When they say “manipulators” how so? Manipulating the prices high? or low.
BTW any one wanna buy silver coins at triple spot send a note.
There is a theory, I have only heard this theory I have no knowledge of it at all but the theory comes from the same types of people who were behind the WallStreetBets forum at put the squeeze on the GameStop shorts, that JP Morgan has essentially cornered the market in silver. It’s really just a whole lot of paper. They trade it on the commodities exchanges, and the options settle in cash not in physical delivery. AFAIK the only commodity that settles in physical delivery is oil (which is why oil price went negative last spring, when demand collapsed so low there was no storage capacity left for new production anywhere in the world, which forced the options traders to literally pay others to take the oil off their hands).
So theoretically, if you can sell paper and call it silver, and never have to deliver the silver to anyone, you could artificially depress the price simply by “naked shorting”, or really just selling the paper you print. It is not backed by any real physical anything. They make money just trading the contracts, never really expecting many people to call in the physical.
If this is true, and there is a coordinated attack/short squeeze on silver with people calling in their paper and demanding delivery that there is not enough silver in all the vaults in the world to make good. Potentially silver could be the next GameStop. If this theory is true.
When they say “manipulators” how so? Manipulating the prices high? or low.
Well, both. See my post above. The working thesis is that the bankers have been trading paper (really, just electronic ledger entries) and calling it “silver” on the commodities exchanges. When the contracts expire, the banks settle the difference in cash. So if you bought contracts for $19 and silver jumps to $20, the banks don’t give you $20 worth of silver they give you $1 in cash. That would be “manipulating the price low”, because the banks and traders can theoretically sell as much paper as they want, it’s just a directional bet for them, but in so doing they depress the price. At options expiration date they collect profits from the losing trades and pay out the winning trades, and keep their middleman slice. Rinse and repeat every month.
But if there is a “distributed short attack” e.g. crowd-sourcing of a mob of investors who all jump into the silver market and demand physical delivery of their contracts (if they can even do this, I am not so sure you can in the commodities market like you can in the stock market), the price of physical silver (and the corresponding paper) could go through the roof the way GameStop and AMC and the others did last week. That would be “manipulation” to the high side.
There’s a lot of suspicion among reddit readers that the major bank who trade silver, particularly JP Morgan have sold extremely short.
Like the recent GameStop situation - if true, they can be squeezed and forced to cover those shorts at prices much higher
time will tell if true.
The big miners have colluded with banks to keep the monetary metals prices suppressed for ages. It’s rampant, it almost broke Barrick pre 2008 because they sold forward so many millions of ounces of gold at low prices that they were going to have to high grade all their properties to cover.