Big Money Wants Your Gold & Silver Now! Manipulation Explained

Key Concepts

• Precious Metals Manipulation: The practice of artificially influencing the prices of gold and silver, often by large institutional players.
• Fake Selling Orders: The use of non-genuine sell orders to create the illusion of selling pressure and drive down prices.
• Institutional Players: Large financial entities such as hedge funds, asset managers, and central banks that invest significant capital.
• Investing Pro: A market analysis tool from Investing.com used for tracking portfolios, comparing stocks, and identifying undervalued assets.
• SLV Silver ETF: An exchange-traded fund that tracks the price of silver.
• GDX (Large Minor ETF): An ETF that tracks a basket of large-cap gold and silver mining companies.
• Warren AI Tool: An AI feature within Investing Pro that provides financial advice and price target predictions.
• Scheduled Precious Metals Buying: A strategy of consistently purchasing precious metals at regular intervals, regardless of short-term price fluctuations.
• Paper Money Failure: The concept that fiat currencies are losing their purchasing power over time, making precious metals a more stable store of value.

Triggers of the Massive Gold and Silver Sell-off

On September 17th, around 3:00 PM Beijing time, coinciding with the start of a major Chinese national holiday celebrating the founding of the modern republic, gold and silver prices experienced a significant sell-off. Gold fell by over $70 from its daily high of $3,872 per ounce to below $3,800. Silver dropped from its high of $47.17 per ounce to below $46. This event has raised questions about the reasons behind this sudden decline and its implications for future price movements.

How Manipulations Work and Why They Are Done

The speaker explains that these price drops are often orchestrated by large institutional players who are not yet fully positioned in precious metals. They exploit moments of price breakouts, such as silver confirming a move above $42 per ounce, to create the illusion of selling pressure. This is frequently achieved through "fake selling orders," often with the assistance of large bullion banks. The objective is to drive prices down temporarily, allowing these institutions and their clients to acquire precious metals at more favorable prices before the market corrects.

An analogy is provided: imagine selling a car for $18,000. If someone wants to buy it cheaper, they could post fake ads for the same car at $15,000, making your $18,000 listing appear less attractive. Once you lower your price due to perceived lack of interest, they buy the car at the lower price and then remove their fake ads, allowing the price to return to its original level. This practice has led to fines for banks like JP Morgan.

Evidence of Institutional Entry and Continued Manipulation

The speaker points to evidence of significant institutional interest in precious metals since August 28th. This includes the Saudi Central Bank taking a stake in the SLV silver ETF. Since then, silver has risen by over $7 per ounce, and gold by over $400 per ounce. Mining stocks, tracked by the GDX ETF, have also performed well, up over 23% since the end of August.

Despite this institutional influx, manipulation continues. The speaker highlights the September 17th event as a prime example, where silver was pushed below $42 per ounce after confirming a breakout, only to recover later. This is attributed to institutions still scaling into their positions.

Verifying Institutional Involvement and Portfolio Allocations

To counter the argument that this sell-off might signal institutional players taking profits at a market top, the speaker emphasizes the importance of checking portfolio allocations. Billionaires like Ray Dalio, who publicly advocates for 15% gold exposure, are still significantly underinvested. Using the Investing Pro tool, it's shown that Ray Dalio's portfolio has only 1.4% allocated to gold and 0.2% to gold miner Newmont. This suggests that major institutional players, following leaders like BlackRock, are still in the early stages of increasing their precious metals holdings.

Expected End of the Current Manipulation Cycle and Future Outlook

The speaker anticipates that these large, unnatural daily price smackdowns will continue as institutions build their positions. However, the current manipulation cycle is expected to end no later than Thursday, October 9th, when the Chinese holiday concludes and the Chinese market reopens. This is not seen as the end of the gold and silver bull run, as "paper money is failing." The speaker reiterates that the current situation is analogous to the early stages of the 2003-2006 period, which preceded a significant bull run in metals.

Silver Price Outlook and Pullbacks Above $50

Addressing a viewer question about pullbacks in silver price once it reaches $50 per ounce, the speaker clarifies that a 2008-style 60% pullback is unlikely. This is because the Federal Reserve's role in saving banks has changed the dynamics that contributed to the 2008 metals crash.

The long-term upside target for silver by 2026 remains $60 per ounce, with potential to reach $80 in this cycle. The Warren AI tool from Investing Pro supports this, suggesting a target range of $60-$65 per ounce if silver breaks above its all-time high of $49.82.

While volatility and pullbacks are expected, the speaker cautions against using them as an excuse to delay action. The pullbacks might occur too rapidly to be effectively traded. The speaker emphasizes the importance of scheduled buying, stating that it would be irresponsible not to warn about potential pullbacks but also to not encourage action based on the bullish long-term outlook. The speaker differentiates themselves from "gold and silver salesmen" by providing realistic market views and warnings about downside risk, enabling viewers to make informed decisions and larger purchases during opportune moments.

Sponsor Acknowledgment and Call to Action

The video is made possible by Investing.com and their Investing Pro tool. The speaker strongly recommends the tool for its market analysis capabilities and encourages viewers to use their link in the description and pinned comment for a 15% discount. Clicking the link is also presented as a way to support the channel and potentially lead to more sponsored content. Viewers are encouraged to like the video and comment if they wish to see more midweek content, potentially sponsored by companies like Investing Pro. The speaker concludes by wishing viewers a good day and reminding them to take care of themselves and each other.