If the corruption is at the top of U.S. and international banking, government and regulatory agencies, and they can manipulate the price of PMs (paper sales, margin hikes, etc.), why can't they continue to do so indefinitely? Is it wishful thinking that reign of the EE will come to an end? What events are sure to end it? I'm not asking rhetorical questions for dramatic purposes, I'm just a stacker trying to understand the actual mechanics and looking for sources of information. Thanks.
Because sooner or later they're going to get steam rolled by a very angry populace.
can you hike margins until it has no meaning?...........That point is now being tested.
The dollar got the bump that was needed, commodities get crushed and the money was diverted into the coffers of Tiny Tim and Big Ben. This will also unfold into the CPI baseline showing the sheep that everything is once again ok.
This is a mere short term down spike. Nothing has changed from last week or last year for the stacker other than a gift to stack more at a lower cost. For this I give them thanks.
In the end, things will not go so well. Accumulation of PM's is the only bet in town regardless of the last few days. One day we will be able to take their toys and go home.
Sooner or later the EE has to settle those shorts. They can manipulate but not for ever. You can only hike margins so far. You can only short paper for so long. At some point, and I think you see this more with Silver, the spot market will control the price.
The more people realize the manipulation, the less the are going to play. They will just stack, and avoid the paper game.
I expect the geo-financial thing to blow up and drive prices. The fundamentals do support higher PM prices. But, the EE keeps hammering them. Once a majority of the world would rather have PMs then fiat, game over for them.
I have always thought the end would come when enough longs would stand for delivery on the COMEX and they can't supply the silver. It may be very soon.
The COMEX will most likely issue a rule that SLV shares or cash equivalent can be exchanged instead of physical. This is why those foolish enough to wait for the absolute paper price bottom will be left holding cash.
Perhaps we should revisit some history to see just how such an announcement may look like ...
They can only affect the rate at which metals prices increase. They cannot fight the long-term trend, which has been up since 2001. This market will end in a blow-off phase like every other market (because that is what markets do). Who knows the timing though. One mistake the metals community continually makes is trying to identify timing and events that will lead to the EE's destruction. I remember back at $500 AU people were talking about how the shorts would be blown away "soon," and metals would be turned loose. Didn't happen. Hasn't happened. But the trend is still up, the mania phase is still ahead (since it hasn't occurred yet), and we will have more opportunities to increase positions at outlandishly low prices. Personally, I hate this long slow rise, but in some ways it is a gift.
Like UGrev said, sooner or later the population will get tired of all this manipulation. You can see that happening right now at Wall Street protest.