A couple of interesting articles regarding silver price manipulation.
Mesquite
Posts: 4,075 ✭✭✭
Mesquite
Posts: 4,075 ✭✭✭
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If one wants to see a pink elephant, than he will see a pink elephant. But that doesnt meant the elephant is pink.
Knowledge is the enemy of fear
price that they will receive?
One thing those large cap stocks don't see are otc derivatives in the same size that silver bullion sees. In July 2008 the otc derivatives on silver were loaded to the tune of $190 BILL,
or 12 yrs of world silver production. Imagine if you could/would short Apple 100-1 using otc derivatives. A $190 BILL notional bet (3-4 weeks of trading volume and approx one third of
market cap) could get one some interesting results. But we're comparing "apples" to silver oranges here. Market cap of Apple is about 20X larger than the total value of annual world
silver production. Market cap of the US exchange listed silver miners is approx $25 BILL...vs. $560 BILL Apple. I definitely see pink oranges here.
I knew it would happen.
<< <i>Thanks for reminding me why I don't buy stocks in the foreseeable future. >>
Unfortunately, this also affects the value of physical PMs... which really stinks. When the market manipulators drive down the price of gold and silver ETFs, spot price drops right along with it. It's horrible how we've allowed the easily manipulated paper to dictate the value of the physical metals.
no conspiracy to manipulate can go on forever.
Yes, it's unfortunate - which is why you "average in" by stacking a little at a time. That minimizes market risk. It's portfolio theory and it is valid. Buying physical also puts some distance between you and the bad guys (whoever you perceive them to be).
Lastly, remember that the ETF pricing is not the same as the price of gold and silver. Because these markets are worldwide, if you structure your assets conservatively, you can outlast the manipulators every time - at least until physical holdings are attacked by either regulation or legislation to make it unattractive. You do need to pay attention to what is "coming down the pike". So far, so good.
I knew it would happen.
Is this what you are talking about?
<< <i>"The author of the first link should investigate the trading activity of EVERY stock that trades on the exchanges. Why? Because he would see the same exact pricing and trading patterns on IBM, AAPL, MSFT, KO, MCD, ect."
Is this what you are talking about? >>
No, not exactly, but to answer roadrunner, yes. About 3 weeks ago AAPL dropped $20 or about 4% in less than 30 min on about 10 million shares (1/2 a days volume). So if one of the largest and most liquid stocks can drop 4% in 30 min, why should it be any different for silver or gold? The fact that PMs are MUCH LESS liquid only exacerbates the situation. And due to this relative illiquidity, PM investors should fully EXPECT dramatic price movements.
Jmski52, stocks (as a whole) are no more or less risky than gold or silver.
Knowledge is the enemy of fear
Prolly true, but you can't eat a stock. Well, uh. I mean, you can't cast stocks into a silver bullet. So there!
I knew it would happen.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
I knew it would happen.