Many previous commentaries have described and discussed the
various ways in which the silver market has been
manipulated
in the past and is being manipulated today. What has been explained in years
past, but missing from recent editions, are the
reasons for the serial manipulation of the silver market.
Before getting into the basis for this systemic market crime,
it is necessary to briefly identify this manipulation for the sake of newer
readers. The parameters could not be more obvious.
Silver is money. Legal tender silver coins are still produced
in the national mints of numerous nations – and these mints often struggle to
keep the market supplied. Silver is jewelry. In many parts of the world silver
jewelry continues to be widely fabricated, and even at its reduced/suppressed
price, silver jewelry remains present in our societies.
Nothing has changed there. But over the past century,
numerous important industrial uses have also emerged for silver. It is even
more valuable today. Now look at the silver/gold
price ratio
. For over 4,000 years; this price ratio has gravitated
around 15:1, virtually identical to the supply ratio between the two metals
(17:1).
Despite being more valuable than ever, in the 1980’s and
1990’s the price of silver was driven to a
600-year low
in real dollars. The silver/gold price ratio was driven to extremes as great as
100:1. Total perversion of market fundamentals.
This bankrupted more than 90% of the world’s silver mines and
drove the silver market into a
permanent
supply deficit
. The silver industry has never recovered because it has
never been allowed to recover.
Why?
Why has the banking crime syndicate (the One Bank)
found it necessary to not merely attack the silver sector, but to practically
destroy it? Knowledgeable precious metals investors can supply part of the
answer here.
Because precious metals are money; silver and gold function
as the monetary equivalent of canaries in the coal mine. The supply of gold and
silver money is practically flat. Thus when the bankers significantly inflate
the supplies of their paper currencies (which they are always doing) the price
of gold and silver must rise to reflect this
relative change in supply.
A numerical example will illustrate this fundamental monetary
principle: the Bernanke Helicopter Drop.
Between 2009 and the end of 2013, B.S. Bernanke ultimately
quintupled the supply of U.S. dollars, from a monetary base of $800 billion up
to $4 trillion. Thus denominated in U.S. dollars, the price of gold and silver
had to also quintuple to reflect this supply increase. That then becomes the
new
base price for these monetary
metals
.
The prices of silver and gold were never allowed to
quintuple, if you discount the fact that the price of silver was torpedoed by
60% immediately before Bernanke began his money-printing binge. Since that
time, the supply of U.S. dollars has never decreased.
Yet despite the fact that silver and gold were never allowed
to rise as far as monetary fundamentals dictated, the price of silver has since
been driven down 70% from its temporary high and the price of gold has been
driven down nearly 40% from its temporary high. More total perversion of market
fundamentals.
However, this is only one reason that the silver market is
subjected to an even greater degree of permanent price suppression from the Big
Bank crime syndicate than the gold market. As an example of this oppressive
manipulation, the permanent short position in the silver market (held by just
four Big Banks) is roughly 4,000% larger than the short position in the crude
oil market, in proportionate terms. Totally illegal.
The reason why the banking crime syndicate has a pathological
hatred (fear?) toward silver is because silver is more than money. Silver is
the People’s
Money
.
The banking crime syndicate manipulates precious metals in
general terms in order to hide its relentless, reckless inflation (and
dilution) of our paper fiat currencies. But why is the One Bank constantly
inflating the supply of these paper currencies in the first place?
Bernanke’s predecessor, Alan Greenspan, explained the Big
Crime of the Big Banks, in a quote now familiar to regular readers.
In
the absence of the gold standard, there is no way to prevent the confiscation
of savings through inflation.
-
Alan
Greenspan
, 1966
When Greenspan uses the verb “confiscate”, he means “steal”.
And when he uses the noun “savings”, he means our wealth. The banking crime
syndicate inflates the supply of our paper currencies in order to steal our
wealth.
But Greenspan’s warning is not entirely accurate. There is a way to prevent the bankers from
stealing our wealth with their money-printing, even in the absence of the gold
standard. Understanding this requires understanding how the theft takes place.
Dilution.
When the One Bank inflates the supply of our currencies, this
naturally dilutes the value of all this currency, just like when a corporation
prints up new shares. All the currency is worth less (worthless?), but the Big
Banks don’t care – because they hand themselves trillions of units of
new
currency, for free.
How do we avoid this theft-by-dilution with respect to our
paper currencies? We don’t allow our wealth to be stored in these
ever-depreciating currencies. We store our wealth in the People’s Money
(silver), where it is safe from the bankers’ game of theft-by-dilution.
As master financial criminals, the felons of the One Bank
understand that this financial lifeboat exists. So what did they do? They
destroyed the lifeboat.
By driving the price of silver to a 600-year low even as the
world was using more silver than ever, this resulted in extremely limited
recycling of all this silver. Where is the People’s Money today? Somewhere in
excess of 80% of all the silver ever mined is now strewn across the world’s
landfills, in tiny amounts, in billions and billions of consumer items.
This wasn’t the Crime of the Century. It is the Crime of the
Millennium.
In order to begin its theft-by-dilution crime, the bankers
destroyed the gold standard. One of the criminals (
Paul Volcker)
bragged that he was the driving force behind this dirty deed.
In order to steal all of our wealth (over time); the Big Bank
crime syndicate prints up more and more and more and more of their fraudulent
paper currencies. This is why the value of these paper currencies always
collapses to zero. Always – going back 1,000 years.
In order to prevent us from sheltering our wealth from their
crime, the bankers have destroyed most of the world’s supply of the People’s
Money. They have destroyed this supply by engineering the literal “consumption”
of the world’s stockpiles of silver.
Why has the price of silver been suppressed, going back 100
years? Why has the silver market been ruthlessly attacked, to a far greater
degree than even the gold market?
Both gold and silver help reveal the bankers’ monetary crime:
their theft-by-dilution. In addition, however, silver helps to protect us from
this monetary crime. We can do this by sheltering our wealth in this eternal
metal – and
using silver money for our
day-to-day commerce
.
This form of financial salvation was deemed to be intolerable
by the One Bank. It hasn’t been able to outlaw the ownership of silver (yet),
so it did something even more diabolical: it destroyed the world’s supply of
silver.
Why continue to keep the price of silver suppressed to this
ultra-extreme degree? To prevent the resurrection of the silver sector, and the
rebirth of silver as the People’s Money.
There are still enormous amounts of silver locked away within
the Earth’s crust. At a sufficient price, humanity would be able to rebuild its
stockpiles of silver. The One Bank deems this to be intolerable too.
What about the regulators of this market? There are no
“regulators”. The pretend-regulator of this market is the Commodity Futures
Trading Commission (CFTC). The CFTC claimed to
“probe”
this obliterated sector, for five years.
What did it find? Nothing. See-no-evil; hear-no-evil;
speak-no-evil. Accomplices to the crime.
While most of the world’s supply of silver is gone, the
reasons for us to store our wealth in silver have never been stronger. As we do
so, we expedite the date when the last ounce of silver disappears from the
banksters’ crooked warehouses.
On that day, this Crime of the Millennium will finally be
exposed for the world to see. More importantly, it will be the day when all
artificial price-manipulation of this market is shattered. Then silver can once
again become the People’s Money.
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Jeff Nielson is co-founder and managing partner of Bullion Bulls Canada; a website which provides precious metals commentary, economic analysis, and mining information to readers and investors. Jeff originally came to the precious metals sector as an investor around the middle of last decade, but with a background in economics and law, he soon decided this was where he wanted to make the focus of his career. His website is www.bullionbullscanada.com.
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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.
