PM Fund Manager Explains How Bullion Banks Can Continue PM Manipulation

PM Fund Manager Explains How Bullion Banks Can Continue PM Manipulation

Posted on October 11, 2014 by The Doc 44 Comments 4,464 views

PM Fund Manager Dave Kranzler joins us this week for a power packed show discussing:

Triple Bottom or Dead Cat Bounce? The outlook for gold & silver over the next 6 months
Physical silver update- demand explodes as more physical sold in the first week of October than all of July & August!
Giant House of Cards- why the fundamental economy has been completely rotted out
Kranzler explains that the banks have been able to continue manipulating silver futures far longer than expected because only 2% of futures contracts ever stand for delivery
No other commodities market in which the amount of outstanding futures contracts to the underlying deliverable is so out of balance- this would all end if the longs would simply STAND FOR PHYSICAL DELIVERY


We produced this week’s broadcast Thursday morning. Once again, precious metals mining shares were taking a beating, but bullion held up nicely considering that the Dow Jones Industrial Average suffered the biggest point decline all year — a 335 point swan-dive, down 1.97% for the day.

The margin call selling that has been a factor behind recent weakness in mining shares has been far less of a factor impacting bullion, and safe haven and bargain hunting have helped bullion withstand the downdraft sweeping across most financial assets. Mining shares have been tracking the general equities market since Friday’s sector smash. Highly leveraged hedge fund speculators have been dumping what they can in the face of margin calls.

Oil was clobbered, with West Texas Light Sweet Crude plummeting to new lows for the year, down $3.37 for the day, a major slide of 3.37 percent. It’s actually a bit refreshing to see the divergence between bullion and much of the rest of the commodities sector.

Have we seen the bottom? Obviously, it’s hard to make calls in normal markets, never mind the bizzaro world we find ourselves, where pretty much all financial markets are being hyper-managed by central banks and lying governments are making a mockery of economic statistics. Another major raid in the paper bullion markets could be executed at any time.

Considering the dive in the stock market and oil telegraphing economic weakness, odds are that the powers that be will make a concerted effort to calm the markets on Friday. Don’t be surprised to see reportage coming from the Fed’s “Open Mouth Committee” timed perfectly to support Friday’s general equities market trade. Paging Jon Hilsenrath..? If that happens, the pattern we’ve seen since last Friday’s precious metals sector shellacking would suggest a bounce back for precious metals shares and a stronger silver trade. Time will tell.

Looking towards the intermediate-term and beyond, it has to be said once again that there’s a high cost to maintaining this house of cards. Bullion prices have fallen enough that a renewed burst of physical demand put pressure on the paper market manipulation game. That dynamic played a big part in why gold marked a triple bottom, as it probed $1,180/ounce and promptly bounced. We’re not seeing just the “China put” taking hold. Physical demand has rocketed higher in India and even North American demand has picked-up.

Odds are, we have seen the bottom. But even if we haven’t hit the ultimate bottom, mine closures, silver trading under the cost of production for most miners, continued strong physical demand and diminished vault supplies at the ready to facilitate cartel raids and to meet what could end up being an uptick in the number of investors standing for delivery out of the COMEX (an ongoing cartel juggling act) all add up to produce a significant buffer against further downside.

Fund manager Dave Kranzler joined us this week, and we spent a big part of the broadcast reflecting on the astounding level of corruption and fraud that now permeates not only our economy and financial markets, but society overall. Hardly news to our listening audience… Most of you swallowed the “red pill” long ago. But it’s important to step back from time to time to reflect on the matrix. We do just that on this week’s show.

We have a stock market supported by inflated, non-GAAP accounting corporate earnings. Layer on top of that corporate stock buy-backs nearing a trillion dollars over the last couple of years, financed by artificially low interest rates. Capital flight into US assets has also played a major role supporting financial markets and the dead-cat bounce enjoyed by the real-estate sector. But capital flight into the US has mostly just furthered asset inflation and is a reflection of the fact that economic conditions in many other major countries and economic zones stink. The European economy is rolling over. Japan is a money printing basket case.

The Chinese economy has slowed somewhat and the laudable effort China has undertaken to go after corruption has served as a catalyst for capital flight as well — although there does seem to be some slowing of that particular source of flight capital and we can see the impact in the decline of Chinese purchases in the US real-estate market. The bid for the Waldorf Astoria is somewhat of a notable exception, but not an apples-to-apples comparison because that involves generic foreign direct investment by a large Chinese insurance company, and not the flight capital of thousands of individual, wealthy Chinese hedging their wealth with U.S. real-estate.

While you’re listening to the show, be sure to check out one of Dave’s latest articles: “Census Bureau Worker Blows The Whistle On The Employment Report.” For comedic relief, click here and check out IRS email deleting Lois Lerner pleading with her neighbors to let her in their house to avoid answering tough questions. Too often, criminal behavior gets a pass in America. But we haven’t lost our sense for satire. This is the YouTube equivalent of tar and feathering.

Thanks for tuning in – Eric Dubin

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