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The
silver markets are rigged. Every day. Every trade. Every
option. Every derivative. The silver markets have been rigged since the early
1970’s when Alan
Greenspan introduced computer market trading systems to
the world beginning the long term commodity market rigging operation. Since
that time there has not been a day when the silver markets have been
“freely traded”. Nobody, and I mean NOBODY, knows the true
“Fair Market Value” of silver!
But like all price suppression schemes, the silver manipulation must come to
an end and we are on the brink of that moment. The only remaining question
should be “What is the true value of silver in terms of money?”
First a little background to set the stage.
Computer Commodity Trading
Beginning in the early 1970’s, computers were introduced to control the
order flow in financial markets. Order processing was drastically changed
with the New York Stock Exchange’s “designated order
turnaround” system (DOT, and later SuperDOT) which routed orders electronically to
the proper trading post to be executed manually, and the "opening
automated reporting system" (OARS) which aided the specialist in
determining the market clearing opening price (SOR; Smart Order Routing).
Today
we have algorithmic trading, auto trading, algo trading, black-box trading,
robo trading…and the list goes on. Algorithmic Trading is widely
used by pension funds, mutual funds, and other buy side institutional traders,
to divide large trades into several smaller trades in order to manage market
impact, and risk. Sell side traders, such as market makers and hedge funds,
claim to provide “liquidity to the market”, generating and
executing orders automatically. In "high frequency trading" (HFT)
computers make the decision to initiate orders based on information that is
received electronically, before human traders are even aware of the
information.
Over
the years computers have played an increasingly important role in everything
related to our “free and open market system” such that
today’s financial markets CANNOT function without computers. The
Federal Reserve, US Treasury, Wall Street insiders and the Exchanges were all
instrumental in the integration of computers but they also gained access to
secret trading information before the order hit the open market. This
information coupled with the fastest computers on earth made market
manipulation easy. This power, the power to control markets, was too much for
anyone to resist. Over time those who were given the official key to the back
office operations have used and abused their position to its manipulative
fullest. Although some of the time they used this power in an official
capacity (for the good of the country), more often than not it was used in an
unofficial capacity… for the good of themselves. Bernie Madoff, the
ex-head of the NASAQ, was a great example of this public to private
transition as his private trading firm was all computer algorithm based market
rigging operations. There are many other ex-Exchange/Wall Street officers
that went on to open computer trading operations. Many continue to thrive
such as EWT, LLC which became a dominant trading/market making firm using
“state-of-the-art technology and algorithmic models”. EWT was
founded by Vincent Viola (ex NYMEX Chairman) and David Salomon (reported to
Robert Ruben at Goldman Sachs) and are also an “Authorized
Participant” in the iShares Silver ETF (SLV).
Are
you beginning to see the problem? He who has the biggest, fastest and
smartest computers (or programmers) can set the price and will ALWAYS WIN! No
longer is there any kind of true supply/demand factors related to commodity
exchanges or prices. Computer trading should be outlawed…the convenience
and efficiency it provides does not offset the detrimental effects and
potential for total and complete market manipulation.
CFTC
created to cover up the manipulation
When
the computer rigging programs were implemented there needed to be some kind
of cover to ensure secrecy and maintain a false confidence in free markets.
In 1974 Congress passed the Commodity Futures Trading Commission Act that
overhauled the Commodity Exchange Act and created the CFTC as an independent
agency with powers greater than those of its predecessor agency, the
Commodity Exchange Authority.
From
that moment the CFTC has been run by board appointees that showcased a
revolving door of Wall Street insiders ensuring that the computer market
rigging operations were not interfered with. The only notable exception is
Brooksley Born who was fired by President Clinton when she found out the
truth about our supposed “free markets” and tried to warn
everyone. (see The Warning)
Listen
to Brooksley Born explain the problems in her own words when she accepted her
JFK Profiles in Courage Award in August 2009.
http://www.youtube.com/watch?v=0dVcic7czQ8&feature=channel
A
while back I gave up my fight against the CFTC as I determined that they were
NOT protecting the best interest of the investor but rather they were
protecting the computer market rigging operations and the people involved.
Here is one of my last articles on the subject:
Road to Roota III – Who’s the little man behind the
curtain?
Now that you have some background let’s get back to $6,000 Silver!
Historically, when any price rigging operation stops the violence of the
ensuing price changes are determined by the length and scale of the
manipulation as well as the underlying fundamentals of the item being rigged.
Take for example the famous 1980’s case of the Hunt brothers trying to
corner the silver market. From early 1974 the Hunt brothers started
accumulating silver which ultimately drove the price from $6/oz to $50/oz
until January 21, 1980 when the CFTC finally pulled the plug on their
operation. Within 2 months the price of silver plummeted from $50/oz to
$10/oz and the silver price was back under control of the US Government and
Banking Cabal. An excellent account of what transpired can be found (HERE).
This account shows what can happen to the price of a manipulated commodity
when the price manipulation is ended. In the case of the Hunt Brothers the
manipulation lasted 6 years and involved approximately 130M oz of physical
silver and 90M oz of COMEX silver contracts. This was an attempt at a Long
Silver price manipulation but it was going on while the Short Silver Official
manipulation was going on trying to keep the price down. The only way the
Hunt’s accumulated so much silver without the price heading into the
many thousands of dollars was the official computer price suppression
operation.
The manipulation was ended when the CFTC stopped all COMEX Silver purchases
and allowed only silver liquidation sales instantly driving the price down.
In 1980 the US Government held 3B oz of silver and in order to maintain the
lower silver price levels they sold the entire stock of silver into the
market over the next 25 years. That excess supply combined with other
governments divesting their silver was enough to continue the price suppression
scheme for almost 40 years. That supply is now gone.
One Bank has the Hot Potato
So here we are 40 years after the official manipulation of silver began and
the world is finally awakening to the situation. The CFTC, having
investigated silver manipulation allegations twice previously, is into the 19th
month of their 3rd investigation. They have even stated that the
investigation was moved to the “Enforcement Division” within the
CFTC which pretty much tells you what the conclusion of the investigation
revealed.
Ted Butler of Butler Research has been
exposing the official manipulation of Silver for the past 20 years. His
research was instrumental in exposing the gold/silver leasing operations and
the massive concentrated short positions in both gold and silver. On
September 3, 2008 Butler published a report entitled Fact Versus Speculation where he showed
how one bank, JP Morgan Chase, took over the Bear Stearns Silver COMEX Short
position of 30,000 contracts or 150M oz. Since this report was
published JP Morgan has increased this massive short position to around
40,000 contacts or close to 200M oz. In that time frame the price of silver
has risen from $13 to currently around $19. Ask yourself what the price of
silver would have been with out the additional 50M oz of silver sold into the
market by JP Morgan? What about the entire concentrated short position of
200M oz that JP Morgan controls on the COMEX? Add to that various silver
market manipulation tools such as naked shorting silver ETF’s,
falsifying COMEX warehouse data, leasing and swapping metal and you have a
situation that dwarfs the Hunt brothers case.
Of course, JP Morgan is no ordinary bank because they are also the LARGEST
derivative holder in the WORLD at $79.9
TRILLION! Do remember Warren Buffett calling
derivatives “Weapons of Mass Financial Destruction”? Well, JP
Morgan holds the mother load when it comes to silver too with $3.5 BILLION of
Silver Derivatives expiring in less than 1 year! (OCC
Report table 9: Classified as “PREC
METALS”… might be a little platinum but not much).
This report was for the quarter ending June 30, 2009 when the price of silver
was $13.50. That translates into 270 MILLION OUNCES of notional silver
derivative contracts that remain open!
COME ON PEOPLE! I’m starting to think my $6,000/oz silver call is too
conservative!
What’s going to happen when JP Morgan’s derivative monument comes
crashing down…which it almost did last September?
So here’s where I get to $6,000 per oz for silver.
1) I know silver has not been freely traded in 40 years so today’s
price if irrelevant
2) I, like many, estimate there is only about 1B ounces in above ground
physical silver
3) I, like many, estimate there is only 5B ounces of above ground physical
gold
4) If the price of gold is not manipulated, like the banks claim, then the
price of silver should be 5x the price of gold due to its supply/demand
fundamentals.
CONCLUSION: The price of gold is around $1,200/oz so the true Fair
Market Value of Silver should be $6,000 in a FREE market!
It’s simple, if you remove ONE BANK from the supply side of the
equation the price of silver will SKYROCKET overnight.
ONE BANK controls the price of silver.
ONE BANK controls the fate of our monetary system.
ONE BANK is behind the curtain pulling the silver manipulation levers.
ONE BANK has control over a nation that was founded by “We the
People”.
ONE BANK MUST GO AWAY TO SAVE OUR LIBERTY!
May the Road you choose be the Right Road.
Bix Weir ( for a Trial Subscription email me: bixweir@gmail.com )
I'd like to extend a special invitation to all gold and silver
bugs. For the past few years I have run a very private newsletter for
followers of my Road to Roota Series. There were very good reasons to keep this newsletter private
but I have decided to officially offer it to the public in a
newsletter called the "Road to Roota Letters". This email
based service focuses more on the conspiracy side of the gold and silver
manipulation story without the constraints of generally accepted market
views. The content analyzes the maneuvers of the banking cabal as well as the
status of the return to the gold standard. Although this is a subscription
only service, I am offering a FREE TRIAL to anyone who wants to receive it
until January 1, 2010.
DISCLAIMER: The Road to Roota newsletter focuses on the conspiracy side of
the gold and silver market without the constraints of generally accepted
market views. Bix Weir and all those associated with this newsletter disclaim
all and any guarantees, undertakings and warranties, expressed or implied,
and shall not be liable for any loss or damage whatsoever (including human or
computer error, negligent or otherwise, or incidental or consequential loss
or damage) arising out of or in connection with any use or reliance on the
information or advice offered. The user must accept sole responsibility
associated with the use of the material offered, irrespective of the purpose
for which such use or results are applied. The information offered is no
substitute for financial advice.
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