3 votes

It just struck me: here's maybe the 2nd BEST reason for silver price manipulation and them "big boyz" knocking it down regularly

We all know what gold is:

probably the only half a dozen millenniums old, well alive and kicking, form of real money. I do not think this is going to change any time soon - with or without silver, or Bitcoins, or whatever else around, too.

Now, I have been thinking recently on what could be among the plausible reasons for the recurring silver price manipulation by "the big boyz"; especially since the start of the 2007/2008 U.S. economy crisis (which really had started to hit hard as early as with the 2000 bubble, actually, as the Gold/DJIA ratio shows).

Besides the obvious rationale one can figure about re: discouraging the silver stackers or avoiding to attract the attention of other types of investors, it just struck me that another significant parameter could possibly be ... the Gold/Silver ratio itself.

Indeed, ever since the 80s, gold, as compared to the U.S. fiat dollar, has definitely been on a sustained, practically unstoppable rise - with only very short pauses in that rising. That's the obvious factual evidence (i.e., and first and foremost, consequence) of the (as thorough) sustained debasement of the U.S. currency.

But what about silver? How come some big players on the precious metals markets seem so serious, timely, and thorough about carrying more or less covert silver price manipulations shortly before or after significant moves of gold per se?

What I am thinking of is that, especially since 2007/2008, those "big boyz" have the best interests in keeping the Gold/Silver ratio AS HIGH AS POSSIBLE to prevent - by all possible means, that one included - the sending of a strong signal to all the by-now-serious silver holders and new stackers ... to dump and convert a part of their silver stack into gold.

My speculation is if such a signal would be caught and the clue it gives be followed "en masse", it would still not affect silver very significantly, I think (as more people would notice and start jumping on it, their turn - providing support for the price of silver) ... WHILE IT WOULD ALMOST CERTAINLY SEND GOLD'S PRICE TO OUTER SPACE, at the same time !

Without further ado, here is the Gold/Silver ratio evolution over time:

http://goldprice.org/gold-silver-ratio.html

Period: 1973-2013
Low: 14.01 / High: 100.82
Delta (on period): + 34.68 % ("big boyz" feel okay: gold too expensive in silver)
Closing (today): 53.90

Period: 1993-2013
Low: 32.00 / High: 92.07
Delta (on period): - 39.51 % ("big boyz" pissed off: gold becomes more affordable in silver)
Closing (today): 53.90

Period: 1998-2013
Low: 32.00 / High: 83.86
Delta (on period): + 28.15 % ("big boyz" feel okay...)
Closing (today): 53.90

Period: 2003-2013
Low: 32.00 / High: 83.86
Delta (on period): - 30.22 % ("big boyz" pissed off...)
Closing (today): 53.90

Period: 2008-2013
Low: 32.00 / High: 83.86
Delta (on period): + 2.02 % ("big boyz" feel okay...)
Closing (today): 53.90

...

Thoughts?



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Up, Down, Up, Down

My thought is always that the stock brokers earn money no matter which way things go, as long as lots of people are buying/selling and they are paid by transaction. Choppy is good for them.

Retail trading via the Internet - well that takes some business out of their hands, and puts it into the hands of more people. That has both plusses and minuses when it comes to herd mentality and action.

I'm at the point where I don't want to be in the market at all, until this is re-stabilized.

That is to say, yes, I want metals, because they are stabile as everything moves around them, but that doesn't mean people won't be forced to sell their metals to pay margin calls, or to live on when they lose everything else, so it's only part of the solution and timing is everything.

What do you think? http://consequeries.com/

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Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Struck like a meteor out of the clear blue sky!

We are eliminating limits on our debt ceiling. We refuse to fix our leaky roof. We may as well remove our roof. "The sky's the limit!" That will become our mantra. It seems quite natural that we should be bombarded with celestial objects.

As we paper the universe with our Dollar, is it any surprise that celestial objects are being cast our way? Discarded as they cease to be of any use to those receiving our Dollars. Those above us buy whatever suits them, do they not? We get their hand-me-downs. Their goodwill. Their discards.

Seems it has always been the case.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Sounds plausible. My theory

Sounds plausible. My theory is much simpler they are manipulating the price down so they can buy it up as a hedge on the sly. They know when things let lose it will likely go to the moon and surpass gold. It is their quiet secret little hedge.

Anyone have any clues as to how much silver the big boys are buying on the sly?

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End The Fat
70 pounds lost and counting! Get in shape for the revolution!

Get Prepared!

To the Moon? A figure of speech, you say?

Stanley Kubrick & his film crew are the only folks I suspect ever made a stopover there. That was just a quick stop to pick up some fresh vittles & provisions.

The price manipulation down is the master's thesis written by Robert Rubin, before ascending to the Secretary of Treasury (the banker boy signing our cash). The witnessed (signed promissory note on the right) our National Debt mimic the "Jumping Frauds of Congress' Counts."
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Weak Dollar, Strong Dollar. US strong dollar policy not strong enough. American Spectator
By EMIL W. HENRY, JR. on Apr 11, 2012

The Obama administration says it supports a strong dollar, but its major fiscal initiatives suggest otherwise...

The current strong dollar policy originated with Treasury Secretary Bob Rubin in 1995. There was logic for the policy at that time amidst a declining U.S. currency. Afterward, in the latter 1990s, a strengthening dollar coincided with a period of growth and prosperity.[Measure in nominal "elastic Fed Reserve Note" dollars. Promises, promise... A promissory note.]

After Secretary Rubin’s tenure, every Treasury Secretary and Federal Reserve Chairman has supported the goal of a strong dollar. [In figures of speech.] But not all have been comfortable with the underlying policy. For example, Paul O’Neill simultaneously supported a strong dollar while calling the underlying policy “vacuous” because “it implies in it that somehow we have the ability to manage the relationship between the value of the U.S. dollar and other currencies”.

Federal Reserve Chairman Alan Greenspan and fellow Board members famously “cringed” at Rubin’s frequent mention of his strong dollar policy calling it “nonintellectual.” Greenspan later conceded that the policy had value in immobilizing the press via Rubin’s constant repetition of the strong dollar mantra...

All administrations, Democrat and Republican, now proclaim allegiance to a strong dollar, yet because of the policy’s absence of teeth, they can do so while pursuing wildly divergent fiscal initiatives ostensibly in pursuit of the same goal. Consider the disconnect of word and deed in the current administration: Tim Geithner and the President have both claimed support for a strong dollar yet pursued such weak dollar strategies as debt-financed deficit spending, ignoring entitlement reform...

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul