Activism & The True Price Of Precious Metals
Indications of manipulation abound within the markets for precious metals. Although commentators have identified these issues for decades, a growing trend on social media is spreading this message to the masses. As people begin to awake to the reality of precious metals price manipulation and the corruption of fiat currency, we are left asking: what are the real values of gold and silver?
“Gold is money. Everything else is credit.” — J.P. Morgan
To address the price discrepancies of physical metals, we must look to the other side of the equation. Precious metals are valued in US dollars, which due to their fiat nature present a number of serious problems. Fiat currencies are not backed by any physical commodity and carry rates of interest. The Federal Reserve is a privately owned entity, born into existence through secrecy and owns the monopoly rights to print US dollars. This sole ownership over the printing of the world’s reserve currency gives the Federal Reserve unjustified influence over people. For a fascinating account of the birth of the Federal Reserve, we highly recommend reading G. Edward Griffin’s excellent book The Creature From Jekyll Island, or watch the author discussing it here.
The US national debt is now over $27.9 trillion and rising rapidly. It is estimated that 22% of the circulating US dollars were printed during 2020. Basic economic theory tells us that when you increase the quantity of fiat currency in circulation beyond the rate of market growth, inflation is generated. As usual with the global financial system, these statistics leave us with more questions than answers. Who is this enormous debt owed to? Why are official US inflation rates at 1.4% and not reflecting the increase in fiat money supply?
As we’ve identified, valuing real assets in terms of fiat currency presents significant problems. However, the precious metals markets are also openly acknowledged to be corruptly manipulated. Last year JP Morgan Chase agreed to pay a record fine of almost $1 billion to “resolve market manipulation investigations by U.S. authorities”. Prosecutors believed its precious metals desk “operated as an illicit enterprise within the bank for almost a decade”. There are myriad examples of this type of illegal behaviour. Also last year, the Bank of Nova Scotia agreed to pay $127.4 million to settle allegations they engaged in spoofing gold and silver futures contracts while making false statements to the government.
In these examples, banks illegally manipulate the markets for their benefit, yet they are allowed to pay fines, admit no wrongdoing and bankers are not sent to prison as a deterrent to future crimes. No reasonable explanation can be deduced other than collusion between banks and government, allowing banks to illegally manipulate markets. If this is so, fines are the government’s share of the profits from these deplorable actions, with the banks viewing them as just a cost of doing business.
We understand that precious metals are valued in fiat currency and the markets are heavily manipulated, so what could the real value of gold and silver be? Dr Stephen Leeb estimates that silver will rise to at least $200 an ounce, and gold will end up around $20,000. Although it’s impossible to make accurate predictions, these prices could be realistic. Not only do gold and silver have intrinsic medical and industrial uses, but they also represent a hedge against the madness of fiat currencies and infinite quantitative easing policies. Perhaps this is why there has been a concerted effort to depress the prices for precious metals.
This artificial depression could be an attempt to purchase physical stocks of precious metals to back a new form of central banking currency, such as CBDCs. It could also be an attempt to keep inflation rates artificially low, disguising the real impacts of quantitative easing policies.
Thanks to the dissemination of information possible through social media, the wider public is waking up to these issues. The recent #silversqueeze movement is an example of public activism within the markets. Increasing numbers of people are aware of the fiat currency problem and market manipulations. There is a palpable sense of anger which could be a catalyst for further activism.
The public may demand retribution for the crimes our governments seem unable to prosecute. Although the banks are powerful, collective actions by individual investors could be mounted to enact change. This is a very important time in the history of global markets.
At MetalStream, we are hopeful that changes in the ways markets operate will utilize public blockchains to restrict future manipulation. Our MSGLD tokens represent 1 gram of LBMA physical gold on the Ethereum blockchain, and if we can achieve this then governments and banks could too. As public activism within the market impacts how gold and silver are valued, we will be advocating for increasing implementation of public blockchains to build fairer markets.
MetalStream is the issuer of the innovative gold-backed MSGLD token. Please visit our website for more information, and contact firstname.lastname@example.org for enquiries related to the purchase of tokens.