I always wondered how people could claim that some 'cabal' somewhere manipulated the price of gold. After all, it's a hard physical asset and free market conditions would create a fair price, right?
Well, I recently read an article about how the Federal Reserve (and others) manipulate the price of gold (and silver). It was eye-opening. I'll summarize it here, but I'd really recommend the article (it's full of receipts and documentation).
https://www.moneymetals.com/news/2021/02/17/gold-market-manipulation-2021-1-002226
My summary (of the article) follows. This is not informed by my personal knowledge.
Essentially, the core 'trick' is that the Fed (and others) have created 'paper equivalents' of gold. This is when you 'buy gold' but never take delivery of it. It's 'stored in someone else's vault'. You can 'buy' it and 'sell' it -- but you never see it.
In the 'paper gold' world, the Fed (and others) simply lie about how many ounces are in the vault. When they want to hold the price down, they simply sell more 'gold' (without the physical gold to back it up). Seeing as most people simply 'buy' and 'sell' their gold (and never take possession), the underlying gold is never checked on. People are buying and selling paper. There is an actual market, but it is not backed 1-to-1 by gold.
All this 'gold out of thin air' means that supply is (artificially) high, so prices remain low. How high is this false supply? Well, the article says that it might be as high as 100 to 1.
So, for every ounce of physical gold in a vault, there are 100 people that supposedly own that ounce.
It's like fractional banking, but with gold instead of 'fiat' currency (dollars that aren't backed by gold).
Fiat currency only works because people trust the 'full faith and credit' of the US. But what happens when that trust falters? What happens when the faith falters in the (false) 'paper gold'?
What happens when the Ponzi scheme is revealed? It seems to me that people who 'own' this 'paper gold' will try to take posession of their physical gold, or convert it to cash. Sort of like a present day 'Gold Rush'.
The Fed and their partners would not be able to deliver the requested gold (they only have 1% of what they've 'sold'), and they can't give everyone their cash back (because it's a Ponzi scheme). The Fed collapses.
All of this raises some interesting questions...
Because a 'multiply-sold paper ounce' is the same as a normal physical ounce ---
What is the true price of a physical ounce of gold? Or silver (which is similarly manipulated)?
And if (in the 'paper' world) every physical ounce of gold has 100 owners, and each owner has paid $1800 or so to the bankers, then is that physical ounce actually 'worth' $180,000 or so? It seems weird, but that's exactly how much the bankers have sold it for!
Therefore, (when the truth comes out) does everyone who owns physical gold (or silver) actually own something that is worth 100 times what is published?
And what happens to these prices when the Fed collapses? What will the new gold-to-cash exchange rate be? Or silver-to-cash?
Lots to think about...
If you know more about this subject than me (very easy), please chime in. I'd love to learn more.
Silver is around 300 to 1 oz of physical in the comex right now.
Came to say this. Silver is the most heavily manipulated asset on the planet.
Is there any 'official' source for the 300:1 figure?
Check out reddit r/wallstreetsilver Lots of good DD there.
No, but that’s the point. Every “official” source is pushing the narrative.
Agree it’s only $22-23/oz…none! Lot of shorts by banks won’t be able to cover…collapse coming in hot
Not sure I "know more" than you do, but your assessment seems spot on. I've been carefully watching the silver market (and to a much lesser extent, the gold market) for about 2 years now.
The biggest indication that I've seen that you're right is the "premium" involved with buying and selling an ounce of silver.
Two years ago, silver "spot price" was about $20. If you decided to buy an ounce of silver, you would have paid about $22 (10%). If you wanted to sell an ounce of silver to the pawn shop, you'd get about $18 (10%). That additional cost is the "premium" that the merchant charges to make their profit.
Over the past two years, more and more silver products are being limited (The US Mint cancelled the 2022 silver Morgan and Peace dollars due to not being able to purchase enough silver), and premiums have been skyrocketing.
Today, if you walk into your local coin shop, spot price is around $22, but you'll pay close to $30 (+26%) per ounce of silver, and they'll pay you around $24 per ounce (+8%).
Given my limited economics knowledge, supply and demand are the primary factors for pricing. The fact that premiums have jumped from 10% to 26%, and given the fact that coin shops are now paying above spot for silver, that tells me demand has gone through the roof.
Inflation is going apeshit, and demand for gold and silver is through the roof, but somehow the price of precious metals are going DOWN (it was over $25/oz this time last year, now we're down to $22/oz).
Look at a commodities chart, and you'll see EVERY commodity that is traded is WAY up... except gold and silver.
What is going on right now in precious metals is completely opposite what should be happening, and the only explanation I can come up with is market manipulation.
Check out r/WallStreetSilver on Reddit - they're quite based (for a subreddit), and they have quite a bit of reading material about this.
I saw paper silver drop and thought.. shit, about to get a discount. nope. same price it was before the drop. the numbers are just made up at this point
Thanks for the historical details about the silver premiums. It certainly implies that 'demand is high'. But prices are falling?
To me, nothing makes these facts make sense except for price manipulation.
The good news? Apparently there is a limit to how much 'pressure' they can hold back. Eventually the dam breaks...
...and the Fed dies.
Oh, another thing... I fully expect the US Government to pull a 1933 style gold and silver confiscation before this is all done and over with.
Possibly in connection with food shortages ("we know everyone is hungry - turn in your gold and silver and we'll be able to purchase wheat from Russia with it")?
If you choose to purchase physical gold and silver, plan accordingly.
I foresee a lot of boating accidents. /s
i think they will push the price of gold and silver so high people will dump them onto the market. ex:say they push silver to 1k you dump your holdings, then once they feel they got everyone's metals they possible can they then make the currency worthless and you become the ultimate bag holder of a worthless fiat currency. then they transfer into cbdc, that is they will attempt.
Oh shit, good point.
Hold til “they” are defeated.
Yes, that's the theory - they can only keep the manipulation going for so long before the whole house of cards falls.
I'm worried that with CBDC, however. If that becomes a thing, they'll be able to manipulate the price infinitely with infinite digital currency.
The other good news is that you can used the manipulated price to your benefit and buy. There’s about 6,000 years of historical data where silver traded at 1/10 the value of gold. If that were still the case then silver would be $200/oz and positioned to skyrocket with inflation.
Personally I think the price is being suppressed by the paper market. A lot of people think they own silver and will soon find out that they were conned.
Silver shall end the Fed.
we all buy as much physical in-hand silver as we can
silver, being scarce, becomes difficult then impossible to get
the lie of “spot” price, namely, that silver futures contracts (which are 300x more abundant than silver itself) are interchangeable with silver, is exposed as everyone has contracts redeemable for silver but there is no silver with which to redeem the contracts.
if silver goes up, gold must become scarce and expose its own “spot” price lie, or else we will be able trade our silver for gold at a favourable rate.
if gold goes up, it puts the lie to the official inflation rates.
if the inflation rate is recognized to be as high as it is, people will ditch their dollars and short the dollar en masse, which is an inescapable death spiral for/loss of faith in the currency
N.B.: You will make zero profit under the comex spot price system. So long as people recognize that as the price of silver, silver is on fire sale. The profit comes in the next system that succeeds this one.
Buying silver is participating in an elemental run on the bank.
Ooh ooh ooh.
Why not gold?
If we recognize gold is money, we admit “they” are richer than us. For every ounce of gold we could produce, “they” can produce four from vaults in Europe. Russia and China are the next powers we admit are richer than us, since they have more gold than us too, by a factor of two. Using gold as money means we’re the global poors.
Silver isn’t controlled by any one party or small group in the same way. If silver is money, we can become the next Western oligarchs.
To be honest, Silver is more valuable. Gold is still just a sparkly, limited edition metal. Silver is needed throughout industry.
Haha, people here used to laugh at me when I used to try explaining how not just gold and silver, but every commodity, every stock and every crypto price is manipulated by the fed.
Yes, the beloved cryptos too, because guess what? The crypto "exchanges" that people leave their cryptos do the same trick as the paper-gold.
They can set any price they want to any commodity. They set oil to negative $40 in March 2020 and no one blinked an eye. No one even bothered to ask "wait, how is that possible? That does not make any sense. That surely means its being manipulated"
But it's nice to see people slowly open their eyes for all this. Today if US adopted gold standard, and calculate the value of gold using the total Gold reserves and dividing by the total M2 supply, it comes to roughly $80,000 per ounce.
Yes people with gold and silver will be insanely rich. Those without will lose everything. So this is not how its going to happen.
What we are watching currently is a controlled demolition, where assets belonging to Fed and big banks and all the elite players will be first destroyed. This will shrink the M2 supply. And then they will bring in the gold standard. Gold wills till sky rocket, but the devaluation of dollar is not going to be so severe.
This is why as we approach the final storm, its important to make sure you dont have too much of your wealth in Fed reserve notes.
it's about ending global slavery.
This post is why I have only exclusively taken possession.
Silver could wind up being worth more than gold because of industrial uses for silver taking a portion of that material.
Either case, the actual value is going to skyrocket at some point, and well it will be far preferable to be holding it when it does.
The banksters can print up gold and silver contracts out of thin air with their "unlimited credit" at any time. A silver contract represents 5000 ounces and a gold contract represents 100 ounces. You can do the math on how expensive it is to hold even a single contract.
Now contrast that with the MILLIONS of contracts that change hands between these banks every day. Better yet, have a look at how many silver contracts traded between 2000-2019, versus the number of silver contracts that are trading daily during the Cooties-1984 period (2020 - present). The numbers are nearly 1000x today.
It's the same 4-8 banks trading 20 years ago that are playing the futures markets (COMEX) now - JP Morgan, HSBC, Citibank, BoA, Scotia Bank, etc.
So the real question is, why are these same banksters trading 1000x contracts today, versus only 3 years ago and before?
It's also worth noting that in 2020 JP Morgan was fined almost a billion dollars for fraudulent manipulation of the precious metals markets. It's not a "conspiracy theory", it's a "conspiracy fact". So if they got fined a billion, one can only imagine that they must have made a hundred billion in profits. The SEC fine is just the price of "doing business"...as usual.
Good post OP.
Very interesting.
Excuse my ignorance, but what is the 'Cooties-1984' period? (I did a search, but only found the movie...and the 'childhood disease'.)
Hahaha, "Covid-19"....
I think we all need to standardize our scornful name for that 'dread disease'.
Feel free to use mine. I chose "cooties" because that is of course the name of a "fake bug/virus" that infects little boys and girls that think each other are "yucky and icky". :)
And I chose "1984" of course because of the "19" in the name of the fake, non-existent "virus" as it relates to the essence of Orwell's book "1984".
There are so many name variants though
This is the way.
These last two years have seen records in regards to people taking physical possession. Moneymetals is great. Thats where i go if the LCS doesnt meet my needs.
Are there any charts/data that show this trend?
Yes.
Sorry, my bad. I asked a yes/no question. Allow me to rephrase...
"Do you have a link to any charts/data that show this trend?"
Yes.
Crap. Got me again.
Go to reddit wallstreet silver,they have gobs of charts.
Thanks.
Just messin around Sorry brother, at that moment my assertion was mostly anecdotal, only because i was more closely following this topic a couple years ago and didnt know how to archive yet. Moneymetals, sprott and others have newsletters. Sad to say reddits silver community did indeed have good links, just had to find them past all the moonboy posts. Have a good day
No worries, fren. I'm just embarrassed that I asked a second yes/no question.
If you want it to go down --- sell on low volume, buy on high volume.
Actual precious metals will skyrocket in dollar value at some point, but exactly WHEN and HOW HIGH cannot be known in advance. Too many variables, unknowns, possible tactics by various players, etc.
But a US $20 bill bought / was the same as a $20 US one-ounce gold coin until 1933 (thank you, FED and Franklin "Internment camp" Roosevelt).
That $20 bill could instead have bought /been the same as twenty one-ounce silver dollar coins.
(Seignorage -- the mint's cut for producing the coinage from bullion -- slightly lowered the amount of gold in a "one ounce" gold coin; $20.67 was the actual exchange rate for gold bullion, and this small difference is generally ignored. The important point is that the exchange rate was fixed and, for decades, unchanging).
One ounce of gold for $20.
Twenty ounces of silver for $20.
Try to imagine how many dollars are out there in the world now, in the form of electronic digits, $100 bills, debt instruments, and phony ledger entries.
Pull the corrupt curtains away and how many of those trillions of dollars would it take to buy an ounce of either gold or silver?
I repeat: exact numbers are only fantasy, but wherever the numbers land, they'll make your head spin.
Yep, the rate of dollar growth and the rate of precious metals supply growth are all you need to see to recognize the fraud. Yet so few will even look.
If you look at the official debt chart , on the far right they show the dollar to fold and dollar to silver ratio. Currently 1 oz of gold is $17,133 and 1 oz of silver showing $2325 .
https://usdebtclock.org/
Awesome resource. Thanks!
And they sell it back and forth to each other to pretend there is a glut. Then the price drops. Oh, look, here is a bazillion ounces of (paper) gold and silver for sale!
I have a theory that Q team has acquired a large, large quantity of gold. Once the switch is made, they bring out their stash and the price drops significantly. This will kill any bank or elite that has stashed their cash in gold hoping for a windfall. Then Q team shares with us citizens but not the elites.
I think it would be the opposite. If entities are hoarding physical gold, it would reduce supply right when demand is increasing, causing up pressure to the price.
Gold and silver should experience a "short squeeze" event as the world realizes that 300 people have claims on every ounce of physical gold.
I think it's more likely that the elites lose their wealth (gold included) due to EOs 13818 and 13848.
NESARA and GERSERA
100 to 1 at 2000 an ounce means my one ounce that I own all of by myself is worth 200,000 dollars. As are the other 19 ozs.
Silver at 75k per ounce and I have a mere 100 physical ounces 7.5 million? Let us hope it values such.
Fake money fake gold
Brokers are manipulating the price of everything. Not your keys, not your coin. Not your name, not your shares. If you cannot physically hold your gold, it's not yours.
We will find out that gold is almost as common as copper. in the Grand Canyon, and at chocolate mountain. The govt covers it up and bans people from going there and makes it all federal land.
I also suspect gold is very common in national parks, particularly western mountain parks. But not that common. There is more than a ton of copper on earf for every person alive. By contrast there’s less than a ounce of gold and less than ten ounce of silver per person alive. That’s quite a lot of gold to hide in those parks.
Global currency reset is coming…just watch. I think in the next few weeks. Load up on war torn countries currency. Iraq Vietnam Zimbabwe Venezuela Etc..
Usd is dying or may be dead. Countries with asset backed currencies will go bonkers soon. Bricks…research it.
Gold and silver to the moon…
Central banking gone for the third time and hoping for good. Time to reset the tables. Usd is overpriced and dead
That's exactly how they've messed with bitcoin, too. The market price is based on the liquid market turnover, and there's a proxy called tether (there are others, but that's the big one) that accounts for something like 80% of the trading activity.
Aren't there derivatives on Bitcoin now, too? Options and such?
Wouldn't be surprised.
You cut straight to the point.