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Gregory Mannarino
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I started my financial career working for the securities and trading arm of the now defunct Bear Stearns before thedot-com bubble. I am an active trader of the capital markets. I have published several books pertaining to finance, global economics, and equity trading; My most recent book is... More
My company:
TradersChoice.net
My blog:
MarketReport
My book:
The Politics Of Money. Second Edition.
  • Today Outright Manipulation In The Paper Gold & Silver Markets. Here Is What Occurred. 9 comments
    Sep 2, 2014 5:54 PM

    It seems that large amounts of paper derivative contacts were dumped onto the market today, with regard to SLV and GLD, using "market orders."

    Today's "dumping" action caused the price of these assets to fall over 1.5% each, and it was done on purpose to manipulate the prices lower.

    If you have even a basic understanding of trading, you know that you would never sell anything onto the market using a market order. When a market order is used, it means that the seller in this case is willing to take any price to get rid of or dump his/her shares.

    The right way to place an order to sell, again in the case with GLD or SLV today involving large blocks of shares, is to use a "limit order."

    By using a limit order you would get the best possible price for that which you are selling.

    The only reason why any entity would dump large amounts of shares onto the market is to manipulate the price. Period. In this case, with regard to the paper derivatives of gold and silver, to drive the price lower.

    What we saw here when these large market sell orders were placed was this, a large "gap down" in the price. (See picture below)

    This is the gap down in price with regard to GLD. (Green circle).

    This next chart segment is SLV. (Gap down also in green).

    In the above two chart segments it should be obvious to you what took place.

    I fully expect the manipulation of the paper derivatives regarding GLD and SLV to continue.

    These paper markets are fake, there is no price discovery whatsoever.

    So how do you beat it?

    Simple: take advantage of the drop in price of the actual asset by acquiring as much as you can get your hands on.

    At one point, based upon the manipulation in these markets and exploding global debt, the real value of these physical assets will be realized.

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Comments (9)
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  • Molycorp52
    , contributor
    Comments (12) | Send Message
     
    So do i want to sell my SLV?
    2 Sep, 08:07 PM Reply Like
  • jonseed
    , contributor
    Comment (1) | Send Message
     
    greg,

     

    disclosure: i follow your seekingalpha blog almost everyday, but also regularly watch your youtube channel with anticipation during the trading week. i do appreciate the time you have invested in educating the little guy like me and providing a "traders" perspective on the movements of the day.

     

    with that said... i'm not entirely sure that there are many out there who accept your reason for going to a "paid subscription." the trolls who occasionally post on your channel does not seem like a reasonable reason to make the change - IMHO. i honestly think there are other ways to deal with this nuisance rather than ask your followers for a paid subscription.

     

    i do believe you have established yourself as a "credible authority" of the mkts…. i think you deserve a nominal fee for your insights, but not for the reason you've made public. with all due respect greg, its just disingenuous to blame it on the trolls. as such, i don't think you will be getting my subscription. if you had just asked for it, it think i would be more inclined to try out a subscription for several months, but it appears you may have "stepped in it" with your public announcement.

     

    perhaps you can set up a premium subscription and include trading strategies, picking stocks, etc. …… but i can't understand why not just come out and be straight with us? i think you would have had a lot more people subscribe and support your cause.

     

    i really think you messed up here… you had such a strong following and you are in the top 5 on seekingalpha …. i just don't understand why you would reference the trolls as a justification for subscription? i think you could have had a nice passive income stream if you just asked for a paid subscription!

     

    finally, you've made the prediction that a significant event (perhaps a black swan) may occur in october/novermber … seems like it would be more of a reason to stick around and lead your army in the tough times ahead…. just sayin'

     

    whatever you do, i just want to thank you for all the education you've supplied and great posts you've written.

     

    job well done!
    2 Sep, 10:13 PM Reply Like
  • Amayzingone
    , contributor
    Comments (6) | Send Message
     
    Hmmm. And what is the "real" value of Gold. Just because it costs $1,000/oz to get it out of the ground doesn't mean its worth that much. It just means the cost of production is too high. I think I'd rather take the advice of the most successful investor the world has ever known "Warren Buffet" and avoid Gold all together. Suggest you look up warren's view on Gold. makes a lot of "cents"
    2 Sep, 10:14 PM Reply Like
  • Amayzingone
    , contributor
    Comments (6) | Send Message
     
    I'd rather follow the advice of Warren Buffet and avoid gold all together.
    2 Sep, 10:14 PM Reply Like
  • magnolia rose
    , contributor
    Comment (1) | Send Message
     
    Hi Greg - I have been following your youtube for 2 years now. I have truly had my eyes opened to so much. I am not a trader so will not be joining your paid newsletter. Thank you for being you.
    3 Sep, 04:40 AM Reply Like
  • jimidean
    , contributor
    Comments (133) | Send Message
     
    If you have even a basic understanding of a Calendar, you know that Sept 1, 2014 was a national USA Holiday, the USA markets were closed, hence GLD and SLV did not trade. The price of Gold dropped on Sept. 1 in the world markets and dropped significantly. What l was GLD and SLV suppose to do when it opened on Sept 2? Gap up?
    3 Sep, 08:48 AM Reply Like
  • SickintheHead
    , contributor
    Comments (2) | Send Message
     
    Hey Amazingone,
    if there was no demand for gold at current price then you are right. On the other hand, there is huge demand at current price. So you are wrong based on supply and demand. Educate yourself please.
    3 Sep, 09:34 AM Reply Like
  • devymhally
    , contributor
    Comment (1) | Send Message
     
    Is it possible these slv contracts were simply created much like the dollar, and what we are seeing is inflationary?
    3 Sep, 10:32 PM Reply Like
  • mccort
    , contributor
    Comment (1) | Send Message
     
    Greg, Been listening to you about two years now. I am really
    grateful for your broadcasts. I am the guy that only gets to stack a couple of oz of silver a month sometimes. I am not that
    bad off but other factors prevent me from buying more. A couple or three times a year I can drop $300 or so on it. I found a couple of 1 oz rounds at my LCS for $18 today! Wow one buck
    below spot. But anyway thanks for all you do.
    4 Sep, 04:53 AM Reply Like
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