FED seeks to destroy metals with never ending FIAT...gov no longer for the people
It has not been by or of the people for a long time.
The ultimate irony. The very substance that could salvage lives after the collapse, is being destroyed in this country alone with unlimited supply of fiat currency targeting and manipulating the metals markets.
Miners will collapse, already short physical supply will be non-existent, countries will horde and we will be left holding a bag full of worthless dollars.
With the economy in free fall, how will we champion the new world?
I think there is a flaw in their logic. You need metal, you must let the price rise, not put miners out of business while crushing the paper speculators. The "paper" for all its faults and exposures is still the only "market" we have. The FED's JPM arm of government must cease and desist this attempt at breaking the backs of the silver stackers. They just aren't going to sell.
Sure, the Fed can try to destroy metals, but they can't create them and they can't actually destroy them, that's why they hate them so much. They hate gold more than silver, because gold functions as an alternative currency. It's all about protecting the "petrodollar". The reserve currency status of our dollar is also why we care so much about Syria, it's sure not about chemical weapons and the plight of the Syrian population.
Silver is too useful to destroy, they can really only inflict flesh wounds on either metal. Sure, the Fed's policies are painful, but the many long years of ZIRP will push PM prices higher, and the Fed wouldn't mind it that much IMO, their goal is to create inflation, and that means higher PM prices. The price of gold is a proxy for inflation, and the Fed's unspoken mandate is to fight Deflation. They want inflation, but they also want to scare out the weaker hands from the sector and they certainly have.
Not many miners have moved proactively to address the lower PM prices like EXK has. And most of our peers have much more debt. EXK seems like a survivor here. Maybe they can pick up some assets on the cheap, like GPL or maybe even Cream Minerals, that one is valued near zero. Or maybe the company will reverse course and acquire Canarc Resources. With Canarc EXK could grow into a gold major and a silver major. They might do it anyway, even without Canarc.
The thing I don't understand is why the miners don't form their own coalition and seek an alternate avenue for price discovery. Artificial prices drop in the midst of stronger demand, and they layoff workers?
It seems like there should be a better way. And if there is a legal strangle hold then what about alternate market channels?
Like every body has drank the same coolaid...