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Silver crash: The COMEX margin trick and Soros “rumors” worked well

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posted on May, 6 2011 @ 09:54 AM
MY TAKE: If you have a big brother that says: "Go ahead and gamble, I'll pay your losses and you can keep the profits." What would you do?
That's the deal that has been given to the Major Banks, and it's the American people who are paying the losses.
This is the reason that Silver has taken a dive. To save JPM, institutions all across the board have been selling naked shorts into the Silver market.
I would be worried IF: Congress were to say: Sorry we have been spending too much and we will stop.
OR, if the Whitehouse were to say, Ok we're bringing all of our troops home.
OR, if the FED RES were to say: "We are going to stop printing money like there's no tomorrow and we are going to raise our rates.
This is not happening, so the direction of metals is still up. This is just a shakeout (or shakedown) your choice.

posted on May, 6 2011 @ 10:00 AM
I recomend Moly, as it is used in construction and China is gobbling it all up for their constructions, they also plan to dominate the world energy market, that requires more construction, and more moly.

Everybody is humping Rare Earth metals which arnt actually Rare. Thorium is what Norway is banking on after oil. It is plentyful there as it is on the planet too, they also have a huge supply of heavy water.

Moly is a huge play for china right now (Moly can also be used to fake silver bars like tungsten can fake gold bars).

I usually also recommend to avoid crowd's on the markets, crowds are currently swarming RE and in your cases precious metals (Silver, gold etc).

edit on 6-5-2011 by moogins because: (no reason given)

posted on May, 6 2011 @ 10:01 AM
reply to post by redgreen

I hate to say it but I am SO NAIVE when it comes to market/dollar/silver/gold and so on. Will you please tell me more as to why silver tanked? I am educated on a lot...but not this topic and it makes me feel so powerless in regards with todays economy as I have only recently begun educating myself on this topic.

Thank you in advance for the insight. ;-)

posted on May, 6 2011 @ 10:10 AM
A large part of all markets is emotion. Bad news and they all drop.

posted on May, 6 2011 @ 10:12 AM

Originally posted by MamaJ
reply to post by redgreen

I hate to say it but I am SO NAIVE when it comes to market/dollar/silver/gold and so on. Will you please tell me more as to why silver tanked? I am educated on a lot...but not this topic and it makes me feel so powerless in regards with todays economy as I have only recently begun educating myself on this topic.

Thank you in advance for the insight. ;-)

Well here's the 'hear say'

With America tanking and people are looking away from the dollar, precious metals gain popularity as a currency.

So with the people thinking that America is going to tank they start to buy silver and gold pushing it prices up. Apparently a Chinese Billionaire started buying up silver which was when it was on its way up.

So investors tell people to stock up on silver when its climbing but heres the catch, while everyone is riding the silver bubble like the housing market eventually its is going to tank also....

So when someone decides to sell off alot of silver other people follow suit and eventually the price crashes making bankers alot of money if they started the fad and you lose out because your not on the inside.

heres the break down

Investment bankers start buying silver at $40 an oz
People start buying it shortly after for $45-$50 an oz

Silver hits $50 an oz and the bankers are making a 1/5 on it they will start to sell rapidly dumping silver into the market crashing the price back to $30 an oz.

So while its crashing the normal people start selling off also but some are caught out and lose alot of money because they get greedy or dont see the signs of newtons law , what goes up MUST come down.

Remember the rise of silver happened when the American stock market was open but when it closed for the easter , China's stock exhange opened first and they got first refusal to tank the price of silver making them alot of money before the American public who invested in silver got to sell it off.

TLDR, China trying to tank America again.

posted on May, 6 2011 @ 10:23 AM
You just have to remember a couple of simple rules when it comes to silver:
- buy low, sell high.
- don't spend money you can't afford to lose.

posted on May, 6 2011 @ 10:28 AM
within a week and a half it went from about 42 up to about 49( was hoping it would break the 50 mark and sink goldnsaks) and then crashed to 34 and now it is at 36 at the moment.seems like a good time to buy since i was considering it last week.Nothing seems stable in the global economy.

posted on May, 6 2011 @ 11:43 AM
reply to post by michaelmcclen

Okee Dokee.... So.....again, this may be a stuuuuuuuuupid question lol but I have to ask... WHAT SIGNS should I look for that says all over them...."the US Dollar is done with". Or signs that we are in more serious trouble than we already are? I know at this moment its grim, but there has to be a huge warning sign as well.?.

Please don't get mad at my ignorance on this subject ya'll.....I want to be educated!! ;-)

posted on May, 6 2011 @ 12:09 PM
reply to post by MamaJ

JPMorgan has sold massive amount of shorts on metals they don't own. Yes, if you did this they would throw you in jail, but it's Ok for them.
Because of the sudden rise in Silver they very nearly went bankrupt, the only recourse they had was to sell even MORE massive amounts of naked shorts into their market, AND get all of their friends to do so as well, in a final attempt to stave off bankruptcy.
Will they achieve this? Only time will tell.
But in the meantime, the American citizen is still on the hook for all of it.
Gambling is fun when your using somebody else's wallet.

posted on May, 6 2011 @ 12:43 PM
reply to post by MamaJ

Go to Google and do some research into 'Argentina monetary crisis". Back in the late 90s Argentina had similar issues to what the US faces now: massive government debt and deficit, weak currency, falling revenues, etc. One day the government declared a "bank holiday": the banks were closed for several days to prevent a run on the banks while they and the government tried to figure out what to do. When the banks reopened, the Argentinean peso had been devalued 3 to 1, and people were limited to only taking $100 per day out of their accounts!

Imagine if the same thing happened in the US. You can't get at your money, and when you are finally allowed to, you can only take out what is now $33 worth of cash per day.

That's why some folks are saying it's good to have PMs like silver and gold - and in your personal possession, not in a safety deposit box in the closed bank. After that crisis, Argentineans found their cash worth less, but gold and silver still had the old value - and plenty of people were happy to do trade for precious metals in place of cash.

posted on May, 6 2011 @ 12:48 PM
reply to post by redgreen

I read the article, but Im not sure why you are blaming Soros?

He has been very upfront about the fact that he considers Gold and metals "the ultimate asset bubble" and that he merrily will exploit an inflating bubble for profit. Thats not a rumor, he flat out said it.

He obviously must think the bubbles are approaching their maximum, and decided he made enough money from it.

posted on May, 6 2011 @ 01:34 PM
reply to post by Illusionsaregrander

I myself did not blame Soros for anything, the writer of the article does that. Personally, I blame ALL of those highbinders for the shape of the economy. It's not an accident. What we are watching is the intentional destruction of the U.S.
In 2006 Bank of International Settlements (BIS) stated that they wanted a "controlled crash" of the US Dollar.
Here's the thing, a "controlled crash" right up to the moment the plane touches ground, and rolls right up into a big furball. Not a pretty sight and that is what is in store for the common folk of the world.

posted on May, 6 2011 @ 01:38 PM
reply to post by redgreen

Its all of our fault honestly. Yes the high rollers of the world are more directly responsible, but we the people are idiots who dont take the time to understand cause and effect, some economic basics, and we essentially vote for people because we like the way they look and talk.

We are in the position we deserve to be considering we didnt want to do the work necessary to make good political decisions for decades.

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