Remember, there was a silver deficit of over 113 million oz. last year alone…
from The Wealth Watchman:
For over 40 months now, the banks responsible for manipulating precious metals prices, have kept a lid on silver. Weird as it seems, it was all the way back in late April, 2011, when silver last touched nigh unto $50 per troy oz.
This artificial downtrend began with an assault on the paper silver market on a thinly-traded Sunday evening, as the bullion banks(JP Morgan, etc) crushed the price of silver roughly 15%, literally in minutes. From then on, as many NYC investors on the long side of the trade woke up, they discovered their positions underwater, and covered them, which led to more pressure in the downward momentum in price. Then, to pour Clorox on the proverbial fire, the CME raised margin requirements, not once, twice, or even three times….but five times within the space of roughly one trading week! Facing the dual-losses of margin on falling price, coupled with the prospect of now being asked to fork over even more cash, in order to keep a hemorrhaging long silver position, most folks sold those positions and fled. The effect was an excruciating 35% waterfall in paper futures in Comex silver within just one week, as price caved from $50 to $32.
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