Silver Price Fixing Nothing And The Laughing Trader

June 1, 2014

Silver fix and London fix failure - the same pattern continues; it's still very much a COMEX (or New York centric affair).

The predictable and manipulated silver price pattern continues, despite the growing awareness and attention given to price manipulation of the precious metals.

News of the end of the London Silver price fixing and the gold price fixing lawsuits mounting are sadly temporary phenomena telegraphed (and seemingly scripted) by the very much controlled mainstream media machine.

This news, while certainly bolstering the long term case for having exposure to precious metals, just serves to slightly dull the manipulation taboo. At the same time, it is fueling the ire of the professional trader and those who sing the songs of industry.

Of course, this will have no impact on the price of silver.

Unfortunately, I believe the "fixing" fixation will simply shift perception away from where it should be - in New York.

I covered this propaganda ploy in a recent article. Here is an excerpt:

[Most of you are familiar with the core issues. It would take approximately 15 minutes to explain and demonstrate to a well-trained financial journalist the conspiracy facts surrounding precious metals price manipulation. It is the same management that occurs every day in all directions, intended for profit and to control the rate of interest, perception of currencies, and the value of money.

They would be interested and well-versed in the data clearly implicating a basic trading structure that is manipulative by definition and by law. These organizations would certainly have someone in-house to create some graphics to go along with this.

An interested journalist might also understand something about high-frequency trading or spend a few moments delving into the mechanisms used to move prices in practically every market. They could interview NANEX if they needed some graphics to go along with that.

Better yet, it seems a bit irresponsible to have ignored the vast archives created by the Gold Antitrust Action Committee (GATA) or the constant commentary from its officers who ask the questions for them. Certainly, they Google "Ted Butler" and read one article from 20 years ago outlining the mechanism that is alive and well today, as this is typed and read. Even better, they could call them up or send them email for comment.

Most recently, Barclays Bank was fined for manipulating the gold price in 2012 using the same HFT spoof trading mechanisms we've long described.

As many were quick to point out, the fact that once again a single bank (or in this case single trader) was singled out should tell it all.

This story will soon fade from the short term mainstream memory banks while adding one more notch in the belts of those who carry the torch for ending the precious metals as the only asset class left not to be manipulated taboo.

GATA's Secretary Chris Powell sums it up best:

"Since central banks are constantly trading gold and gold derivatives, how can this ever be assumed not to be done for policy purposes, and how can those policy purposes not be construed as manipulative? Central banks hardly need to "earn" money through gold trading; after all, they effortlessly create money electronically."

Essentially, we get these wild swings and moves disconnected with reality, painting the tape which the fundamentalist traders take as truth and run with the commentary. Yes, the tape is what it is, and most respond or trade accordingly. But how that price arrives is the issue.

The monetary metals are not just metaphysically connected to the markets.

Interest rates, the cost of money, the price of bonds, and collateral (not to mention the strategic importance of silver as an industrial commodity), are real literal connections.

More from Chris Powell:

"The FT story, in essence, absolves the real players - central banks and their proxy too big to fail investment banks who clearly profit from the entire affair.”

“Having the power of money creation, central banks have infinite money and thus their market-rigging potential is virtually infinite - at least until, in a price-suppression operation, the commodity price being suppressed is forced below the cost of production and supply is exhausted. Of course, when market participants are willing to hold paper claims to the commodity rather than the commodity itself, as has been the case especially with gold but to a lesser extent with many other commodities as well, the supply of paper claims is infinite and so price suppression may be infinite as well

To underscore his point, the taboo will only be lifted indirectly as exposure grows. The Fed and the Treasury have a legal authority to intervene in any market.

Just this week, another story broke confirming from the inside that these institutions are corrupt. A whistleblower from within JPM, long blamed as a culprit in managing the price of silver along with whatever else it can manage for a profit, surfaced.

According to Australia's Sydney Morning Herald, "A technical support person who worked for JP Morgan in Australia claims the bank regularly misled its New York parent and the U.S. Federal Reserve by failing to report losing trades."

Just because the JPM whistleblower accuses the bank of falsely reporting trade.

Remember that in 2013 JPMorgan had a perfect trading record.

Yet, we continue to hear the same tired "salt in the open wound” ridicule from the expert professional trading class…

In the aftermath of the last two years of carefully managed price, horrible long term investor sentiment has given rise to the worst kind of commentary for anyone hoping to learn about one of the last pure forms of monetary savings left.

Professional traders are collectively dancing in the streets as the result of the horrible sentiment and continually make fun of those who point out the obvious and well documented price management of the precious metals complex.

They ridicule, attack, generalize, distort, and scorn. And they always miss the point or fail to see how it is all connected.

Anyone who questions the legitimacy of the day to day market management is ridiculed collectively.

They are, collectively, bottom feeders; greed driven opportunistic so called traders preying off the dregs of a broken and immoral system.

But as Chris Powell suggests:

"’All the time’ still seems to us to be a fair characterization insofar as central banks continue to lease gold; gold leasing having been acknowledged by many central bankers as a mechanism for suppressing the gold price, and insofar as central banks trade gold and gold derivatives secretly “nearly every day”, as a French central banker told the London Bullion Market Association last year…”



For more articles like this, including thoughtful precious metals analysis beyond the mainstream propaganda and basically everything you need to know about silver, short of outlandish fiat price predictions, check out

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US silver mining began on a large scale with the discovery of the Comstock Lode in Nevada in 1858.