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June 21, 2019 | Will Algo’s Slam Silver/Gold or Could Demand Overwhelm?

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: http://kingdomecon.wordpress.com.

Our Treasury department via their proxies (the Exchange Stabilization Fund and the Plunge Protection Team) desire that silver/gold prices remain suppressed. This is natural as these authorities desire to promote our digital/virtual currencies for everyone. Virtual money is desired and physical money is passe. All historical monies must be gradually eliminated from our markets so that a cashless world develops.

 

The current run up in silver/gold prices could be reversed with a trading algorithm by the above proxies at any moment. They could purchase naked short contracts (millions of imaginary ounces) in our electronic futures markets and slam the current spot prices in milliseconds. I have watched these regular slams for years. It happens suddenly and without any logic. It’s all done to promote sentiment for our digital/virtual monies.

 

Naked short contracts require no delivery of the metals and this allows this type of trade to suppress these prices. What happens is that an imaginary supply gets created (as contracts are purchased) which then slams the price. Imaginary contracts for silver/gold have been used to keep our precious metal prices suppressed for years. Real supply/demand would allow these prices to reach historical levels (multiples of today’s prices) as our central planners have created trillions of money units in recent years.

 

So will our official authorities allow these prices to increase to levels of real supply/demand? My sense is that they will not allow this consciously. Algorithms and unlimited trading digits could continue the suppression scheme. But the real markets could also overwhelm the existing supply of these precious metals with new demand for the physical. This might break the stronghold which these proxies have over this market.

 

We will need to watch what happens in coming weeks to discern what might happen. Silver IMO should be well over $100/ounce if a free market were present. Gold IMO should be over $5000/ounce if a free market were allowed to function. What will emerge during the coming CRASH? Will demand overwhelm the existing supply of physical? It could happen! Watch the real demand for the physical in the coming weeks and months. Have a great day!

 

I am: https://kingdomecon.wordpress.com.

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June 21st, 2019

Posted In: Kingdom Economics

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