Here are most of the comments from my readers on this article from last night:Wild Price Changes September 15th, 2013 http://silverstockreport.com/2013/wild-price-changes.htmlThese comments are especially important on this topic, because the encouraging feedback is important when I'm mostly guessing, and when evidence and facts are thin. Every comment was encouraging, none disagreed. Think about that.=====
>The price swings reinforce that the silver market is tiny, and the >paper money markets are oversized.
Indeed so. In fact, the entire financial segment of the US economy is wildly over-sized. This is why we are seeing such turbulenttimes in the various markets. There are too many people stirring the pot and not enough people actually making the soup. I haveread articles in which various economists opine that the US needs a financial industry that accounts for about 10% of the businessactivity nationwide. But, do we have that? NO! We have a financial industry that accounts for 40% of the US business activity andthat is 4x bigger than is actually needed. All this does is introduce even more distortions into the US economy; as if the US Govand the Fed haven't already done much more of that than is necessary.
>The price swings indicate that the paper money printers are pushing >the silver price around to keep people away from silver, because >they fear the inevitable price rises that printing excess money >always leads to.
Yes, they do and they want silver and gold both to be as unappealing as possible, so creating a market in which the prices for thesemetals are volatile and frightening for the average investor is the best way that they have to keep the sheep penned up and not tradingtheir ever-worth-less paper dollars for precious metals.
Fortunately, many of us in the PM camp do not see these as investments but as financial insurance against the incompetence ofour "leaders". Far too much money has been borrowed and squandered. Far too many promises of additional spending havebeen made that it is now becoming clear to John and Mary Average American that cannot be kept. Far too much buying powerhas been lost from the US dollar in fiat form. I buy gold and silver not because of what I fear might happen but because of whatI KNOW IS happening. Over my lifetime, I have seen the price of silver go from $1.30 an oz. when it was used as 90% silver inUS coinage to near $50, back to $4, back to near $50, and now hanging in around $22. At this same time, I have seen gasolinego from $0.25 a gallon to $4 a gallon. But, I also know that a US 90% silver quarter can be sold for about $4 at most coin andbullion shops. In terms of silver, gasoline prices have not changed a bit in the last 50 years. In terms of fiat, however, they haveincreased by 1600%! Food prices are similar. When my wife and I got married in 1969, we would shop for food together at thelocal grocery store. Money was very tight, so we got few luxuries. About once a month, I would buy a package of Nutter Buttercookies for $0.53. This was a treat and one that I didn't get all the time. On a recent trip to our current local grocery store, Ispotted a package of Nutter Butter cookies and the price tag read $4.49! This is a rise of 847%. But, if I take one of my 90%silver half dollars and sell it, I can get at least $8 for it at the local coin and bullion shop, so in silver terms these cookies actuallycost less today than they did 44 years ago! So much for the use of a fiat currency as a store of value.
>Silver has moved up from about $18.50 to a high of about $24.46 in >the last month. That's a gain of $5.96/oz., which is a gain of >32.2% in about three weeks!
Indeed... and I haven't heard a peep about this on the financial radio and TV shows. But, let silver and gold stumble even a little andthat seems to be ALL that they want to talk about. From 2000 to 2011, gold was up 500% in dollar terms and silver was up 600%.But was this trumpeted from the roof-tops? Nope. Barely even mentioned in quick blurbs stuck in between "real" stories. Had astock done this, there would have been dancing in the streets of NY City and 24/7 ranting about it!
>Not really, because the lending market is rigged.
Right... along with most (all?) other markets as well. If there is money to be made by rigging something, it is safe to assume that someonesomewhere is doing just that. Can we say LIBOR? Why, yes, we can! If a multi-trillion dollar system like LIBOR can be rigged for yearsand years, what makes anyone think that the gold and silver markets are not rigged too? If we know anything about government it is thatit hates competition and, make no mistake about it, gold and silver are seen by these people as alternative / competitive currencies to theUS dollar.
>It really indicates that the Federal Reserve is trying to hold the >economy together by pushing cheap money into the economy through >Federal Housing lenders who are trying to re-inflate the housing >bubble to keep home prices high. Again, future generations would >read that sentence and probably not understand why the government >would have such a disastrous policy.
Agreed! In fact, you can also add that if the US dollar was so great, why does the Fed have to practically give them away to "stimulate"the US economy? Nobody even comes close to giving away gold or silver because no one has to do that for them to be desired.
>After all, if silver moved up at clearly defined constant rates more >than the lending rate, say, at 5% per year, then any moron or >nincompoop or fool after a few short years could otherwise see that >buying silver would be a far better move than keeping savings in the >bank or buying government bonds. And if people did that, well, >paper money values might collapse even faster, driving up silver >values even faster, and there could be runaway inflation, and paper >money could just collapse to zero as everyone headed for the safe >havens of silver and gold.>>Clearly, they can't allow that.
No, they can't but the heck of it is that this WILL happen anyway. All they are doing is delaying the inevitable with all these marketmanipulations, money printing, currency swaps, and trash-buying from banks dumb enough to have loaded their balance sheetswith all the financial sewage of the past several years. So, now the Fed has a lot of that drek on their own balance sheet and isgetting desperate to remove at least some of it, lest they be seen as complete fools themselves. Personally, I think that it isalready too late to avoid that.
>(And actually, since 2004, silver has moved up from $4.15/oz. to >$21.38/oz., over the last nine years, which is a compounded average >annual gain of 20%!!)
Also studiously unmentioned in the financial press.
>So, to let paper money exist, they must keep a lid on letting silver >and gold prices rise, and they do. Or, they need to hide the steady >average annual gains, behind wild price changes.
Yes, that and a very friendly media that plays along with it.
>So, with artificially low prices, eventually the pressure builds, >like today, which is why we have had a runaway bull market in silver >and gold for the past nine to ten years now.
Yes and in fact we STILL have a bull market in both gold and silver despite these induced price fluctuations. Many of the peoplein the financial media seem completely unaware of the fact that a 50% pull-back in the middle of a gold bull market is not at allunusual. I don't know if this is the case for silver but I suspect that it is. This is not a signal that the metals bull market is over.It only shows that the bull has retraced and is gathering strength to form higher lows and higher highs.
>Clearly, the people who print paper money at rates of $85 billion >per month don't want to lose the right to print that paper >money. Clearly, the people who print paper money at rates of $85 >billion per month have not yet bought a lot of silver for themselves >to hoard, since $85 billion / 300 million ounces would be >$85,000/300, or $283 per ounce.
No, they do not and if history is any guide, these people are willing to kill to keep this greatest of all financial prizes. Abe Lincolnby-passed the bankers, printed US greenbacks to fund the civil war, and ended up assassinated for his efforts. Jack Kennedydid something similar and he was assassinated. Five unsuccessful attempts were made to assassinate Andrew Jackson beforethey gave up, likely because he threatened to gather the US Army about himself and march on them in NY if they did not ceaseand desist immediately. These are evil people who will do and have done anything to protect their money printing privilege. It isunearned and undeserved. This power needs to be returned to the people via the US House of Representatives and not heldby a private banking cartel, such as the Federal Reserve System, which is not a federal government entity and has no reserves.Never trust anything that has a name that is specifically created to disguise their true purpose.
>Now, before I get to that, let me address the potential nay sayers >who may claim that it's "Normal" for silver to move that much, >because that's what we see. Well, why doesn't the interest rate >fluctuate that much? It doesn't, because it's "fixed" by the >Federal Reserve, because we live in a financial system of "fixed" >prices. If they fixed prices for silver like they do for the >interest rate for money, they might make silver as stable as the interest rate.
Another argument could be made for comparing the routine changes in oil and gas prices vs. those of PMs. My guess is thatPMs are at least twice as volatile as oil and maybe 4 times as volatile as natural gas.
>First, I think it indicates that the price is a lie. A >manipulation. A false report. A bogus claim. The way that prices >are "quoted" has nothing to do with actual silver being traded, and >yet, actual traders of real silver look at those quoted prices, and >often trade accordingly.
Agreed!
>The quoted price is called the "spot" price, and it is a ticker tape >of paper futures market trades in lots of 5000 oz. at a time. Each >lot is one contract, and thousands of contracts trade in a >day. Most of these paper contracts do not result in any delivery of >silver, since they are for delivery "in the future" on the futures markets.>>The futures price is pushed around by electronic and pit traders who >trade both futures and options and puts.
I have no problem with futures contracts or shorting but what we have seen in the PM markets goes far beyond both of these.Naked shorting of very large blocks of paper gold and silver in the thinly traded wee hours of the night have no legitimatetrading or investment purpose. Their only purpose is price suppression and it is VERY thinly disguised, IMO.
>But it's those who have the net worth exceeding $100 billion, that >push the price around, illegally, with no criminal prosecution, >because they are probably doing it on behalf of the Federal >Government, with the specific intent to keep people in paper money, >and out of silver.
Their Get-Out-Of-Jail-Free card has been pre-arranged and is all ready to help them get out of any legal binds that they mayget into at the lower government levels. In fact, it is likely that if a state were to sue these bankers for PM market manipulation,the US Gov would step in, claim that the banks were working with the Gov on a matter of "national security", and that any and alllegal action instituted by the state(s) would be declared null and void.
>See, I feel and believe that the government is attempting to make >silver look "volatile" and shaky and unpredictable, but the truth is >that paper money is what is truly volatile and shaky.
Agreed.
>See, silver does not come due in a large harvest season. Mine >output and refinery output is rather stable in comparison to >harvesting crops, and should have much more stable prices, day after >day, month after month.
All true on the production side of the equation but there can be significant changes on the demand side that can affect prices.These price effects tend to be over longer periods, though, and not on a daily basis.
>The wild price changes are also reflective of the truth that the >silver market is extraordinarily tiny, and the paper money market is >beyond massively huge. Huge paper money trades moving into and out >of silver push the price around far more than it should otherwise >trade if the financial system were sound, and soundly backed by >silver and gold, and if there were no excesses of paper money.
Paper money is prone to excesses. This is what causes all fiat money systems to become unbalanced and eventually collapse.The US dollar is NOT immune to this because it is a function of human nature and all governments and central banks are staffedby human beings, so, sooner or later they WILL over-print the currency and drive its value lower and lower until it is not only worthless but actually worthless.
>In other words, the major price swings in the silver price are >actually a forecast for a large price rise in my opinion.
I see these price swings as yet another sign of desperation among TPTB. It is clear that the era of fiat currency is ending andthat all fiat currencies will be going the way of the dodo and the dinosaur... which is to say, extinct. Real labor should not beexchanged for fake money and fiat currency is about as fake as money gets. Not only do those who print it tell us that it hasvalue but they also tell us how much value it has. They can and do change their minds on this from time to time, devaluing thecurrency as seems to fit their political needs of the moment. Easy for them to do but very hard on everyone holding that fiatcurrency as there wealth can be slashed over-night. FDR did this after he called in the gold via EO 6102. At that time, theprice of gold was around $20.67. When they revalued gold, it then cost $35 an oz. This is a 70% devaluation in the dollar,yet this is never mentioned or reported on by the financial media. Anyway, this is definitely too ripe a plum not to be takenadvantage of in every way possible... and they are doing just that. Over 97% loss in buying power for the US dollar in the100 years since the Fed came to be. In the 100 years prior to that, there was virtually no change in the buying power of thegold-backed US dollar. The comparison in the value of US money during these two periods in time ought to be about asstaggering a financial revelation as anyone can imagine... yet, we hear nothing about it in our schools, colleges, or universities.This reminds me of a Mark Twain quote: "Never let your schooling interfere with your education". Many see these as the samethings, yet they most certainly are not.
This is yet another fine article. Thanks, Jason, for writing this up and distributing it. Many of us out here truly appreciate yourefforts to inform people about the inherent values of gold and silver vs. the inherent instability and declining buying power of fiatcurrencies.
Ed
I replied:Thank you for your confirming commentary Ed!
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Jason, Best message ever...I too have touted the massive daily price fluctuation is silver (picture being wrong, unstability) is due to the market being manipulated and forced down. Silver should be at that rock solid inflation hedge of 0.02% a day as you stated Jason. One day it'll get there and the manipulation will be gone; until then I'm going to keep investing in the "wrong silver picture". I have learned they can make the numbers be anything they want them to be; until they lose control of the monoploy game...which surprisingly they have commanded very well...having a printing press does wonders. Being able to dump in unback paper contracts does wonders. Any time the picture is wrong, fake , synthetic, manipulated...there is money to be made. They can fool 98% of people to remain in dollars- 401k investments....nothing hits hard in life then silver....but you have to pick yourself up and keep moving forward...that's how wining is done (Rocky inspiration). Silver is a moral killer....but if you have a good grasp that the picture is not what it is....the picture being wrong....then it's easier...and a gift at these incedibly low prices to buy more silver. First I bought silver to preserve wealth and become wealthy (me, myself and family)....once I arrived, and the price was still low...I've now had to change my plan.... now I'm buying even more silver to build an empire...so to sppeak...build for generational wealth in my family. Planting a tree is done for someone else's enjoyment...much is the case of my silver lode. I want to make sure....there's no sad bedtime stories in silver in my family...that Grandpa SilverFinger did his job....and saw threw the "wrong picture" they tried to present to everyone....I was not sold on it. Nothing hits harder than silver....that's why I invest in it. Naysayers will have the sad bedtimes stories. Same story will be silver's story too...once it becomes a household name...."Story goes everyone saw it coming (silver), few acted". "Oh, I knew that too but I didn't have any money to act on it". Stories like those will be abundant. take care Regards, M
I replied: Wise observations, thank you!
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you are right Jason. the dominators want a world that fits what is written in Revelations...(Zion protocols, Toronto protocols)once you have reead this 100 years old paper and compare it to today, ... you wander at their skills... see RFID chips for everyone. (aaron russo) centalized money, electronical removal of silver gold as money they work on their agenda... since 4000 years... they get close. the trouble looks like beeing the chineese and russian that don't want to play that satanic game... the crazy christians (eyes wide shut) try to accelerate the end of times for they own benefits, they want Jesus to come back fast and remove them beforeantechrist (Tamus, son of Nimrod and Ishtar) resurects and rules the world for the better!!! HA HA. nuts! while the "so called - khazar jews" (a fake people, benjamin Freedman, see Khazar books) are trying to reconstruct the 3rd temple to invite theirmessiah(he did not come 2000 years ago!!!!). (the Jerusalem golden gate must be reopened, the arab cemetery removed, the al aksa mosk destroyed, the temple rebuilt, artwork remanfactured... actually all exists besides the ark! that could lie in the Vatican?!) so those crazy US christian and jewish interests meet in the US / Israel politics into satanic cult of lies, deaths and so on...yes we can rule the world...Olympics London 2012... a satanic cult with weired symbols. that's my view as a christian, may those people be cursed to the end.now they lie about Syria... they lied about sadam, they lied about Khadafi...who will be next. JFK? best regards. BR can you comment on this?
I replied:Yes, Arron Russo did expose the rfid chip plan in his movie From Freedom to Fascism. http://www.youtube.com/watch?v=uNNeVu8wUakAnd that is dangerously close, if not identical to the mark of the beast in Revelation 13.
I know that many people make a lot of the bloodlines of the Jews. I don't see that it makes much of an issue, because today, the Bible says there is neither Jew nor Greek and that all gentiles can be saved through Jesus, and that we ought not to dispute about bloodlines, not even those of Jesus.
I see there is much evidence that white people across Europe and the USA and elsewhere are the lost ten tribes, and while I find that interesting, again, I fail to see significant importance for our age.
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Hi,
Hi Jason, you and your readers need to know that the gentiles in the new testiment ARE the lost sheep of Isreal. Check out this video: https://www.youtube.com/watch?v=6fCT0n6VxDA
which explains it from scripture quite well.
Take Care,D
I replied:Quite a few readers are bringing this to my attention. Thank you.
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Brilliant, lucid analysis, Jason. In the long term, you have to be right. Trouble is, in the long term we're all....
Regards and thanks
Ian
PS Hope you are keeping up the second career option - the Buddy Holly tribute act?
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Jason, This is great and I thank you ! Too bad you can not get over 1 million subscribers. This market is tiny and the masses are ignorant ~ well let me say they are just uninformed. It is hard to break through the barrier that shields this truth. I get fustrated too easily !
Just thinking of my experiences, I guess I'm a failure ~ for trying to spread the word on how silver and gold could save their money !
Now I'm 66 and have gave up trying, the people around me do not want to hear it at all. I think they think I'm crazy !
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The whole thing is a manipulation to keep everything from collapse, what do you see happening if we go into hyper inflation & collapse of the dollar? I have heard China's currency is becoming the fiat money for 8 other countries now, with more likely to follow--
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Hi Jason,
I read your article very carefully and strongly agree with your conclusions.
I think another important factor to include is the way gains made in the sale of silver are taxed.
I don't remember the details, but I think it puts a major dent in any "profits" from holding and selling bullion.
Regards, S
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Hi Jason
Thanks for another great report.
I totally agree that Silver paper contracts is totally manipulated, which is why I've only ever bought physical.
Having the Perth Mint almost on my doorstep is great as I can go down there readily and get a few items.
Whilst I am down a bit in dollars due to the Aussie dollar going up so much against the USD, I don't mind the Irony of the fact our dollars go further to make further purchases which get cheaper.
I can't imagine ever selling out for paper fiat now, it was originally my goal a few years ago, but the more i learn it's like giving the authorities the birdie and saying "I don't like what you do so am not giving you my dollars to recklessly gamble and give me