COPPER vs SILVER MANIPULATION: The Tale Of Two Metals

While it’s true that the entire financial system is rigged today, some markets are manipulated more than others.  This is certainly true for the precious metals… particularly SILVER.  This metal is the whipping boy of the Fed and Cartel Bullion Banks.  Most would believe it’s impossible to manipulate a metal for decades… it isn’t.

Especially, when the overwhelming majority of the public’s funds have been funneled away from commodities or physical assets and siphoned into the biggest Ponzi Scheme in history.  You see, the manipulation isn’t just HAMMERING the paper price of silver during the slimmest trading periods of the day… that’s just a small part of it.

The largest area of manipulation is in the WHOLESALE PACKAGING OF LIES* by the Fed,  Cartel Banks and MSM stating that paper assets such as 401k’s, Retirement-Insurance Funds, Stocks, U.S. Treasuries are wealth, when in fact they are huge liabilities. (* term coined by James Howard Kunstler).

If the public realized they had invested in the biggest ponzi scheme in history, there would be a stampede out of paper assets and into anything tangible.  This would create a SHOCK-WAVE around the world as fiat currencies would implode and the value of commodities and physical assets would skyrocket.

Getting back to the metals, if we look at the two charts below, we can see just how much more of a beating silver has taken compared to copper:

Copper Chart

Silver Chart

Copper hit a peak of around $3.90 in March 2012, a decline into the summer months and then another peak in October getting ready for the Fed’s QE3.  However, After the majority of QE3 monetary liquidity was siphoned into that BLACK HOLE of the Wall Street Stock & Bond Markets via the Fed’s most favorite Banks, copper missed all the fun as it was hit hard, declining 22% to a low of $3.04 today.

Poor Copper….

Well, if you think copper was hit hard, let’s look at silver.  Silver went from an average high of $35.50 in March 2012 to a staggering low of $17.50 today. 

A whopping 51% DECLINE….

If you thought the primary miners were losing money at $19-$20… how bad is the hemorrhaging at $17?

As you can imagine, I get a handful of readers who send me emails stating that silver is a garbage metal and it’s only worth a lousy $10 bucks because that is the average CASH COST of the primary silver miners.  If I had a Silver Dollar for every time I came across that nonsense…. I could retire.

The world has been BAMBOOZLED to believe in a FAIRY TALE, a DELUSION, and a PONZI SCHEME that will all end badly.  The real value is found by holding investments that store wealth.  Paper assets today are mostly future liabilities with a BIG SUCKER stamped across each one.

For the price of silver to fall 51% compared to copper’s 22%… SOMETHING FISHY THIS WAY BLOWS.

Why?  Because silver suffered a 103 million oz structural deficit last year, while Copper still had plenty of warehouse stocks in reserve.  So, the world continues to consumes its remaining cheap above ground silver stocks as if there was no tomorrow.

At some point, the LIGHT will go off and the world will wake up to the fact that GOLD & SILVER are stores of value and not stupid pieces of metal regurgitated by the NITWITS on the financial media.

Unfortunately, there won’t be much silver to go around at this point…. and there LIES THE RUB.

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28 Comments on "COPPER vs SILVER MANIPULATION: The Tale Of Two Metals"

  1. It’s difficult to know what’s going to happen over the next 30-40 yrs but I do believe there will be certain sectors and specific companies that will get through these upcoming changes we face as a planet and perhaps even benefit from these changes.. One thing is for sure the massive imbalance in the system regarding paper assets vs tangible assets will have to come back into balance I’m not sure what should be or look like but it will happen in my life time

    • My dear Sir, you are so off point I pity you (in a good way!).
      Please, do allow me to help:
      in the next 20-40 years the ONLY thing that will concern us will be our own survival…literally!
      None of the stuff you wrote in your comment. None!
      We have crossed the Rubicon economically, politically, socially and most importantly energetically and ecologically!
      -The “die has been cast”
      What you see is the height of our civilization…it is ALL downhill from here…and accelerating fast.
      Hedge accordingly and most importantly: Pray! We will all need it sooner than you/we think.
      Be well,

      Petro

      P.S.: Steve, thank you much for the great charts and research that you so generously post every week. Your time is greatly appreciated.

  2. treacherous time of year here, runs from autumn equinox (tonight 10:30 PM ET) right thru into november, which month end is .91 thru year.

    most paniques & crashes & bank busts happen in this time period:
    1605 NOV5 Guy Fawkes–remember, remember…
    1635 sept: dutch tulipomania really took off , parabolic into FEB/1637, but especially final month when bulbs went up 12X.
    1717.73 newton report to HM puts england unofficially on gold standard;
    1779.85: US Congress devalues continental 38.5:1–into May/1781, it then loses most of the remainder to its hyperinflation end;
    1841.75: 2nd Bank of USA goes BK, at fierce worldwide depression low from 1837 panic, wherein chicago land prices dropped 98%;
    1869.73: black friday grant’s panic sept 24;
    1873.72: sat sep20 panic/crash jay cooke bank & clews bust;
    1903.80: panic, bank busts;
    1907.80: JPM contrived panic to force final phase of bringing in FED;
    1914.866: NOV 14 First day of opns FED, & first new FED notes not US Treasury;
    1979.77: oct6 volcker desperation surprise raises rate 200 bps over weekend to “save” dollar;
    1987.80: oct19/1987 w/w crash= ALL paper crashed;
    2008.71: sep 15 lehman bk;
    2011.68: sep5 swiss peg the franc to euro to contain appreciation;

    meanwhile, Cheer up!
    the beatings & BOHICAs will continue until strong support is reached likely near zero, or until someone posts proof pictures of the first (but not the last) “guru/expert/illuminary” seen in the sporting/outdoors section of a hardware store, picking out a tent so’s he can pitch it under an overpass somewhere to live in it.

  3. How old are you?? I’m 70.

  4. Short-term gold and silver price trends will not hinder the major development direction. Most investors care about how much money they can make from the stock, derivatives or Forex market in the short-run. And there are numerous books or articles for you to read. However, if you wish to properly keep the profits you make from those markets, it involves a life-long planning. Then, you need to have a better understanding about gold and silver because they are assets having significant and decisive influence
    to our future currency system. The purpose of this website is to help the readers know what gold and silver really are by explaining the “profound things” in a simple way.

    I have learnt a lot from this website and thank you very much. I am 55-year-old Chinese who was born in Hong Kong and received Western education during the British colonial rule. I have only come to realize three years ago that I have been so ignorant and brain-washed my whole life.

    PS: I have difficulty even persuading my wife who has been brain-washed by the mainstream media in Hong Kong. MSM in Hong Kong are mainly pro-west because most of the news we watch and read are translated from the Western media and press. She has profited from the property appreciation and stock market rally, but she hates the idea of putting the profits into gold and silver because she deeply believes that silver will go down to 10 dollars and gold 850 dollars.

    • David Chan,

      Thanks for sharing your story and being open. I share your frustration about family believing BAU – Business As Usual will continue forever.

      The most asked question is on HOW LONG CAN THE MANIPULATION CONTINUE?? There are many answers, but in my opinion the PEAK & DECLINE of cheap oil is the DEFAULT TRIGGER that blows it wide open if we don’t have one of the dozen BLACK SWANS currently flying around, do us in first.

      So, yes… some SUDDEN EVENT could unravel the system and force investors to move into safer physical assets such as GOLD & SILVER. But, if that doesn’t occur, then the Peak and Decline of global oil production, the drop of Net Oil Exports and the falling EROI will SLIT the THROAT of the Greatest Paper Ponzi Scheme in History.

      steve

  5. Another commodity besides copper, along with gold and silver, (which are having their prices manipulated) to lend support to the US dollar. That commodity is petroleum. Oil. Since almost all oil trading is based upon the petrodollar. The powers that be must protect the US dollar at all costs.

    Anything of tangible value that can be substituted for dollars, as a store of value, will be controlled. Compare the PowerShares DB Commodity Index Fund (ticker:DBC) with the SPX S&P 500 Large Cap Index. It tells you where the flow of funds are being directed. Check the link for charts.

    http://www.goldsqueeze.com/technical-analysis/commodities-decouple-not-confirming-world-recovery

    I’m afraid that the global commodities sector is just beginning to suffer a meltdown. This has been forecasted by many bloggers (of whom Steve is one) just before the SHOCK WAVE of what Steve’s article is about occurs. How low will the sector go? Stay tuned.

    • “I’m afraid that the global commodities sector is just beginning to suffer a meltdown.”

      Yes quite possible. However gold and silver in particular have already been exceptionally hammered. Key support levels even in the paper markets are going to be pushing back against lower “futures prices”, like on the Comex.

      These prices will produce profound shortages. Silver isn’t as popular as gold as an investment, hedge, or store of value. But making up for that is industrial demand.

      It will be interesting when physical shortage results in an inability to deliver on a paper contract to an entity that can’t be “persuaded” to take cash [like a foreign interest not under control of the fed….China comes to mind], or key The Silver Users Association members can’t get what they want on schedule.

  6. Amazing:
    Harvey Organ reports open interest on comex silver is up 2988 to176501 contacts, Shanghai still in backwardation and as I read from judejin comment Shanghai silverstocks also down again.

    Things are getting very interesting now.

    GermanReader

  7. Shanghai Futures Exchange silver inventory dropped another 7.9% in Monday’s action (from 94.335 tonnes, down 7.427 tonnes to 86.908 tonnes). I was expecting a big withdrawal on last Friday’s smackdown, but they actually had a smallish deposit. Hopefully, they will suck this well dry soon so we can start to see some real price discovery in action.

  8. Steve,
    This might be somewhat conspiritorial, but , what if the powers that be are fully aware of peak everything and are manipulating the price of key commodities to below cost of production in order to keep it in the ground until after “the event”.
    Your thoughts?

    • craig moodie,

      Interesting theory, and likely possible. However, I believe a percentage of the ELITE do realize Peak Oil is here and are actually managing the values of commodities lower for two reasons:

      1) In order to keep inflation down, while propping up the Broader Stock and Bond Markets.. the same playbook given to the Fed.

      2) To keep investors pouring their money in the Greatest Ponzi Scheme in History, so the FACADE continues. We must remember, the PUBLIC can’t be spooked on their paper investments or they will SMELL A RAT and liquidate when BIG TROUBLE comes. Without the continued INFLOWS of funds from the POOR SLOBS into the PAPER PONZI… the PAYOUT collapses and well as the entire system.

      steve

    • The BRICS are jumping off the trainwreck as we speak, to keep those commodities for THEMselves.

  9. Steve,

    I do not understand why silver could not be at 50% lower than cash costs : in the end of the nineties, I guess we were lower than cash costs and it took several years to recover.

    Moreover, they still have SLV to get cheap metal if there is a deficit like they are doing with GLD.

    I do not say that a physical shortgage can last decades but a couple of years I think so.

    I still believe that 15, 12 or even 10 dollars is a real possibility.

    • RD,

      Anything is possible in the short-term. However, your $10,$12 or $15, is not 50% lower than CASH COSTS, that is the cash costs. According GFMS, the primary silver miners CASH COSTS on average was $9.27 an ounce. So, as you can see all your low-price silver figures are actually ABOVE the average cash cost of the primary silver miners group.

      BUT…. Cash Costs are not REFLECTIVE of the profitability of a company. All they do is show how LOW a particular COST METRIC is once BY-PRODUCT CREDITS are removed.

      For example, Hecla stated a cash cost of $5.34 during Q2 2014. Unfortunately, they suffered a $821,000 adjusted income loss during the period. This is at an average realized silver price of $19.62. Sure, they could cut a bit more and become a littler leaner, but we must remember, Hecla had $76 million in by-product credits (including gold revenue from their primary gold mine) compared to the $117 million in total Revenue.

      Thus, Hecla’s silver revenue was only $41 million, or 35% of their mix while by-product credits and their gold revenue accounted for 65%. If we just go by Hecla’s Lucky Friday and Green Creeks silver mines by-product credits, it was $57 million of the total $96 million from the two mines. Thus the silver revenue from these two primary silver mines was only 40%, while by-product credits were 60%.

      By DEDUCTING that 60% of by-product credits from Hecla’s Lucky Friday and Green Creeks mine costs, Hecla was able to show a LOW CASH COST of $5.43.

      BUT… THEY NEED THAT BY-PRODUCT REVENUE to FORTIFTY THEIR BALANCE SHEET. Do you understand? Which is why CASH COSTS are bogus. If the price of silver hit $10, then Hecla would have to SHUT DOWN as they are already losing money at $19.62

      Lastly, sure… the industry could SUCK the silver inventories of the world for a while… BUT WHAT AFTER THAT??

      Peak oil will do more to destroy the VALUATIONS of most paper assets above and beyond anything the ELITE can do to continue manipulating PAPER PRICES. So, in the end… silver supply and demand forces won’t matter when there is SO LITTLE to go around as the $100’s of Trillions in worthless paper assets implode.

      steve

      • Thank you very much for your explanation and in fact it looks in the same way I think.

        In order to decrease silver production, it would need lots of miners going bankrupt : otherwise they will not decrease their production even at 10 cents when more than 20 would be required for them to make a paltry profit.

        We are years away from peak oil because of shale oil which has given us a few more years.

        So, the banksters can make silver below 10 dollars for several years to come : it’s just up to them in my opinion…

        • RD,

          I highly doubt it. If silver goes down that low, so will everything else… copper, lead and etc. That means, you shut down the majority of the MINING INDUSTRY.

          steve

          • Steve,

            I haven’t seen anything that convinces me that industrial purchases of silver for products is down this year, at least not worldwide.

            I haven’t seen anything that convinces me investor purchasing of physical silver, whether individuals or any other entities, is down.

            Have you?

            It is so cheap, and there is so much fiat out there, my guess would be lower prices result in more physical buying. Sure some have thrown in the towel, but overall my guess is more and more physical is being sold.

            Your thoughts?

  10. Herman The German | September 23, 2014 at 7:16 am |

    Jim Willie, GoldenJackass.com nails it totally:

    “The Russia & China bond is growing and will result in a marriage, the consummation being a baby called the Gold Trade Standard.”

    🙂

    • I like very much the Jim Willie’s works but it will take several years, in the meantime, monetary metals will have been hammered quite surely much more than now…

  11. jeani stevenson | September 23, 2014 at 1:04 pm |

    If one wants to look at reason of why silver is down so much more than other commodities, specifically copper, then on could look at this exchange which occurred on 2/29/12.
    https://www.youtube.com/watch?v=H4uL6CSiGrU
    The “seed idea” of people using silver as a store of value could not be allowed to grow!

  12. I know we’ve all heard silver at $50 an ounce or better. Many of us have also lived through a boom and bust cycle or two and then some. For those of us that have, we saw precious metals explode and then crash back to earth. Partially no doubt,…do to the silver manipulation that occurred way back then. I’ve watched my paper stocks over the years do the same and in some cases regain their position.

    I rode out the tech stock crash. But after the 2008 collapse, I realized fully the game is rigged. I saw Maddof as a leach but also as a Patsy. He played the same game as the Fed & the social elite,.. he just got caught with his pants down. IPO’s are not a store of wealth, they are a black hole back door bailout. You buy the hype, feed your money in, and the elites pull the plug and pull out with your hard earned cash. This is then repeated in the next harvest.

    Real money throughout history has always been gold & silver, etc. As the government spends beyond it’s means along comes fiat. But the con only works if everyone buys the illusion. Legal tender by law helps that stick. However,…each mistake is life changing and people are now more awake than ever before. Steal a mans money he worked 40 years for is after all,…. life changing.

    I love silver. I hate stocks and bonds and notes are just a means to an end. But hey, so is toilette paper. I wish my wife could get on the same page, guess myself and the guy from Hong Kong have things in common. Women. What more can I say,…god love them.

    Anyways, fiat money has always come crashing down. The only reason it’s still alive now is it’s a global shell game. Push paper here, plug up a leak. But the cracks in the Ponzi scheme are easy to see at this point. Normally that would cause movement out of paper and into hard assets like gold & silver. So what can the Fed do? Plug the leak, manipulate precious metal. It’s getting tougher and tougher for them to do so and pushing out inflation abroad isn’t going over well.

    We could all be wrong. Maybe the imperial wizard has more tricks. Personally this bust seems different than all the others. The derivatives alone say the house is on fire! My gut has butterflies and I trust my gut. The imperial wizard may indeed have more tricks, but sooner or later the veil will lift on precious metals. It may go up, down, or sideways but eventually it will tick up on the way.

    Don’t get caught up in the game and let it drag you down. In short see this as an opportunity,…..buy precious metals!

    • “Push paper here, plug up a leak. But the cracks in the Ponzi scheme are easy to see at this point.”

      “The imperial wizard may indeed have more tricks, but sooner or later the veil will lift on precious metals…”

      Notice when MSM has a story to run with [ISIS for example] that is almost all one hears. Not that it shouldn’t get some coverage, but there are many problems facing society [many caused by the oligarchy, fed reserve, and the federal government they own] and this is a great way to take people’s minds off of inconvenient facts like massive debt and an unsustainable status quo.

      Keep the sheeple busy with select news, sports, and moronic TV shows so they won’t see reality.

  13. The majority of humans have a positivity bias and that is the reason nothing changes until its too late. We want to believe the good in others but in all reality there is none to be found unless it benefits the one doing the good. Charities for some are a tax relief and makes them look good to others and by doing so trumps more business dollars or gets their name on a building. Politicians doing anything is usually self serving. The list goes on. So why not keep the ponzi alive since it will be replaced by the same self serving specie that we are? I can be certain that whatever replaces this current system will be just as corrupt and crappy as the current one within a few years. It happens over and over, it just depends when you are born as to how high the crap pile is.

    Buy metals for survival, but do not expect any real change to come from owning it.

  14. How should silver raise up?We are going to a worldwide rezession.
    The miner stocks are falling like a stone.Miner stocks are a signifkant pre-indicator for the metal prices.

    Gold and silver need raising up Inflation values.15$ for silver – for me no surprise.

    Greetings from Germany.

  15. Dear All,
    Gold & Silver are bearish from a technical analysis point of view since 2012.
    The trend has never changed since and the downtrend still intact, buying anywhere near those price is catching a falling knife.
    The breakdown of metals are related to the break out of the USD during the August period.
    Euro and Japonese yen show no sign of bullishness, so people buy massively into the USD for now.
    Take a chart make your study, you will see that the up trend is still far

  16. SSHHHHH!!!!!!

    Let people buy physical silver till the well runs dry!
    I will be able to change my name to RICH RICH RICH!!!!!!!!!!!
    It may not happen in my life or my kids? A future generation will benefit greatly, LEGALLY!!!!!!!!!!
    Blessings all! Dennis L. Howard CASAC(RET.)
    Author of “THE SCRIPT-ACURE for ADDICTION” and
    ”THE PASTORS/TEACHERS REFERENCE” for “THE SCRIPT” available at Amazon.com Human resources guide! Saving lives, our first goal!

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