James Turk Explains Silver-Fix Manipulation
by Jeff Nielson, Bullion Bulls:
When I first started out doing my own online trading, and began “networking” on the bulletin boards, one of the people with whom I corresponded was a grizzled, old trader, who was moving towards retirement. And he gave me one particular piece of advice which has stuck with me all the years since. “Follow the smart people.”
This may not seem like particularly sagacious advice, as it seems to merely state the obvious. But it’s when you think about what is implied (and re-write the sentence slightly) where it acquires its value.
“Follow only the smart people.”
It’s the “smart people” from whom we do our learning, and thus we will learn a lot more if we invest our reading time wisely, and follow only those from whom we can learn significant amounts. And one of the “smart people” from whom I learn is James Turk.
As I’ve remarked before; Mr. Turk is one of the sharpest minds (the sharpest mind?) in this sector. If you want to get the “definitive word” on a particular subject, ask James Turk. In this case; Turk enlightens us about the precise reason for the “anomalous” deviation in the silver fix, on one day last week.
In the interview below, James Turk notes that the day this “anomaly” occurred was options expiry day in the silver market, and the settlement of those contracts is based upon the silver fix. Thus, as Turk explains, by setting the silver fix at a price which was obviously below what the commodity was trading at, the bankers SWINDLED all traders with options contract at a price above the (artificially depressed) silver fix.
Turk identified, in particular, one large trader who was swindled by this obvious fraud: a giant silver mining company in Poland, one of the largest silver mines in the world:
The Polkowice-Sieroszowice mine located in the Legnica-Glogów Copper Belt of Poland is the second biggest silver mine in the world. The copper-silver mine, which is owned and operated by state-owned mining enterprise KGHM, produced more than 14Moz of silver in 2012. The proven and probable silver reserves of the mine were estimated at 545Moz as of December 2011.
Polkowice-Sieroszowice is an underground mining operation that uses blasting to extract ore from the Polkowice, Sieroszowice and Radwanice deposits. Extracted ore is processed at the Polkowice-Sieroszowice mining plant which has been in operation since 1996. The mine’s total contained silver reserves stand at 775Moz, including its share of reserves in the Deep Glogów deposit located adjacent to it. KGHM plans to mine 50% of the Deep Glogów deposit through the Polkowice-Sieroszowice operation.
www.mining-technology.com/features/featu…-mines-in-the-world/
Normally I only discuss the fraud regarding silver prices from a Big Picture standpoint: the permanent, long-term suppression of the silver price, at a ridiculously tiny fraction of its actual value (in our diluted paper currencies). But here we get an excellent illustration of the shorter term frauds which this crime syndicate perpetrates, simply because it has the capacity to manipulate the market at will — and no one will (seriously) prosecute the Criminals.
