Mike Maloney, author of Guide to Silver Investing? and mentor to Robert Kyosaki, author of Rich Dad, Poor Dad? talks about silver price manipulation in a recent interview by RT news on April 9, 2012
In the interview, Mike Maloney states his belief that the price of gold and silver are being highly manipulated. He states that there is a government admission that there is price manipulation going on. It is the first admission by the U.S. government that prices are in fact being suppressed intentionally. Mike believes that eventually this manipulation will end the prices of gold and silver will eventually go higher.
“All manipulations eventually fail. When you suppress the price on something, it becomes less profitable to produce. This then creates shortages in the market. Then eventually things turn around and the prices will spike” says Mike Maloney.
Why are they manipulating the price of gold and silver lower?
If gold and silver price spike it can cause a global financial crisis. The government does manipulate gold and silver prices through the large banks. Anyone that investigates it will see that the prices of gold and silver are manipulated. This has been investigated and everyone concludes that there is in fact gold and silver price manipulation.
How are they suppressing gold and silver prices?
The world central banks have been leasing gold into the financial markets and the gold and silver is leased at very low rates. This allows the banks to sell gold and silver into the market and this supply into the market pushes the price of gold and silver down. Mike Maloney says that proof of this method was stated by Alan Greenspan. The world central banks stand ready to lease gold in increasing quantities should the price of gold rises? stated Alan Greenspan. This shows that the Federal Reserve is involved in the price manipulation to keep gold prices down.
How does the price manipulation work?
Large trading firms have platforms where they can see all sell stops? on gold and silver futures. These banks all place these sell stops at certain triggers such as support and resistance lines on charts. Because we all think in round numbers in a herd mentality, these sell stops can cause mass selling. These sell stops are placed in quantity and all firms can see where all the other firms place their sell stops as a result, these banks can collude to all sell tons of silver and gold futures in seconds, at the same time. These banks are not really trading silver they are trading IOUs which are futures. They are trading paper silver and can trade tons and tons of silver. All the firm’s sell stops? start a cascading effect of selling basically big banks that have insider information that can manipulate the system
Mike believes the prices of gold and silver are artificially held down to create an illusion to the citizens of the United States that economy is in good standing. Mike states that if the public were to see the price of gold price skyrocket then the population would panic and realize that something is terribly wrong with the economy. If gold prices skyrocket, then that is an indication that the U.S. currency is failing.