Chapter 105 What is "price discovery"

No matter from the historical price comparison of gold and silver, market supply and demand, or inflation, it is impossible to explain that the price of silver at $25 an ounce today is far lower than the $50 in 1980!What kind of mysterious force can seriously distort the price of silver to this extent? For a long time, due to the natural monetary blood relationship between gold and silver, its historical price comparison has been super stable for thousands of years. This solidified connection has long been deeply implanted in the memory of civilization. It spans eras, Across countries, across religions, across geography, and across ideologies, it is far more persistent in people's minds than the "strong dollar" artificially created by international bankers.People know that silver, like gold, is the highest quality "money", and that silver is more widely circulated than gold.Because food, clothing, housing and transportation in daily life are mostly small-value transactions, and gold is generally used for very large-value transactions.Therefore, silver is not only real money, but also more liquid money than gold.In order to protect the huge interests of the issuance of US dollars, bankers must break free from the constraints of gold and silver currencies, and must abolish gold and silver currencies.If you want to abolish gold and silver currencies, you must first abolish silver, because silver is closely related to the daily life of ordinary people every day. Only by finding a way to make people invisible in daily life and no longer use silver when buying firewood, rice, oil and salt can we Let everyone completely forget about the monetary function of silver.Therefore, the strategy of international bankers is: if you want to conquer currency, you must first conquer gold; if you want to conquer gold, you must first conquer silver!

Today, although the U.S. dollar has usurped the "monetary throne" of gold and silver as it wished, the "pseudo-emperor" is a fake after all, and international bankers are always uneasy, because whenever there is any crisis, people immediately think of the Gold and silver.International bankers really "hate and fear to death" for gold and silver.His mentality is very similar to Wang Mang's usurping the throne in Chinese history, wishing to kill all Liu in the world.Baiyin is like the crown prince Liu Xiu, who has been hunted down by the "Wang Mang of the Banking World" for decades now.This kind of "chasing and killing" is the suppression of prices. They hope that everyone will treat silver as an ordinary metal, a general industrial raw material.If everyone can't forget that silver has been the "king of money" like gold for thousands of years, then international bankers will first drive silver out of the money palace - the central bank.Then deliberately lowered the price of silver by a large margin, degrading it to "common people" and wandering the streets of ordinary commodities along with copper, iron, lead and zinc.

The silver market is much smaller than the gold market. It is a kind of high leverage to suppress the price of silver by means of large-scale "naked short selling" and at the same time use low-priced silver ropes to hold back the unbridled rise of gold. and highly effective price control strategies.As long as the price of silver is suppressed, the global financial casino centered on US dollar banknotes can bring permanent huge profits to the international bankers who run the casino! From 1990 to 2003, the price of silver has been suppressed from nearly US$50 per ounce in 1980 to only US$4 to US$5 per ounce.At the time when silver was at its worst, some people of insight saw investment opportunities arising from the serious underestimation of silver's value.The investment fund managed by the famous "stock god" Buffett bought nearly 130 million ounces of silver in batches from 1997 to 1998.It accounted for 1/4 of the world's annual silver production at that time, basically copying the bottom of silver for decades.It is puzzling why Buffett sold all of his silver in 2006 prematurely.His average buying price was $6 an ounce and his selling price was only $7.50.Buffett himself admitted that the deal wasn't pretty. "I bought early and sold early. It was my mistake. Speculation is the craziest thing in the end." Coincidentally, shortly after Buffett sold all his silver, Barclays Bank created the first A silver-traded fund was also approved to launch on an American stock exchange in 2006.There are rumors that Barclays Bank "borrowed" or purchased 130 million ounces of silver from Buffett in order to prepare silver spot guarantees for its silver trading fund, which happened to be the sum of all the silver in Buffett's hands. In 2006, just when the silver market started to start, Buffett sold all the silver. He made such a big bet, but he did not stir up the price of silver like the Hunter brothers did back then. In order to earn a mere $1.50 difference?This transaction is inevitably suspicious.As for the secret deal between Barclays Bank and Buffett, the outside world does not know.

Another person who has a particularly keen sense of the silver market and has far-reaching influence is Ted Butler.Butler has been a commodity futures trader since 1971, when he worked for Merrill Lynch. In the mid-1980s, one of his clients asked him: "The silver market is in short supply, but the price of silver has not risen for several years. What is the reason?" Butler began to study silver in order to explain the reasons to clients. futures market.But he was also stumped. He learned that the supply of silver was indeed in short supply, but he couldn't explain why the price of silver didn't rise.Later, based on his years of experience in the commodity futures trading market, he discovered that the amount of short-selling silver in the market was always far greater than the supply of spot silver.It turns out that some institutions are artificially lowering the price of silver.So he reported the market manipulation to the U.S. Commodity Futures Trading Commission (CFTC).But the relevant department replied that there was no problem and ignored it.Butler has a stubborn temper, and he insists on doing what he has identified. He persistently reported to the relevant departments, but there has been no result.Later, there was the Internet. Since 1996, Butler has used the Internet to expose the truth that the price of silver has been artificially depressed.Almost every week he publishes a detailed analysis or commentary on the silver market online.Thanks to years of unremitting research and commentary on the silver market, Butler has gradually become the most influential authority in the field.He believes that the manipulation of the silver market is the "worst ever" capital conspiracy.In addition to continuing to write to the U.S. Commodity Futures Trading Commission many times, he also called on investors to unite to fight against the manipulation of the silver market.After years of hard work, the crimes of several major banking giants illegally suppressing the silver (including gold) market are being exposed more and more, causing widespread concern in the world.After nearly two years, the Commodity Futures Trading Commission has finally opened an investigation.

Regarding the investigation of the US Commodity Futures Trading Commission, Butler said in an exclusive interview that although the relevant parties are willing to solve the problem, the problem of silver market manipulation is too great.So much so that it's hard to come up with a solution that doesn't cause huge upheaval. For 20 years, participants in precious metals markets around the world have been littered with lawsuits and public debates over the manipulation of gold and silver prices.It was mentioned in: "On April 14, 2004, the Rothschild family, which has dominated the world gold market for 200 years, unexpectedly gave up the pricing power in the gold market. Coincidentally, AIG, the big brother in the silver market, voluntarily gave up on June 1. Pricing power in the silver market. Could it be that the Rothschild family is really bearish on gold? If so, why didn’t they quit when the gold price fell to the lowest point in history in 1999? One possibility is that the prices of gold and silver will eventually get out of control... Put aside any relationship with gold early, if 10 years later, the price of gold and silver really has a big problem, no one can blame Rothschild The German family." Now the prices of gold and silver have really "happened". The price of gold keeps setting a record high, which is close to 1,400 US dollars, while silver has broken through the highest point in 30 years, exceeding 25 US dollars. Compared with that time, Gold and silver prices have risen nearly three times!

That's right, the big brother AIG in the silver market mentioned here is the world's largest insurance company that was rescued by the US government in the 2008 financial tsunami.After AIG, the main manipulator in the silver market became Bear Stearns.On March 17, 2008, the day Bear Stearns collapsed, silver hit its highest price since 1980 -- $21. Founded in 1923, Bear Stearns is the fifth largest investment bank on Wall Street in the United States and one of the major securities trading companies in the United States. On March 15, 2008, this large investment bank with a history of 85 years, which experienced the Great Depression in the 1930s and many economic ups and downs in the United States, suddenly announced a serious cash shortage.On the same day, the Federal Reserve and JPMorgan Chase jointly provided emergency financial assistance to Bear Stearns.People only know that Bear Stearns was acquired because of serious losses in the US sub-prime mortgage crisis and was on the verge of bankruptcy, but few people know that it is also the largest silver short seller in the US commodity futures market, and was forced to almost The point where you are forced to close your position. On March 14, 2008, the price of silver rose from $17 an ounce to nearly $21 after rising for nearly a month.Bear Stearns had no money to cover up its positions, and this was probably another important reason why it suddenly announced a severe cash shortage.Seeing that they are about to be forced to close their positions, this will not only make them lose all their short silver funds, but also cause the price of silver to get out of control immediately, triggering a sharp rise in gold prices and a sharp fall in the dollar.Seeing that the situation is not good, the Federal Reserve provides emergency rescue.Bear Stearns received a 28-day loan from the Federal Reserve through JPMorgan Chase, but the risk of the loan was borne by the Federal Reserve.It's also the first time the Fed has lent in this way since the Great Depression of the 1930s.Despite receiving short-term loans, Bear Stearns was still powerless and could not escape the end of complete destruction. On March 16, 2008, after the Federal Reserve made an emergency move and agreed to "underwrite" a $30 billion loan to support JPMorgan Chase, JPMorgan Chase immediately announced the acquisition of Bear Stearns, saving a serious silver price crisis.

After JPMorgan Chase acquired Bear Stearns, it immediately started a new round of brutal suppression of silver prices in accordance with the established policy of international bankers to suppress silver prices.Beginning on March 18, the day after JPMorgan took over from Bear Stearns, silver prices began to plummet.By March 20, in just three days, the price of silver plummeted from $21 per ounce to $17.5 per ounce, and all the gains in silver prices for a month were lost.Since then, JP Morgan Chase and HSBC have joined forces to continue hunting down silver. By August 2008, the two held a total of 85% of the net short position in silver. The silver market fell all the way under the joint attack of these two banks. After breaking through $13, from the end of October to the beginning of December, it fell to around $9 an ounce, returning to the price level in 2006.

All of this naturally cannot escape the eyes of Butler, an expert in silver market analysis.Why did banks increase their short silver positions substantially?Butler questioned the Commodity Futures Trading Commission and members of Congress many times, and finally, he got the explanation that JPMorgan Chase took over Bear Stearns.Prior to this, Butler and all silver investors had never been able to figure out who was the biggest short seller in the silver market, because the futures trading report did not disclose the identities of the participating traders.Butler's market analysis report has always been described in an unnamed way. Until then, Butler suddenly realized that Bear Stearns and JPMorgan Chase were the culprits in suppressing the price of silver.Butler revealed this inside story, which caused a strong reaction from the market and aroused the public indignation of the majority of silver investors.This led to the US Commodity Futures Trading Commission's investigation of JPMorgan Chase, and then many investors filed lawsuits against JPMorgan Chase and HSBC for illegally manipulating the silver market.

Under increasing pressure from investors, in September 2010, JPMorgan Chase announced that in order to meet the requirements of the new US financial regulatory bill "Dodd-Frank Wall Street Reform and Consumer Protection Act", it would stop its proprietary business. Lay off about 20 commodity futures traders in London, whose trading varieties include silver. As a result, the silver market heard the news, and the price immediately broke through 21 US dollars, breaking the record set by Bear Stearns on March 17, 2008 when Bear Stearns collapsed. high point. Since 1980, the two record highs in silver prices have been related to the major manipulators in the silver market getting into big trouble. Is history really full of interesting coincidences?

It is worth noting that many of the big moves in the silver market are being made from London, as is the case with AIG, as is JPMorgan Chase, mainly to avoid trouble with US regulators. The manipulation of silver prices is well-known to people as the case of the Hunter brothers hoarding silver in the 1970s in the United States, which failed miserably in the end.Through this case, textbooks have repeatedly taught people that market regulation is effective, and the manipulation of the futures market has ended forever. If anyone wants to manipulate the price of silver, the Hunter brothers are a lesson from the past.

In fact, manipulating the price of silver is not limited to hoarding the price of silver, but also includes the price suppression effect of large-scale "naked short selling" of silver.For the latter, the US futures trading administration has not seriously investigated it before.In other words, state officials can set fire, but ordinary people cannot light lamps.It is reasonable to be short silver, but you must be investigated if you are long silver! As in the case of gold, the pricing power of the world silver market is always in the hands of the Wall Street-London axis.The New York futures trading market is responsible for the pricing of "paper silver", while the London Bullion Market Association (LBMA) determines the pricing of "physical silver". With the cooperation of both parties, the price of silver has always looked ashamed in the face of inflation.In this way, the so-called monetary properties of silver seem like a joke. The most common metals can effectively deal with inflation. Silver does not even have this ability, so how can it talk about monetary properties?Silver has been thoroughly demonized as an ordinary industrial metal.Note that industrial metals and base metals are almost synonymous in people's minds. This is why ordinary people feel inexplicable when they first hear about silver investment!International bankers cleverly created long-term weakness in silver prices, and made full use of this psychological effect to conceal the monetary nature of silver, thus making the dollar system a bigger and more exciting gamble. It is not easy to effectively suppress the price of silver for decades. The economic law that the relationship between supply and demand determines the price is like Newton's three laws of physics, which is an unshakable iron law.Industrial demand is a certainty, and it is difficult to have room for manipulation, so the only way to suppress the price of silver is to artificially increase the supply to solve the problem.Lowering the price of silver can effectively curb the investment demand of silver, and the currency attribute of silver is in a world economy environment facing increasing inflation. The potential investment demand that will be stimulated is the focus of the future supply and demand of silver.If the supply of physical silver is insufficient, as long as an astonishing supply of "paper silver" is created, the ideal effect of "oversupply" of silver can also be achieved.And the Wall Street-London axis manipulates the price of silver along this line of thought.