Corruptions you should know about: Gold and Silver

Another Corruption series! We here at Fog of Chaos, will be slowly removing the Fog and revealing the Chaos.

It started on Friday and has been on-going as of today, gold has fallen several hundred dollars, to about $1550.oz as has silver falling from approximately $40.oz to $26.oz This isn’t normal market supply and demand, and its not the first time. The same market manipulation was conducted in May 6. The method of manipulation is done by a combination of institutional margin hikes, and vast quantities of naked short orders executed in a matter of seconds. No normal trader does or has the resources for this. The only sort of people who have this sort of financial leverage and computational trading are the very largest banks. Ultimately these shorts must be closed which would imply a buying back of the commodity, that is how shorts work. Central banks need gold and silver to trade lower, as to not allow an alternative reserve to undermine the dollar and bond markets which are funding government debt. Links below for a more comprehensive read.

http://www.zerohedge.com/news/shanghai-gold-exchange-hikes-silver-margin-20

http://www.theaustralian.com.au/business/markets/jp-morgan-hsbc-accused-of-manipulating-silver-price/story-e6frg91o-1225944590036

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/9/1

Also did you know 15 people own the same bar of gold, it’s called fractional bullion reserves. Banks and other depositories treat commodities in the same way they treat their cash reserves. Which ultimately means there is more gold accounted for on paper as assets than there is physically in the vault. This distorts the value of the respective commodities, and also why Gold-bugs tell you to only buy the physical.

http://leduc998.wordpress.com/2010/05/23/bullion-banks-operating-fractional-reserve-pyramid/

http://maxkeiser.com/2011/09/07/%E2%80%9Cthe-lbma-bullion-banks-as-we-know-operate-on-a-fractional-reserve-basis-and-that%E2%80%99s-been-backed-up-by-the-industry-apologists-such-as-jeffrey-christian/

 

About Avadoro Worden

Iconoclast
This entry was posted in Corruption, Euro-Bond crisis, Finance and Economics, Fraud, HyperInflation and tagged , , , , , . Bookmark the permalink.

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