silver window closes

Meaningless to most people and confusing to the majority who are using gold and/or silver as a store of value safe from destruction by central banksters, the manipulation of the precious metals markets is at plague level today. Here I present an overview of cause and effect.

There is a great audio conversation at the SGT Report of two serious metal market analysts. I’ll cover some bits here, but strongly encourage you to give their broadcast a listen (get past their weather report to the real meat).

A handful of people control the central banks and the paper markets for gold and silver. The prices are determined by the paper trades, that is promises of the actual metal. They don’t need or want the physical metal for this purpose, their paper trades control the price without having to use the real thing. 95%-98% of the silver transactions involve only paper, not the metal itself.

In April of 2011, following a strong growth in private ownership and commensurate price increase, they dramatically ramped up their exchange of paper promises, driving the prices down. This is deliberate, planned and destructive.

They successfully frightened some people out of owning precious metals. Against their best interests, the timid and ignorant ran back to paper that will be easily destroyed in a controlled disaster taking out all of the world’s fiat currencies, stock markets, retirement funds, insurance companies and government welfare programs.

However, many of us are savvy to their end game and comprehend the multi-thousand-year-history of silver and gold as real stores of personal wealth that outlive paper currencies, economic and political systems. A 200-year-old ounce of Spanish coins is worth essentially as much as any modern ounce of gold coins despite the disappearance of the government or organization that minted them. That is the same for any silver or gold coin in the market today.

April 2013 (why again in April???) they once more crashed the prices of gold and silver. It now costs mining companies more to get the metal out of the ground than they can sell it for. Nobody keeps that up for long. Miners will be laid off and mines will be shut down. The raw materials will stop flowing into the market.

In a disconcerting coincidence, the Kennecott copper mine in Utah (10% of the USA production of silver, copper and gold) had a wall collapse that will shut them down for years! Here’s a mine that could keep bringing in the raw materials regardless of the short-term price manipulation. But they won’t now. I’m not a big believer in coincidences of this kind.

So now the short supply of silver (and gold) has moved towards unobtainable. Today people are paying $6.00 per ounce OVER the listed spot price. That, too, will seem like a bargain in a few days. The rapidly growing number of people who were beginning to flee the propped-up-on-paper places to store their savings can no longer transfer it into precious metals. They can be crushed alongside the completely ignorant.

Either you have gold or silver or you don’t.

The buying window is CLOSED.

The central banks, by the way, HAVE it. They have scooped up literal tons since their April price destruction.

I hope you aren’t surprised by that.