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, 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 in 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 precious metals. Until that day, enjoy the ride, ignore the noise and as always, keep stacking.