Silver Manipulation 2016 – Make or Break (again)

  • Posted February 29, 2016

Silver Manipulation 2016 seems to be at another make or break point. With the latest gush of commercial short sellers, you can expect a smack down in price. Then again, what if they fail? And how can we make money in the meantime?

Silver Manipulation 2016 – Short Position Spike

The commitment of traders for silver shows that there is a commercial net SHORT position of -73,677 contracts. The net short position has not been that high since the year 2008. It was followed by a 55% DECREASE in silver in 3 months, then followed by a 600% INCREASE in silver the next 2.5 years.

At this point, I don’t expect the same type of move, especially since there has already been a bear market for 5 years. But on a shorter term time frame, every time these shorting spikes show up, silver makes a LOWER LOW. It’s been the game during this whole bear market.

It’s no secret gold and silver are manipulated. GLD and SLV are ETF funds where ‘paper’ gold and silver are speculated and traded upon. However, actual physical gold and silver held within these ETFs, are only a tiny fraction of the amount traded. This allows for JP Morgan, HSBC, Scotiabank, and our bankster friends to put massive pressure on the price, simply by applying downward pressure via short selling.

The minuscule amount of contracts that are actually delivered in physical metal, allow the banksters to short without having to put up the metal. So every time the price of silver begins to rise, the commercial shorts go heavy shorting, thereby halting silver’s rise and bringing it to a lower low. The true value of gold and silver must be suppressed to keep the system afloat.

This charade will likely continue, until it can’t. Meaning, there will come a point where the price is lower than the cost to mine. That would result in a physical shortage as miners cut back on production. OR, the market overtakes the short sellers and the banksters don’t have the opportunity to cover their positions. OR, a geopolitical event forces a run on gold and silver and there won’t be enough available.

Any variation of these scenarios unveils the TRUTH. That paper speculating is NOT indicative of actual physical gold and silver. And the result will be one of the most epic in human history. Every time one of these massive shorting events happen, could be the last time for Silver Manipulation 2016.

In the meantime, can we ride the banksters coat tails during Silver Manipulation 2016? Can we share in their obscene profit when they give us the signal? I believe we can, and I’ll show you how.

 

Profiting on the Silver Manipulation 2016

Silver manipulation 2016 Commitment of Traders

First of all, only do this AFTER you have acquired physical gold and silver. These Silver Manipulation 2016 smack downs give an opportunity to lower the average cost in building your savings of physical metal. Once you have that taken care of, then you can profit on the PAPER manipulation, while taking possesion of the PHYSICAL metal.

A tactic I found that has worked for the last few years is this….

 

1. When the commercial net short position reaches a negative -55,000 contracts…. SHORT SILVER.

2. Once the short position begins to decrease, set your STOP at the high from the previous TWO weeks. (to be a bit more conservative, you can set the stop immediately, even before the shorts start to decrease, you would’ve been stopped out at the orange arrow with this variation)

3. Once you are stopped out, wait for the next build of short positions to over -55,000 contracts, then do it again!
This provides a way to kill some time and make some profit while we laboriously wait for the inevitable next Silver bull.

 

Another way to think of the commercial shorts is by using a truck as an example. Driving up a hill, the increase of shorts would be the pushing down of the gas pedal. But once the truck’s momentum reaches the top of the hill, or the point where pushing the gas pedal is no longer necessary, then you can coast and actually pick up speed going down the hill. With the shorts, the price typically drops once they begin REDUCING the shorts. It means they have reached the equilibrium of where the momentum of their shorting is enough to push the price lower, allowing them to cover their positions into a lower low.

As physical silver holders, we can make some profit until that inevitable time, when the truck drives off the road and crashes before making it to the bottom of the hill.

CAUTION: Always use a stop. while this is intended to lessen the personal blow of each Silver Manipulation 2016 smack down on our physical savings. We can’t be sure which time will be the last.

Let me know how this trade works for you. If you have one of your own, feel free to share it below.

In God’s will

-Travis

disclosure: at the time of this writing, author is long physical silver, long intermediate SLV call options, and long short term SLV put options.

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