Silver, along with gold has been manipulated for years, if not decades. This news comes as no surprise to those who have invested in the precious metals market. We know that those who would like to see the metals lowered are able to sell unlimited amounts of “paper contracts” in an attempt to artificially push the price lower in the short term.
We also know that the real market is in the physical market. This is where the manipulation will be eventually forced to an end. This is where the real money will be made, but do you know how deep the manipulation in the paper market truly runs?
Apparently it runs much deeper than many would have suspected. According to a recent King World News interview, James Turk goes on to explain how the paper manipulators are manipulating the paper manipulators. No, that is not a typo.
James Turk explains:
“There are shenanigans in silver’s futures price for the Comex front month. The price looks totally fictitious when compared to the spot price of physical metal, but most individual traders of Comex futures are unaware of what is happening in the spot market. The reason for this is because relatively little physical metal actually trades in New York. Consequently most futures traders are unaware of the real relationship between spot, where physical is traded, and front-month futures, which of course is the paper market.The major markets for physical silver are in Europe. That’s where the ETFs trade and store the metal they are supposedly holding. It was in Europe where Warren Buffett bought his 130 million ounces years ago.The upshot of this is that Comex futures traders are far from the kitchen when the silver shorts are cooking the books. As a result, individual Comex future traders are getting ripped off and don’t realize it. The banks can buy front month futures in London at a discount to spot, and then sell the same position on the Comex at a premium to spot, generating for them an extraordinary profit because of overpriced futures sold on the Comex. It is just another reason to avoid the paper market for silver and buy physical metal instead.”
Regardless of what the manipulators do, we know that silver is forming a bullish pattern. The question is when will it explode higher in price? Perhaps when the physical market overwhelms the paper market, perhaps much sooner. Time will tell.