Friday, March 30, 2012

Precious Metals Manipulation or No Manipulation? That is the Question.

After looking around the precious metals markets for about six years now, I come across the 'precious metals are manipulated theory' a lot.

Various arguments to the negative are put out by commentators like Jeff Christian of the CPM Group. Jeff has a strong intellect and knowledge. He concludes no manipulation. Kitco is another regular poo pooer of the manipulation theory. They say, "Just because the gold market is down doesn't mean there is a conspiracy behind it."

It appears that writers like Ed Steer and Ted Butler see manipulation in every down-move of the market. There go JPM et al again on their short sales, driving down prices for their own benefit. After all, they hold a lions share of all the short positions in the silver market, adding up to phenomenal amounts of paper silver ounces. Just can't be right, they conclude.

Sometimes I wonder whether they just trott out the same reasons in order to keep their constituent readers happy and 'on board' rather then think of the macro reasons that precious metals may be deteriorating in price. Laziness on their part perhaps?

Then there is GATA. I like the work of GATA. They are very passionate in their dealings and theories. I do find Bill Murphy rather shrill at times, but beside that, he knows more about the market and trading than I ever will. But even the best can have clouded thinking and emotions on this topic. For Bill and GATA, for me, the jury is out.

I could name other sites like King World News, a site of very useful free information, but again, prone to onesidedness on manipulation. is another who can see manipulation demons in every graph. Perhaps rightly so. The logic the Turd puts forth appears very sensible. Once again a trader of many years experience.

Whether the market is manipulated or not, to me is moot. Let the newsletter and website owners protect their spaces and spout their theories. In the end, the market will wake up and have its say on precious metals manipulation anyway.

I do wonder whether gold and silver fever is alive and well and still clouds the opinions of many.

However, do any of my opinions change anything about the actual precious metals market and whether it is manipulated or not? Does it change whether I sell or buy physical gold and silver? No. It's not manipulation that I look at, it is the debt based system creaking at the seams.

Got physical gold anyway? But don't let me manipulate your thinking.

Gold in New Zealand dollars: $2032.79 per oz
Previous all-time high: $2311.02 per oz (15 Nov, 2011)

Silver in New Zealand dollars: $39.44 per oz
Previous all-time high: $59.19
per oz (30 Apr, 2011)

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