Market Manipulation Of Gold And Silver Prices

Mudasir Sheikh
March 31, 2017 OPINION 1376 Views
Market Manipulation Of Gold And Silver Prices

Gold and silver are main precious metal commodities traded all over the world.Unethical practices in trading of precious metals have fetched big banks with billions of dollars, but have impoverished gold mining communities in most parts of the world and severe fluctuations in the prices of these precious metals. Since the dawn of civilization, all the gold which has been extracted will create a cube of 70 feet on each side. To produce one ounce of gold requires an average of 38 man hours, 6,350 liters of water and liters of cyanide. In South Africa four lakh men, 90% of them are black toil in mines deeper than 2KMs in a temperature of about 70 degree Celsius. The history of gold issting with those who toil for it. From pre historic times men has been willing to risk everything for these precious metals.
But how the price of gold and silver were determined in modern economy was amystery until, a British Whistleblower Andrew Maguire, disclosed this hidden process in an interview with a radio channel in 2010 and later onCBC in 2013. According to Maguire, who was himself a trader of precious metals for long time before becoming a whistleblower,describes the process involved in manipulating the prices of these precious metals by big banking corporations likeJPMorgan Chase and HSBC.Maguire said “JPMorgan acts to halt the rise of gold and silver against the dollar”. He quoted that big banking corporations wait for major markets from London to Shanghai to be closed, and then they put all their concentrated efforts on Comex. By using algorithmic trading systems they move in and out of the futures market in a blink of an eye. They simultaneously work on about 400 contracts a second. Each one of these contracts represents about 5,000 troy ounces of silver. When they sell all the 400 contracts, suddenly the prices starts to fall as there is more supply of silver than its demand in the market. All investors whether big or small start to sell their stocks of silver in order to minimize their losses. Major investors who have invested huge sums in these markets lose everything. When the prices touch the bottom, the electronic silver is purchased back by the mysterious trader. The prices tend to soared, so did the profits for the covert trader. 45,000 contracts with a profit of $80,000 per contract results in a total profit of $3,600,000,000, completely without any efforts what so ever. Andrew Maguire further added that as the silver market is small, it is easy to track the culprit behind the manipulation, but till now no legal action has been taken against them, because these banking corporations have a very strong political support and massive lobbying power.
By running these Ponzi schemes, bankers are earning millions of dollars a day. This electronic gold and silver trading on these exchanges rarely have a backing by real stuff. In this virtual world of electronic trading, it is possible that for every 100 ounce of metal traded, there may not be even one ounce of real metal in existence. The manipulation by these bullion banks does not betray only common investors but also mining communities throughout the world, who are toiling for real gold and silver. Many point to the drop in silver prices in 2008 from $21 an ounce to less than $9, is a prime example of market manipulation. Entire mining communities lose their jobs and on number of instances there were suicides. The wages of laborers working in gold and silver mines are very sensitive to prices of these precious metals. A drop in their price is catastrophic forthem. On the other hand, the bankers who are sitting in air conditioned rooms in big buildings are profiting by compromising the blood and sweat of miners, by simply striking their finger tips on a keyboard, this is completely unjust and unfair as there are real people with real lives who are suffering by this bullshit.
The elites are using sophisticated form of money creation and money controlling techniques thus rendering the masses in a slavery in which the slaves even do not recognize that they are being enslaved. This is in fact a testament to the effectiveness of these modern tools of slavery. Money is a prime motivator for human labour as without money a person can’t have food, shelter and clothing. So by controlling the money, bankers have total control over masses. Thus they are engaging them in all forms of activities even to the point of harming themselves and others. Violence, corruption, drug trafficking, diseases and other social evils are not the main problems, they only symptoms of this fraudulent system. The root cause of these problems is money creation and control. Mining communities have no choice but to offer their blood, toil, tears and sweat in order to feed themselves and their children. On the other side of the game are bankers living luxurious life, where every modern world facility is at their disposal.
In addition to this now a days, more interesting things are linked with these precious metals. Central banks of China and Russia are buying gold and silver in very huge amounts. China is the world’s largest producer and biggest importer of gold and silver. Experts in the field of economics consider gold and silver as an ultimate guarantee of nationalsurvival during economic down turns. Gold has survived as a store of value from past 5,000 years. These metals are ultimate survival mechanism of nations in times of political and economic instability. One reason given by monetary experts for accumulation of gold and silver by china and Russia is that, these countries are expecting total collapse of international financial and monetary system. History has witnessed when economic system breaks down only precious metals have succeeded in preserving the value of wealth and acting as a medium of exchange. China has also installed gold vending ATMs; this all can’t be a coincidence. So we personally have to accumulate a reasonable quantity of gold and silver which will sustain us during economic crisis and other major global conflicts. Paper currency is very vulnerable to political instability.It can lose its entire value in a single day as happened in Zimbabwe in 2008,in USA in 1979 and in Germany during 1920s.

Writer is MBA, M.Phil.

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