Corrupt bankers and their political allies are still deliberately and actively manipulating the silver market through paper silver. Investors should always buy physical silver and avoid paper silver just as paper money or debt-based investment vehicles (pension funds, share accounts, etc.) should be avoided like the plague itself. The truth be told, physical silver cannot be manipulated like paper silver (or paper currency for that matter!) and this is why intelligent investors opt for the physical assets instead of paper.
Corrupt bankers are taking and have taken massive naked short positions (not backed by physical silver) in the silver market in a bid to suppress the silver price (by giving the impression that there is an oversupply of silver). They do this not only to steal from unwary investors who hold long paper silver contracts, but to leave the public at large with the misconception that non-redeemable paper notes (fiat money) are more valuable than physical silver and other precious metals. This is a vital aspect for the “paper gimmick” to work; otherwise people simply won’t accept fiat currency (electronic currency, non-redeemable paper notes) as representative of real money such as physical silver, especially in the form of silver coins. Word is out that the relevant bankers have managed to rebuild their short positions to what it was just before the big short squeeze in April.
Some people believed that the silver run in April was a bubble as it increased in value by ten dollars to reach the fifty dollar mark. Other quarters are of the firm opinion that it was actually a huge short squeeze. During this time, two banks more than likely covered 24 million ounces of the poor man’s gold at a big loss. In the last six months, the four big banks in America have been strengthening their short positions in a huge way. It is rather obvious that the banks are not relinquishing their stance on manipulating silver without a fight.
The banks have decreased their long position by 1688 contracts in a sixty-day period. Therefore, the levels are lower than was the case before April. Those who are long in silver will be celebrating the fact that the U.S. Commodity Futures Trading Commission (CFTC) will not enforce the Frank Dodd bankster reform act. These investors can use this opportunity to store up even more of the precious metals at these fake reduced prices. It helps investors to hedge their bets even further against the weak fiat monetary system.
J.P. Morgan (JPM) seems to be preparing for huge amount of longs that will stand for delivery sometime in September. This assumption is based on the fact that the bank increased its eligible silver inventory by 225% within the blink of an eye. This while no one has deposited silver into JPM’s silver vault over the last season. In spite of this, JPM’s silver inventory has jumped overnight with a massive 406 134 ounces to 586,381 ounces without anyone noticing physical delivery.
Manipulation of precious metals is nothing new as it has been going on for some time now. It is risky practice and it is illegal. Like previously noted, bankers and their political allies are suspected of this practice as it is believed that these players want to hide the real value of silver from ordinary people through silver price suppression. By keeping the price of silver down, banks and politicians can continue to hoodwink the public into believing that paper money (fiat money) or debt-based instruments are the way to go. It is also easier to manipulate matters with paper silver. Once there is an awakening to this fact, it is believed that investors will move away from their paper money and paper metals for the real stuff. Needless to say, this process has already started and those who join the party last stand to lose the most.