68Camaro wrote:The paper traders get wiped out in each of these but there will eventually be one of these smashes that is the last one - in the existing futures market - before the market gets rebuilt. Before it gets rebuilt it will have to crash. What we seem to be seeing is perverse to their apparent intention, which is increased confidence in the physical markets as people all over the world flock to the "fire sale" on precious metals. They seem to mean to steer investment away from PM, but its almost as though they've misunderstood the paper market for real physical and it is backfiring on them.
I agree with you, Rich... although there is a dichotomy at play here. I think that they were trying to deter purchases of physical precious metals
AND renewed participation in the futures markets, thus limiting the rebound effect of the eventual price rise to one at a more sedate pace without so many longs playing a role. Perhaps they meant to continue filling short positions at a moderate clip, hoping to not have to fear a rapid stratospheric lift-off as their actions supplanted the role of those they eliminated from the market. I'm sure they felt that paper participation in the markets far outshadowed physical buying, and that by reducing paper competitors they could cap the price for a much longer time frame (say until late August) within a sustained channel which ostensibly would drift sideways (unless it met their objectives to trend even lower, induced by a repeat performance of what we just witnessed, though likely on a smaller scale).
What it seems as though they overlooked was the resources that many people, who have been waiting for a better entry point, could bring to bear. There is more than a modest amount of money that has been sidelined in the one percent of the people that were IN the
physical side of accumulation. They lacked a clear understanding of the motivation that this price plunge would exact on those physical accumulators; stimulus to renew amassing even more real money. And the effect was intensified upon those within
their sphere of influence, who have now joined them in stacking. The one percent just became 1.1%... 1.2%... 1.3%... and as the implications of the shortages that develop due to this resumption of interest in owning physical becomes apparent to a larger audience, those numbers will swell. What they
have accomplished is to cement in the minds of those cognizant of their deeds that the practice of COMEX-set prices is fallacious, and they have increased the velocity of divergence between that pricing methodology and the that of what people are willing to bid for immediate, "in-your-hand-when-you-walk-out-the-door" tangible silver and gold.
The execution of their plan was implemented to perfection, and it did not backfire. It accomplished their inferred goal of washing out the weak margin-called paper hands. What they didn't count on was the result; swift reprisal (or just smart timing) of the small cadre of investors who know what real money is in a world awash with false currencies.
It is the physical depletion of silver and gold that will eventually thwart their continued manipulations of the markets... as there aren't enough hedge funds in the world to stand against the limitless funds of The FED backed bullion banks who have covert government sanction to perform their criminal role in this act.
Posted: Fri Apr 19, 2013 1:15 pm
