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Are Precious Metals Values Being Manipulated?

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jackson64

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3 recent whistleblowers have come out from Wall Street

As I continue to see the gradual slide of gold and silver values from what were highs of $2000+ for gold and $50 for silver ( recently-not just 1979), I get filled with mixed thoughts.

First is the feeling of anger that the precious metals I have stowed away have been intentionally manipulated out of their value. We all know that Wall Street is a bunch of crooks but when the occasional whistblower comes out--like Greg Smith from Goldman Sachs or Andrew Maguire has from JP Morgan and lets you know the details of how they trend these markets at their whim to sell a bunch to investors and then they pull their own money back out when the price goes up allowing for quick millions in profits--well that's when I get ticked. On top of this, the "too big too fail" banks that got billions/trillions in our tax money and 16 trillion from the Fed ( yes, that is true-16 trillion that the Fed gave to Wall Street in secret loans during early 2009)-on top of the manipulation they already of a huge advantage. A company like Goldman can buy thousands of ounces on paper of silver with just a small percentage% margin required !! I think that it was in March or May of 2011 that Comex raised the cash deposit to acquire rights to 5,000 ounces to $16,000. This increase was followed by silver dropping from near $50 down under $30 within a few weeks.

It's still not a bad deal if you're a Wall Street bank because at $30 an ounce that is $150,000 worth of silver for just a $16K deposit. I always wondered what would happen to the price of precious metals if everyone who owned PAPER silver suddenly called their brokers and asked them to go ahead and mail them their physical silver. It would be the same as if everyone at once decided to withdraw their cash from their accounts--chaos. Obviously their are multiples and multiples of electronic money compared to actual physical currency and one of the untalked about subjects concerning precious metals is that they are buying and selling more than actually exists.

When JP Morgan buys 50,000 ounces of silver for their $160,000 cash deposit, you don't really think someone ships them physical silver or that there is a ginormous vault somewhere where they place big signs on giant stacks of bars with "Reserved for JP Morgan" on it do you? No, they sell what they don't have possesion of and quite possibly doesn't even exist.

Having said all of that--and I can send you links to verify this info and also about how the manipulations of market values are done, just PM me- after venting I also must admit mixed feelings. You see, I buy precious metals for one simple reason- they are a great hedge against the devaluation of our fiat currency.

Unlike some who have posted here and urged others to buy precious metals "cause they're going up and you can double your money" I'll never say that. If precious metals double in value it's a good chance that gasoline, groceries, clothing and keeping the lights on and air conditioned at home is gonna double in cost.

I always liked the analogy: in 1913, 100 years ago, a finely taylored suit would cost you $20 cash or a $20 gold piece. Today in 2012 it would cost you over $1,500 in Federal Reserve notes to buy that custom taylored suit-or you could still buy it with that same $20 gold piece. Salaries are no longer rising at the same rate as inflation and the devaluation of our currency- so I buy what little I can as part of a diversified retirement plan.

Note: I'm not talking any financial collapse or anything along those lines--just that if we can somehow figure out a way to continue our debt-based monetary system, and creatively find ways to prolong the inevitable indefinitely--well it seems obvious that inflation is going to continue as it has for the past 100+ years. It just doesn't seem to hurt as much if I can turnsome paper into metals that may keep relative pace with inflation.

So although I'm a bit peeved to find out about the precious metals value manipulation, at the same time I'm looking at this as an opportunity. I'm going to start buying bullion again. Silver may be headed for $20 an ounce and gold could drop under $1500..my guess ( and it is just that-a guess) is that 10 years from now I'll probably not be kicking myself for buying at current prices-I'll probably be kicking myself for not buying more.

Here's a nice little item I picked up recently. The 2012 new design British Sovereign. Gold will have to rise quite a bit for me to make any money on this one as bullion-but I didn't get this one for bullion, I loved the design the second I saw it.....Happy Hunting all

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