Silver Market Manipulations – How They Are Doing It

Price manipulating inside the silver markets is actually just a fancy way to point out that there is someone else controlling and dominating these markets. Done mostly by holding exceptionally big positions of silver. A large entity alone or group, holding a very large physical stake in a specific market will define “manipulation”, which in itself, is clearly understood. The reality, when a single entity or group enters the marketplace for the specific purpose of dominating it, this action creates alarm bells and makes them ring all over the place. These reasons are why US. antitrust and commodity laws are in place.

One of the most serious market crimes under the commodities law, is price manipulation. There is a simple and effective cure for market manipulations which has been in place for nearly 100 years. It is called “Speculative Position Limits”. At the present time, the Commodities Futures Trading Commission (CFTC) is working to in-state position limits in the silver markets. Of course at the same time this is happening the big banks are using all their mighty power to try blocking the CFTC’s attempts on instituting silver market position limits. Who will win out? Only time will tell.

Each entity in this game among manipulators will benefit by varying degrees. This is dependent upon each specific entity, however if your able to control the market through domination and a huge physical concentration, it is possible to set market prices where you want them to be, rather than allowing the free markets to control the price. It is this exact scenario that has been and currently continues to be played out upon price manipulations within the silver market and why there is such massive sell-offs being made in silver when prices start approaching near market highs.

The names of the individual traders under US. Commodity laws are confidential; sadly for that reason the true identities of these crooks are currently safeguarded and kept secret. One big secret however that has come to light is the large commercial traders who are the ones behind all of the large silver market shorting which has been going on now for decades. Another not so big secret any longer is that these large commercial shorts are created by central banks and large financial institutions. Based upon government data and correspondence, JPMorgan Chase & Co. (NYSE: JPM), has become probably the biggest such short position manipulator of them all. By inheriting all of the silver short positions once held by Bear Stearns. After their 2008 collapse, JPMorgan conveniently took it all over.

How Are They Actually Manipulating Prices?

Today the latest weapon to enter the market manipulation scene is HFT or High Frequency Trading.

With today’s computers, programs and technology HFT is extremely effective at fixing and controlling the price in either the silver or gold markets. It works like this, generating sell orders (in the millions of ounces) by computer programs that then instantly cancel each sell order. These orders are placed and then cancelled so quickly they look like any other legitimate sell order. But they are really reflections in the mirror of a real trade, or a spoof. It’s so quick, that the cancellations go un-noticed by the markets.

They have the unique ability to be placed then cancelled within fractions of a second. Once this massive volume of orders floods the market, it is quickly noticed. It then scares and tricks the real markets into a panic, thus seeing large positions sold very quickly. Of course this is all a deception to scare others, but it really works. Since the vast majority of the original sell orders are never actually executed, those behind exploiting these trades are never in a volatile position.

By using High Frequency Trading tactics, these entities’ can actually force prices to drop by moving little to no physical volume. However once the prices drop, markets initiate a selling frenzy by sheer market panic automatically. This action will cause further price decline in the silver markets. From this point, you see buy orders start to come back in. First in line will be from the commercials themselves who already anticipated and created the price drops.

Bottom-line, High Frequency Trading is the current method being used today for shorting the precious metal markets. It is very important to understand that after the price drops, is when all the “actual selling” takes place, followed by the commercial buying. Many investors believe massive selling is what makes the prices drop. But in reality this is not true because massive selling only comes once the price has already been forced down. This is the sole objective used by HFT in manipulating the silver and gold markets.

Fact is that silver manipulation has been in effect for a long time. You need to view this cold and hard. Due to these silver price scams the prices are lower than they should be making this a great buying opportunity. At some point the manipulation will end, this is assured as all manipulations throughout history have ended. We have a huge advantage today investing in silver.

First unbelievable cheap prices from years of market suppression. Second, because of the massive suppression once the market manipulators have been destroyed and prices are allowed to freely seek their true values, you will find many times your original investment once all the smoke clears. These two factors together don’t exist within any other type of investment, at least to my knowledge.

As Eric Sprott has recently said…”this decade will be the decade of silver.”

Tom Genot –