Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
Stock Market FOMO Hits September Brick Wall - Dow Trend Forecast 2021 Review - 19th Sep 21
Dow Forecasting Neural Nets, Crossing the Rubicon With Three High Risk Chinese Tech Stocks - 18th Sep 21
If Post-1971 Monetary System Is Bad, Why Isn’t Gold Higher? - 18th Sep 21
Stock Market Shaking Off the Taper Blues - 18th Sep 21
So... This Happened! One Crypto Goes From "Little-Known" -to- "Top 10" in 6 Weeks - 18th Sep 21
Why a Financial Markets "Panic" May Be Just Around the Corner - 18th Sep 21
An Update on the End of College… and a New Way to Profit - 16th Sep 21
What Kind of Support and Services Can Your Accountant Provide? Your Main Questions Answered - 16th Sep 21
Consistent performance makes waste a good place to buy stocks - 16th Sep 21
Dow Stock Market Trend Forecasting Neural Nets Pattern Recognition - 15th Sep 21
Eurozone Impact on Gold: The ECB and the Phantom Taper - 15th Sep 21
Fed To Taper into Weakening Economy - 15th Sep 21
Gold Miners: Last of the Summer Wine - 15th Sep 21
How does product development affect a company’s market value? - 15th Sep 21
Types of Investment Property to Become Familiar with - 15th Sep 21
Is This the "Kiss of Death" for the Stocks Bull Market? - 14th Sep 21
Where Are the Stock Market Fireworks? - 14th Sep 21
Play-To-Earn Cryptocurrency Games Gain More and Is Set to Expand - 14th Sep 21
The CashFX TAP Platform - Catering to Bull Investors and Bear Investors Alike - 14th Sep 21
Why every serious investor should be focused on blockchain technology - 13th Sep 21
SPX Base Projection Reached – End of the Line? - 13th Sep 21
There are diverse ways to finance the purchase of a car - 13th Sep 21
6 Tips For Wise Investment - 13th Sep 21 - Mark_Adan
Gold Price Back Below $1,800! - 10th Sep 21
The Inflation/Deflation debate wears on… - 10th Sep 21
Silver Price seen tracking Copper prices higher - 10th Sep 21
The Pitfalls of Not Using a Solicitor for Your Divorce - 10th Sep 21
Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
This Boom-Bust Cycle in US Home Ownership Should Give Home Shoppers Pause - 9th Sep 21
Stock Market September Smackdown Coming Next? - 9th Sep 21 - Monica_Kingsley
Crazy Crypto Markets How to Buy Bitcoin, Litecoin for Half Market Price and Sell for TRIPLE! - 8th Sep 21
Sun Sea and Sand UK Holidays 2021, Scarborough in VR 180 3D! - 8th Sep 21
Bitcoin BTC Price Detailed Trend Forecast Into End 2021 - 8th Sep 21
Hyper Growth Stocks - This billionaire is now using one of our top strategies - 8th Sep 21
6 common trading mistakes to avoid at all costs - 8th Sep 21
US Dollar Upswing, S&P 500 and Nasdaq Outlook - 7th Sep 21
Dovish Assassins of the USD Index - 7th Sep 21
Weak August Payrolls: Why We Should Care - 7th Sep 21
A Mixed Stock Market - Still - 6th Sep 21
Energy Metals Build Momentum; Silver & Platinum May Follow - 6th Sep 21
What‘s Not to Love About Crypto Market Fireworks - 6th Sep 21
Surging US Home Prices and Gold – What’s the Link? - 6th Sep 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold and Silver Price Control Limbo

Commodities / Gold and Silver 2013 Feb 14, 2014 - 01:03 PM GMT

By: Dr_Jeff_Lewis

Commodities Nothing matters to anybody until it matters to everybody — and by then it's too late. This could easily be said for the gold and silver price manipulation.

The question is whether the end comes before or after a concurrent monetary collapse, currency crisis, or hyperinflation.


The other adage is that markets can stay irrational much longer than one can stay solvent. We should add that manipulated markets are an entirely different category.

This is not a naturally manifested irrationality. Price controls are distorting in ways that are truly unimaginable -, and seemingly efficient.

Ultimately, the crowning achievement will be to split markets into two, a physical and paper, creating an official and unofficial gray market across the board for all commodities. And this split may be facilitated by alternative and electronic currencies, that sadly, in the end turn all into enemies of the state in the end.

There is a lag between general awareness and the unevenness of monetary expansion.

It is impossible to predict where artificial money will flow initially. The hope has been toward housing and stock prices without a concurrent (dangerous) rise in consumer prices. There is a lag. How long can the lag can last is anyone's guess.

Perception Managed Down the Line

Political capture of the fed was completed years ago once the chairman became hailed by the financial markets and adorned on the cover of popular magazines. The recent political game involving involved the exit of the most dovish of chairman. Yet, on a note of hawkishness, this chairman plowing plowed the way and the political will for his predecessor to complete what must be done in order to maintain the current monetary system.

Inflation Continues To Steal From the Most Vulnerable

Monetary policy inflation targeting hits hard on the most vulnerable of societies, the poor and elderly. But the political elite will not be swayed until the suffering consumes them. It is human nature to feel remorse for the sufferer on the other side of the world -, until one learns of his own impending pain, and thus becomes consumed by it. This is how official numbers with regard to real inflation are able to go on unquestioned.

Consider the implication of quietly reducing portion or package size for commodities, such as coffee, flour, or sugar.

If a 16 ounce package of coffee costs 20 cents, and the package is reduced by 4 ounces to 12, and the price stays the same, then you just inflated the cost of the coffee by 25%. This is a twisted triumph of modern propaganda.

Same Ole Same Ole

The fact that four4 or less large banks hold concentrated positions in any market makes a manipulation an inevitable.

The question remains, whether there we is 'enough' of a lag between the key tipping point of awareness and the ultimate collapse of the monetary system.? History may judge that they went hand in hand. But living thorough this moment, emotions paint a much more extended period and a cheap option before the storm.

While it is true that the typical, and sophisticated mainstream observer or investor is marred in the performance paradigm, it does not require much more than a curious mind to unveil the significance of this brief moment of opportunity.

Regulator Ignorant.

The recent Blythe Masters debacle is an example of this. The head of JP Morgan’s commodity unit was recently offered an advisory position with the CFTC. The knee jerk response to this was severe, and the position was quickly rescinded. It reveals two fascinating aspects of this historic moment. One that so many immediately saw the absurdity and conflict, and secondly, that the powers that be could not readily identify the potential fall out of a move like this. This says everything about the futile grasp of the larger picture.

Price controls ultimately fail, whether directly by political edict occurring in a rapidly devaluing currency (like we are witnessing in South America) or via long term and profitable fraud that parallels the support of a fiat reserve. - Ultimately fail. And the harder they come, the harder they fall.

The geometric expansion of money supply and fractional reserve lending (based on the modest of ratios) ensure that once the math begins to work its way backwards, conditions go from bad to panic overnight.

The sound of precious metals returning to a semblance of normal, whether based on commodity or monetary dynamics, will be nothing like anyone alive has ever heard. It will also be and one that generations going forward will not soon forget.

For more articles like this, and/or for a breath of fresh silver market reality amidst the stench of denial and technically meaningless short term price obsessed madness, check out http://www.silver-coin-investor.com

By Dr. Jeff Lewis

    Dr. Jeffrey Lewis, in addition to running a busy medical practice, is the editor of Silver-Coin-Investor.com

    Copyright © 2014 Dr. Jeff Lewis- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Dr. Jeff Lewis Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in