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moneymetals

Ed Steer: When JP Morgan Decides to Stop Shorting Silver, Prices Will Shock You

Well now, without further delay, let’s get right to this week’s exclusive interview.

Ed steer

Mike Gleason: It is my privilege now to welcome in Ed Steer of Ed Steer's Gold and Silver Digest. Ed has covered the precious metals markets for going on two decades now, having written for Casey Research prior to his latest project, and is also a director at GATA, the Gold Anti-Trust Action Committee, where he and his colleagues work to expose the manipulation in the gold and silver markets.

Ed, it's a pleasure to have you back on, and thanks for the time today.

Ed Steer: And thanks for having me on.

Mike Gleason: Well, Ed, let's start off by getting your assessment on the gold and silver markets here. Prices fell below some key technical support levels recently but have found some support and have rallied slightly in the past few days, and I should note we're talking here during after-hours trading on Wednesday. But these are trying times for metals investors, Ed, so what are you expecting from the markets in the months ahead?

Ed Steer: Well, there's no question these are trying time, especially this last take down since the middle of June. Everybody knows that the precious metals have been basically in the dumpster for the last five or six or eight or ten years, and this final kick in the pants, the down side, has just demoralized everyone.

What I think it is, in the technical support lines or whatever they are, is based on technical analysis, and what's going on basically is what Ted Butler has pointed out, is that this is JP Morgan and the commercial traders taking the managed money traders on another financial ride for fun profit and price management purposes.

When this is pretty much done to the down side, and it appears that we're done now, Mike, it really looks like the low is in or if not very close to it. Once that is done there is nothing left but blue sky and hopefully that JP Morgan Chase, which has been the big short seller of last resort, they don't step into the next rally and we’re going to be away to the races in pretty short order.

Mike Gleason: We aren't too sure why speculators are still willing to enter the gold and silver futures markets given the evidence that they are likely to be cheated. We know that bullion banks, like JP Morgan, have a nice set of tools for fleecing clients and controlling prices, chat rooms for coordinating attacks, high frequency trading set-ups designed to front run trades, the ability to sell essentially unlimited quantities of paper silver to sop up any amount of demand. What we don't see is serious effort to provide honest alternatives. It seems like there would be good demand for an exchange that does a better job of guaranteeing fair treatment. Miners, who are harmed the most by any price suppression that may exist, have legitimate hedging needs and it seems like they would be thrilled to have an alternative, but we aren't aware of any serious movement towards creating something better. Are you and why have we been stuck with such a flawed and fraudulent system of price discovery for the metals for so long?

Check out the full podcast here.

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