Precious Metals Paper Sellers Conveniently Trapped
The large and mostly naked holders of short positions in precious metals are conveniently trapped,
especially in the silver market. Covering in any meaningful way would blow the U.S. Dollar's cover.
The Dollar’s increasingly serious valuation issues are also being ignored, but this may only last as long as
the Euro continues to remain in the currency market’s spotlight as a target for selling pressure as
Europe’s debt problems deepen.
Financial repression was implemented after World War II to help melt away the war’s oppressive debt
burden. It consisted of maintaining the following conditions:
1. A moderate rate of inflation
2. Some amount of growth
3. A compelling situation for large banks to buy debt
Nevertheless, the extra, and unmentionable, fourth ingredient to the official policy of financial
repression is modern day coin clipping. Since physical silver has long been absent from circulating
currency, the next best thing is to bury its value in paper.
Basically, large banks have been allowed to enjoy commercial status in futures markets, which has
allowed giant short positions to evolve. To be fair, this has occurred in all commodities, although the
silver and gold futures markets typically see a far higher concentration of sellers.
This questionable access allowed obvious “not for profit” selling, as well as coordinated and
manipulative selling, according to whistleblower Andrew Maguire. The result has helped keep precious
metal prices low and sentiment poor to confuse the investing public for years.
Pretending That Regulators are on the Beat
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