Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
Opinion Pollsters, YouGov MRP General Election 2019 Result Seats Forecast - 11th Dec 19
UK General Election Tory and Labour Marginal Seats Analysis, Implied Forecast 2019 - 11th Dec 19
UK General Election 2019 - Tory Seats Forecast Based on GDP Growth - 11th Dec 19
YouGov's MRP Poll Final Tory Seats Forecast Revised Down From 359 to 338, Possibly Lower? - 10th Dec 19
What UK Economy (Average Earnings) Predicts for General Election Results 2019 - 10th Dec 19
Labour vs Tory Manifesto's UK General Election Parliamentary Seats Forecast 2019 - 10th Dec 19
Lumber is about to rally and how to play it with this ETF - 10th Dec 19
Social Mood and Leaders Impact on General Election Forecast 2019 - 9th Dec 19
Long-term Potential for Gold Remains Strong! - 9th Dec 19
Stock and Financial Markets Review - 9th Dec 19
Labour / Tory Manifesto's Impact on UK General Election Seats Forecast 2019 - 9th Dec 19
Tory Seats Forecast 2019 General Election Based on UK House Prices Momentum Analysis - 9th Dec 19
Top Tory Marginal Seats at Risk of Loss to Labour and Lib Dems - Election 2019 - 9th Dec 19
UK House Prices Momentum Tory Seats Forecast General Election 2019 - 8th Dec 19
Why Labour is Set to Lose Sheffield Seats at General Election 2019 - 8th Dec 19
Gold and Silver Opportunity Here Is As Good As It Gets - 8th Dec 19
High Yield Bond and Transports Signal Gold Buy Signal - 8th Dec 19
Gold & Silver Stocks Belie CoT Caution - 8th Dec 19
Will Labour Government Spending Bankrupt Britain? UK Debt and Deficits - 7th Dec 19
Lib Dem Fake Tory Election Leaflets - Sheffield Hallam General Election 2019 - 7th Dec 19
You Should Be Buying Gold Stocks Now - 6th Dec 19
The End of Apple Has Begun - 6th Dec 19
How Much Crude Oil Do You Unknowingly Eat? - 6th Dec 19
Labour vs Tory Manifesto Voter Bribes Impact on UK General Election Forecast - 6th Dec 19
Gold Price Forecast – Has the Recovery Finished? - 6th Dec 19
Precious Metals Ratio Charts - 6th Dec 19
Climate Emergency vs Labour Tree Felling Councils Reality - Sheffield General Election 2019 - 6th Dec 19
What Fake UK Unemployment Statistics Predict for General Election Result 2019 - 6th Dec 19
What UK CPI, RPI and REAL INFLATION Predict for General Election Result 2019 - 5th Dec 19
Supply Crunch Coming as Silver Miners Scale Back - 5th Dec 19
Gold Will Not Surpass Its 1980 Peak - 5th Dec 19
UK House Prices Most Accurate Predictor of UK General Elections - 2019 - 5th Dec 19
7 Year Cycles Can Be Powerful And Gold Just Started One - 5th Dec 19
Lib Dems Winning Election Leaflets War Against Labour - Sheffield Hallam 2019 - 5th Dec 19
Do you like to venture out? Test yourself and see what we propose for you - 5th Dec 19
Great Ways To Make Money Over Time - 5th Dec 19
Calculating Your Personal Cost If Stock, Bond and House Prices Return To Average - 4th Dec 19
Will Labour Government Plant More Tree's than Council's Like Sheffield Fell? - 4th Dec 19
What the UK Economy GDP Growth Rate Predicts for General Election 2019 - 4th Dec 19
Gold, Silver and Stock Market Big Picture: Seat Belts Tightened - 4th Dec 19
Online Presence: What You Need to Know About What Others Know About You - 4th Dec 19
New Company Tip: How To Turn Prospects into Customers with CRM Tech - 4th Dec 19
About To Relive The 2007 US Housing Market Real Estate Crash Again? - 3rd Dec 19
How Far Will Gold Reach Before the Upcoming Reversal? - 3rd Dec 19
Is The Current Stock Market Rally A True Valuation Rally or Euphoria? - 3rd Dec 19
Why Shale Oil Not Viable at $45WTI Anymore, OPEC Can Dictate Price Again - 3rd Dec 19
Lib Dem Election Dodgy Leaflets - Sheffield Hallam Battle General Election 2019 - 3rd Dec 19
Land Rover Discovery Sport Brake Pads Uneven Wear Dash Warning Message at 2mm Mark - 3rd Dec 19
The Rise and Evolution of Bitcoin - 3rd Dec 19
Virtual games and sport, which has one related to the other - 3rd Dec 19

Market Oracle FREE Newsletter

UK House prices predicting general election result

Market Price and the Fool’s Game 

Stock-Markets / Market Manipulation Jan 12, 2015 - 12:41 PM GMT

By: Dr_Jeff_Lewis

Stock-Markets

The reason why a mirror only switches your image left to right and not also up and down is an illusive property of optics. Optically, the image appears as if you somehow walked around to the back of the mirror to face it again. 

But rarely do we ask ourselves questions like these. Normally we just take it for granted. 
To understand price in today’s world is, ultimately, about understanding price mechanism. 


At the heart of all price discovery is the true darkness where few dare to gaze. The amount of light necessary to reveal that truth seems physically impossible. Yet it is nothing close to a physical reality. It is purely an irrational fantasy backed by faith, hope, and fear. 

No one knows what the paper price of silver will be tomorrow; making a prediction is a fool’s game which illustrates that something is undervalued in the context of what is true is the potential energy of this market going parabolic.

It can happen any moment. What would be a likely trigger? There are many, but what if the big investment banks decide the time is right to remove themselves from their concentrated selling position? If they publicly announce the departure of the so-called market maker - removing themselves as a way de-risking or future damage control?

Or, they decide to rig the market in their favor. And they let silver ride up close to its inflation adjusted - its monetary adjusted high. 

There is plenty of room to run. Plenty of justification in retrospect. Plenty of reasons waiting to be paraded. 

What is the incentive for keeping the cost of silver artificially low?

1. Profit. If you owned the majority of shares in any company. 

That position - which is illegal of course - would enable you to move the price in any direction you wanted. 

The majority 'share holders' of COMEX silver futures dictate the direction of prices by using their large position to influence the behavior (positioning) of technical trading managed money funds. 

They induce selling, and buy back or cover short positions at a profit. 

2. Silver has both commodity and investment demand. Investment demand is less predictable and too close to 'monetary' demand to 'let it' trade freely or have it reflect actual physical supply and demand. 

And so much fuss. Silver is a tiny market. Wall Street could dictate the perception of the rise in price the entire way.

Public participation is unnecessary. In fact, if and when the price begins its return to reality, the public will face a ‘no bid’ market. 

What happens when the price goes no bid?

As you know, paper markets for gold and silver (which currently determine price) are massively leveraged. 

The estimates of the amount of paper against the available physical inventory range from 40 to more than 100x's.

If a tiny percentage of futures traders "stood" for delivery - then the market would stop as actual deliveries could not be made. This creates a "no-bid" price environment, where the physical price would skyrocket.

Ultimately, this is a paper derivative system for the banks and by the banks. 

Any way you frame it. Every way that could be imagined — this is baked in the cake.

Consider the obviously bullish macro issues visible - accessible to all.  Add to that the years and years of price control.

Remember the big short, and there you have the ‘coiled spring’ — the beach ball held under water.

Can they keep this up forever? Can they smother the price indefinitely?

Of course not.

It's a long term play (of course it's a fragile set up) - accidents happen - so there is always the fear of missing out on what was clearly articulated and understood. 

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

6 Critical Money Making Rules