A lot has been written in the last couple of years about the manipulation of the gold price and silver price. As the subject is becoming more widespread known and even accepted, it raises also questions from people that are not very familiar with gold and silver. That’s why we decided to collect some very recent writings and interviews from 7 different people that are well respected in the precious metals industry, most of them are real experts and are in the industry for many many years.
First some general questions & answers on the gold price and silver price manipulation
So the first question is “what is it exactly?” Well, it’s the gold price and silver price being controlled by large institutions, mainly in the West. The price is influenced or managed in a conscious way. Mostly it’s suppressed, which it’s a differentiator compared to other markets where it’s mostly pushed higher (think about oil).
Who is doing this? Based on the resources you’ll find, it seems to be mainly a combination of governmental and financial institutions in the West. The governmental regulators are not intervening properly as a very limited number of financial institutions have too large concentrations mainly in short positions.
How is the price being manipulated? It happens mainly via the paper market in the US. The main players in there know exactly when they need to intervene as they have insights in (long and short) outstanding orders, which ordinary professionals or individuals do not have. They are supported by fast-speed computers and algorithms to mask their actions.
Why is there a manipulation in the gold price and silver price? Well, it would be very bad for governments to see the gold and silver price increase rapidly (because that’s what will happen if th price will not be not suppressed). A (too) rapidly rising gold or silver price is driven by a lack of trust in the financial system and fiat money (eg the US dollar or other major currencies). Chris Martenson writes “If gold were suddenly to spike up to $5,000 an ounce, all sorts of troubling questions would emerge for people. Such as, is there something wrong with the dollar? Is the world falling apart? A rapid spike in the price of gold would certainly cause people to question the current state of the world of fiat money”.
Is this manipulation an issue? Not if governments keep on monetizing their own debts, debasing their currencies and holding the banking system up with monteray interventions. The demand for physical gold and silver is increasing worldwide. Currently there still is a demand for bonds & equities but when that changes or when inflation pops up, it will become very hard to control the gold price or silver price.
What’s the best everyone should be ? Very simple, buy and own physical gold and physical silver. It has never been this easy to switch your paper assets into physical gold and silver.
Let’s take a look at some recommended readings from trusted sources
We selected 7 people that are for years in the gold & silver markets and that are well respected.
(1) Chris Martenson wrote an article “Gold is Manipulated (But That’s Okay)“. He explains very much in detail how manipulation his happening and why. We particularly like this quote: ”The price of gold is being actively managed by central planners and their proxies. The main culprit here appears to be the US authorities, as the manipulation is most apparent in the US open gold market. For the most part, this ‘management’ has resulted in letting the price of gold rise, but not too much, or too quickly.”
(2) Ted butler is the editor of a paid newsletter at ButlerResearch.com. He has a tremendous experience and in-depth knowledge of the silver market particularly. We very much like Ted Butler because he is very factual, he has a lot of experience and knowledge and he is very to-the-point. Apart from subscribing to his newsletter, you can read this recent interview ”The Who, How, and Why Behind Silver Price Manipulation“. Ted gives his view on subjects like :
- Who are the main players in the manipulation scheme?
- What exactly are those players doing to manipulate the price?
- Which reasons are explaining why so much more paper silver is traded than physical silver?
- What was the suspicious activity that recently took place, on February 29th in particular, when silver was smacked down in just a few minutes ?
- What is the role of the CFTC, the regulator of the commodity markets in the US ?
(3) Bill Murphy is chairman of GATA (the Gold Anti-Trust Action Committee). He recently gave an audio interview about the gold cartel, where he explained how several big financial instutions are controlling the price of gold and silver. Bill thinks they are keeping prices of gold and silver, as well as the mining shares, artificially low to demoralize people.
(3) Harvey Organ is another veteran in the industry. He has testified before US Congress on gold & silver manipulation. In a very recent interview with Chris Martenson (listen to the audio interview or read the transcript), Harvey explains the mechanics of how he sees this manipulation occurring. He predicts this fraudulent pricing scheme to collapse soon and he stresses why it’s critical to be holding physical gold or silver.
(4) John Embry has researched the gold sector for over thirty years. In an audio interview with Eric King (from 4:32 and later in the interview) he thinks that the gold and silver paper market has exaggerated and the price was taken too low. In the East they know about this situation; they simply take the physical metals at bargain prices. He does not understand that manipulation today is so blatant and more obvious than ever, while strangely the “manipulators” don’t even care about it.
(5) Also recently, an in-depth report was made publicly available on the manipulation of the gold price and silver price. The report is written by Paul Mylchreest who is an analyst in the Metals, Mining & Energy industries for more than 25 years now. He writes in the introduction of his research that “This report provides proof of massive manipulation (suppression) of the gold price since the US sovereign credit downgrade on 5 August 2011. There are scores of “smoking guns” in the pages … It explains in detail and illustrates in chart form exactly HOW the manipulation is taking place. Few portfolio managers or sell-side analysts have “deciphered” the modus operandi of the cartel banks (never mind financial journalists & the public). It’s a fractal-like pattern of interventions within interventions which are driven by repeating algorithmic trading programmes.”
(6) Finally, as mentioned by GATA, the well respected dutch former treasurer, prime minister and central banker Jelle Zijlstra confesses in several writings that the price of gold has been kept under control in the past. Jelle Zijlstra wrote in his book in the 1990s: “The gold price is artificially kept far too low.” And most important, he has provided all the necessary information to reach the conclusion that central bankers are always evaluating their currency in terms of gold. Why? Because, before and after all has failed, gold is the sun in our “monetary cosmos”.
How is the gold price & silver price manipulation going to play out
Of course, we don’t have a crystal ball. We can listen to what the real experts are telling us. One of them is Jim Sinclair, also called “Mr Gold”. He stated during an audio interview with Eric King on 23 December 2011 : “We’re in the most manipulated markets. We are in the most fraudulent markets in history. What you’re seeing going on right now favours the bankers and disfavours all others. However, when it’s finally finished there will be one man standing and that one man standing will be gold – the only market that the banksters can’t control in the final chapter.”
Do you own enough physical gold and silver ?