The price of silver is breaking out. Wednesday it reached the highest price in 21 month after breaking the $18.00 resistance. This is an important confirmation gold can hold above $1,300. Speaking about gold, Brexit showed gold manipulation is nearly over. But first silver. At the end of 2015 the price of silver found a bottom at $13.62. The current level is 35% higher. When we look at 2014 silver’s highest price was $22.18 and it was $32.48 in 2013. Breaking $18.00 means upside to $20.00 and breaking $20.00 means … you’re in haven (when you buy silver now). Silver bottomed after gold and other commodities like oil. This means the commodity bust is over and a new commodity boom is beginning. Gold and silver rose after the surprise vote in England. But they did it at the back of a stronger dollar. That’s what they call confirmation.
The price of gold exploded after the announcement of the Brexit. In a couple of hours the price of gold rose more than $100. That’s unusual. But what’s more unusual is that gold rose from $1,255 to $1,365 and fell back to $1,320 and it stayed there amid all the market fluctuation. There is only one explanation possible: manipulation. You see, all the bullion banks are also trading at the futures market. (you can read more about this here) This means they can create gold contracts out of thin air. And so they did at Brexit day. They created 60,000 new contracts to ‘stabilize’ the price of gold. If only for supply and demand, the price would have been much higher. They manipulated the price of gold lower because they can’t have too much demand for physical gold. Why? Because there isn’t enough gold left. Bullion banks are now net short 180.000 contracts. This means every rise in the gold price by $10 is a loss of $180 million. So you can imagine what a $100 move in a day can do.
The destruction of Bullion Banks
Bullion banks have less and less gold to backstop the paper contracts. In theory they can create endless short contracts to manipulate the gold price. But without physical gold, they lose credibility. When faith is lost, it’s no use to create contracts out of thin air because everything will collapse. So it seems the era of gold price manipulation is ending. Brexit showed how desperate things are. We could see more $100 moves in gold in the near future. Mark O’Byrne at Goldcore is closely-connected on the ground in London. If Mark and his sources are correct, we may be rapidly approaching the demise and destruction of these criminal Bullion Banks and their fraudulent pricing scheme. > Read our Guide to Gold and be prepared!