Manipulation! What do you think?

As long as the rules allow big money institutions to sell huge amounts of paper silver, the big short sellers will always be able to knock down the prices at will. The way that will end is if the commodity trading rules are changed (probably won't happen) or when buyers seek real physical metals and stay away from paper trading. If buyers demanded the real metals then the paper markets would not have any effect on physical metal prices and prices would go through the roof because the amount of dollars out there looking for a new home is in the many trillions and there is not nearly that much gold and silver available above ground.

Right now the "manipulators" are simply utilizing available and legal strategies and making $$$$$ off of it and having their way with the paper market. They however cannot simply produce physical out of thin air if we get to a point where buyers demand physical and shun paper, and until the demand for paper PMs diminishes we will probably be stuck with what we have been seeing.

It is possible though that somehow the demand for PMs becomes the next "in thing" and hedge funds and other large buyers get in again (like in winter/spring 2010/11) and drive the prices back up. But even under this scenario the price will hit a ceiling eventually and drop again like it did in April 2011 because the paper price will still control physical.

I believe that someday (over the rainbow :laughing7:) we will see a break of physical price from paper in the PMs. When that does happen prices will zoom up. Don't know when that will happen but it will.

All my opinion.

Jim
 

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When Physical buyers can't find anything to buy anymore, the jig will be up for the PM manipulaters! That can happen soon.
 

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