Article Image
IPFS News Link • Gold and Silver

The Prognostic Value of Gold & Silver Charts or Lack There of

• - Bill Sardi

The two charts below, at bottom, are disturbing.  They show the market price of silver on August 31, 2020 and Oct. 1, 2020.   There has been a decline in the market price of silver.   The top chart also shows an even steeper predictive future decline in the value of silver, from $28/oz. to $12/oz.

Here is what is not being said about silver.

It is out in the open now that bankers have been manipulating gold and silver prices.  Suddenly, we read news headlines about JP MORGAN has paid an unprecedented $920 million fine for precious metals manipulation.  The fraud involved the practice of spoofing, placing an order for gold or silver, then withdrawing it before it was completed. Deutsche Bank traders were also fingered for manipulation of gold and silver prices.  The Bank of Nova Scotia has also agreed to pay a fine to settle charges of metals market manipulation.

This may mean regulators are not going to tolerate precious metal manipulation any longer.  There must be some hidden impetus behind these punitive rulings.

These revelations of manipulation of precious metals prices suggest a lid is about to come off of gold and silver and allowed to find true price discovery in the marketplace.

For unknown reasons, the World Gold Council website doesn't address the problem of price manipulation.  But it has long been suspected.

The primary reason why gold and silver prices have been manipulated is that central bankers cannot have investors running to support gold and silver ahead of fiat paper money.  Any asset-backed currency, be it by gold, silver or some other durable, portable, divisible, acceptable and uniform asset, would be in demand ahead of unbacked paper money.

Any threat that a foreign country would introduce a gold-backed currency gets a couple of US aircraft carriers of its coastline.  That action would be destructive to the US fiat dollar which serves as the world's reserve currency.

Economist Martin Armstrong teaches that as the value of the US dollar declines, gold and silver rise.  But these are not normal times. A monkey wrench is being thrown into world fiat currencies.