Monday, 21 April 2014

The Accidental End to Silver Price Manipulation

BY DR. JEFFREY LEWIS
It should be clear now to most precious metals observers that gold and silver price manipulation is just as common to the metals as it is to every other asset class. And equally evident should be the realization that resolution will not come from organized efforts. Be it regulation or legal class action, market forces will more than likely assert themselves.

With silver (and gold to less of a degree), it’s strictly “look the other way” from a regulatory stand point. The greater market and public don’t seem to care, and are not at all aware that they should.

Those who see it clearly are tiny compared to the rest of the potential observers. They are smaller even in the broader “trading class”, who has a tendency towards precious metals. They access information biases each of us toward the trading class, making their influence significant. Unfortunately for the professional trader, accepting that manipulation is a dominant force runs counter to their philosophy and business methods.

The illegal commercial category positioning on the largest, most powerful and primary world price discovery exchange is both toxic and like coiled spring. It currently unfolds at a snails pace.

According to Ted Butler, the commercial net short position in silver was most 179.5 million ounces, meaning that JPMorgan holds about 55% of the Commercial net short position all by itself – and about 33% of the short position held by the eight largest traders on the short side combined. This is a short-side corner by definition.

Ongoing rationalization is that despite the manipulation, there are still market forces unfolding that must be obeyed. That the invisible hand still works, and this may be true. But the implication is clearly meant as a rationalization and not the bolder counter-reaction that you and I are embarked on (in however large, small of a position we take).

Government and markets will always enmesh despite better intentions, and the balance cycles in terms of intensity and density. Currently, private sector is uneven in terms of its economic capacity. The largest entities are too big to fail and therefore “risk immune”. As a result, they are short term focused and reckless.

To bring justice for the precious metals investors would mean sacrifices to the status quo to the point of failure. This is in large part because of the massive expansion of the financial sector, including the corporatization of giant investment banks; we have enabled a system to flourish without responsibility of real skin in the game.

Silver and gold lie at the center of this. For, once the last vestige of backing was removed from currencies; this cancer was allowed to flourish. To bring in the cure at this point would risk destroying everything from the derivatives complex on the outside all the way to the beating heart of what is left of the economy. The destruction would be widespread and only history would be able to judge the heroic efforts of the movement that ended it.

Surely in real-time ending the misunderstood and framed act as a criminal ploy – a terrorist act, no less. And sadly, when market forces finally converge to resolve this, someone will surely take the fall. Perhaps we are seeing this already as a wave of suicide spreads through the banking class.

In the meantime, nothing has changed fundamentally, nor has anything much been altered from a trading or price action standpoint. Prices “respond” the way they always do, predictably and tethered to commentary and painted for sentiment.

More and more awaken to this each day. We see it reflected in investment demand, coins and jewelry – representing both a conscious as well as a less observable market shift.

For now, we just keep going with the flow and preparing for the storm the best we can.

- Source:


Saturday, 19 April 2014

1000 Years Of European Borders


Watch as 1000 years of European borders change (timelapse map)
An incredible time-lapse look at how drastically European borders have changed over the last 1000 years by Nick Mironenko on Vimeo.



Thursday, 17 April 2014

Psycho School of Economics


In this episode of the Keiser Report, Max Keiser and Stacy Herbert present "To frack or not to frack? That is the question you will NOT be asked!" They look at proposed changes to the trespass laws in the UK which will allow companies to frack under private property without seeking permission and in exchange for £100. In the second half, Max interviews Nomi Prins about her new book, All the Presidents' Bankers. In the book, she describes the long history of the Washington D.C. to Wall Street corridor of corruption and the six banking families who have long controlled, or have tried to control, the American financial and political establishment.

- Source, Russia Today:


Monday, 14 April 2014

How the Human Spirit Can Survive the Impending Apocalypse



Apocalypse, Man is an intimate portrait of a man convinced of the imminent collapse of the world, but with answers to how the human spirit can survive the impending apocalypse.

Apocalypse, Man is a feature-length documentary to be released over the next few weeks.

Wednesday, 2 April 2014

China State TV Reports On Importance Of Storing Physical Gold



China state TV (CCTV) shows the Chinese public how to store their physical gold and silver safely.

CCTV has over 1,000,000,000 potential viewers throughout China.

Even though this CCTV video is in Mandarin without English subtitles, Koos Jansen of http://www.ingoldwetrust.ch points put how important gold buying it to current Chinese policy:

Point 1 - The Chinese Government’s Gold Policy

Point 2 - Building a Strong Economic and Financial Security Barrier for China


- Source, Gold Silver:


Monday, 31 March 2014

Alasdair Macleod - The Latest Trends on Gold


Alasdair Macleod is head of research for GoldMoney. He also runs FinanceAndEconomics, a website dedicated to sound money and demystifying finance and economics.

MR. Macleod first became a stockbroker in 1970 and a Member of the London Stock Exchange in 1974. His experience encompasses equity and bond markets, fund management, corporate finance and investment strategy.

In this talk Mr. Macleod shares his view on the latest trends on gold.

Saturday, 29 March 2014

Entrepreneurship Is Your Shield Against The Coming Wealth Transfer



Last weekend, Chris and I traveled to Phoenix, AZ, where we spent several days with Robert Kiyosaki, author of the popular personal finance book Rich Dad, Poor Dad, which has sold over 26 million copies to-date.

Robert had read The Crash Course, and it resonated so strongly with him that he purchased copies for his staff and made it the theme of his company's leadership conference this spring. Together with his wife, Kim, and his council of Rich Dad advisors, we spent many hours discussing the future implications of the Three E's with business leaders from across Robert's global organization.

Kiyosaki's great passion is financial education; specifically, teaching people how to take control of their destiny by becoming financially independent through business ownership and investment income.

- Source, Peak Prosperity:


Thursday, 27 March 2014

More Food Inflation On The Horizon


A UN report showed food prices jumped last month by the most in 1.5 years. CNBC's Sara Eisen discusses what's behind the rise in food costs.

Sunday, 16 March 2014

Army Gives Out $500,000 Armored Trucks for Free


The U.S. Army is giving away 13,000 armored trucks, worth about $500,000 each. The 20-ton MRAPs, or Mine-Resistant Ambush-Protected trucks, were built specifically to save U.S. soldiers from roadside bombs in the Iraq and Afghanistan wars. Now the trucks are patrolling U.S. city streets. U.S. law enforcement agencies have received the lion’s share of this high-powered military surplus.

- Source, Bloomberg:


Friday, 14 March 2014

U.S. Government Says 'No Inflation' As Food Prices Soar


While the government says prices are up 6.4 percent since 2011, chicken is up 18.4 percent, ground beef is up 16.8 percent, and bacon has skyrocketed up 22.8 percent.

Wednesday, 12 March 2014

The European Debt Crisis Visualized


At the heart of the European debt crisis is the euro, the currency that ties together 18 countries in an intimate manner. So when one country teeters on the brink of financial collapse, the entire continent is at risk. How did such a flawed system come to be? Bloomberg Television and Jonathan Jarvis present "The European Debt Crisis Visualized."

- Source, Bloomberg:


Monday, 10 March 2014

Inevitable Debt Default Ahead For US, UK And Japan


Kevin Doran, senior fund manager at Brown Shipley, and David Bloom, global head of foreign exchange strategy at HSBC, discuss the global economic outlook and the chance the U.S., U.K. and Japan could default on their debt.
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