Metals and Manipulation

Hard-working folks have been shouting “foul” for years.  If you haven’t heard them, here’s the short story – gold and silver markets are manipulated.  From the LIBOR scandal to the Gold Anti-Trust Action Committee’s irrefutable evidence and successes (GATA) to JP Morgan’s silver manipulation, the internet’s seams are bursting with all you’ll ever want to know about efforts, documentable actions, and active schemes to manipulate (mostly to suppress) the prices of gold and silver.  The question remains, though, do these plots work?

         Does market manipulation work? 

“Right,” you might think, “If it didn’t no one would bother with it.” 

         I’ll never forget my mother’s famous line when she caught me in some mischief as a child – “Your sins will be shouted from the rooftop,” she’d say.   There are some big market players that desperately needed to meet my mom.  They needed her wisdom, her ability to peek into the future.  They need the reins her foresight bequeathed.  After all, what is market manipulation?

         Simply it is an effort at control.  Control the markets and you guarantee profits, right?  But is market manipulation actual control? 

         Before wading in further, we must state that we greatly respect those who have worked – for years – to shine light on the evil machinations of those players manipulating metals markets, but – and this is a big but – there’s a distinct difference between manipulation and actual control.  Often, they’re used synonymously, but they aren’t the same thing.  Manipulation is actually just a shadowy effort at control. 

For many reasons, we want to control the physical world.  Maybe it makes us feel safe, or calm, or maybe it keeps us in power and makes us richer than Richie Rich.  The only problem is that control, itself, is still a façade – a lie.  An immutable truth remains – we do not – and cannot – control this world.  When we try to gain, or maintain control, we just live out silly, sad dramas, trying to play the God we can never be. 

         And when you squirm around in the shadows, playing at playing G0d, eventually everyone finds out.  Eventually the market finds out.  And when it does, watch out!  It’s going to react much more violently than if it had been left to its own devices, and – and – you might have to go to jail.

Not that they will, but we suggest it’s time the manipulators get off their high horse.  Eventually – “Their sins will be shouted from the rooftop”.  Maybe that looks like a full-page ad in the Wall Street Journal or just a slap on the wrist from a toothless Congressional Committee.  Regardless, all you need to know is that prices can be manipulated for a short while, but they cannot – and will not – be controlled.

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