Why manipulate POS down?

[JohnQPublic]

I suspect silver is manipulated to make it cheaper to use in industrial applications. Using derivatives you can manipulate down the silver price at a cost, but then reap the benefit on the other side of the trade in manufactured goods produced from silver (batteries, electronics, etc.). Such derivatives actions would probably be initiated by those who need industrial silver to be cheap. Sort of like farmers buying weather derivatives from Enron.

Pure speculation, but not impossbile in today's derivatives dominated world. What do you think? Possible?

[Gaillo]

Pure speculation, but not impossbile in today's derivatives dominated world. What do you think? Possible?


When you can print virtually unlimited money with nothing backing it, just about ANYTHING is possible! ;D

[Blink]

I figure thats exactly what they're doing. Only thing is, with talk of running out of above ground supplies and Joe Public from around the world getting antsy and wanting a new avenue of "real" investment, how much longer can it last, regardless of the manipulation....... Have to wait and see I guess......

[1970 Silver Art]

Yeah I think that it is certainly possible. Anything is possible with derivatives and unlimted printing of money as Gaillo pointed out. They could probably take silver down to any price they wanted to but it is probably becoming more difficult to do so. The market forces at some point will over power the manipulators but as long as the people are still confident in the $, then the manipulation will continue for a while longer.

As far as I am concerned, the longer that silver price is manipulated and held down, then the better for the people who are "awake" to buy more of it to add to their stack while silver is kept at an artificial price.

[JohnQPublic]

... As far as I am concerned, the longer that silver price is manipulated and held down, then the better for the people who are "awake" to buy more of it to add to their stack while silver is kept at an artificial price.


Bingo.

[gunDriller]

it has a heck of a lot to do with currency manipulation.

http://www.bullioncoinsandbars.com/products-silver-coins.htm

if you watch a Canadian bullion website like this, it helps to illustrate just a part of the mechanism.

also the Canada-US exchange rate at Kitco -
http://www.fromthewilderness.com/live_charts.shtml

when the market manipulators drive down the price of silver in US dollars, the net effect on the US $ is it rises relative to the Canadian $.

so, a 2% temporary increase in the value of the US $ relative to silver, which shows up as a 1 or 2% increase in the US$ - Canadian $ exchange rate ... the net effect is that silver increases 3 or 4$ in Canadian $.

if you think the prices are getting whipped around on the American exchanges, just watch the Canadian exchanges.

of course, i'm sure that there are many traders who have caught on to the same patterns that i am observing. if they are trading paper metal (so they don't have to pay a buy-sell spread) and they are Members of the Club (as described by Andrew Maguire @
http://kingworldnews.com/kingworldnews/Broadcast/Entries/2010/3/30_Andrew_Maguire_&_Adrian_Douglass_files/Andrew%20Maguire%203%3A30%3A2010.mp3

i.e., they know when the 5% and 10% upticks are coming - man they could clean up.


so, long story short, the US uses currency/ precious metal price manipulation to goose the apparent value of its currency, and the traders in other countries like Canada go along with it because it gives them an opportunity to make more money.

[JohnQPublic]

I think those days are ending fast.

[Defender]

I suspect silver is manipulated to make it cheaper to use in industrial applications. Using derivatives you can manipulate down the silver price at a cost, but then reap the benefit on the other side of the trade in manufactured goods produced from silver (batteries, electronics, etc.). Such derivatives actions would probably be initiated by those who need industrial silver to be cheap. Sort of like farmers buying weather derivatives from Enron.

Pure speculation, but not impossbile in today's derivatives dominated world. What do you think? Possible?
No I don't think so. While silver may critical to a lot of industrial applications, the amount used is so small that silver's cost per item is low if not insignificant. So, it's hard to see them manipulating silver primarily for that reason.