For some reason(s), the companies that mine precious metals have been strangely silent on the topic of gold and silver manipulation.
To many of us, the lack of interest displayed by mining executives on a topic that literally affects their companies’ bottom lines – and perhaps even their ability to remain in business – is both bizarre and frustrating in the extreme.

Why won’t the miners fight back against gold and silver manipulation? 

Submitted by Bill Rice, Jr.:

By now I must have written  scores of columns on gold and silver price suppression. Many of these columns have posited on events that might change these anti-free market tactics.

What I haven’t written about, however, is the group that is most adversely affected by the price suppression and, arguably, could do the most to change the status quo.
For some reason(s), the companies that mine precious metals have been strangely silent on the topic. To many of us, the lack of interest displayed by mining executives on a topic that literally affects their companies’ bottom lines – and perhaps even their ability to remain in business – is both bizarre and frustrating in the extreme.
If there is a meeker or more passive group of “leaders” in a commercial industry than those found in the precious metals sector, I’m not aware of it.
In the couple of years I’ve been buying silver coins and acquiring stocks in silver mining companies, the silver price has fallen more than 60 percent (from nearly $50/ounce to $19.35/ounce today).
Maybe somebody can help me out here but I can’t think of any other commodity, product or service that has plummeted by this percentage in the span of less than 36 months.
In fact, the price of just about everything (except precious metals) has been soaring. That is, inflation (correctly reported) is sky-rocketing – except for the commodities that common sense says will also rise during conspicuous periods of rising prices.
 But real deflation exists (alone?) in the precious metals sector. This despite the fact that “demand” for gold and silver have risen at rates above available supply.
I just read an article that showed a graph of investment demand for silver over the past several years.
In the year 2013, demand for investment silver (as measured by actual sales) was almost five  times higher than in 2007. Industrial demand was about the same but overall demand (sales) was up significantly.
Normally, when a product’s price plummets like the price of silver has you expect to see either much greater supply (which hasn’t materialized) or demand for this product falling off a cliff. Instead, demand for physical silver, as far as I can tell, has never been higher.
So supply and demand realities do not seem to explain a plunging price, especially when you remember that the prices of just about everything else have been rapidly rising (including the costs of getting ore out of the ground).
The conclusion many of us make from these observations is that something is amiss in the precious metals “markets.”
When supply and demand don’t matter and when your own costs to produce a product don’t matter, you might be operating in a rigged market.
If such a scenario was impacting the bottom line of, say, ranchers or oil producers or farmers or pharmaceutical companies would the “movers and shakers” in these sectors effectively shrug their shoulders and take it?
I don’t think so, but for all intents and purposes this has been the indifferent attitude displayed by mining company honchos.
Three scenarios …
Apparently, this collective group has concluded that either: A) The price is NOT rigged and the markets are working just as they should; or B) any conceivable protest or actions they may take would not succeed in changing the status quo;  or C) Pro-active actions might even be counter-productive.
If their conclusions are best summarized by  A (no market rigging at work here), I don’t know what to say except to perhaps ask one question:
Why, sirs, did you opt to go into a business where you can have robust demand for your product and yet its price continues to plummet? With all due respect, I can only conclude that you went into the wrong business.
All your  geological expertise, logistical headaches, financing efforts, efforts to scale environmental hurdles, human resource recruitment efforts, the countless man hours of planning and exertion, your years of commitment, sweat, effort and strain, etc. have been for nil.
The “real” market for your product is trumped by a “paper market” whose only goal seems to be to keep the price of your product as low as possible.
To some of us, the fact you deliver a product the world (and the cause of freedom) needs at (soon to be) cost or below cost is beyond strange. Apparently  you accept the “rules” and agree that these rules are being administered fairly.
I might add that your acceptance of  your circumstances is no doubt appreciated by central bankers and their too-big-to-fail mega bank agents.
It’s also possible mining company executives believe that prices are indeed rigged (or might be rigged), but have concluded that fighting this is not worth the effort and/or would do no good.
I disagree and, in fact, have created a list of responses  mining executives COULD implement if they so desired (see next column for list).
Another possibility might be that mining executives think any aggressive response could somehow backfire and thus would be counter-productive.
What, I ask myself, could be the thought process here? Is it: “If we respond as an industry, we are going to somehow be punished – either in the court of public opinion or by the ‘manipulators’ directly?”
If this is the case, such an attitude wreaks of the pitiful mind frame of a bullied child.
“Yes, I’m being assaulted on a regular basis, but things would be even worse if I stood up for myself.”
Perhaps  the mind frame is that “standing up for one’s self” would come across as “whining” in the court of public opinion.
Maybe it will. To which I say: So  what? What do you have to lose?
Include me in the group who believes that price suppression is a permanent, perpetual strategy – TPTB’s answer to the nation’s No. 1 “national security risk.” As such, it won’t stop unless someone (or some events) stops it.
To date, The press corps, the “regulators” or a bulldog member of Congress have done nothing to expose this price suppression. If none of the above have acted  to date, we can  almost be certain they won’t  act in the future.
Which leaves a series of “black swan events” or the miners themselves to fight for themselves.
What’s the great fear?
Surely it’s becoming clear to at least some mining executives that if they continue to do and say nothing, they will be forced out of business.
Prices of silver and gold are not going to be “allowed” to rise. For the manipulators, the risk of “letting” prices rise a little is that they might rise a lot. Prices then are not only “capped” they are seemingly driven ever lower even at (or especially at) those moments when an impartial observer would expect them to rise.
Sentiment, once killed, must be buried deeper and deeper lest it rise from the dead.
Again, what’s the fear? If you fight back with a massive, multi-pronged PR campaign, the “bad guys” will get really pissed and “teach you a real lesson?”
Is the fear that your mining company might be able to “hang on” at today’s $19.35/ounce silver price, but if you somehow stuck your neck out and  “fought back,” TPTB might knock prices down to, what? $16, $12?
No, I believe there is a limit of how low the silver price can be pushed. My guess is that we are approaching this price right now.
Those who argue that miners would be just fine selling their product for the historical “mean” price, must not look at quarterly revenue reports of miners. They are also not the people who have to buy diesel fuel daily by tanker loads, maintain heavy equipment or pay a living wage to the engineers and laborers who perform complex and potentially dangerous work.
The goal, I believe, is to keep silver prices as low as possible without killing an entire industry (which would be counter-productive to those who want to cap the price).
After all, what would happen to the price of silver if no company (or just a handful) was left producing silver?
In other words, silver miners (and gold miners) should have nothing to fear from trying to expose the players and mechanisms that are suppressing the price of their product.
The “risk” is that you would “fight back” by any and every means available to you and your efforts would…. do absolutely no good.
In which case, your business will either barely hang on or continue to die a slow death. By “acting,” the worst that could happen is that you’d be right where you are now. Doing nothing preserves the status quo, which is perpetual life support for miners, nirvana for “fiat bugs.”
The potential “reward” is that your efforts would be successful and the tactics that have suppressed PM prices would end.
Your business, its shareholders and employees would be much better off. So too would the world if much of its population learned a vital lesson about “real money” vs. paper money.
My guess is that the executives of the mining companies are acutely aware that the price of their product is being capped via the rigged buying and selling of paper contracts.
The miners are gambling (praying/hoping) that this manipulation will somehow end on its own without them having to take any action.
For some reason, taking action – standing up to those who are trying to kill your business – is repugnant to them.
Apparently, they’d just rather go broke and let all of their shareholders go down with them.
Which is both bizarre and repugnant to those of us who grew up believing it’s okay to fight back when someone is attacking you. Or if a travesty of justice is being committed, it’s okay to point this out.
“To fight back or not to fight.” This  no doubt the question that is being privately debated in corporate headquarters of precious metal miners.
 So far, we know the answer.  The industry’s tombstone is probably being chiseled even today.
“They chose not to fight.”
Their children must be so proud.
***

 

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  1. C) Pro-active actions might even be counter-productive.

    They cant or wont tell the banks to shove it

    because they have put themselves in the position of HAVING to borrow money to stay in business & they best STFU or they wont be able to borrow the funds.

    If one looks at what the mining company officers take home you will see all these folks are very well off compared to the GDP.

     
    “They chose not to fight.”
    Their children must be so proud.

    I dont think they care as long as they can make the money they make. Millions upon millions

  2. Some miners, and Barrick in particular, were deeply involved and complicit in the criminal activity in keeping gold prices suppressed for a long time. They have long been part of the problem,  so expecting them to do anything positive is pointless. It is all well documented over at GATA’s website if anyone cares to look into the facts of the matter on this subject. I would also imagine other miners are passive because they depend on these fraud ridden and corrupt banks to lend them money to operate and finance exploration projects. You “can’t bite the hand that feeds you” must be their motto. It’s a sad, pathetic and twisted scenario and one reason many people have abandoned buying and holding these stocks.

    • I think that about sums it up…clearly these principals/boards of these companies have utterly failed in their fiduciary responsibilities to their shareholders. They are part of the game.

    • I think the answer is that the mining industry ( read that as the mining execs ) is being paid regardless of what the price is.  The most simple answer is usually the correct one.

  3. Mining Boards and Execs would be thrown in jail if they conspired to raise the prices of the products they sell.  It’s the law.  However, when banksters conspire to suppress the price of precious metals, and raise the price of the products they sell (bonds with lower interest rates) they are acting in the interest of National Security. The banksters will not be convicted of crimes by the regulators they own, fund, employ, bribe, blackmail and / or threaten with murder.

    Could miners bypass banks as a means of raising needed funds, and go directly to non-bank buyers of their products for funding? Could something like CrowdFunding help?

    What happens to a single miner who tries to sell his product for a higher price? No buyers.

    The only solution I see is starve the parasites. Stop using legal tender.

    In the medical world, how to you rid your body of an unwanted parasite? This usually involves a parasite-specific poison which does not harm the host.

    Alternative currencies. Electronic (for convenience and reach) and physical (for security).

    Please feel free to respond with a better idea.

     

  4. “…What, I ask myself, could be the thought process here? Is it: “If we respond as an industry, we are going to somehow be punished – either in the court of public opinion or by the ‘manipulators’ directly?””

     

    There may another side or two to this issue…

     

    Ask yourselves why so many on Wall Street keep touting the government line about the state of the economy and that the recovery is just around the corner?  These guys have nice little businesses going and they are still making good money on fees, commissions and so on… they appear as a successive stream of bobbleheads on CNBC, Bloomberg News, et al, touting that things will get better…  and, for them, as long as they tout the ‘party line’ and ‘get the memos’ they continue to prosper.

     

    If you remember, a couple of years ago, Eric Sprott sent out a communication to all the silver miners wherein he explained the market situation and shared his belief that the markets were manipulated.  He suggested that the miners could, collectively, perhaps alter this situation dramatically if they were simply to withhold a portion of their production from the market and, in essence, carry it as a cash equivalent on their balance sheets.  His idea was that the miners could thus reduce the available supply of silver coming to market and squeeze the manipulation scheme a bit.

     

    His invitation was received by the industry with, at best, a tepid response.

     

    The story goes that, a few days after this communication went out to the miners, a few of them got phone calls from persons or entities unnamed who suggested that this reduction in deliveries might not be good for their company’s health… the story went that these companies might experience difficulties with such things as permits… extensions and approvals for new ones…  that a new disclosure might turn up historical artifacts or endangered species that were being affected by their mining operations.  That some malfeasance might be asserted in their handling of finances…

    @Bay

     

    Add to this, their financing arrangements with the very bullion bankers suppressing them might experience hiccups… after all, many of these bullion banker people have finagled their ways onto the Boards of many of these miners, ostensibly to keep an eye on them…  Bad news leaking out that would lead to massive equity hits via stock selling and so on…  the government’s protection racketeers could strike in any number of ways…  we always say how small the market cap of the silver market is… that a billionaire could come in, demand physical delivery and break the cartel’s back….   well, the cartel is a bunch of billionaire orgs that could short even the biggest miner into oblivion with nary a hiccup along with their control of the media, who knows what lies they could spin???

     

    The message:  Be good little doggies and we’ll keep your food bowls full and we won’t bomb you back into the stone age…

     

    No surprise here… corporate blackmail by banker Powers That Be has a long and nasty record of creating havoc with those people and firms that don’t play along with the gameplan.  These guys can even make Sovereign nations like Germany shut up about their missing gold, kill dictators who dare try to sell their oil in non-dollar currencies…  and create extinction level events in Nuclear Power plants in countries that dare try to chart their own path in opposition to institutional corruption and tyranny… their ability to reach across national boudaries around the world and ‘touch’ someone is legendary.

     

    @Bay of Pigs

    “…Some miners, and Barrick in particular, were deeply involved and complicit in the criminal activity in keeping gold prices suppressed for a long time.”

    No kidding…  For years, when Peter Munk was running Barrick, they dug next to nothing out of the ground.  Instead, they were created as a cover to feed the Yamashita gold haul from WWII back into the markets and into the Black-Ops military-industrial complex.  Indeed, they ARE part of the problem and continue to be even today…

     

    The silver miners are hopelessly outgunned here.

     

  5. We live in a pathetic world in which money is God. The Pilgrims, Jesuits, Fed and this parasite and that equate their worth with digital Ponzi nothing. If the parasites digital nothing was backed by silver everything they own would drop 98%, especially their egos. The fight to save humanity and the planet is the fight to free silver from the clutches of the most uncaring sociopathic evil parasites in the history of the Universes. Parasites have murdered at least a hundred million people through their manipulated Wars in the last hundred years and that does not include the people parasites’ murder with test tube diseases like AIDS. Almost every miner I’ve investigated their management and  Board of Directors own a tiny ownership position, like 1%. Miners have a very difficult job extracting metals without screwing up the environment. A company I follow has been sued twice by owners of the company, Wall Street parasites looking to make more money suing the company than helping the stock increase in value. My vision of these vultures are immature greedy children crawling around on the floors of expensive high rise office building sucking up pennies with their noses. It would not surprise me one bit if the world learned the Rothschilds, Jesuits and Wall Street parasites destroyed the planet Mars and then hitched a ride here and are playing their Mars sick games here now. If you were a higher form of life on another planet would you allow the planet Earth survive with the class of parasite losers who run the planet Earth? No way. Why is miner management a pack of cowards? What else can they be? If miner management  lifted one courageous finger to stop silver price fixing down parasites would line up to see who gets to be first to cut it off. I recently had a walk down business memory lane and now see clearly an abuser owner’s karma: every penny he worked hard for stolen by the people he loved and trusted most. He died an amazingly horrible death. Fed parasites are a hundred times more abusive and worse than this guy. It is a scientific fact Karma will get bad guys (parasites) in this life or another.

  6. I previously posted this but believe it depends on what level the manipulation has gone to suppress prices.  Sure there’s the short selling using massive paper derivatives but what if the FED or its allies have purchased large blocks of all major mining companies stock?  Once again, if you can print money out of thin air what’s $500 billion to buy up large shares of all the majors.  Then once you have a large amount of shares such as 3% or 5% ownership it allows significant influence to control the Board of Directors and even the CEO’s of the company.  Once you have this type of control of the majors it would explain everything and why they don’t fight back but instead continue to produce gold and silver at a break-even or loss.

  7. The only miner that  I know of doing anything about this is First Majestic and all they do is keep a little to sell directly to the public at retail prices, i.e. they have been at $23 per oz for their generic rounds/bars for months so I m pretty sure they are not selling much (if any)…

    Get ready for the shock and awe coming tonight!  Friday’s before a long weekend are usually FUGLY in the PM markets and high rolling in the stock markets.

  8. After two decades of reading the reports of manipulation of the markets I still have this knee jerk, gut reaction for seeing heads on posts. Of course this is a non-starter for most but, imagine, if you will, the impact that such a sight would have upon those in control…at all levels.

    With a DOJ that refuses to act upon obviously odious debt shoved down the throats of Americans in the name of security for only the bankers, it’s pretty clear that crime runs the game, and us cash cows are always squeezed into paying the bills.

    Heads on posts.

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