by Bix Weir, Road to Roota, SGT Report.com:
By now, if you follow silver closely, you should have heard all about the LBMA’s price rigging fiasco last Thursday when the benchmark price of Silver was set 6% below the COMEX price. If you aren’t familiar with the problem here’s the scoop…
The LBMA Silver Price – the crucial daily benchmark used by producers and traders around the world to settle silver products and derivatives contracts – was set at $13.58 per ounce.
At the time of the auction, which begins at 12 noon London time, the spot price was at $14.42 per ounce while the futures price on the CME was at $14.415, leaving a number of market participants extremely confused as to what has happened.
“Unfortunately, it is not [a mistake],” Ole Hansen, head of commodity strategy for Saxo Bank, told FastMarkets. “This could be the end of the fix. It took 14 minutes to find a fix – they obviously found a fix way off of the market.”
The difference between the two was nearly six percent but the benchmark cannot be changed, a person familiar with proceedings told FastMarkets.
Of course the Silver Bugs were screaming at the top of their lungs “I told you it was rigged!” and they were right.
But this was clearly the most blatant rig in the history of silver manipulation (which spans over a century) so I am coming away with a conclusion that many have not thought of and many are not raising…
Did they do it on purpose in order to close the LBMA and claim a force majeure event in ALL silver derivative markets..including SLV?
For over a decade I’ve been saying that the only way the Banksters will get out of their silver short position was to shut down the silver markets due to an unforeseen (by the public) event. Clearly they could not close their position out by trading it as there would be no sellers unless they were at both ends of the market. This has been going on for longer than most know as the plan was to keep the system going…not profit off silver gains.
Two things are very clear in the latest rig job:
1) Somebody had a very large silver derivative position that was supposed to be settled upon the LBMA Silver Price (the Fix) last Thursday.
2) The loser of that position most likely had a catastrophic loss that will emerge over the next few weeks when the contract is settled…or defaulted upon.
This is the End Game my friends and the End Game was always going to be messy.
May the Road you choose be the Right Road.
PS: My new book is flying off the shelves. If you haven’t ordered your copy you can buy it below and it will be sent to you via email today.
Book III: “The Road Awakens” by Bix Weir
Check out the topics I address as there is a lot about the Future of SILVER in this one 🙂
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