Gold Rises to Record, Silver Extends Gains on Currency Concerns

Silverbull

sabretoothtigger wrote: »

Didnt JP Morgan who hold silver short options also then buy a silver mine. They can do whatever they like, if they promise to sell silver for 15 dollars next march then let them

If they do that so much that the price falls its fine unless they then fail to deliver it on time.
Has that happened ?
Whats probably happening is the price gets overbid, lots of people 'buying' (doug kass calls it renting) silver have no interest in owning it so the price is not correct

JPM is taking advantage of these false buyers by forcing the price to adjust down and causing them to sell where by JPM take a profit from these flushed out speculators and yes rebuy at a lower average price.
It appears to be bullying tactics but its normal

This is actually a positive and productive market process and I think its been happening for hundreds of years in every market.
Silver is a useful metal and a higher price can cause companies harm that need to buy it today and use it today

http://en.wikipedia.org/wiki/Arbitrage

A lot of people hate the manipulation or are trying to end it.

I love it, let them manipulate the price of silver down as long as they can, I just say thanks for the cheap physical silver

When they lose control and the free market sets the price they will go under.

There is no chance they can keep the price down forever.

I think sometime this decade we will see shortages and then a buying frenzy which will make JPMoran go the way of Leeman.

DiggerUK

Silverbull wrote: »

A lot of people hate the manipulation or are trying to end it......

Encouraging savers to invest in precious metals, on nonsense arguments based on manipulation is deceitful.

There is no secret manipulation that will boost returns on gold. Gold's price is rising because of central banks printy printy. It is the no risk safety play by those who want to protect their savings and preserve their investments.

The Gatagoons argument that "cabals of secret manipulators" have been suppressing the price of gold, by secretly selling central bank gold stocks in to the world market, must now be reversed , as said central banks have now become net buyers of gold.
It means that these "cabals of secret manipulators" have now changed their minds and are secretly raising the price of gold!!!!
Or do I not understand a good conspiracy theory when I see one?

http://www.businessweek.com/news/2010-03-18/central-bank-gold-holdings-expand-at-fastest-pace-since-1964.html

getzegold

DiggerUK wrote: »

Encouraging savers to invest in precious metals, on nonsense arguments based on manipulation is deceitful.

There is no secret manipulation that will boost returns on gold. Gold's price is rising because of central banks printy printy. It is the no risk safety play by those who want to protect their savings and preserve their investments.

The Gatagoons argument that "cabals of secret manipulators" have been suppressing the price of gold, by secretly selling central bank gold stocks in to the world market, must now be reversed , as said central banks have now become net buyers of gold.


It means that these "cabals of secret manipulators" have now changed their minds and are secretly raising the price of gold!!!!
Or do I not understand a good conspiracy theory when I see one?

http://www.businessweek.com/news/2010-03-18/central-bank-gold-holdings-expand-at-fastest-pace-since-1964.html

Not still banging this drum are you despite all the evidence to the contrary? Why do you think the CFTC are going to enforce futures positions limits on the excessive short positions in gold and silver by the major commercials in Jan on the Comex exchange?

Because and only because these concentrated short positions are supressing the price of these commodities. Do you understand how futures trading works?

Maybe in a few weeks we'll all get the answer

Bart Chilton, a commissioner at the US Commodities Futures Trading Commission (CFTC), which is investigating the claims, said: 'I think the public deserves some answers in the very near future.'
He said: 'I expect the CFTC to say something on our silver investigation within weeks. I can't pre-judge what that will be. I can't even guarantee that the agency will speak. That said, if the agency remain silent for much longer, I intend to speak out on the matter in an appropriate fashion.
http://www.citywire.co.uk/money/silver-price-manipulation-public-deserves-answers/a437169?ref=citywire-money-latest-news-list

getzegold

And before I'm asked to furnish such evidence simply google Silver Gold manipulation you'll get 1,920,000 links to articles. Thats an awful lot of links for a non existant phenomenon.

Lokolo

getzegold wrote: »

And before I'm asked to furnish such evidence simply google Silver Gold manipulation you'll get 1,920,000 links to articles. Thats an awful lot of links for a non existant phenomenon.

Are you actually saying that the number of articles when Googled means its true? I don't think I can believe anything you say anymore.

I also didn't get the just under 2mil results you did...



I would also like to point out, just because something has a large number of articles (more so than your gold silver), doesn't mean it's true....



Hell I don't really like Digger going on about Gold to everyone that wants to invest, but blimey, you're just taking the p***.

getzegold

odd now it says 1,830,000 earlier it said 1,930,000.

is that enough links for you? as if 300k wasn't enough.

and true just beacause there are alot of articles it doesn't mean its true but it obviously shows alot of people believe it to be true and I'd imagine many of the authors would be analysts economists, traders and industy experts. and no I'm not taking the p***. if your not interested in investing in gold or silver why don't you go spend your time talking to the banking share investors or the buy to let brigade, this is afterall a thread about investing in PMs.

lvader

Pretty much the same number as you get searching for Moon Landing conspiracy.

getzegold

lvader wrote: »

Pretty much the same number as you get searching for Moon Landing conspiracy.

:DTouche! thats actually quite funny... but irrelevent. The weekly COT report listing the positions of traders in the comex futures market shows, everyweek, the huge short positions held by the commercials. ie JPM, hsbc deutsche etc if enough money is thrown on the short side of a commodity or stock it will fall in price, if enough money is put into long contracts it will rise. this has nothing to do with aliens or moon landings this is simple economics.

These short positions are not a matter of debate as they are listed in the report, the only debate is, is why would these commercials consistently sell the market short? Any trader or fund manager knows that to short a rising market is madness. So why do they do it? what do you think?

getzegold

Heres an interesting article on what is now happening in the silver market(and also in the gold market)

Something has drastically changed in the silver market. The banks that once controlled the price of silver are now closing positions at a loss. Traders may begin to speculate on what has changed and why. Some traders have reported that a large buyer is entering the market. Regardless of the actual reason the commercial shorts have begun to bleed money. And when blood spills sharks will circle. Hedge funds and traders that never even thought of silver before will begin to squeeze the shorts. If the big banks don't quickly regain control of the silver market they may lose it forever.

While it can be speculated on how short covering could impact the market, a short squeeze could feed upon itself as it attracts capital. In five trading days of buying a net 3286 contracts the price of silver rose by $1. However the commercial banks are still a net 62,127 contracts short so at that linear rate it would take them 94 trading days to cover with a silver price of roughly $117. The resulting losses would be around $15 billion. Of course markets aren't linear and after the second or third week of covering traders would begin to purposefully front run and squeeze the commercial shorts so its unlikely that the positions could be covered that low or if at all. Unfortunately those who were hoping for a correction to accumulate more silver may not get it here as a price reset may be on the horizon.

http://tradeplacer.com/blog/2010/10/08/1286584740000.html

Ever seen that film rogue trader? where that guy went long in a falling market(or was it the other way round?-doesn't matter) eventually his margin calls became so large he didn't have the money to meet them so he ran away and left someone to close his positions. Everytime silver rises by 10cents the accumulated shorts must stump up another $15mill in margin and all their short positions are now massively underwater.if silver and gold keep rising they will be forced to cover these positions as the losses become too severe to hold. if you look at the COt report on a weekly basis you see the changes in the positions (see here: http://harveyorgan.blogspot.com/) the commercial shorts are beginning to close these short positions. this means silver is going up

getzegold

Heres an interesting article about gold:

There Is No Gold Bubble

Gold has certainly received a lot more attention from investors since the beginning of 2009. Last Wednesday, with gold near its high for 2010, precious metals consultancy GFMS said in its annual report that the market "has moved out of kilter with its underlying fundamentals." George Soros, the wildly successful speculator, went as far as to call gold "the ultimate bubble" at Davos in January. But talk of a gold bubble is nonsense, and here's why.

http://www.fool.com/investing/international/2010/04/19/there-is-no-gold-bubble.aspx

It might be of interest to those considering investing in gold. and no I'm not a wild eyed, conspiracy, tinfoil hatted bean muncher living in a shack in the outback. which seems to be the standard assumption towards goldbugs on this forum.