Gold & Silver price manipulation BUSTED - thoughts?

Read the carefully chosen words ( red) which the article conveniently put in for correctness, but do not stress as it opposes their purpose.

from the article itself

"Currently there are are 56,863 open May silver future contracts representing 284.3 theoretical ounces of physical silver on the Comex. Against this is 31.9 million reported ounces of physical silver in Comex vaults that have been designated as available for delivery against these open contracts. In other words, the bullion banks have thrown nearly nine ounces of theoretical paper silver at the market for every ounce of alleged physical silver that could be delivered into these contracts."

People who actually participate in such transactions know they are like linking ( betting lines )of boxers in a match to the ( Physical )outcome at the end, by Vegas organizations. You don't actually own a part of the boxer , you just win or lose according to your prediction compared to theirs by the end of the match ( expiration ) date. It is not like old timers racing their own cars, winner taking the pink slip, You don't get the boxer or the casino.

They have to use the slippery terms ( theoretical and paper) as they are only psychologically related to physical. Buying a paper contract requires you to either take paper winnings/losses UNLESS you buy upfront, a Physical delivery contract which is priced at physical actual price levels ( many times the price of a paper contract). Buy paper contract, you are betting paper to win or lose paper. If you buy physical ( jeweler, manufacturer, hoarder) you will get the physical at the end, even if the price goes way up or way down by then, you prepaid so you might get it at a lower price than market ( Yeah!!) or silver may have dumped and you end up paying at double the price you wanted ( looooser).

So let me ask you, What do you think the bullion dealers/middlemen/round sellers want to happen? They want the metal to be worth much more when it is delivered than they paid for it, which is regular business pattern, but what if a physical delivery is coming soon and the metal is worth less than they paid for it~ why not cry DANGER and word comments to frighten the price of silver back up?
Manipulation can have 2 sides. Read and understand before betting.

 

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THIS IS EXACTLY why the NOVICE (one who barters in physical silver and gold) can,t compete with the big money. Those guys always win weather or not prices go in either direction. Furthermore, timing is critical, paper trades are done easily and at precise times while trading the physical stuff is much more difficult. If one sets long term goals(10 years or better)your odds are far better than the short if you choose the physical metal. Why not buy into a MUTUAL FUND and let the MANIPULATORS do the work?

Just my thoughts, Chascat

 

Even the US gov't with all the gold in Ft Knox couldn't keep the price down forever. I figured that out in the late 1950's and started buying every $20 gold piece I could afford. Then gold went along for the ride with the Hunt bros silver, and I figured no way they could keep it up forever. Sold out then at about a 1000% profit. Soros did about the same thing when the British tried to support the pound; of course, he made a hell of a lot more off his investment than I made off mine. But those actual 'sure things' don't come along very often; generally you need a gov't [or the Hunt bros] doing something really stupid.

 

If you chart the price of gold and silver over the last 50 years you see two huge spikes and then rapid crashes. If you are going to really invest in bullion you need lots of time or lots of money where small variations in price can mean something to you as a trader. You can buy an ETF (GLD) that buys and stores physical gold for you and charges a fee for doing this. No interest or dividends which is the bad part. I see gold and silver investing for maybe 5% of your money as OK for long term insurance against financial meltdown, but probably the first thing government would do is outlaw sales of gold like in the great depression as FDR did then.