The Silver Market: An 'Operation,' Not a Liquidation
Returning to the present, we have a silver market -- which was already severely depressed , where inventories had already suffered long-term inventory decimation , and where demand remains robust -- suddenly plunging lower for absolutely no reason. Defenders of market-manipulation will suggest this was a "sympathetic reaction" to the gold market; except it wasn't.
Unlike the gold market, there has been no paper-liquidation in the silver market. In fact, while holdings of paper-gold have been plummeting, holdings of paper-silver have been steadily rising. You can't have a "sympathetic reaction" occurring between markets with opposite dynamics.
So with holdings of paper-silver rising, with demand for physical silver remaining solid and with there being no "sympathetic reaction" with the gold market, we have the silver market plunging lower for absolutely no reason. I believe that's manipulation. However, the bullion-banks who I believe operate this silver-manipulation scheme are nothing if not obvious. For those readers still skeptical of the notion of market-manipulation - despite all of the financial corruption all around us, the banksters have (as usual) "left their fingerprints" at the scene of the crime.
At Kitco Metals, inquiring minds can see a series of charts like the one below, corresponding with each of the different time periods in the silver "leasing" market:Much like the recent margin-hike by the CME group telegraphed a deliberate intention to push bullion prices lower, negative lease rates are a virtual signed-confession. Not only does paying traders to borrow silver (and short it onto the market) lead to the market being temporarily/briefly flooded with silver, but the negative lease-rates themselves have become like a "clarion call" to these predators that another bankster operation is under way in the silver market. What must be at least quickly noted is the strange aberration in the chart above: The very brief and seemingly inexplicable "spike" where lease rates momentarily inched back into positive territory. One can only engage in conjecture here. However, given that the spike occurred at precisely the same time that precious metals markets began their "crash," there is a theory consistent with all these facts. Despite the bullion-banks trying to pay traders to short silver for them (with their negative lease-rates), there were so many "shorts" lining-up at that time that massive demand drove rates back into positive territory in spite of the banksters' intentions.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV