Submitted by SD Contributor SRSrocco:
People don’t realize there is a WAR going on in the GOLD-SILVER MARKET vs FIAT MONEY. Psychology and Sentiment are the KEY in markets. This also is true in war. During WW2 the allies fooled the Germans into believing that they were going to invade France at the Pas De Calais instead of Normandy. They created a complete fake army to convince the Germans that they would indeed attack at Pas De Calais. The plan worked… Psychology beat the Germans as they wasted a large numbers of troops defending the wrong port.
Today, we have the same tactic taking place in the precious metal markets.
In the beginning of 2011, the price of silver was climbing higher, Hedge Funds had come aboard in a big way for the ride. Max Keiser was pushing BUY SILVER KILL JP MORGAN. The silver inventories were dropping to all time lows as investors and Hedge Funds were taking delivery. Everything was set for a HUGE SHORT SQUEEZE and panic on the COMEX as they did not have the metal to back up the shorts.
Well in May 2011, 5 silver margin hikes and 10 days later… the GREAT SILVER RALLY was over. However, this did not kill market sentiment as buying of Silver Eagles increased in May and hit a new record high in 2011. You don’t kill market sentiment with one SHOT TO THE FOREHEAD… several are needed.
This took place in SEPT 2011 when silver was heading back up to the $45 area and gold to new highs at $1900. Well in just three weeks, silver went from $44.38 to $26.15. Of course this was legitimate selling by those who wanted to exit the market at the BEST POSSIBLE PRICES (more sarcasm). If we look at the chart below in which I have posted before, we can clearly see the manipulation at work as the ACCUM-DIST chart reveals the truth:
For those who still have FUNCTIONING BRAINSTEMS something very fishy took place in SEPT 2011. The price of silver declined 41% in just 3 weeks while the ACCUM-DIST just kept on rising. Again, I don’t like charting as it pertains to candlesticks and etc, but overall trends such as this…. which may reveal what is truly taking place.
The THIRD TAKEDOWN on FEB 29th, really did it in for the Silver Bugs. Investors are now believing the garbage coming out of the likes of MSM, NADLER and SCHMIDT to name a few. They believe the so-called silver surplus and Comex Inventory build is now showing that Industrial Demand is indeed falling….. which is controlling the price.
However convenient this looks, this is furthest from the truth. I will reveal the updated chart for your eyes only.
Again, if you have a well FUNCTIONING BRAINSTEM, you will notice a very interesting trend in the chart. When we had so-called deficits, the price of silver remained around 5 clams an ounce. However, mysteriously, when the so-called surplus began to rise…. SO DID THE PRICE. Ain’t that a KICK IN THE PANTS.
Investors who listen to the rubbish coming out of the bowels of MSM and etc, do not realize that it has been INVESTMENT DEMAND that has been responsible for pushing the price of silver from $5 BUCKS to $49….. NOT INDUSTRIAL DEMAND.
So… if you can follow my lead, in order to kill the price of silver… you have to KILL INVESTMENT DEMAND. PERIOD.
all the best…