And You Thought the Silver Market was Rigged
Dr. Jeffrey Lewis
We live in a world where the yield-starved and tech-savvy conspire in
the basement of the underground and unaccounted. While the rise of
Bitcoin and the explosion of alternative currencies may become the new
scapegoat of behavioral finance, there is nothing quite like the reality
of trickle down finance gone wrong.
Recently, EU officials called for putting safeguards on Internet currency.
The European Banking Authority called on the EU to develop safeguards
for trading platforms. They were also called to start groups to oversee
each Internet currency to ensure that no individual can manipulate the
integrity of a particular virtual currency scheme and its key
components. In the meantime, banks shouldn’t buy, hold or sell virtual
currencies.
They stated:
“European Union banks should shun virtual currencies such as Bitcoin
until rules to prevent abuses are put in place, according to the Bloc.”
This would be sad if it wasn’t so ironic.
It is also ironic that one of the other excuses for regulation is
that electronic currencies make it harder for regulators to “manage
monetary policy”, which is one of the reasons for using alt currencies
to begin with to avoid the unintended consequences of intervention.
The key point is that media and the financial elite see the central banks as regulators and policy makers.
The 100 year old central banking meme is still very much alive and well.
On the surface, Bitcoin represents many things. To the precious
metals inclined, it is often framed as an alternative or substitute.
But it is better to view the phenomenon and an anonymous currency with market backing.
The Bitcoin trading is well advanced. Not only do dozens of exchanges
exist, but they are also functioning like their mainstream financial
counterparts.
Yes, similar equities and other paper trading vehicles borrowing
Bitcoins is a robust and well entrenched phenomenon. Margin swaps run in
excess of $25 million on a daily basis.
Spin-off currencies are an even more dramatic spectacle. Well in
excess of 200 individual currencies, these “software code-backed”
instruments are born on an almost weekly basis. Coders, the exchanges,
and a handful of insiders collude on the rise and inevitable fall of
these new alternative currencies. New crypto currency launches come
equipped with the most advanced automated social media marketing
tactics.
The tactics used to launch a new currency are an extension of those
pioneered by the penny stock ‘pump and dump’ phenomenon. At least the
penny stocks have some form of backing — and not just code.
Regulation of these markets is a show.
First of all, regulators do not understand alt currencies anymore
than they understand high frequency trading or algorithm. And secondly,
while there is certainly a taboo associated with this, there really
isn’t much money to go after.
In addition, the rate in which these new currencies crash and burn
(and the relatively small size of the pool) results in an odd form of
self or market regulation. Alternative currencies beckon for their own
form of backing.
But speaking of justice and regulation…
Isn’t it ironic that any fuss should be made over these small
markets, when a journey up the chain of modern finance reveals the same
corruption and collusion – only worse?
When you consider that mainstream financial regulators are always one
step from rotating into the banks they are charged with regulating, it
becomes much easier to fathom the astounding degree of corruption.
And there are the precious metals markets.
Regulators, exchanges, and a small handful of advantaged and well
positioned players have access to the greatest ongoing pump and dump
scheme imaginable.
It makes what happens in the alt currencies seem like child’s play –
which is some ways it is when you consider the average age of the
typical coder copying and pasting the next program into the next new
currency.
The great irony will not be lost on precious metals investors. As the
alt currency markets burn themselves out one by one before regulators
have a chance to get close, the fuse has been lit on another (largely)
limitless electronic experiment gone wrong. As the gold and silver pump
and dump becomes recognized for the scam that it is, the desperate
search for wealth will become apparent and too late for most.
Silver-Coin-Investor.com
was created by someone with no professional background in investing. You should not believe anything I say until you understand silver investing yourself.
But here's the deal:
Silver is a monetary and industrial asset available to practically anyone.
It is in short supply, high demand, severely under priced, and way off the radar of the mainstream investment world.
And there is clear, publicly accessible, evidence that the price has been artificially manipulated downward - a trend that cannot and will not last.
If you understand that, then you will probably understand the rest of this site as well. If your job depends on not understanding that, then you won't understand it.
www.silver-coin-investor.com
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