Dark clouds over silver market
Dark clouds over silver market

Jesse’s Café Américain has long been all over the shenanigans in the silver market. But he has excelled himself in linking to this video. Jesse’s comment rings true:

I think that the silver shorts are still staring into the abyss and are quite concerned about their precarious market positions.

But it could have been something more ‘official.’

The recent rigging of the LIBOR market is not a bad model for the carry on effect of this market operation that I alluded to the other day. However, I think some of the participants who went along for the ride are getting set up as ‘the Big Shorts’ are trying to offset their untenable risk.

Silver looks like a ticking time bomb waiting to blow a hole in the paper markets.

The video explains the role of the bullion banks, and points out that there are some very naked shorts out there. It’s hard to argue with the view that when this market manipulation collapses silver will rise. Particularly as faith in paper currencies is weakening.  Of course, if all prices are being sucked into a whirlpool  credit destruction, then silver will not be immune. But in such a world we will all be scrabbling for what holds its value best. It’s hard to argue against agricultural land. As Marc Faber says, they are less likely to drop bombs on it than on cities.