Strange rumors have been cropping up in the silver market lately — all seemingly designed to quell relatively buoyant market sentiment.
One example was the recent CFTC story printed on the Financial Time’s front page citing a source predicting that the silver market manipulation case will soon be dropped.
Another case was the recent trader revelation about the bullion banks being long physical precious metals and short futures contracts, although this has since been substantially debunked by none other than the well-known silver market manipulation whistle blower Andrew Maguire.
Basically, concentration is the issue, not hedging - as silver analyst Ted Butler has been pointing out since the 1990’s. Essentially, it is the presence of just a few large players who make up the short holdings that are positioned against a much more diverse group of longs that is the primary issue.
This situation is acceptable in the same way that it was apparently acceptable for Ponzi schemer Bernie Madoff to show “everlasting” high returns, which eventually were exposed for the sham that they were.
Silver Market Manipulation is Fact, Not Theory
The point here is that the damage is done. For the investing public, the manipulation of the silver market is now well documented, transparent and quite obvious. No longer is an elaborate or paranoid conspiracy theory required.
Thanks to years of work by GATA and Ted Butler, who has paved the way for an army of blog writers and market analysts, the story has become easily accessible for the growing number of precious metals investors from all walks of life. These people are now increasingly coming to terms with precious metals market manipulation almost half a decade after the latest financial crisis.
Such investors have typically lost faith and confidence in the established financial and government institutions and are calmly looking for investment diversification and long term preservation of their capital.
Silver Hoarders – From the Hunts to the Modern Day Metals Investor
The Hunts were convenient scapegoats for the previous major silver price rally of the 1980’s. At that time of high inflation, these notable hoarders seemed radically right of center and far outside the mainstream. They were wealthy Texas oil men, who could have been scripted right into a well-known television series.
Today's silver investor is part of a much more diversified group of physical longs. Armed with logic and reason — plus a working knowledge of the varied uses of silver in jewelry, medicine, cutlery, tableware, electronics, photography and elsewhere — they have many excellent reasons for hoarding silver to help protect their future financial security.
All of these represent valid reasons for holding physical silver that just serves to lend further support to the longstanding and almost forgotten monetary significance of this precious white metal, which will remain a valuable hard currency long after the un-backed paper Dollar is defunct and worthless in commerce.
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