Silver Price Manipulation is Ending

I have been shouting about it for years now, I have emailed it, I have proven it and now it has presented itself to the world in its announcement that it will end……. What am I talking about? Silver Price Manipulation in the form of the London Silver Fix will end on 14 August 2014.

This is tantamount to an ‘increase’ in the Silver price, as the market will decide what price Silver should trade at, and the market has already shown what it can do even under the restrictive nature of the London Silver Fix, during 2011 when prices rose to $50 p/Oz.  For holders of this ‘Massively Undervalued Metal’ you will reap considerable rewards.  So why has this all come about?

The Silver Price Fix is a daily price benchmark for the silver spot market price.

Set during a conference call at noon daily, London time between HSBC, the Bank of Nova Scotia, and formally Deutsche Bank (who recently quit the Silver fix, likely do to pressure from German Bank regulator Bafin, due to an investigation into market manipulation no less!). Today, two commercial banks currently set the Silver price fix (can you believe it!).

During the daily silver price fix phone call, the two banks exchange bids and offers for Silver on behalf of themselves and their clients. They then declare the price ‘fixed’ when they determine supply and demand is equal at a certain price. You would be forgiven if you accused me of making this up…. I am not, this is REALITY.  You want so see the price manupulation in action? Take a look at this Bloomberg article which sums it up very nicely - Bloomberg - Gold Fix Manipulation

What do you do now? BUY, BUY, BUY as much Silver as you can! As it happens I have a Gold & Silver Bullion shop here Bullion Sale Here for all of your Gold & Silver investment needs.

What does this mean for Gold?

The end of the silver fix brings into question the future of the other precious metal benchmark fixes – especially gold. 

Following Deutsche Bank’s withdrawal in late April, the gold fix continues to be operated by four member banks regardless of its process being old-fashioned and opaque. 

The London Gold Fix's days are most likely numbered. The statistical evidence of price collusion is all too obvious.

Below is a 5 year running chart on the intraday gold price. Note how the gold spot price cascades downward ahead of both the London AM & PM Gold Fixes. 

2014 is a pivot point in the Gold & Silver markets, this will be the resumption of the ‘Bull’ market, and you can make the biggest gains by investing now.

I'm an optimist, it does not seem too much use being anything else

Winston Churchill