The Big 4' Short positions in Silver Rises Again

[Cliff]

Ed Steer SilverSeek.com, May 11 2024
I understand that silver being the achillies heel of the gold price and as a means of suppressing the gold price,
Utilizing the silver shorts.
Under the current circumstances however, where there is increased demand and rising silver deficits.
Throw in the fact that China is encouraging its large population to now invest in silver. [ lets not forget the massive Indian silver purchases and industrial demand ]
You don't have to be a brian surgeon to realize this should leed to higher silver prices and is currently doing so.
Today 18 May $ 31.47
Could you please explain how these bullion banks feel that they can get away with this shorting, with the odds seemingly stacked against them?
Quite frankly I hope they get hung to dry and now looks like the perfect oppurtunity.
By the way, loved your explanation on the Chinese gov backing the gold price on their population purchases.
The history made alot of sense, thank you.

 

[SteveW]

The major bullion banks may be shorting gold/silver at the behest of the US Treasury. The U.S. Exchange Stabilization Fund was established at the Treasury Department by a provision in the Gold Reserve Act of 1934. The role of the ESF is to intervene in foreign exchange markets to stabilize the US dollar. Spot gold is traded as a foreign currency and intervening in that market is part of the Treasuries mandate.

So the bullion banks may act as agents for the Treasury which can produce unlimited US currency, for settlement, by selling T-bills to the Federal Reserve. At some point, this will all fall apart.

 

[Cliff]

Yes I understand it is all about protecting the value and stability of the USD.
But surely they are in dangerously exposed position.
Especically if rehypohication is involved.
Maybe as you say, there are other parties involved.[ possibly guaranteeing to pick up the tab]
What's another trillion between friends, when you have a machine that goes BURRRRRRRRRRRRR

 

[Willbe]

Yes I understand it is all about protecting the value and stability of the USD.
But surely they are in dangerously exposed position.
Especically if rehypohication is involved.
Maybe as you say, there are other parties involved.[ possibly guaranteeing to pick up the tab]
What's another trillon between friends, when you have a machine that goes BURRRRRRRRRRRRR

What does it matter to make a loss if you can print money wirhout limits... I also sometimes wonder... if you can print money without limits...what is stopping you to hide some of this printing... is somebody auditing this??

 

[SteveW]

Yes I understand it is all about protecting the value and stability of the USD.
But surely they are in dangerously exposed position.
Especically if rehypohication is involved.
Maybe as you say, there are other parties involved.[ possibly guaranteeing to pick up the tab]
What's another trillion between friends, when you have a machine that goes BURRRRRRRRRRRRR

The COMEX can always settle for cash. A related problem is the $34 trillion deficit. Countries with these issues generally default on their debt or destroy their currency by hyperinflation.

 

[Cliff]

The COMEX can always settle for cash. A related problem is the $34 trillion deficit. Countries with these issues generally default on their debt or destroy their currency by hyperinflation.

You say two options.
Which way you think it will roll?
I suggest a third option.
That is a new dollar, not a federal reserve dollar.
And that federal dollars can only be exchanged for the new dollar on legitamite prove of earnings.
Even then, that would likely be on a scale %. [individual 80% , soveriegn 40%, if in doubt zero % ]

 

[SteveW]

You say two options.
Which way you think it will roll?
I suggest a third option.
That is a new dollar, not a federal reserve dollar.
And that federal dollars can only be exchanged for the new dollar on legitamite prove of earnings.
Even then that would likely be on a scale %. [individual 80% , soveriegn 40%, if in doubt zero % ]

I don't know what path will be chosen. A debt default would follow naturally to a sovereign that will steal frozen assets. This would be easier on the general population than hyperinflation. No doubt hard times are ahead. A new currency of some form seems inevitable.

 

[NoJoKin]

I don't know what path will be chosen. A debt default would follow naturally to a sovereign that will steal frozen assets. This would be easier on the general population than hyperinflation. No doubt hard times are ahead. A new currency of some form seems inevitable.

All those paths lead to hyperinflation or at least price hyperinflation, ie, devaluation of the FRN. The only one that wouldn't lead directly to it would be a new USD back by PMs. Yeah, like that's going to happen any decade soon. Could it?

BUT ... that would lead indirectly but also essentially immediately to massive devaluation of the present "dollar" backed by absolutely nothing, meaning a 5:1 or 10:1 or perhaps even 100:1 or more overnight devaluation of worthless fiat in exchange for the new USD backed (?40%) by gold (+/-silver). And that's assuming (major assumption and not unlikely an incorrect one) that the U.S. actually has the gold, or almost any that actually still belongs to it.

All roads lead to devaluation, which leads to price hyperinflation, as has been warned ad nauseam for decades now. There's no escaping that except for gold and silver ... think KINESIS!! ... (and perhaps a few "et al").

 

[Cliff]

All those paths lead to hyperinflation or at least price hyperinflation, ie, devaluation of the FRN. The only one that wouldn't lead directly to it would be a new USD back by PMs. Yeah, like that's going to happen any decade soon. Could it?

BUT ... that would lead indirectly but also essentially immediately to massive devaluation of the present "dollar" backed by absolutely nothing, meaning a 5:1 or 10:1 or perhaps even 100:1 or more overnight devaluation of worthless fiat in exchange for the new USD backed (?40%) by gold (+/-silver).

All roads lead to devaluation, which leads to price hyperinflation, as has been warned ad nauseam for decades now. There's no escaping that except for gold and silver ... think KINESIS!! ... (and perhaps a few "et al").

The bottom line is, they are going to have to do something.
The ship is sinking fast and at an accelerating rate.

 

[AlM]

Yes and these 11 market makers + 5 others rearrange the deck chairs at the 10.30 & 15.00 auctions to fix the gold price every day, while the physical metal sails off in to another sunrise in the east.

Current Members

Here you can find the names and contact details of all our Members.

www.lbma.org.uk

 

[Cliff]

Yes and these 11 market makers + 5 others rearrange the deck chairs at the 10.30 & 15.00 auctions to fix the gold price every day, while the physical metal sails off in to another sunrise in the east.

Current Members

Here you can find the names and contact details of all our Members.

www.lbma.org.uk

They appear to have used all the pumps and most of the life boats.
I can't see any rescue ships on the horizon.
If anything, they appear to be heading the other way. [ Bric's ]