Friday, November 26, 2010


Silver is acting unusually in the markets. In 2010, silver has doubled. The 2010 low-price was $14.82. The 2010 high mark so far was $28.638. What could justify such insane increase in the silver price. Speculation is the only possible answer. When can we get to a real economy based on real productivity, producing real and useful goods? We must move away from a speculative, financial economy where gains and losses are all in numbers if we want to avoid bursting bubbles and a unfair and unjust society.

A friend sent me these links: JP Morgan and HSBC are manipulating the silver market since 2008. This is not the first time in history that banks or rich individuals are manipulating the silver market. The interesting part about this current manipulation is that it was picked up by the independent news and activist groups. People like Max Keiser and Alex Jones rallied and promoted people to buy silver in order to financially hurt JP Morgan and cohorts. It is a risky business to put yourself as a single small investor against the bullies like JP Morgan. Nonetheless, it is fascinating strategy - although uncertain in success - to band together many small investors to bring down a giant bank by betting against it on a market gamble, in this case the silver market. According to Max Keiser as long as the silver price remains higher than $25/oz. JP Morgan is punished. As a last note: let's not forget that this war cry to buy silver to crash JP Morgan is also a form of silver market manipulation. But at least this is a public one talked about on the internet, while JP Morgan's shorting is a stealth maneuver hidden from the public.

PS: About 2 weeks later this was posted: Is J.P. Morgan Getting Squeezed in Silver Market? According to this JP Morgan is now manipulating the copper market to offset losses in the silver market.

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