I promised yesterday to answer the question “why?” is it that silver and gold are manipulated. Some people say “who cares?” Some don’t believe it while others don’t even have clue that it’s happening. “Gold bugs” for the most part are angry but I sense they are angry for the wrong reasons. Many understand fiat money to be freely printable and without any real value but they are angry because “gold went down” or didn’t “go to da’ moon” yet. They should be “rich” by now …the flaw of course to this thought process is counting your wealth in dollars and wanting to, hoping for and planning to “sell” which leaves you back again with DOLLARS. My point to this paragraph is to show you how well the “why” gold and silver manipulation have worked so well! Even many hard asset advocates still deep down “want” more dollars which is why they want their holdings to “go up.”
OK, so why has it been imperative to suppress gold and in particular silver prices? Let me first say I will consider gold and silver to be the same for this exercise even though they are not. Silver is a much smaller market than gold, there are no large stockpiles held at central banks and there is much more above ground and deliverable gold available than silver which makes silver the more rare of the two when looked at from a “stock” standpoint rather than “flow.”
“Why” gold and silver HAVE TO BE MANIPULATED is at the very central core of the global monetary system. Global money today is ALL fiat, all creatable at will and whim by central banks and …have zero intrinsic value on their own. Gold on the other hand “is” money. It has value because it has a cost to create and people believe it has value. Gold is the exact opposite of fiat, if governments could pass a law which stripped gold of “value,” they would have already but this would be akin to passing laws that outlawed the tides, bad weather or even death.
I guess the best way to explain this is if you are issuing a currency (especially the reserve currency) which has no intrinsic value and everything “financial” in the world is based off of or derives value from your currency… you must try to crush all competitors. Do you understand the last sentence? If you think about it long enough you will come around to understanding that euros, yen, pounds, rubles and all the rest are not really “competitors.” No, they are all “partners in crime” whereas gold is THE competitor. Gold is nothing more than “truth” if you will. “Truth” as in getting paid for or paying something while making a true and real settlement, something for something rather than the current something for nothing scheme.
You may have read in my past writings where I call the current system of U.S. debt and FRN’s as a “never pay model.” For instance, we import oil from Saudi Arabia and pay them in dollars, these dollars are then “invested” in U.S. Treasuries which promise to pay… more dollars. They are giving us a finite and depleting asset and accepting payment of a currency which is freely printed and in unlimited quantities. Gold as an “alternative” or competing money cannot be seen to be the better choice. This is VERY important because gold itself is also a finite asset itself AND becoming harder and more expensive to produce. By manipulating the price downward, the spotlight does not shine on gold and the human emotions of greed and “gold fever” are tempered.
You see, the reality is that gold is a thermometer or canary in the coal mine which serves as an early warning siren to bad, lax or faulty fiscal and monetary policies. Gold is a lie detector which politicians and central bankers wish would just shut up and go away. Gold as the anchor to a monetary system prevents politicians and bankers from issuing too much money for votes or favor. They cannot make it just go away so they do the next best thing …they falsify the price. Yes I know, we have heard so many people say “they would never do that”…to which I reply there is NOTHING that hasn’t nor will be done to retain power by trying to fool the masses, EVER! All you need to do to know that this statement is correct is to read history.
Please understand THE most important piece of chewing gum that holds the entire financial system together is the dollar itself. Everything is priced in and levered off of dollars and U.S. Treasuries. I can hear it now, “Holter you are wrong, not everything.” Think about what would happen if one day the world woke up to find out dollars have no value and collectively decided to no longer use them? Nearly all pensions, banks, brokers, insurance companies, bonds and nearly all debt instruments would be hung out in thin air. Also remember what lower gold prices mean to interest rates, it means a lower interest rate which allows for lower debt service and thus the ability to lever up further…which is why central bankers are born in the first place.
While I am on the subject of “why” (and yesterday wrote about “how”), I would like to ask a few questions. If it turns out that the U.S. really does not have any gold left, what will this mean? If it really turns out that the U.S. has in fact been leasing and or selling gold which we were supposed to be safekeeping for other governments (allies), what will this mean? I could ask a whole bunch of other questions but what is the point? The answer to all of these questions are the same, the U.S. “lied” and committed the fraud of running a global monetary Ponzi scheme. Going all the way back to 1971 when the U.S. defaulted off of delivering gold to foreigners in exchange for dollars, we have run a “never pay” currency.
Before finishing I do want to mention the “attacks” have been well thought out and quite thorough. The media constantly downplays gold, brokers discourage it and many will not even sell it to customers. Ben Bernanke even went so far as to say (perjure himself in front of Congress) gold is held simply out of “custom” and no, “it’s not money.” The entire process has been and still is a “psyop” if you will with the intent of keeping the financial fraud from being uncovered. THIS is “why” gold and silver are attacked!
I will leave you with this thought. Mayer Rothschild himself said, “Give me control of a nation’s money and I care not who makes the laws.” He said this because controlling a nation’s money was and is the ultimate power. For gold, silver or anything else to compete with this “power” is unacceptable …which again, THIS is “why” gold and silver are attacked!
“Gold is Money. Everything Else is Credit.” And so the Federal Open Mirage Committee (FOMC) struggles mightily each day to deceive the mass mind.
Good explanation Bill, thanks!
I read your comments almost everyday, because deep down I agree with what you say. However I do know there is a 50/50 chance you may be wrong. At this point I don’t know if there is a Black Sawn evil enough or tragic enough to cause any difference in what we are being herded into. I wonder if Ebola will cause the panic?
really? A 50-50 chance? I’ll go flip a coin and get back to you.
Did it come up heads or tails? OK,it may be only 1 chance in 100, but the possibility does exist.
all joking aside, of course there is a possibility that I am wrong but not about everything. Like I have said regarding the dollar, it is no longer if, only “when”…and I nor anyone else has the answer to this.
Bill two great back to back articles that reveal to any who want to know – The “Truth”. I am still amazed by those in your business who write the drivel that “there is no manipulation of the markets”. Today I just glanced at the opening line of an article by Cliff Droke saying “Easing of tensions in Ukraine and the Middle East also acted as drag on gold and silver prices”. He and other very intelligent people like him, continually put forth such “Nonsense”. Also, I was surprised to see the $ down and gold & silver up on Tuesday – the day before the Federal Operation Manipulation Committee meets.Cheers to ya.
I have a 3rd one on the same subject for tomorrow, please read it.
Your thoughts are respected by many. But, I will tell you why gold bugs are angry. It is because they understand that the system must collapse before gold will be revalued. As long as the current system is in place gold will be suppressed. Many gold owners are sitting on huge stacks of gold and silver that are worth half what they paid for it in todays dollars. We do not know how much longer the current system will stay in place. Could be many more years. The current system is broken but that has nothing to do with how much longer the system continues to rule our lives. No one knows when metals manipulation will end. No one.
sorry Glen, in my opinion it cannot last “many more years”.
Bill, this is in response to your opinion that this cannot go on for many more years. There are those analysts nowadays that say that the system and the dollar will crash and burn and that gold and silver will be revalued before the end of this year. How can they be so sure?(Bix Wier and Harvey Organ and Bo Polny and Eric Sprott and Egon Von Greyers and others are saying this). I remember in 2011 hearing this same story. Siver was supposed to moonshot and the dollar would crash and the stock markets would crash and there would be rioting in the streets. Yes, those things should have happened back in those days. And yes they will happen. Timing unknown Batman.
yes, “timing unknown”. My opinion is that if the rule of law were followed it already would have happened. Maybe it is before year end or not, I don’t know but I do know the danger is those who are losing control over the system decide to kick the table over…it will be a very bad world to live in whether you own metal or not.
Let me add one more thought to your comment Glen – I agree with Bill, and all the others at MF, that PM is the best hedge to conserve wealth, but the constant push to be “ALL IN” (because there is not a
logical alternative) has proven to be the real problem. In 2012, MF and others predicted the destruction of the dollar SOON, After 2012 the grief was sure to be in 2013. In 2013 the world would end in the first half of 2014. Now, nobody seems to know when the bottom will fall out of the world financial system. Meanwhile, just as you, my stack is at 50% of purchase price because I followed the sage advise and went “ALL IN”. Now I must sell some of that stack to pay the bills. I wish I still had those worthless dollars.
careful what you wish for Robert.
Bill- To clarify – It is not your advise that put me where I am. It is the “ALL IN” philosophy that MF hammers on that caused to problem. If I had followed only your advise I would have purchased 80% metal and kept 20% in cash, which would have been enough cash for several years of living expenses at current inflation levels. When the financial melt down occurs, and it will, the 80% in metal would have been more than ample to serve its purpose. Bad decision, but it was mine and I accept all the credit and the blame for making it.
no problem Robert, I have been advising (and accumulating) the ownership of PM’s since 1997 and am all in personally in many fashions. Do I wish I had cash right now? Yes because I would love to buy more at these prices even though my average costs are a small fraction of current prices. If I am wrong then I am guilty of believing my own bullshit…but I do not think this is the case. I believe the logic is very sound.
I am angry because I could have more ounces for what I paid and because I’d like to cash in some for dollars to pay off my dollar denominated mortgage debt. But I am also patient…
are you better off with or without metal? that is the bottom line.
„Die Wenigen, die das System verstehen, werden dermaßen an seinen Profiten interessiert oder so abhängig von seinen Vorzügen sein, daß aus ihren Reihen niemals eine Opposition hervorgehen wird. Die große Masse der Leute aber, geistig unfähig zu begreifen, wird seine Last ohne Murren tragen, vielleicht sogar ohne je Verdacht zu schöpfen, dass das System ihnen feindlich ist.”
– Gebrüder Rothschild, London 1863, Rothschild-Bankendynastie (u.a. Fed)
Above is in German. It reflects what one/or more? of the Rothshild brothers said about the (monetary) system. In general there are two groups of people. One that understands the system and does hugely profit from it, never inclined to change it and to rebel against it; then the second group of people, unaware what is going on, party too dumb, carrying it’s burden without protesting, even not noticing that the system works against them.
…and a 3rd type person who understands the system and does not like that it is only “fair” to a very very few elites who suck off of the system.
And the weapon against the gold is to issue “papergold”, right?
But, what I cant get into my head is why somebody ever would like to buy some of those paper that writing gold on.
I would never do it and I dont think im so clever.
Are they all greater fools then?
I agree 100% …but this says nothing about those wishing to SELL those pieces of paper with abandon and without silver to deliver. The “pieces of paper” currently make the price, I believe that soon they will not. Please read y piece tomorrow for a little more explanation.
It seems to me that trading fiat paper dollars (toilet paper) for silver and gold (real money) is a great idea.
Why would I want to trade real money (gold and silver) for toilet paper (fiat paper dollars)?
I have only 1 use for toilet paper and I’m sure you can figure that one out!
now that’s a shitty picture Farrell!
If the paper market in gold and silver are manipulated why is the physical market so abundant? If the fair market value is based on cost of production then you have missed the point on the definition of value. There is no reason silver cannot fall to 12 dollars an ounce and gold to 750 an ounce.
You forget all the other commodities that exist. Your logic should extend to every commodity out there. Please strip your commentary of wishful thinking.
yes, I am a “wishful thinker” and thus no need for you to waste your time reading it.
Bill, this Isaac guy is obviously a troll for the house of Rothschild (Giant Squid) Global Banking Cartel.
Hey Bill, I just read an article on the gold and silver smash. It is very interesting that you mentioned that the 10yr lease between China leasing silver was up since 2000. I believe this is why the price in 2011 when parabolic. If you can just check out this article. Thanks
it sounds about right in my opinion and the author is very correct, “this IS about all the marbles”! I believe the metal was originally leased in 2002 or ’03.
When? Who knows?
Six days,6 months,6 years? It won’t be decades.
For now, I’m appreciating being able to set aside two bits here and there at a subsidized price
correct but I can in no way see 6 years.
Great analysis Bill. When I go to the coin shop to buy silver, the owner often asks me the question “Why do you keep buying these amounts??” And I tell him that “I’d like to have as much of it as I financially can afford”. I can tell from the look on his face & intonation that he thinks I’m a little bit crazy. His opinion allright… It’s somehow funny and sad at the same time.. But hey, business is business! It is also interesting that a single 28 yo can still buy precious metals and enjoy his weekend comfortably (if not at work). This is how cheap they made it. I welcome this temporary opportunity. You add good perspective on the manipulation part. And this WealthWatchMan blog site is indeed very good (véry skilled writer) Keep up the good work. From Belgium.
I get the same reaction from my local dealer. But after he hands me the metal and I give him the fiat, I always tell him that I can’t believe he’s trading it for worthless paper.
I do that at restaurants, my wife hates it and the waiters have not a clue what I am talking about. “I can’t believe you just gave me something for nothing?”
Thanks for sharing all of your collective metals wisdom. I’ve traded about 1/2 of my retirement for gold & silver over the past 2 years. Overall, I’m down on my trade but when i read your articles it reminds me that I need to stay the course. Thanks
thank you James, hang in there our logic is solid.
Gold & Silver, etc. = Money
Money stores value = A mans sweat,… tears and toil, preserved.
Fiat Money = Currency
Currency = (BANKSTER MANIFESTO) Turn every human being into a copper top battery generating wealth for those at the top. Taking everything sacred and meaningful and leaving a man empty inside, blistered, diseased, tired, a mad dog on a chain unable to understand what happened or who did it. An automaton that then returns to sleep so as to repeat the process all over again.
This is the definition of insanity,…doing the same thing over and over again and expecting a different outcome.
It’s said that man has always given special value and affection to things that are shiny.
WORKS FOR ME!
BUYBUYBUYBUYBUY >Real money
Throw the bums out
It’s been a real pleasure reading you work these last few months.
About Saudi Arabia, and all those dollars they need to recycle…
According to ANOTHER, the deal is 1 barrel of oil is $XX + Y grams of gold.
What are the chances that either the City of London and/or New York is underwater on Gold promised to our “partner” in the petro-dollar?
Best regards Brother.
thank you Stephen, I think at this point the “odds” are a lock.
I will dispense with my usual preliminary angry expletives. I have renewed respect for
you Bill. You mentioned the big one. Rothschild. I am staying the course and am all in. They can fornicate under the command of the King. I’m not selling.
as I have said before, you cannot be 1 second too late or out of position because you will not be allowed back in.
My hat is off to James above. I like his way of thinking.
Ever chance I get I trade toilet paper (aka fiat paper dollars) for silver / gold (aka “real money”).
Gold / silver are my “financial insurance policy” and those that like the toilet paper are welcome to it.
I have something on my mind that has been bothering me for a while.
I feel that when it hits the fan that the internet will be shut down and it will be very hard to communicate with others.
Do you feel this is a possbility?
If so, could you consider an article on alternate ways to communicate other than the internet and cell phones.
What about HAM radios? Couldn’t people communicate with others around the world with them? Would just having one set up and in place (with battery back up) be a possible solution? I’m not to worried about having a license as when it hits the fan I doubt if the “radio police” will be doing any thing other than trying to survive with their families (as all of us will).
When they take all normal communications down it will be too late to do any thing I believe.
I want to be in touch with others and get reports from other places, but I don’t how to be set up for that.
I had a bit of a laugh when Martin Armstrong said Gold was not money.
So I do not know if he has any Cred, because he said that gold could go to $675 (presumably due to strong dollar)
Where will silver be if the happens? $9.00
good luck finding any physical at those paper prices.
Great posts from your loyal readers. One thing I wanted to add is I no longer buy with “savings” as many do (or the <1% that own silver do). I now buy on debt. I am so convinced how undervalued silver is I actually buy with debt. I talked to a gentleman at work about silver and his response was "I'm ok, I have a few silver coins" which translates into what 1-5 oz of silver? Give me a break! That is nothing. It is so easy to accumulate silver with these low prices! Sacrifice 2-3 big mac combo meal and thats a full ounce anymore!
Good one! “The Big Mac/Silver ratio”!!! We’ll keep an eye on this one.