How Mining Companies can Stop Central Bank Manipulation!

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Use your silver and gold dore bars as your stored cash or currency. Do not sell these bars into the market…unless absolutely necessary for your continuing operations!

It seems obvious to many of us that the ‘price’ of silver and gold are being manipulated by our Central Banks in real-time trading. Naked shorting via daily computer trading (on the electronic markets) could bracket the ‘price’ of silver and gold within a range. This type of naked short selling, however,  requires that  trading desks have access to billions of dollars that can be used for the purpose of affecting ‘prices’ in the real-time markets. Most likely a trading desk at a firm like J.P. Morgan Chase (with funds supplied via a loan from the Fed) could create a manipulated ‘price’ in silver in real-time. Watch this video for more detail:  http://youtu.be/QCM7rMIqxmk.

A historical chart of silver over the past 16 months indicates that the ‘price’ of silver has been range bound. Yet the demand for the existing supply of silver has created shortages in the physical markets (as well as long waiting times for delivery). This situation suggests that ‘price’ suppression and ‘price’ manipulation is most likely occurring. When demand increases relative to supply (in a free market) the ‘price’ should increase over time. This does not seem to be occurring with either silver or gold. Could the ‘price’ of silver be manipulated within our current electronic markets? Let’s recall the motivation for Central Bank suppression of the ‘price’ of both silver and gold. Also, keep in mind that high frequency computer trading is ideal for this type of manipulation!

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Central Banks desire that their fiat (digital) currencies reign supreme in the global markets. It is absolutely necessary that these digital currencies are viewed (by traders and the public) as stable and meaningful units for all market transactions. If the traders and the general public were to lose confidence in these currencies (given the inter-connectedness of today’s markets) then this waning of confidence could cause a trend that might ‘crash’ the markets. Once a ‘crash’ happens it is likely that all digital currencies will become suspect…as viable and trustworthy units. This lack of confidence must be avoided at all costs (suggesting that ‘price’ suppression and manipulation is necessary). If I were a Central Banker, I might desire to eliminate any serious competition from these historical monies (silver and gold).

If mining companies would understand why Central Banks desire to suppress these prices and then counter this suppression by withholding their dore bars from reaching the markets, this may lead to such a shortage (of physical metals) within the markets that suppression would be revealed to everyone. Competition is always good for creating a change that just might allow silver and gold prices to function freely. Get this missive out to mining company executives for their consideration. I am:  http://kingdomecon.wordpress.com.

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avatarDon Swenson - Kingdom Economics posted Thursday, January 31st, 2013.

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