Silver Chartbook – Silver, Lies Have Short Legs

Market manipulation is as old as the market itself. From arbitrage to front running, from pump and dump to cornering the market.
But every imbalance will be closed at some point in time, and every front runner gets front-run by faster competition himself, eventually. In the case of Silver and its exposure to spoofing practices of various market participants, the principle is the same. The truth will prevail. Silver, Lies have short legs.

Now, how do these men in charge manipulate the markets precisely? Our findings show that one can see almost infinite creativity to manipulate the investor. You hear endless stories about the use of Silver in green energies. The fact is that we have only 2% of battery-used vehicles in place in the auto industry. Only 5% of green energy based on solar panels using Silver is at present opposing 95% of traditional energy production. So we are talking about long-term projections that are already reflected in the current price speculation.

When it comes to industrial use, numbers are more transparent. Still, few see the cycle push back. As soon as silver prices rise, the industry walks away from intense Silver usage. Rather it economizes or uses alternative ways to produce their merchandise. Here we have a near self-regulative counter mechanism from the influences of investor-driven price spikes kept Silver mostly range-bound.

What is recently often spoken about is spoofing.

While it is true that this method of price speculation, a way where laddering prices and volume distribution manipulate order presentation into the depth of bid and ask, can drive prices artificially, this way of market manipulation is affecting markets only short-term. Meaning you might have found yourself in the less liquid times of the day feeling awkward trading since the bid-ask spread behavior is uncommon. And yes, this can affect stop levels and cause difficulties for order execution.

Nevertheless, the significant picture, the long-term picture of monthly and annual charts, is nearly unaffected. These manipulation techniques merely aim to get investor psychology out of balance. Lies have short legs meaning they run themselves out. No one can manipulate a market as deep as the Silver market over extended time frames to the extent that the wealth distribution we are talking about and where your purchase of physical Silver can make the difference of ending up with hyper-inflated currency near worthless or an early stance right now accumulation commodity value that is sustainable for the long term both on the preserving of wealth and creation of wealth.

Accept the presence of these short-term lies and liars. Walk steadfastly through this commotion undisturbed with one’s psyche to follow one’s plan. Accumulate repeatedly small amounts of Silver on market dips.

Silver in US-Dollar, Daily Chart, Silver, Taking Profits:

Silver in US-Dollar, daily chart as of April 29th, 2021.

Silver in US-Dollar, daily chart as of April 29th, 2021.

The daily chart clearly shows that despite many efforts of trying to keep Silver prices low, Silver has advanced twelve percent – a substantial move within four weeks.

This warranted us to take partial profits on the overall exposure we created within these weeks (see our last week’s chartbook release for more details). While we see prices continue to rise within the upward green channel, our approach is a conservative one, and with the possibility to retrace to US$25, it seems prudent to take some profits off the table. All our entries and exits are posted in real time on our free Telegram channel.

Silver in US-Dollar, Weekly Chart, Always be prepared:

Silver in US-Dollar, weekly chart as of April 29th, 2021.

Silver in US-Dollar, weekly chart as of April 29th, 2021.

A different view from a larger time frame shows that there is a possibility that prices might retrace as far as US$25. We are less focused on what prices might be doing in their highest likelihood. Instead, we take on the extra work to be prepared for any eventuality. This to never find ourselves being surprised by the market. Having a plan for any eventuality allows us to follow price along, and if a price or time picture matches our prepared plans, we execute.

We identified the slightly higher probability of prices to advance immediately since we overcame a distribution zone marked with a dark green horizontal line, which now serves as support.

Nevertheless, US$25 works like a magnet from what we coined the “beauty principle” and, as such, would be an excellent opportunity for reentry should the market decline to a supply zone of US$24.75 to US$25.27 (see turquoise circle).

Silver in US-Dollar, Daily Chart, Silver, Lies have short legs:

Silver in US-Dollar, weekly chart as of April 29th, 2021. b

Silver in US-Dollar, weekly chart as of April 29th, 2021. b

Looking at the weekly chart above, we find prices trading above the point of control (POC) in yellow at US$24.21. This is the core volume node from a volume transaction perspective. Coupled with the harmonious advance and retracement percentage patterns, we find the larger picture bullish and intact. Unharmed of any manipulation tactics that could deter the longer-term picture.

In professions where the complex language for relatively simple procedures is used to make these procedures nearly impossible to be transparent, these rules are created to extract participants’ money. While in typical law interpretations, the motive has limited application for sentencing in the regulative markets, the motive is the distinguishing factor of right or wrong. This fact alone should tell one that small investors have the short end in this game. Accepting the realities of being the underdog versus trying to fight it and taking the game and its rules for what it is and still developing systems and edges to come out as a consistent winner is more effective than complaint about injustices. There is always a way… lies have short legs, and the truth will always beat those who only marginally and temporarily get the upper hand briefly at best.

Silver, Lies have short legs:

The market game is rigged. Which one isn’t? But you can learn the rules and beat them at their own game. The market isn’t the casino where the rules make certain you lose.

It is possible to be a consistent winner. You can still find your niche in the market. Yes, you have to improve your performance. And your have to stack your odds even more, but you can certainly be on the up and up. Do not be discouraged but instead inspired by the hurdles the market holds for you in-store, and there are plenty. This sport isn’t for the faint-hearted, but the rewards compensate for the hardships more than enough.

Disclaimer: All published information represents the opinion and analysis of Mr Florian Grummes & his partners, based on data available to him, at the time of writing. Mr. Grummes’s ...

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