Many people are rightly upset after witnessing the destruction today on gold and silver derivatives that have taken a massive hit in the markets. Some big players out there are dumping large orders of paper silver and paper gold out onto the market – using market orders – which is something that is never done. No one would be selling huge orders like this onto the markets and be willing to take anything for it.
When we see this kind of action, many have said that, “They’re at it again”. Because again, no person, no entity or institution would sell any asset, large blocks of it, using a market order, meaning that you’re willing to take anything for it. You just want to get rid of it.
It would make more sense to put it in as limit orders, meaning that you want to sell these things, but you will only accept a minimum amount, nothing lower. When you put a market order in to sell something you’re looking into getting yourself into a lot of trouble- because you want to take advantage of the market, not the other way around.
Say for example you want to sell a car. Would you be willing to take anything for it? Just to get rid of it? Or would you say you want at least a certain amount, nothing below it? When you see this kind of stuff happening in the markets, you have to realize what you are looking at. The regulators out there, the people that are supposed to manage this sort of cheating turn their heads and look the other way. They want nothing to do with this sort of situation.
Deutsche Bank has been caught twice in the past year alone manipulating the price of gold. If that’s the two times they were caught, imagine how many times they got away with it. Even the times they were caught they managed to get away with little to no punishment. The first time it was none at all, and the second time, they got a fine of twenty-million dollars which is nothing to a central bank. This is something they laugh about. This isn’t even a fraction of a fraction of a percentage point of their net holdings. So, this is no punishment at all basically. Moving forward all we can expect is to see more underhanded dirty tricks out of these sort of people.
This is a disheartening prognosis, but at the same time, from this perspective, in the long term there is no better place to be than precious metals such as silver and gold. At some point there is always a correction, and a balance struck. Even with all the manipulation, the fuckery from the world’s central banks, off of the charts money printing, fake stimulation is only suppression. What happens if you suppress something long enough? It usually comes back in overflowing measure, and it’s anyone’s guess how long they keep the dam together before it breaks forth with increased speed and quantity. It will balance out – when and where – who knows? But the longer something is suppressed, the more violent the correction will be.
This is troubling for people who are highly invested into the metals market. But it’s helpful to remember that the paper money derivatives are not real. They have no price discovery mechanism so this will simply continue as long as it can.
Do not trade a hard asset. Look at the paper asset as an opportunity for something good in the long term. What they do short term really doesn’t matter as long as you keep cool and hold your hand. Then when the market goes more in your favor you’ll be glad you didn’t panic from the central bank’s smokescreen.
There was bazaar action in the market today. Money appeared to be moving over into tech for a change, and then there was the silver and gold derivatives’ massacre. The run up in tech today had many of the same similarities from the last run up back in April. Just because you see things lining up however doesn’t necessarily mean that anything will continue to run the same route. It’s a possibility, a clue. Cash may turn around and decide to leave the Tech sector, no matter which way you look at it it’s a gamble.
As a trader you have to be ready for all possibilities, you will never be right every single time. If you come out on top half of the time, you are doing pretty good. Always be ready to observe these kind of strange things in the market these days. Be poised to hedge things, even be ready to close if your investment turns against you. Be ready to accept the loss, deal with it, and move forward from there. Trading in the markets today is definitely not for the faint of heart.
The dollar got a bit stronger, cash came out away from Bonds. With regard to Gold and Silver, these were only paper derivatives, not real. This is another thing- that will continue to see this kind of action- until you don’t. There is no set time frame. This could go on for years for all anyone knows. None of the rules to normal economics apply to this market. The only thing certain is that the correction will be larger, the longer time goes on. World central banks have become very crafty at their work colluding with the largest banks in the world on Wall Street to manipulate things.
Forget about any regulator stepping up and looking into this. You can write to all of them and they will not even bother to answer, much less look into a real problem in the markets. They don’t want to be involved. These same entities were the ones who missed the Bernie Madoff scandal that was thrown not only into the faces of every investor and trader, but the American public as well eventually. Over and over they turned their heads. They didn’t want to hear about it from anyone. They fraudulently found no wrongdoing after many times of looking into it. We all know how it played out, which proves their inept incompetence.