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June 16, 2018 | Does Supply/Demand Cause a 5.4% drop in Silver?

Donald B. Swenson: Born January 24, 1943, Roseau, Minnesota. Graduated H.S. 1961, Moorhead High, Minnesota. Graduated College 1968, Moorhead State University, Minnesota. Designated member of Appraisal Institute (MAI), 1974. Employed with Western Life Insurance Company, 1968 – 71; Iowa Securities Company, 1971 – 73; American Appraisal Company, 1974 – 81. Part-time teacher/valuation consultant/bartender, 1979 – 2008 (taught workshops at Waukesha County Technical Institute, Wi. and Madison Area Technical College, Wi.). Retired 2008 (part time teacher/blogger), AZ. Self educated economist/philosopher/theologian:

Live 24 hours silver chart [Kitco Inc.]

Today, the spot price of silver was slammed from a high of $17.32 to $16.38. This slam happened in a matter of minutes. This, to me, does not represent a real supply/demand transaction by live traders. This must have been a slam by a computer algorithm as this type of event happens regularly when the spot price of silver exceeds $17. I have watched this game being played for years. Our Plunge Protection Squad simply does not want silver (or gold) to rise or gain momentum. That is what I sense and perceive daily as I trade these markets.


It appears that this slam happened on the Globex or London electronic exchange. I have watched these slams of silver for years and it seems to happen whenever silver gains some traction and when the price exceeds $17/ounce. Could a trader (say a robot with a pre-programmed algorithm) cause this type of slam in price? I think so! Today, we can trade via machines and prices can be set via an algorithmic code. How can this be viewed as equivalent to a real supply/demand transaction?


If machines and algorithms can create prices artificially and routinely with no human real-time decision, then this does not seem like a real supply/demand transaction. The demand for silver has shown momentum (regularly) but it is not allowed to reflect real supply/demand (in price) as an ‘algorithm’ and a ‘source code’ can create these electronic slams in price. Is there an ‘official’ policy to contain the prices of silver and gold via this machine (algorithmic) process? I think so! All prices are now determined via electronic trading and algorithms are the tool being used for price discovery.


Speed of light transactions can slam a price like silver (or gold) in a matter of seconds. I could use a robot with an algorithm (as my source code) to do these transactions automatically. I could monitor the price of silver/gold and also control the price with this trading strategy called the ‘naked short’ sale. I merely buy short contracts on the Globex or similar electronic exchange and settle the transaction in cash (the digital $). There is no actual settlement of any silver and this allows prices to be controlled, monitored, and manipulated. A naked short transaction increases the imaginary supply of silver and this automatically slams the price on our electronic markets.


My sense is that our PPT or a similar trader is behind all this control and manipulation. I also sense that it is probably ‘official’ policy to keep the prices of silver and gold contained to prevent any collapse in confidence within our digital monetary system. Why would silver and gold need to be contained and controlled? If a huge run-up in prices were to occur in silver and gold, then this would suggest that our digital money is invalid and losing its faith credibility. Our official policy makers are probably behind all this price suppression of silver and gold. I have watched this price rigging for 7 years.


So what does this mean for investors, traders, and speculators in silver/gold and in all the precious metals mining companies? It means that any profits made over time will be wiped out (suddenly) as the prices of these metals get slammed continually. MIners will suffer, investors and speculators will suffer. A real fair price (a market price) for these metals will not be allowed to surface. This is the consequence of our manipulated/controlled electronic markets. Few seem to comprehend that these markets are rigged and controlled.


It may be wise to recognize that many markets are rigged via machine operated robots using pre-programmed algorithms. This is now ubiquitous as all our markets are now machine driven. Robots do most of our trade settlement. People have been replaced with electronic machines and real human trading has been replaced with the machine driven algorithm. Supply and demand no longer works in our marketplace (fairly). Central Banks and proxy traders (working for official policymakers) can manipulate, suppress, elevate, and control prices via pre-programmed algorithms.


What has happened to real supply and demand? It has been replaced with robots, machines, HFT computers, naked short trading strategies, speed of light price manipulations, hidden source codes, and pre-programmed algorithms. Our markets are totally RIGGED and unrepresentative of free trade. Regulators are oblivious to all this corruption. Silver and gold trading has helped me understand all this rigging activity. It’s now blatant and ubiquitous. Think for yourself. I am:

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June 16th, 2018

Posted In: Kingdom Economics

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