There is a Titanic Struggle in Precious. In the past when large entities like JP Morgan and others dumped large volumes of paper precious metals futures on the market the price would gp down and it would trigger selling by others which would drive the price down further. Then the large shorts, which had started this whole downward trend in the paper price of precious metals would jump back in and buy back what they sold at bargain prices.
That has been the story repeated again and again in the precious metals markets. There are some experts in the precious metals markets who have been investigating and claiming manipulation in the precious metals markets. Now with the admission of Deutsche Bank for their guilt in these manipulation schemes (and their agreement to reveal the names of others) we have evidence of what was suspected is indeed true.
So now we have precious metals experts looking at the same set or data and coming to two different conclusions. One group says this wholesale shorting of the paper precious metals will lead to lower prices and others saying that it indicates the beginning of a melt up.
In April we saw 2 billion in precious metals shorts dump 2 billion within 10 minutes. Normally that would start the downward movement in the prices that would continue as it triggered selling by others. As things got to an oversold position and bargain basement price the architects of this short scheme would buy back at the discounted price and net a hefty profit.
But this time things didn’t quite go as planned. In the past the prices of the precious metals would have continued sliding downward. But this time they quickly firmed up and even started rising. I’m sure that surprised the shorts.
But as Andrew McGuire pointed out the center of gravity in the precious metals has been shifting from West to the East. while the west is selling their precious metals the east has been buying in massive quantities. The precious metal drain at the COMEX to near critical levels has been balanced by the massive increase in Chinese buying and Chinese reserves.
The Shanghai Exchange for precious Metals was established in April. Not only do they present an alternative to London as a center for the precious metals markets but will be pricing the metals in the yuan.
Deutsche Bank admitted it’s role in the manipulation of the silver market. As part of the settlement they released 35,000 pages of documents revealing the other banks that were part of the silver market manipulation. I believe were are in the end game for the market manipulators.
There is a titanic struggle going on in the precious metals markets.
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