Gold Daily and Silver Weekly Charts – It May Be Protracted, But It Is an Endgame Nonetheless

One of the more significant things that I have seen so far this year is independent confirmation from a credible source that there is price rigging in the silver markets, and that this knowledge is being suppressed by the mainstream media in the US. You can read about that here. I think the fact, given all the rigging scandals from Madoff to LIBOR, that there are major mainstream publications which will refuse to run an article showing evidence of rigging in the silver markets from a credible source is probably as profound as the report itself might be. They know what is happening, and they are afraid. So what does this imply. It implies that powerful financial interests are engaged in an attempt to manipulate the value of certain precious metals to artificial targets. They frequently do this with certain things we know. Dollars and bonds are amenable to this sort of financial engineering, because the financiers are able to create enormous amounts of money using their balance sheets, and with it buy bonds and other financial paper. So they can raise and lower interest rates and other benchmarks at will provided that they can do it in secret and with plausible deniability. They can rig LIBOR, and the ISDAFix, and any number of benchmarks, because these are creatures of their system, without a hard reference or a firm anchor to anything in the real world. LIBOR and the amount of money they have in their vaults can be almost whatever they wish them to be, as long as the people believe. Their nemesis, however, is when they foolishly tie themselves to something external, something that is beyond their system. It is when they overreach, and try to extend their mythology of pricing fixing to things that are not completely under their control. Gold and silver are two such things. Yes, they can engage in all sort of gimmickry on their own exchanges where they make the rules and keep the records. Paper and paper money can symbolically represent precious metals both in quantity and value. Tonnes of imaginary and hypothecated ounces of bullion may be traded all day long, but without requiring a single physical ounce of gold or silver having to change hands. The pricing has been divorced from the constraints of supply and demand. As always, the devil is in the leverage.

This post was published at Jesses Crossroads Cafe on 26 SEPTEMBER 2014.