be well over a billion ounces, not a few hundred million.
In another thread, I mentioned that over 250 million U.S. silver Eagles (uncirculated and proof) have been produced since the program started. Melting of this coin has been negligible, since it has always carried a significant premium to spot and therefore is worth more intact than melted. So that's a few hundred million ounces right there.
Also, 90 percent silver U.S. dimes, quarters and halves are still available by the bag. Since they often trade at a discount to spot, huge numbers have been melted over the years. But even if only 10% survive, that's still another 200 million ounces of silver to add to the total. Factor in an estimated 140 million surviving Morgan and Peace dollars, and that's another 108 million ounces. Also add about 44 million modern commemorative silver dollars (34 million ounces), and upwards of 10 million ounces in modern silver proof sets (1992 to date).
The result is that OVER 600 MILLION OUNCES of silver exists in the form of U.S. silver coins alone. That number does not include foreign bullion and commemorative coins, vast private hoards in India and elsewhere, small silver rounds and bars, jewelry, and large silver bars backing exchange traded funds and contracts traded in commodities markets.
Even if a substantial portion of the "paper silver" floating around is unbacked by physical metal, I still don't see how the total aboveground supply can be as low as a few hundred million ounces.
As for the threat of confiscation, I think that the Tea Party members in Congress would quickly block any moves in that direction.
My Adolph A. Weinman signature
All ETF's were created to get a handle on a trade "they"(Wallstreet,TBTF...) had no prior "control" of.
Personally, I'm still waiting on something constructive out of the "new" congress. Rewriting old bills does not count.
America still needs jobs, jobs, JOBs...! Until things start getting FIXed not talked about, I see high PM prices.
I agree with this statement too
"The best thing silver got going for it is the high price of gold ..."
<< <i>Part of the reason I started this thread is I assumed the people breaking the law and
manipulating silver for their own personal gain would eventually try to turn the situation
around and make it look like investors and other silver buyers were the cause of the pro-
lem.
Let's not allow them to do it. >>
The author comes off initially as a "friend" of silver but by the end is advocating selling off one's silver supplies in the
likely event of govt confiscation. I don't quite get the purpose of the article. Is he pro-banker?
Silver inventories are probably on the order of several billions of ounces. While JPM and HSBC could indeed be short
silver on their own accounts, it's also quite possible they are fronting for a larger entity that is massively short silver, ie. the Chinese
government. It's also possible that JPM & Co. are just doing the bidding of the US govt and all their silver losses will ultimately be
socialized. Keeping silver and gold from getting way out of hand allows them more time and the ability to profit on a
larger scale in other markets. If memory serves me correctly, the big banks carried a net long futures position in silver during
the first half of the last decade. Somewhere around 2006 the switch was flicked in the other direction. Early 2006 was around the time
that Warren Buffet dumped his silver hoard and when SLV came into existence
roadrunner
The bankers and Wall St. are thier own worst enemy as their greed demonstrated with dot.coms and housing. Over extension of naked shorts in PMs will cause price suppression to "pop." The silver market is currently experiencing shortages of physical metal being as COMEX futures holders seek to settle in the real thing. There are reports of these investors being offered up to 50% more if they will settle in cash.
Give Me Liberty or Give Me Debt
to get a guaranteed 30-80%? Wouldn't it be effectively a sure 30-80% if they just hedged with an equal amount of short contracts? They could cover the spectrum of the silver
price and ensure they "won" every month.
roadrunner
My Numismatics with Kenny eBay Store Over 6000 listings and growing with more than 39,000 items sold
My Numismatics with Kenny Twitter Page Instagram - numismatistkenny
My Numismatics with Kenny Blog Page Best viewed on a laptop or monitor.
ANA Life Member & Volunteer District Representative
2019 ANA Young Numismatist of the Year
Doing my best to introduce Young Numismatists and Young Adults into the hobby.
My Numismatics with Kenny eBay Store Over 6000 listings and growing with more than 39,000 items sold
My Numismatics with Kenny Twitter Page Instagram - numismatistkenny
My Numismatics with Kenny Blog Page Best viewed on a laptop or monitor.
ANA Life Member & Volunteer District Representative
2019 ANA Young Numismatist of the Year
Doing my best to introduce Young Numismatists and Young Adults into the hobby.
<< <i>We Are About To Crush 15 Years Of Resistance In Gold & Silver
There will ultimately only be one resolution to these games which are being played, and that is a massive explosion in the price of gold and silver. I’m never going to be happy until I see gold up $100 and silver up several dollars in one day because then I will know that the resistance which has constantly been there for 15 years has finally been overcome. We are now getting very close to seeing that event take place.”
>>
Friday action was very telling.
These markets can not be contained short of a financial meltdown which would be
of biblical proportion or the sudden ability of governments to get us on the road to
a balanced budget which seems quite improbable since they aren't even trying.
You can't foolmother nature and their time of trying seems to have just about run
its course.
<< <i>A Manipulation Timeline by Ted Butler >>
Silver owners and some users have to stay vigilant because the manipulators will
try to blame "speculators" for the results their own destructive, dangerous, and illegal
activities.
Everyone needs to know where the blame lies.
for decades and this low price has artificially caused the destruction of some ten
billion ounces of silver above and beyond what would otherwise have occurred. At
the same time the low price has deprived more than a world wide generation of
investors, miners, and other longs the profits which would have been used to start
new enterprises or expand on existing ones. 20% of all the silver produced in hu-
man history was destroyed at the very dawn of its greatest need for this highly
technological commodity by the apparent manipulation. Mankind might pay a heavy
price for more than a century for a massive and widespread illegal activity.
They will point their fingers at the longs.
Chicago Mercantile Exchange declared "force majeure" on any gold deliveries originating out of Manfra, Tordella & Brooks depository in NYC, due to Hurricane Sandy.
Don't even think of getting your gold bullion.
I'm sure that there's nothing to it.
I knew it would happen.
The elemental silver was not destroyed by industry, any more than it was produced by mining.
Rather, it was separated out of ore mixtures and/or silver compounds, and purified. Then, it was used in applications which mixed it in alloys and/or formed silver compounds with other elements.
The silver still exists in the waste and it can be re-mined and re-purified, and the processes by which this can be accomplished would become more economically feasable at higher spot prices.
Luckily, however, there is huge investor demand for silver coins and bars, many more of which are manufactured every single day, and most get stored. They will be of practical use later, and much easier for industry to bid away from investors than it would be to re-refine most of the silver waste. That waste will be the "ore" of the far far future, probably long past our time.
Liberty: Parent of Science & Industry