Silver Manipulation: How does it affect us?
I believe that I and many others have written enough to prove that silver; and gold; prices are being manipulated. I don't think we need to discuss that point any further. If any of you are new readers to my blog and don't understand how the price of silver and gold are being manipulated, or you don't know if it's true, then please look through my older posts about it. It will explain in detail how they are indeed being manipulated.
So, what is the purpose of this post? Basically, as the title states, how does it affect us? The average buyer? See, the main factor behind manipulation is "QUANTITY". Quantity is everything. When you or I go and buy silver or gold, 3 main things occur.
1st: Quantity of buying/selling. We are usually only buying a small amount. Yes, "Small Amount" is a relative term. But when you compare our purchases to those of JP Morgan, George Soros, or countries like China and Russia, our sales of 1, 10, or even 100 ounces at a time are insignificant. The reason Quantity is significant, is because the more that's bought and sold, the more the price will change. And when a small number of individuals, companies, or countries buy and sell large numbers, they can control the price.
2nd: Quantity vs profit. If we have 100 ounces that we bought at $16.00 and the price makes it to $17.00, we can make $100 profit. That's not worth our time. (I'll explain that in #3 below). But for the individual who has MILLIONS of ounces, each $1.00 that the price goes up from where they bought it, they potentially can make MILLIONS of dollars Not only that, but by dumping MILLIONS of ounces, timed just right, you can make the price drop dramatically. Thus, giving you the opportunity to buy it back immediately. Example: Have a million ounce of silver bought at $16.00. Price goes to $17.00. Sell it all, make $1,000,000 and drive the price back down to $16.00. Then turn around and buy back another million ounces and start all over again. With just the price of silver going from $15.30 to $16.85 in a week's time, the potential to MAKE millions of dollars is easy. Assuming you do it right and don't flood the market all at once. The point is, if you have a large enough QUANTITY, you can make a substantial profit with very little change.
3nd: PURCHASE POWER. With Quantity, comes Purchasing Power. When you and I buy silver, we don't get to buy it at "SPOT PRICE". If the price of Silver is $16.00, we will probably be paying in the $17.50 - $18.00 range for it. Even more if it's Silver Eagles, Maple Leafs, etc. Therefor, we NEED the price of silver to go up between 10-15% JUST TO BREAK EVEN!!! The big buyers are buying silver pretty close to a Spot Price. Many of these individuals aren't even buying physical silver. They're buying paper silver, ETF, etc. They can buy and sell so much at one time, that they can make money with very little movement in price, yet very high volume. At the same time, some of these buyers like JP Morgan, China, Russia, etc. they aren't interested in short term profits. They have much bigger goals and plans. They are trying to keep the price down, so they can KEEP BUYING MORE. And of course, today's good old American Government, with their current administration, needs so desperately to protect the US Dollar, that they will play right into these big player's hands, and keep the price of precious metals down trying to pump up the dollar. China and Russia doesn't mind this; it allows them to keep buying more gold and silver.
We as the small buyers, don't have much say so in the silver and gold market. But I'm not writing this post to discourage you or to tell you the obvious. I've writing this to tell you that it's going to be fine. We're going to do well. Here's how. Have you ever seen pictures or watch the nature channels that showed a small animal that rides alone or attaches itself to larger animals. The smaller ones help the larger ones by eating ticks, parasites, or some other infestation that could normally harm the larger animal. Like the little fish that attach themselves to the big sharks. The shark doesn't mess with the little fish attached, and the little fish is free to feast on the larger shark.
Well, it's similar here. The main difference is that the Bigger Animal; e.g. JP Morgan, Soros, China, Russia, don't really gain much by us buying silver and gold. But at the same time, our quantity is so small in comparison, that we also AREN'T A THREAT. And considering that probably LESS than 1% of people, (At least in the United States), actually buy INVESTMENT Silver and Gold, we can hide under the radar. We can attach ourselves to the BIG ANIMALS and go along for the ride. In other words, don't worry about the short term manipulation.
So then, when do WE profit. There are so many things that are happening today that can dramatically change the price of Silver and Gold, that to quote a popular movie saying; "The Odds, will be ever in our favor". We have a stock market that is way over inflated and WILL pop. We have a US Dollar that is holding on by a thread. (BTW: That doesn't mean the US Dollar is going to go away, but it may not stay the world's reserve currency and maintain the "Full faith and credit of the USA".) We have countries like China and Russia who are stock piling gold and silver to BACK their credit and currency up. We have companies like JP Morgan buying more silver than they have in many years. When any or all of these situations come to fruition and silver and gold are allowed to do what it's suppose to do, the price is going to go ballistic. And WE will be able to go along for the ride.
As COUNTRIES and COMPANIES and INDIVIDUALS take more control over the people by controlling the currencies and cash flow, they will become much more powerful. But the FEW of us who have stacked quite a bit of silver and gold will do quite well also. And because our amount is GOOD FOR US, it's not so large of an amount that we are of any threat to the BIG BOYS.
SHARKS: The Big Boys; governments and corporations
FOOD/BAIT: The 90% of the average people
CAMP FOLLOWERS: The 10%. That's us. The small bird riding the back of the lion or the sucker fish attached to the great shark. We don't bother them and they allow us to follow. We're PART of the 10%. But us metal investors are probably only about 1%. The other 9% are those who are already well off enough that they can make it through any economic changes.
What this means is, depending on how much silver and gold we have, we could JETTISON ourselves to a much higher economic class. Not talking about becoming Multi-Millionare over night. But assuming we still had a job, or our retirement, etc. And we're sitting there with 500-1000 ounces of silver and maybe 5-10 ounce of gold, we could all of a sudden be sitting there with about a million dollar's worth of today's PURCHASING POWER. Mind you, I said "Purchasing Power". The average person who might have $100,000 to $500,000 in retirement, cash, etc. won't have the same buying power when the preceding scenario I mentioned happens. But the person who has the silver and gold, will have the Purchasing power that $500,000 - $1,000,000 could buy today.
Manipulation is definitely happening in the precious metals. For many reasons. Protect the dollar, strengthen other countries, allow the big boys to continue to buy while it's low, etc. But between all the economic reasons and the stock market, dollar, industrial need, resources diminishing, etc. the manipulation bubble WILL POP. If you're buying silver and gold, or have your stash built up, I believe you're going to be in pretty good shape.
CYA: SE:
So, what is the purpose of this post? Basically, as the title states, how does it affect us? The average buyer? See, the main factor behind manipulation is "QUANTITY". Quantity is everything. When you or I go and buy silver or gold, 3 main things occur.
1st: Quantity of buying/selling. We are usually only buying a small amount. Yes, "Small Amount" is a relative term. But when you compare our purchases to those of JP Morgan, George Soros, or countries like China and Russia, our sales of 1, 10, or even 100 ounces at a time are insignificant. The reason Quantity is significant, is because the more that's bought and sold, the more the price will change. And when a small number of individuals, companies, or countries buy and sell large numbers, they can control the price.
2nd: Quantity vs profit. If we have 100 ounces that we bought at $16.00 and the price makes it to $17.00, we can make $100 profit. That's not worth our time. (I'll explain that in #3 below). But for the individual who has MILLIONS of ounces, each $1.00 that the price goes up from where they bought it, they potentially can make MILLIONS of dollars Not only that, but by dumping MILLIONS of ounces, timed just right, you can make the price drop dramatically. Thus, giving you the opportunity to buy it back immediately. Example: Have a million ounce of silver bought at $16.00. Price goes to $17.00. Sell it all, make $1,000,000 and drive the price back down to $16.00. Then turn around and buy back another million ounces and start all over again. With just the price of silver going from $15.30 to $16.85 in a week's time, the potential to MAKE millions of dollars is easy. Assuming you do it right and don't flood the market all at once. The point is, if you have a large enough QUANTITY, you can make a substantial profit with very little change.
3nd: PURCHASE POWER. With Quantity, comes Purchasing Power. When you and I buy silver, we don't get to buy it at "SPOT PRICE". If the price of Silver is $16.00, we will probably be paying in the $17.50 - $18.00 range for it. Even more if it's Silver Eagles, Maple Leafs, etc. Therefor, we NEED the price of silver to go up between 10-15% JUST TO BREAK EVEN!!! The big buyers are buying silver pretty close to a Spot Price. Many of these individuals aren't even buying physical silver. They're buying paper silver, ETF, etc. They can buy and sell so much at one time, that they can make money with very little movement in price, yet very high volume. At the same time, some of these buyers like JP Morgan, China, Russia, etc. they aren't interested in short term profits. They have much bigger goals and plans. They are trying to keep the price down, so they can KEEP BUYING MORE. And of course, today's good old American Government, with their current administration, needs so desperately to protect the US Dollar, that they will play right into these big player's hands, and keep the price of precious metals down trying to pump up the dollar. China and Russia doesn't mind this; it allows them to keep buying more gold and silver.
We as the small buyers, don't have much say so in the silver and gold market. But I'm not writing this post to discourage you or to tell you the obvious. I've writing this to tell you that it's going to be fine. We're going to do well. Here's how. Have you ever seen pictures or watch the nature channels that showed a small animal that rides alone or attaches itself to larger animals. The smaller ones help the larger ones by eating ticks, parasites, or some other infestation that could normally harm the larger animal. Like the little fish that attach themselves to the big sharks. The shark doesn't mess with the little fish attached, and the little fish is free to feast on the larger shark.
Well, it's similar here. The main difference is that the Bigger Animal; e.g. JP Morgan, Soros, China, Russia, don't really gain much by us buying silver and gold. But at the same time, our quantity is so small in comparison, that we also AREN'T A THREAT. And considering that probably LESS than 1% of people, (At least in the United States), actually buy INVESTMENT Silver and Gold, we can hide under the radar. We can attach ourselves to the BIG ANIMALS and go along for the ride. In other words, don't worry about the short term manipulation.
So then, when do WE profit. There are so many things that are happening today that can dramatically change the price of Silver and Gold, that to quote a popular movie saying; "The Odds, will be ever in our favor". We have a stock market that is way over inflated and WILL pop. We have a US Dollar that is holding on by a thread. (BTW: That doesn't mean the US Dollar is going to go away, but it may not stay the world's reserve currency and maintain the "Full faith and credit of the USA".) We have countries like China and Russia who are stock piling gold and silver to BACK their credit and currency up. We have companies like JP Morgan buying more silver than they have in many years. When any or all of these situations come to fruition and silver and gold are allowed to do what it's suppose to do, the price is going to go ballistic. And WE will be able to go along for the ride.
As COUNTRIES and COMPANIES and INDIVIDUALS take more control over the people by controlling the currencies and cash flow, they will become much more powerful. But the FEW of us who have stacked quite a bit of silver and gold will do quite well also. And because our amount is GOOD FOR US, it's not so large of an amount that we are of any threat to the BIG BOYS.
SHARKS: The Big Boys; governments and corporations
FOOD/BAIT: The 90% of the average people
CAMP FOLLOWERS: The 10%. That's us. The small bird riding the back of the lion or the sucker fish attached to the great shark. We don't bother them and they allow us to follow. We're PART of the 10%. But us metal investors are probably only about 1%. The other 9% are those who are already well off enough that they can make it through any economic changes.
What this means is, depending on how much silver and gold we have, we could JETTISON ourselves to a much higher economic class. Not talking about becoming Multi-Millionare over night. But assuming we still had a job, or our retirement, etc. And we're sitting there with 500-1000 ounces of silver and maybe 5-10 ounce of gold, we could all of a sudden be sitting there with about a million dollar's worth of today's PURCHASING POWER. Mind you, I said "Purchasing Power". The average person who might have $100,000 to $500,000 in retirement, cash, etc. won't have the same buying power when the preceding scenario I mentioned happens. But the person who has the silver and gold, will have the Purchasing power that $500,000 - $1,000,000 could buy today.
Manipulation is definitely happening in the precious metals. For many reasons. Protect the dollar, strengthen other countries, allow the big boys to continue to buy while it's low, etc. But between all the economic reasons and the stock market, dollar, industrial need, resources diminishing, etc. the manipulation bubble WILL POP. If you're buying silver and gold, or have your stash built up, I believe you're going to be in pretty good shape.
CYA: SE:
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