By Dr. Jeffrey Lewis
It should be clear now to most precious metals observers that gold and silver price manipulation is just as common to the metals as it is to every other asset class. And equally evident should be the realization that resolution will not come from organized efforts. Be it regulation or legal class action, market forces will more than likely assert themselves.
With silver (and gold to less of a degree), it’s strictly “look the other way” from a regulatory stand point. The greater market and public don’t seem to care, and are not at all aware that they should.
According to Ted Butler, the commercial net short position in silver was most 179.5 million ounces, meaning that JPMorgan holds about 55% of the Commercial net short position all by itself – and about 33% of the short position held by the eight largest traders on the short side combined. This is a short-side corner by definition.
To bring justice for the precious metals investors would mean sacrifices to the status quo to the point of failure. This is in large part because of the massive expansion of the financial sector, including the corporatization of giant investment banks; we have enabled a system to flourish without responsibility of real skin in the game.
Silver and gold lie at the center of this. For, once the last vestige of backing was removed from currencies; this cancer was allowed to flourish. To bring in the cure at this point would risk destroying everything from the derivatives complex on the outside all the way to the beating heart of what is left of the economy. The destruction would be widespread and only history would be able to judge the heroic efforts of the movement that ended it.
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