Wednesday, May 17, 2017

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New Regulations Are Scaring Away Deutsche Bank, HSBC, Barclays, JP Morgan, and All the Power-Hungry, Suit-Wearing Thieves

Ever since the early days of modern British central banking, there was a routine practice of "fixing" the price of silver.

Because gold prices were tied to currency during the gold standard days, the banks knew that if they issued excessive amounts of credit without buying the gold to back it, the free market would meet that supply by raising the price of precious metals, specifically silver.

Higher silver prices would become "paper games," which are nothing new – bankers have been cheating the gold standard since the days of Kubla Khan and continue to do so in the days of the Rothschild's.

From the instant the global economy turned to a purely fiat system with no tangible assets backing national currencies, the prices of both precious metals soared. It was the market's way of correcting the over-inflated quantity of currency units.

By 1980, gold had briefly risen to a price where it covered 100% of USD money supply. What required $850 per ounce back then now demands a price tag of over $15,000 per ounce.
On a global basis, you're looking at a price close to $23,000 per ounce.
As it stands today, gold merely covers 7% of it.

An incredible $9.8 trillion of gold paper trading took place on the world’s exchanges in 2016, compared with $42 billion in actual physical gold investment.

This was a paper-to-physical ratio of 233-to-1.

However, the amount of paper trading leverage in the silver market is much higher than that.

All the global silver investment demand last year adds up to a tiny $4.4 billion.  It was nearly ten times less than all physical gold investments in 2016.  The analysts who wrote the 2017 World Silver Survey arrived at the $4.4 billion figure by using the following data.

The total $32 billion of silver investments from 2011 to 2016 are nothing when compared with the amount of central bank asset purchases – it's preposterous. 


Central banks purchased $7 trillion from 2011 to 2016. If the central banks purchased $1 trillion in just the first 4 months of 2017, as opposed to the $7 trillion from 2011-2016 – we're in a QE stimulus phase, which is bordering the insane.  

If we just reallocated $100 billion of the $7 trillion and positioned it in silver, it would have pushed the price of silver over the peak of $50 per ounce.

By the central banks propping up the stocks, bonds, and real estate markets, the value of precious metals is severely depressed. 

Total paper silver volume on the world’s exchanges was 159 billion oz. in 2016, meaning that the exchanges traded 180 times more paper silver in 2016 than the global mine supply of 886 Moz!

Silver rigging is not a question of if it’s happening anymore: Deutsche bank agreed to settle out of court and pay $38m in response to a class action lawsuit.

The rising attention of manipulation by silver bullion banks is putting a stop to their behavior.

Banks now fear being accused of market manipulation by regulators, which has resulted in participating banks being reluctant to add liquidity during the daily auction.

Banks are now unwilling to intervene beyond putting in orders beforehand, fearing this might be labeled as price manipulation by regulators.

As a result, the silver market is now unpredictable, and it’s finally free to discover its true value.

There's been a massive wave in favor of more regulations in the past 4 years, when a draft was proposed. The final regulation was approved last April.

On January 1st, 2018, new regulations from the European Union will be valid. These regulations will make it harder for banks and platforms to manipulate financial markets, such as Libor, Forex, and most importantly precious metals!

Artificially surpassing the pricing mechanism is the same as forcing a beach ball under water – it can only pop back up with great force.

2 comments:

  1. Apa artinya pak? Apakah harga emas dan perak akan melonjak naik?

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  2. emas an perak undervalue..supressed dan berpotensi melonjak jika ada guncangan financial yang bisa sewaktu waktu terjadi...layaknya 1987,2000 dan 2007

    ReplyDelete