If paper's worthless, what's with silver and gold?
Three banks shorting the spit out of it, using program HFT that place phantom trades that are designed to lower spot price and miner pricing. The other thumb on the roulette wheel, if those programs aren't effective, the Fed beefs up the reserve to meet the exigency the few retail investors might have. The supercomputer that does this capability may have cost drillions once upon a time and use enough power to heat a small city. No more.
It's now desk sized at best, suitcase sized at worst. It isn't portable, but, it's "luggable". As in "just a minute, I got to get to my plane, but I want to crank up the wifi and see if I can pull a couple dollars out of silver and gold before I get on the plane and get to that meeting with Bernookie....."
Copper is faltering because the Chinese bought a spitload, and their phantom empty housing projects are empty and overbuilt, that decline is a pin in their bubble and we are at who knows when stage.
Aluminum pumped up the volume early 2011 and got overextended--but a lot of that is China which overstated production, and Europe which is on the ropes because like China, they have to use expensive coal to manufacture. Russia aluminum co's are financially so suspect, the CEO quit in disgust. So the world "glut" in aluminum is more sci fi than reality, considering the business. We'll know more about the health of the American co's on the 25th of April, but AA had a banner first quarter, and is literally on sale for anything less than $10 IMHO. It's being touted as the new gold and silver, held by banks as a storehouse of wealth under the radar silver and gold are skewered on.
Aluminum. Who'd a thunk? The phantom traders seem to have other targets of traditional opportunity, like silver and gold. But to be truthful, all commodities are taking it on the chin.
One person's "healthy pullback" is another person's lost. Silver and gold shine, but know what you are getting into, and that includes the power of the enemy via manipulation.
There sure are a lot of cross currents going on. Since, over a long period of time, the central banks have been plundering populations worldwide for the benefit of their super rich owners, they hold all the cards, and only wish all but themselves to be the holders of real wealth. This is how it must be looked at with the current downturn in PMs. It must be remembered that the mega banks are above the law.
Back during the savings and loan fiasco in the 80’s many criminal bankers went to jail:
tinyurl com/drWKblackONbanksters (replace the space with a period to access)
William K. Black numbers those who went to jail in the thousands. Currently none, who have committed equivalent or more egregious crimes, have been jailed.
Those banksters engaged in criminal activity are the untouchables. In that the mega banks are a bit like those in the drug cartels, who actually hold the puppet strings over the politicians in the countries where they originate. Many of the worldwide mega banks, it must be remembered, do business with the narco-trafficers, including HSBC, as recently reported. Still these banksters remain among the untouchables. So if none of the current market actions make any sense it can be traced to criminal activity in the financial markets with the only objective being to increase the wealth of the banksters by stealing from others for the criminals that own the banks. Yes. The ownership of them is criminal in nature because they have forced fiat (“legal” tender) counterfeit funny monopoly money on populations worldwide. It is important to have a clear idea what sort of nefarious characters people are dealing with, rather than to have the impression, at any level, that mega banks are run by squeaky clean honest bankers.
Another way to look at this is the large companies that are put at a disadvantage by the above mentioned criminal activity. We can speak of it all we want as the “unwashed”, but as long as those that might have enough influence to effect change for the better the criminal activity in the mega banks will continue. This begs the question of the honesty of all that are located at the top end of the economic ladder. Have they all ascended because they, too, possess criminal inclinations?
Excellent catch LITTLEJOHN, as your url states in absentia--the war to degrade paper currencies gets notched up a bit by the Chinese.
But--be careful what is wished for--the debauchery that is scrubbing value from the yuan makes the dollar look more glamorous and excitingly "valued", and that means a punch in the lips for silver and gold.
Until we get the excuse to pump up the volume in QE 3+. The world is waiting for the debasement of all currencies until we're all millionaires, and a big Mac costs $2,000,000 (without special sauce).