How to Control the Price
and Other Strategic Commodities
By Dr. Jeffrey Lewis
In summary, four
key influences seem to be at play in creating artificially low prices in the
Markets – these tend to have a deflationary influence, until suddenly they do
Physical Market – this has been surging ahead of
and outside of the manipulated futures price.
Traders – these typically dominate the market and act as fronts for the
manipulative central banks that are the so-called “not for profit” market
participants often spoken about.
Funds and Professional Traders – these players tend to be relatively stoic and
inwardly focused. Their trading decisions are typically purged of all emotion
and seem insensitive to the above factors.
Price Control -
Here's How to Do It
First of all,
investment banks need to be installed as commercial traders in the silver
market. Then, allow major futures exchanges to self-regulate.
Next, establish a
concentrated short position, whether hedged, or otherwise. Then encourage High
frequency Trading and eliminate the human market makers with any sense of real
money that trades blindly and unemotionally based on technical indicators. This
provides a universal status quo that is almost always wrong.
confusion between the concepts of correlation and causation.
a blind eye toward key pricing factors, such as:
market tightness and surging demand ahead of falling prices that are the result
of policy or price control. The manipulation allows paper silver to trade as if
all the silver ever mined is sitting in vaults, just waiting for a magic fiat
currency price to set it free.
indicators. Take the most bullish indicator and completely reverse the logic. For
example, claim that Central Banks are not buying silver because they only want
to hold "real" money, which is actually just intrinsically worthless paper or
electronic currency. Ignore the fact that they could not buy enough silver if
they wanted to.
Insult insects by
creating two extreme groups of zealots - silver bugs and gold bugs, and then
incite war between them to further divide public perception on the subject of
holding precious metals as an investment. After all, no one hates a silver bug
more than gold bugs who claim that silver bugs have the wrong metal and that
gold is the only true money.
Silver is as
Much the Canary as Gold
Silver may be in
an even more attractive position for a rally than gold because of its COT
structure that shows pronounced short futures positioning in concentrated hands.
developments in the financial markets tend to make holding silver look good.
These include the Zero Interest Rate Policy or ZIRP, the LIBOR scandal, money
laundering, the MF Global disaster, and the ongoing manipulation of CPI and jobs
data to make the headline economic picture look much rosier than it really is.
price of silver loves inflation. The almost 500 percent rally seen in the price
of silver from October of 2008 to April of 2011 as the price rose from 8.44 to
49.77 was inflationary, and it was fueled by widespread concerns over a shaky
financial system and the huge piles of money being printed to prop it up.
was not just a minor short covering rally fed by blind-trading latecomer hedge
funds. The rally in silver to a new all-time high was sufficiently threatening
to be effectively halted and the market forced into a consolidation phase above
the 26 level by a reverse Hunt, CME margin increase debacle.
As that key
support level approaches once again, silver continues to look attractive as a
long term investment.
For more articles
like this and to find out the meaning of the "reverse Hunt Brothers, CME margin
increase debacle", check out