Just
take a look at the above chart.
I agree, it is a disgusting, nasty image and one that represents a
wiping out of roughly $2 billion dollars of value in the silver markets.
What caused it and why did it happen? Many are waking up today scratching their
heads and asking themselves these very same questions, as they look at their
portfolios and see that their silver holdings have taken a huge hit.
They are valid questions, and for anyone who is a veteran of the bullion
markets, then the answer is the same as it always has been. The bullion cartels
are the cause and the reasoning is because they can.
This smash and grab has been repeated time and time again, and is used to
depress the spirits of the precious metals community and to keep it in
"check".
The bullion cartel, who has actively manipulated the price of both gold and
silver for decades has once again struck and taken down silver just as it was
starting to show strength, knocking out billions of dollars worth of value.
This massacre was clearly deliberate, as no other explanation, besides pure
stupidity, can explain it.
At exactly 11:30 ET, just as the European markets closed, someone unloaded
$2 billion notional worth of silver bullion onto the paper markets. Over 23,000
silver futures contracts flooded the market and caused the price to crater,
thus causing it to fall even further as algorithms kicked in and reacted
to the action.
As previously stated, this had to be a deliberate action, as NO ONE, and I
repeat NO ONE who wants to actually make a profit off of their silver bullion
contracts that they are selling would intentionally choose a time of lessened
liquidity to shed a massive amount of ANY paper bullion, or any position
for that matter.
This is just another case of silver being "checked" and "put in
its place". The financial elites have manipulated the price of precious
metals for decades and this just goes to show how broken the paper markets have
truly become.
The fact that billions of dollars can so easily be tossed around, despite the
fact that this is a finite rare resource, proves the point that the paper
markets are bogus and clearly not based in reality.
As more and more people come to this realization, they will turn to the
only other viable option - the real, tangible, physical market. The only true
and honest way to invest in physical precious metals. Until that day, enjoy the ride,
ignore the noise and as always, keep stacking.
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Nathan McDonald is a libertarian, entrepreneur and precious metals enthusiast. He has always taken a keen interest in free markets and economics since an early age, which naturally led him to become a true believer in precious metals and all that they stand for.
Nathan served eight years in the Royal Canadian Navy as an electronics technician, seeing the true state of the world, before starting his first successful business. He has since gone on to create a number of businesses, all of which are still in operation and growing.
In addition to this, Nathan runs a network of successful precious metals blogs, and a growing newsletter that has attracted readers from all around the world.
He is a regular and highlighted writer for the highly respected Sprott Money Blog, which covers world events, geopolitics and of course precious metals.
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The views and opinions expressed in this material are those of the author as of the publication date, are subject to change and may not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the accuracy, completeness, timeliness and reliability of the information or any results from its use.
