SOMETHING IS ABOUT TO BREAK IN THE SILVER MARKET.
Bix Weir
www.RoadtoRoota.com
A few years back I wrote an article that speculated on the price impact for silver upon the END of silver market manipulation. My conclusion then was that silver would hit $136,604 per ounce right before the dollar dies and the nominal value of silver goes to infinity in dollar terms.
Here is the article:
Where The Price of Silver is Going and Why
Of course, it is doubtful that the fiat monetary system would stay in tact long enough for silver to hit this value in dollar terms but the bigger fantasy is not the high price potential of silver but rather the ability for the silver price rigging to go on much further. The WORLD is waking up to the silver fraud and people are scrambling to get their hands on physical metal. Rich people. People who have the means to end this game by placing one "billion dollar purchase". These people are awakening...soon they will be panicking!
Having gone through 20 consequences of the end of silver price manipulation...
WHAT "FAIR MARKET VALUE" PRICE WOULD YOU PUT ON SILVER?
Next week the OCC is supposed to release the 3rd quarter derivative numbers and I am very interested in seeing if CITIBANK has increased the $9B in silver derivatives they've added since January 2012. As I've laid out, to rig the price the market riggers go long on the LBMA and short on the COMEX. Both are just derivative Ponzi schemes but they use one to justify the other.
I have brought this to the attention of the CFTC so they cannot claim that they didn't know what was happening at Citibank. They will be held accountable for explaining why Citibank was allowed to take a 300M oz silver position in the first two months of 2012 as reflected in the OCC data. (a thought....Was this why Vikrum Pandit was forced to suddenly resign in October?!)
Where The Price of Silver Is Going and Why
Nobody should under estimate the COILED SPRING EFFECT that underlies the silver price. 40 years of computer price suppression won't blow off smoothly! I will attempt to quantify the potential price movements in Silver based on my 20 reasons to SELL/BUY from this article:
20 Reasons to Sell (BUY!!) Physical Silver
Where The Price of Silver Is Going and Why
Nobody should under estimate the COILED SPRING EFFECT that underlies the silver price. 40 years of computer price suppression won't blow off smoothly! I will attempt to quantify the potential price movements in Silver based on my 20 reasons to SELL/BUY from this article:
20 Reasons to Sell (BUY!!) Physical Silver
http://www.roadtoroota.com/public/571.cfm
In each instance I will give my reasoning but it must all be taken with a grain of salt because there are MANY factors and consequences related to each point...but here it goes.
CURRENT PRICE OF SILVER = Let's use $30 to be conservative.
1) The removal of the gigantic concentrated short position on the COMEX Silver market as reported in the CFTC Commitment of Traders and Bank Participation Reports.
In 1980 the Hunt Brothers attempted to corner the silver market with both COMEX contracts as well as holding physical silver. When the US Government made the decision to shut them down and end the supposed manipulation the Hunts held 90M ounces worth of long COMEX silver contracts. When the COMEX changed the rules to allow only selling of silver contracts the Hunts were forced to liquidate their COMEX position and the price fell from $50 to $10 in a matter of 2 months. Since the current manipulative short position held by JPM is estimated to represent 110M ounces short it is reasonable to project a slightly larger % move to correct the manipulation. Since silver dropped 1/5 when the Hunts were taken out let's assume a little more when JPM is taken out.
PRICE ANALYSIS = $30 x 6 = $180/oz
Let's now move on to the reversal of point #2 starting from a base of $180...
2) The announcement of charges filed by both the CFTC and the FBI in the pending investigations of Silver market manipulation by JP Morgan.
We have had an open investigation into silver market manipulation for close to four years now. The CFTC even stated that it was currently in the "ENFORCEMENT DIVISION" and no longer in the investigation arena. I find that very revealing as we all know that the CFTC doesn't want to upset the apple cart...but they really have no choice in the end. Silver must be allowed to return to it's Fair Market Value. Given that there was a VERY VISIBLE whistle-blower with proof of collusion and manipulation by JPM in silver there is no way the CFTC or the FBI can not announce some kind of charges in the very near future. The effect on the price of silver should be SUBSTANTIAL and without the bad guys there to cap the price again on the news..look out above! I'll put the announcement of this news as a doubling of the price of silver.
PRICE ANALYSIS = $180 x 2 = $360/oz
Now let's move on to the next active fraud...
3) The shut down of the iShares Silver ETF (SLV) and the subsequent attempt by SLV investors to transfer into physical silver in their own possession.
For anyone that believes that the iShares Silver ETF is legit I have a nice piece of swamp land in Florida I'd like to sell you! The extent of the fraud at SLV should not be underestimated as it involves the entire banking cabal that is currently being coordinated by the hedge fund BlackRock. I know this because after BlackRock bought the SLV from Barclays they kept JP Morgan on as the Custodian of the physical silver. Can you imagine the liability that was taken on by BlackRock KNOWING that JP Morgan was under investigation by the CFTC and the FBI and has multiple class action suits against them for silver market manipulation. YET THEY STILL KEEP THEM ON AS CUSTODIAN DISREGARDING ALL FIDUCIARY RESPONSIBILITY TO THE SLV SHAREHOLDERS! The mass exodus of SLV investors out of the iShares ETF and into REAL PHYSICAL SILVER will be a sight to behold. I'd say that's enough to double the price again...
PRICE ANALYSIS = $360 x 2 = $720/oz
Ok, 3 big injustices have been reversed and the price of silver has risen above $700...but how will it continue to rise?
4) The implementation of COMEX Position Limits in Silver of no more than 5,000 contracts and the enforcement of the Disruptive Trading Practices law.
The implementation of position limits is HUGE. It's doesn't stop manipulation but it REALLY handcuffs the market riggers. They currently continue to naked short to unlimited amounts...always enough to stop silver from blasting off. With ENFORCED position limits they can only play their dangerous games to a point and then they get CRUSHED. Anybody bumping up against the limits in order to slow the price of silver will be playing with FIRE! I'll settle down a bit and give that a 10% bump to the price.
PRICE ANALYSIS = $720 + 10% = $792/oz
But we're still not at "Fair Market Value" as there is another monster short bubble that needs to be unwound... More>>
In each instance I will give my reasoning but it must all be taken with a grain of salt because there are MANY factors and consequences related to each point...but here it goes.CURRENT PRICE OF SILVER = Let's use $30 to be conservative.
1) The removal of the gigantic concentrated short position on the COMEX Silver market as reported in the CFTC Commitment of Traders and Bank Participation Reports.
In 1980 the Hunt Brothers attempted to corner the silver market with both COMEX contracts as well as holding physical silver. When the US Government made the decision to shut them down and end the supposed manipulation the Hunts held 90M ounces worth of long COMEX silver contracts. When the COMEX changed the rules to allow only selling of silver contracts the Hunts were forced to liquidate their COMEX position and the price fell from $50 to $10 in a matter of 2 months. Since the current manipulative short position held by JPM is estimated to represent 110M ounces short it is reasonable to project a slightly larger % move to correct the manipulation. Since silver dropped 1/5 when the Hunts were taken out let's assume a little more when JPM is taken out.
PRICE ANALYSIS = $30 x 6 = $180/oz
Let's now move on to the reversal of point #2 starting from a base of $180...
2) The announcement of charges filed by both the CFTC and the FBI in the pending investigations of Silver market manipulation by JP Morgan.
We have had an open investigation into silver market manipulation for close to four years now. The CFTC even stated that it was currently in the "ENFORCEMENT DIVISION" and no longer in the investigation arena. I find that very revealing as we all know that the CFTC doesn't want to upset the apple cart...but they really have no choice in the end. Silver must be allowed to return to it's Fair Market Value. Given that there was a VERY VISIBLE whistle-blower with proof of collusion and manipulation by JPM in silver there is no way the CFTC or the FBI can not announce some kind of charges in the very near future. The effect on the price of silver should be SUBSTANTIAL and without the bad guys there to cap the price again on the news..look out above! I'll put the announcement of this news as a doubling of the price of silver.
PRICE ANALYSIS = $180 x 2 = $360/oz
Now let's move on to the next active fraud...
3) The shut down of the iShares Silver ETF (SLV) and the subsequent attempt by SLV investors to transfer into physical silver in their own possession.
For anyone that believes that the iShares Silver ETF is legit I have a nice piece of swamp land in Florida I'd like to sell you! The extent of the fraud at SLV should not be underestimated as it involves the entire banking cabal that is currently being coordinated by the hedge fund BlackRock. I know this because after BlackRock bought the SLV from Barclays they kept JP Morgan on as the Custodian of the physical silver. Can you imagine the liability that was taken on by BlackRock KNOWING that JP Morgan was under investigation by the CFTC and the FBI and has multiple class action suits against them for silver market manipulation. YET THEY STILL KEEP THEM ON AS CUSTODIAN DISREGARDING ALL FIDUCIARY RESPONSIBILITY TO THE SLV SHAREHOLDERS! The mass exodus of SLV investors out of the iShares ETF and into REAL PHYSICAL SILVER will be a sight to behold. I'd say that's enough to double the price again...
PRICE ANALYSIS = $360 x 2 = $720/oz
Ok, 3 big injustices have been reversed and the price of silver has risen above $700...but how will it continue to rise?
4) The implementation of COMEX Position Limits in Silver of no more than 5,000 contracts and the enforcement of the Disruptive Trading Practices law.
The implementation of position limits is HUGE. It's doesn't stop manipulation but it REALLY handcuffs the market riggers. They currently continue to naked short to unlimited amounts...always enough to stop silver from blasting off. With ENFORCED position limits they can only play their dangerous games to a point and then they get CRUSHED. Anybody bumping up against the limits in order to slow the price of silver will be playing with FIRE! I'll settle down a bit and give that a 10% bump to the price.
PRICE ANALYSIS = $720 + 10% = $792/oz
But we're still not at "Fair Market Value" as there is another monster short bubble that needs to be unwound... More>>
