*NOTE the mirrored image and open-sky warehouse that was photo shopped in on this “silver inventory” picture used by the Mainstream Media!
by Bix Weir, Road To Roota:
I have tried to understand and explain silver price manipulation from a broad perspective. There are limitless amounts of electronic silver available to the big players to rig the electronic price of silver up, down or sideways at any moment in time. The US Government has constructed this mechanism through the Exchange Stabilization Fund (ESF) and the Working Group on Financial Markets(WGFM). The ESF holds the limitless funds and the WGFM pulls the trigger when needed. Given that the WGFM comprises both the leaders of the monetary and market system (head of Fed and head of Treasury) as well as the leaders of the regulating bodies (head of SEC and CFTC) their operations are above reproach.
So yes, the electronic market rigging apparatus is fully operational and running 24/7 and with a “Click of a Mouse” they can set the price of silver at $0/oz or $1M/oz.
But there is another part of the silver market rigging that needs to be addressed and although it counts for less than 0.025% of the entire silver market it is vital…
The PHYSICAL SILVER market must be kept in check as well and that’s not as easily done.
The following article is about the JP Morgan silver manipulation lawsuit that was just dismissed by another corrupt NYC judge. It it tells the story of how the physical manipulation of silver works…
JPM Silver Decision Flawed by Vince Lanci
1. You physically remove the silver from the warehouse – because of the physical work involved a receiver can take almost 6MM oz of Silver daily. Why? Because it’s just not that easy to move silver out of the vault and onto a receivers vehicles. So when you see “30MM oz removed” it’s not physically possible.
2. You take delivery, store it nearby and bring it back when you are out of your long futures position
– Be long 30MM oz of silver in futures. – Take delivery of 20 MM in physical using borrowed money – Store the metal in a warehouse in RedHook Brooklyn and wait for the news to spook the market. – Tell your pals with long positions to make their own silver unavailable for delivery. as prices will go up soon
3. You throw a sheet over the silver still in the warehouse and say, “this is mine, it is no longer here. I’ll pick it up tomorrow- – Phibro was to have employed all 3 methods in 1997 after filling Warren on his buys.- Andy Hall was a genius when he had order flow to front run
4. Buy the last 1,000 contracts for the customer as sloppily as you can.
5. Tell the customer you beat the VWAP, i.e. last price on the board is higher than the average price you bought for client.
I love all the “cover-up drama” that goes on behind the scenes to hide traders REAL positions. The key to a successful professional trader is to NEVER let anyone know your position…especially if you are short. Lie, cheat and steal is the mantra of commodity traders. In my opinion, commodity traders are usually half genius and half criminal…but when the criminal half is supported and protected by the government – there can be no “free markets.”
Here’s my favorite part of the article:
“During my career, I’ve been victim, observer, perpetrator and now despiser of market manipulators and the market structure that rewards corporate greed at the expense of free markets. The little guy can no longer compete. Organizations that speak for him (GATA etc) get shouted down because they don’t have a PAC. Watch, homogeneous counterparties will be the death of the markets. TBTF means too big to exist IMHO.”
Yes, in the end the COMEX and LBMA and all other silver exchanges will be shut down. There will be no final settlement of contracts and the criminals will walk away from their short positions with their physical silver in hand.
And that day will be here soon so time to load up on physical in your own possession!
May the Road you choose be the Right Road.
PS – If you are watching the markets, the silver price is now being “allowed” to rise so I guess it’s time to pull out an Oldie but Goodie that I first debuted at the 2011 Silver Summit!
SILVER MANIPULATION SONG
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