Silver Once Again Gets Tossed in the Meat Grinder, Billions of Dollars Wiped Out - Nathan McDonald (3/3/2017)

From the archives of sprott money news

March 3, 2017

Just take a look at the above chart.

I agree, it is a disgusting, nasty image and one that represents a wiping out of roughly $2 billion dollars of value in the silver markets.

What caused it and why did it happen? Many are waking up today scratching their heads and asking themselves these very same questions, as they look at their portfolios and see that their silver holdings have taken a huge hit.

They are valid questions, and for anyone who is a veteran of the bullion markets, then the answer is the same as it always has been. The bullion cartels are the cause and the reasoning is because they can.

This smash and grab has been repeated time and time again, and is used to depress the spirits of the precious metals community and to keep it in "check".

The bullion cartel, who has actively manipulated the price of both gold and silver for decades has once again struck and taken down silver just as it was starting to show strength, knocking out billions of dollars worth of value.

This massacre was clearly deliberate, as no other explanation, besides pure stupidity, can explain it.

At exactly 11:30 ET, just as the European markets closed, someone unloaded $2 billion notional worth of silver bullion onto the paper markets. Over 23,000 silver futures contracts flooded the market and caused the price to crater, thus causing it to fall even further as algorithms kicked in and reacted to the action.

As previously stated, this had to be a deliberate action, as NO ONE, and I repeat NO ONE who wants to actually make a profit off of their silver bullion contracts that they are selling would intentionally choose a time of lessened liquidity to shed a massive amount of ANY paper bullion, or any position for that matter.

This is just another case of silver being "checked" and "put in its place". The financial elites have manipulated the price of precious metals for decades and this just goes to show how broken the paper markets have truly become.

The fact that billions of dollars can so easily be tossed around, despite the fact that this is a finite rare resource, proves the point that the paper markets are bogus and clearly not based in reality.

As more and more people come to this realization, they will turn to the only other viable option - the real, tangible, physical market. The only true and honest way to invest in physical precious metals. Until that day, enjoy the ride, ignore the noise and as always, keep stacking.

Product Upselling Spotlight

Don’t miss a golden opportunity.

Now that you’ve gained a deeper understanding about gold, it’s time to browse our selection of gold bars, coins, or exclusive Sprott Gold wafers.

About Sprott Money

Specializing in the sale of bullion, bullion storage and precious metals registered investments, there’s a reason Sprott Money is called “The Most Trusted Name in Precious Metals”.

Since 2008, our customers have trusted us to provide guidance, education, and superior customer service as we help build their holdings in precious metals—no matter the size of the portfolio. Chairman, Eric Sprott, and President, Larisa Sprott, are proud to head up one of the most well-known and reputable precious metal firms in North America. Learn more about Sprott Money.

Learn More
Headshot of Nathan Mcdonald

About the Author

Nathan McDonald is a libertarian, entrepreneur and precious metals enthusiast. He has always taken a keen interest in free markets and economics since an early age, which naturally led him to become a true believer in precious metals and all that they stand for.

Nathan served eight years in the Royal Canadian Navy as an electronics technician, seeing the true state of the world, before starting his first successful business. He has since gone on to create a number of businesses, all of which are still in operation and growing.

In addition to this, Nathan runs a network of successful precious metals blogs, and a growing newsletter that has attracted readers from all around the world. He is a regular and highlighted writer for the highly respected Sprott Money Blog, which covers world events, geopolitics and of course precious metals.

*The author is not affiliated with, endorsed or sponsored by Sprott Money Ltd. The views and opinions expressed in this material are those of the author or guest speaker, are subject to change and may not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the accuracy, completeness, timeliness and reliability of the information or any results from its use.


François Xavier Bachman
March 3, 2017 at 3:49 PM
It is common knowledge that beside the Bank for Internat. Settlement (BIS), Basle in concert with some or all Central Banks are manipulating the precious metals market from time to time . Always on the downside. These institutions have orders from governments and linked fund managers to crash prices whenever growing demand in the markets is producing a bounce in the quotations. The so called paper - deals are now for years the case for dumping and crashing the metals. All the given facts are clearly giving evidence who is behind the price massacres!
Greg Marshal
March 3, 2017 at 8:32 PM
Well put Nathan. Eventually this will all on come crashing down on the manipulators heads and silver will be set free! Sadly, who knows when that will come.
Bob Hoye
March 4, 2017 at 1:05 AM
Can't believe that Sprott is still using supply/demand analysis on any metal. There is no cunning force behind the plunge or as the above comment describes --"massacres". The DX built a bottom as in 2014 and went up, silver went down. Why would anyone expect otherwise?
Mark Ricardson
March 4, 2017 at 3:52 AM
Someone did this? Someone connected to the US government most likely, as the US government is desperate to conceal the fact that every time they print more money ever since the new Chinese reserve trading currency began initial use the Dollar drops like a rock against precious metals. My guess is that same thing will occur again and again until doomsday, which might not be that far down the road either, after the US government starts World War III trying to destroy the BRICS trading bloc and its use of the gold-backed Chinese reserve currency, as otherwise the Dollar will just keep falling every month when more funny money is printed-up.
G Turner
March 4, 2017 at 7:36 AM
Simple Answer....If you are a serious metals buyer, stop buying comex and comex-related etfs--by thru another exchange.