Silver and Gold are the only real money in this world of ours. In order to pass off their worthless paper, the Banksters have no other choice but to suppress the real value of precious metals. Otherwise, the gig is up. In order to accomplish this, they manipulate the one market every investor pays attention to, the commodities market.
"On March 23, 2010, GATA Director Adrian Douglas was contacted by a whistleblower by the name of Andrew Maguire. Mr. Maguire, formerly of Goldman Sachs, is a metals trader in London. He has been told first hand by traders working for JPMorganChase that JPMorganChase manipulates the precious metals markets and they bragged how they make money doing so.
In November 2009 he contacted the CFTC enforcement division to report this criminal activity. He described in detail the way in which JPM signals to the market its intention to take down the precious metals<. Traders recognize these signals and make money shorting the metals along side JPM. He explained how there are routine market manipulations at the time of option expiry, Non-farm payroll data releases, and Comex contract rollover as well as other ad hoc events." (Source)
To understand how this all works, you need to understand a little bit about options. An option is the right to buy or sell someone else's silver or gold. In theory, the option holder enters into a contract with the actual owner of the underlying gold or silver, by paying him for the right to buy or sell his silver or gold. This is called a premium. In reality, Options Contracts are sold against gold and silver futures contracts.
A gold options contract gives you the right to buy or sell 100 ounces of gold during the contract period (usually up to 120 days). On a silver options Contract, you are able to buy or sell 5,000 ounces of silver for the same time period.
The attraction is leverage. For a small premium you can make money if silver goes up (Call Option), or if it goes down (Put Option). Options also carry much less risk than a futures contract, in that, all you can ultimately lose is the Premium. Holding a futures contract can cost you a whole lot more if the market goes against you.
So, as our whistleblower explains it, JP Morgan artificially brings down the price of precious metals through the use of Put Options.
"In an email on that day Mr. Maguire said "It is 'common knowledge' here in London amongst the metals traders it is JPM's intent to flush out and cover as many shorts as possible prior to any discussion in March about position limits. I feel sorry for all those not in this loop. A serious amount of money was made and lost today and in my opinion as a result of the CFTC allowing by your own definition an illegal concentrated and manipulative position to continue"
Expiry of the COMEX APRIL call options is today. There was large open interest in strikes from $1100 to $1150 in gold. As always happens month after month HSBC and JPM sell short in large quantities to overwhelm all bids and make unsuspecting option holders lose their money. As predicted in advance by GATA the manipulation started on March 19th when gold was trading at $1126. By last night it traded at $1085.
This is how much the gold cartel fears the enforcement division. They thumb their noses at you because in over a decade of complaints and 18 months of a silver market manipulation investigation nothing has been done to stop them. And this is why JPM’s cocky and arrogant traders in London are able to brag that they manipulate the market." (Source)
In other words, JP Morgan and HSBC, through the use of Put Options, drive down the price of precious metals at will.
"I thought you might be interested in looking into the silver trading today. It was a good example of how a single seller, when they hold such a concentrated position in the very small silver market, can instigate a selloff at will....
As an example, if you look at the trades just before the pit open today you will see around 1,500 contracts sell all at once where the bids were tiny by comparison in the fives and tens. This has the immediate effect of gaining $2,500 per contract on the short positions against the long holders, who lost that in moments and likely were stopped out. Perhaps look for yourselves into who was behind the trades at that time and note that within that 10-minute period 2,800 contracts hit all the bids to overcome them. This is hardly how a normal trader gets the best price when selling a commodity. Note silver instigated a rapid move lower in both precious metals.
This kind of trading can occur only when a market is being controlled by a single trading entity. (Ibid)
It is estimated that JP Morgan Chase control up to 80% of the Option Contracts during any given market day. (ibid) Options are also considered financial derivatives because they are "derived" from an underlying security (the futures contract). Now, here is where it gets dicey.
JP Morgan also stands accused of manufacturing Options out of thin air. In other words, silver options that have no actual silver behind them!
"Organizations like GATA (Gold Anti-Trust Action Committee) have been sounding the alarm about manipulation of precious metal markets for years. They accuse big banks like JP Morgan of holding "naked" shorts on silver and gold — meaning they are promising something they could never actually deliver." (Source)
I have heard estimates as high as 100 ounces on paper to every 1 ounce of actual silver in the vaults. That would mean that 99% of all silver Options are fraudulent. It would also mean that JP Morgan and their co-conspirators would have to act as buyer and seller of these contracts to keep the Ponzi scheme alive. This would require the assistance of the Federal Reserve, Treasury Department and Government regulators.
Since the obvious beneficiary is the dollar, and the dollar is owned by a private banking cartel called the Federal Reserve, a legitimate investigation into silver market manipulation could bring down the Banksters. This is why, it will never happen. In the mean time, while the dollar still has some value to it, investors should be using it to grab all of the silver that they possibly can.
Before this "House of Cards" shortly gets blown over by the proverbial fan.
