A Conspiracy With a Silver Lining

A Conspiracy With a Silver Lining

opinionator.blogs.nytimes.com

Accusations that JPMorganChase and HSBC allegedly manipulated precious metal markets are worth looking into. As Americans know all too well by this point, commodity prices for corn, wheat, soybeans, crude oil, gold and even farmland have been going through the roof for what seems like forever. How to explain the price of silver? In the past six months, the value of the precious metal has increased over 80%, to more than $35 an ounce from around $19 an ounce.

(visit the link for the full news article)

This is a story that has been around for a long time. Many analysts have examined the data and determined that the market is rigged, and there is no way the short sellers actually have the physical commodities to back their trades. All along, detractors have made up claims that everything is ok and anybody concerned about the markets being manipulated is just a conspiracy but. Well, here you have it -- PROOF in black and white. This story is mainstream and can no longer be denied. Goverment officials are beginning to speak out about the powerfully entrenched special interests at JPMorgan and the Fed/Treasury.

opinionator.blogs.nytimes.com
(visit the link for the full news article)

If the market is rigged, how would we go to fix it ?

reply to post by FreeStanger


we need to expose it. the proof is there, its just been ignored by the media until now.

ultimately, if it continues unchecked then the system will collapse like a ponzi scheme and no one will be able to deny it any longer.

a lot of people are trying to buy up physical silver in order to squeeze the manipulators and force them out of business. also, some hedge funds are supposedly putting down hundreds of millions of dollars in contracts forcing these shorts to deliver... things are getting interesting.

Originally posted by FreeStanger
If the market is rigged, how would we go to fix it ?

Whatever means necessary, as determined by us.

At least that's if you still have the spine to exercise a government by the people and for the people.

i think the whole 'crash jp morgan; buy silver' movement that went viral a few months back is a great example of the little guy making a huge difference. individually, we dont have the resources to change this... but working as a group, we each make a small contribution and it snowballs into the greatest 'david v goliath' story ever.

Here is what is going on. Silver ran up to 21.35 around March 21st, 2008 during the collapse of Bear Stears which got bought out by JP Morgan. Bear Stearns had the short silver position which JPM inherited and was guaranteed against loss by the US Treasury and FRB. The subsequent collapse in the stock market was in part engineered to collapse silver (to 8.36~) so they could cover their shorts. They succeeded in covering half and it will take to $42 estimated to cover the balance. In the meantime they have been buying physical silver against their futures shorts and buying up shares of mining companies to secure direct sources in the future. In addition just prior to the revelation by the CFTC of their investigation into silver manipulation JPM spun off its commodity trading arm to a private hedge fund as I understand it. JPM still has an interest in that fund but its interests are guaranteed by the govt. So once they get to $42/oz they will likely bankrupt the hedge fund and JPM will be net ahead not being bankrupt altho they could have secretly been buying silver and silver shares thru another entity so that they can get a taxpayer bailout on their % interest in the silver spinoff hedge fund without having to offset those losses with actual gains. Once they get the price high enough they will dump it and drive the price back down again to shake everyone out.....Prices of markets dont go up and then plateau - they come crashing down and almost always fall faster than they rally once they reach a climax or "culminating point." (Clausewitz identified a CP in writings on the art of war and said that "at the culminating point the violence of the reverse is often greater than that of the forward push.") Look at what happened in 1980...silver exploded to $50 and then crashed all the way back to $5 in just a few months. It didnt stay there very long to give people a chance to sell. Look at crude oil in 2008....they ran it up to $147+ and then dropped it to $35 in just a few months. They do not plateau. Everyone assumes that JPM is getting crushed (Max Keiser is a big promoter of this) but these guys are not the Enron boys. They are probably net long not short when you balance the remainder of the short futures with their physical and stock interests that they have accumulated. and when they decide to pull the plug again the mom and pops who paid $42 or more for silver will get left holding the bag when it drops 50% or more in a matter of months. This is financial warfare and the first principle of warfare is deception.

reply to post by CosmicCitizen

They are probably net long not short when you balance the remainder of the short futures with their physical and stock interests that they have accumulated.

Another great post CosmicCitizen.

No one knows their net position, and I'm pretty sure you're right about an inevitable ugly "correction" (somehow the term doesn't seem right considering so much manipulation going on).

While I feel that silver fundamentals are sound, the reality is that people need to look longer-term. In the short-run, things can indeed go down as fast (or faster) than they went up. It's at those moments that the investor needs to reaffirm why they're in it, and then act accordingly.

I've invested in silver for over a dozen years, and it has been my main focus for the past ten. I buy regularly, but I also double and triple-up after the inevitable mega-crashes that have been with us, not aways "expected" in terms of timing, but certainly in terms of the bigger picture. Nothing goes up in a straight line, and your advice I think is good for anyone, and might help keep expectations real.

SO, for those who "believe" in the silver story, that's great, BUT, keep some powder dry, you will be happy to have something for "when" (not if) that big corrective moment comes.

JR

Originally posted by FreeStanger
If the market is rigged, how would we go to fix it ?

Be exposing it, and letting the entire thing crash.

I have to agree with a few here.

There is :

a) No way to know for sure how JPM has hedged their bets

b) No way to crash JPM (Federal Reserve's Unlimited Leverage)

I am in the camp of hoping / waiting for a pullback in Silver. There is a massive amount of momentum in this trade currently. No one knows for sure what is going to happen next. The only constant in the whole equation for this metal is volatility.

For the ones who got into the trade in the single digits, congratulations. Well deserved, no doubt.

No one publicly knows the net short position but I do know that that they helped engineer the 2008 collapse in silver (along with the stock market) with the intent of covering shorts. How much they covered I do not know. We also know that they supposedly spun off their commodity trading division in August of last year and it wasnt until after that that the CFTC publicly acknowledged the "manipulation" and the price started to rise to catch up to and then surpass gold (percentage wise). We also know that if they were to get caught by the short hairs that they would be bailed out. I also have heard that they (prior to all of this when silver was in the 14-20 trading range) were making direct deals with gold and silver miners to acquire physical bullion. Knowing their penchant for derivatives they likely also bought forward cash contracts with the miners offering over the then current prices to lock in future prices (forward contracts are not reported to the CFTC as are exchange traded futures contracts).

I also think that Goldman Sachs who has been under the radar here and used to be the arm for the stock market futures manipulation raised a billion dollars on a stock offering a year ago that got little attention and they likey went long gold and silver, bullion, stocks and futures to counter the Fed;s short exposure thru JPM. Throw GS into the mix and the govt trading banks are surely net long and the "spin off" is a likely patsy company to default if and when necessary thus protecting JPM. Also dont forget that the Rothschild interests control the London bullion market are big time net longs (private so we dont know how much) and George Soros and other elite interests are net long so for the sheeple to run the price of metals up helps them most of all (qui bono).

I dont know how gold and energy or carbon credits will ultimately be a part of a world currency unit (I think that they are still debating it) but the higher the metals go the lower we will get for our dollars in some sort of exchange. So when we hear Keiser and others yelling buy silver to bankrupt JP Morgan let's ask who pays if they do and who really benefits if they dont. And dont forget if you are long (I bought most of my silver under $5 and all of it under $10 before premiums and have been a light net seller lately) to sell high not after they engineer a "flash crash" in metals like April 1987 when silver imploded 36% in one day!

reply to post by CosmicCitizen


while JPMorgan is buying physical silver, it seems likely that they are scrambling to cover the open interest waiting to take delivery in march. COMEX warehouses don't have enough silver in inventory to cover all of the contracts that are standing for delivery, and this is according to their own numbers.

a lot of hedge funds have figured out that comex and the shorts cant cover their contracts, and so they will be able to leverage huge premiums. if they invest $100 million into contracts, and stand for delivery, COMEX will be forced to offer premiums of 25% or more to buy back the contracts and avoid default. So, 25 million profit for a few weeks work is a no brainer to these huge fund boys with deep pockets and lots of greed.

the biggest problem the shorts have is that this silver just does not exist. the physical silver market is extremely tight and known reserves of silver cant cover the short positions. silver is actually more rare than gold in above ground repositories, because industrial demand has long out stripped the amount of silver mined each year for the past 60 years.

unless there's some secret repository of billions of ounces of silver that nobody knows about, jp morgan will never be able to find the silver to cover their positions.

industrial demand will continue to outstrip mining production and we will never again see a surplus of silver, only shortages.

I've already posted this:

www.abovetopsecret.com...

Originally posted by sp00n1

A Conspiracy With a Silver Lining

opinionator.blogs.nytimes.com

Accusations that JPMorganChase and HSBC allegedly manipulated precious metal markets are worth looking into. As Americans know all too well by this point, commodity prices for corn, wheat, soybeans, crude oil, gold and even farmland have been going through the roof for what seems like forever. How to explain the price of silver? In the past six months, the value of the precious metal has increased over 80%, to more than $35 an ounce from around $19 an ounce.

(visit the link for the full news article)