Beating Wall Street Banksters By Buying Physical Silver
| #SilverSqueeze Underway?Share this Article: |
| The populist movement to punish Wall Street is turning its focus to silver. The markets may finally force more honest price discovery. That would certainly be welcomed by metals investors long frustrated by concerns about price suppression. Silver prices are pushed around by a handful of the world’s largest banks. The captured regulators and the Department of Justice (For the Well Connected) have done little to curb the cheating, despite piles of evidence. The bullion banks, with their friends in government, seem to get away with coordinated take-downs of speculative longs who are daring enough to buy futures contracts or options. |
| It helped that the precious metals sector was ignored by a large portion of the investing public and that most people were inclined to believe exchanges, like the COMEX, are under proper oversight. That has changed a lot, especially in the past year. The 7.5 million members of the Reddit board Wall Street Bets are part of an honest money/anti-Wall Street movement which is building steam. |
| Last spring, investors bought record amounts of physical bullion. Sales of coins, rounds, and bars accelerated again in January. Demand went parabolic last Thursday when the call to buy silver began to go viral. The movement, should it succeed, would create true price discovery for silver.. The bullion bankers have capped prices by selling hundreds of ounces of paper silver for every ounce they have in physical bar form. About 8 firms, including some of the world’s largest banks, have a leveraged short position representing more than 400 million ounces. They may be unable to deliver anywhere near that quantity if contract holders start demanding the metal. The idea is to force them to buy physical bars to meet delivery obligations. At that point, the jig is up. However, it is critical that investors not try to beat the bullion bankers at their own game. People joining this movement should buy physical metal only and avoid futures or other derivatives purporting to represent silver. The Hunt Brothers learned that lesson the hard way in 1980. They bought futures contracts and demanded delivery of every ounce. When the banks couldn’t deliver, the COMEX and the regulators exercised the option that exists in the rules to force cash settlements of delivery obligations. They also disallowed new orders to buy. Only orders to sell were accepted. When only sellers were allowed in the “market,” prices collapsed. The Hunts were vilified for trying to “corner the market,” but it was the banks and regulators who were bad actors. The Wall Street Bets crowd is re-learning that lesson now as to Gamestop. Brokerages are limiting position sizes and buy orders. If you are buying a conventional paper security on a Wall Street exchange, you are playing in a rigged casino and should not always expect to get a fair shake. This includes investors buying shares or options in the silver ETFs or in silver mining companies. The good news is the campaign to break the bullion banks’ hold over the silver market can win, if investors buy physical metal instead. Buying physical bullion is not like buying shares of Gamestop where investors are subject to arbitrary and fast changing rules designed to protect the banks, hedge funds, and brokerages. |
Wall Street built the futures markets and other metals derivatives to capture and control the demand for precious metals. |
| Their system works so long as investors keep playing – believing the paper they buy actually represents some sort of claim on underlying physical metal. The offtake of millions of ounces of silver as refiners and mints convert COMEX bars into retail bullion products combined with rising numbers of futures contract holders standing for delivery of bars could be a deadly combination. Remember, the silver shorts are using extraordinary leverage. Hundreds of ounces have been sold for every ounce sitting in a vault. As long as people focus on accumulating physical metal, there may not be much the bullion banks can do about it other than squeal. |
LaRouche Was Right: End Wall Street Now!
Clear steps must be taken to end the accelerating demise of the trans-Atlantic financial system now, before the sheer power of the ensuing chaos and hysteria drag the U.S. into war, even nuclear war with Russia and China. Hillary Clinton’s refusal to support the Glass-Steagall policy, equivalent to the Glass-Steagall program of Franklin Roosevelt, plus her support for the Obama and neocon war agenda exposes the absence of any sufficient American political leadership at a moment of severe economic and political bankruptcy. Something must give, and will give soon, and the only sane response is a return to the Hamiltonian legacy of American policy, as Lyndon LaRouche has uniquely stated for the last 50 years.
The Bank for International Settlements has just prepared a paper for the upcoming G-20 heads of state summit in China, warning that a blowout of the derivatives market could happen at any moment, and the clearinghouse system is totally unprepared to handle such a shock. Remember, it is Deutsche Bank which has the biggest derivatives exposure of any bank in the world, and it has counter-party contracts with almost every “Too Big To Fail” bank in the United States, Europe and Japan—and, it is Deutsche Bank which has been correctly described as a “dead bank walking!” Best estimates are that the global derivatives trade is still well over one quadrillion dollars, even after losses this year that have already piled up.
Add to this, interest rate yields are at their lowest level in over 500 years, echoing the banking blowout that ushered in the European Dark Age in the 1300s. Over 30% of global government debt, approximately $10 trillion, is now at negative interest rates and decreasing. Meanwhile, Quantitative Easing—central bank purchases of junk debt as well as stocks specifically to elevate stock indices—is now at a global level of $180 billion per month, greater than even just after the 2008 crash. This is by far the most unprecedented financial breakdown in modern European history, the very same scenario Lyndon LaRouche warned of in New York City during the 1960s if the then-current policies, the same as today but now more insane, were not altered according to Alexander Hamilton’s program.
Now at this late moment, there is only one option for the thoroughly bankrupt trans-Atlantic system: Reinstate Glass-Steagall, cancel all of the derivatives contracts, go back to a Bretton Woods–type fixed exchange rate system, and launch a massive capital investment in projects that boost real productivity through Hamiltonian national banking methods, including a crash effort to achieve fusion power. This is the heart of Lyndon LaRouche’s Four Cardinal Laws for the New Presidency. (See lpac.co/four-laws)
The West must abandon the dead British System and join the new Eurasia-centered system that is rapidly coming into being, under the political leadership of Russian President Vladimir Putin and through the realization of China’s One Belt, One Road program (OBOR). It is this OBOR program, with an investment already exceeding $100 billion in project loans, which will dominate the discussion during the upcoming G-20 summit in Hangzhou, China, as the trans-Atlantic refuses to end its own bankrupt policies.
In this context, in discussions with European colleagues on Aug. 15, Lyndon LaRouche declared that we, the political forces dedicated to mankind’s long-term development, are on the edge of a great victory for mankind. The nations of Eurasia are establishing a grouping, centered on leading Asia-Pacific nations that are growing rapidly, in stark contrast to other areas of the world which are sick and are dying economically. South America has been taken over by rapists, France is a failure, and Spain is a catastrophe. The focus must be on those leading nations that have taken the initiative in this development process. Putin, LaRouche continued, has emerged as a driving force in this Eurasian alliance. There are forces moving inside the United States, particularly in Manhattan, who can join in the Eurasian-led effort to crush the British System, which has been the enemy of mankind for the past centuries. Germany, if it is to survive, must join this Eurasian development, which means dumping all of the policies associated with Merkel and Schäuble.
Russian President Putin, over the past several years, has played a pivotal role in organizing a force of nations, largely centered in Eurasia, which are taking on the characteristics of a military force that can change everything, and can win the war for peace.
It is now time to heed the words of Lyndon LaRouche, and achieve a real victory for mankind in the near term.
In the coming weeks, the emerging Eurasian alliance will be at the center of a series of historic meetings: The Eastern Economic Forum in Vladivostok, Russia; the G-20 heads of state meeting in Hangzhou, China with Putin as special guest; the China-ASEAN heads of state meeting in Laos; the United Nations General Assembly session in New York City; and the BRICS heads of state meeting in India in early October. This density of activity, between now and the middle of October, provides a unique opportunity for us to set the course of history, and put Wall St. out of its misery.
Wall Street Bets Silver Stampede Leaves National Physical Silver Shortage, Dealers Halt Orders
February 1, 2021 0
from Silver Report Uncut:
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