The NSA scandal may sober gold and silver investors

June 24, 2013 09:46 AM

The breaking of the latest National Security Agency scandal practically guarantees there will be no justice for silver and gold investors from the Commodity Futures Trading Commission (CFTC).

Most likely, precious metal investors will eventually receive yet another disappointing denial from the CFTC that manipulation exists in the silver market, when the concentrated positions and massive dealing size of the major players strongly suggest otherwise.

If it is ever discovered that there is no legal precedent to support a case against these increasingly brazen market manipulators, then it will simply be more evidence that the U.S. justice system is hopelessly splintered into generally favoring the wealthy over those less fortunate.

Breakdown of Institutional Trust

Even larger than the progressively probable future U.S. dollar crisis, is the even greater institutional crisis of confidence that is spreading hand in hand. 

This confidence erosion is being compounded as the dollar’s forceful dominance as the world's reserve currency is gradually being chipped away at by its economic and political foes, including China, Russia and Iran.

Such growing distrust in the dollar’s traditional reserve currency status seems the ultimate threat to confidence in paper currency. Ultimately this should lead to a currency collapse, which is always traumatic and political in nature. 

The price of traditional monetary metals like silver and gold should then rise to fill the gap in confidence.

Silver, Gold, LIBOR, Forex, Equities, Bonds, Fed Funds Rate

The manipulation of money seems even more egregious than a breach in privacy like that recently committed by the NSA.

Basically, without a fair and civil value transmission process in the precious metals market, the great majority of investors are being ultimately robbed of an asset more precious than silver, gold or diamonds. They are deprived of their valuable time that was spent earning the money they are investing.

Conspiracy Fact vs. Conspiracy Theory

The NSA whistleblower scandal reveals two supporting facts for the view that nothing will be done for the sake of the great majority by stopping manipulation in the precious metals market.

The first troubling sign was the treatment of the NSA whistleblower.  He is already determined by the press to be guilty of treason long before formal justice could be served.

The mainstream media seems to be pushing the perspective on the public that this crime is either harmless or somehow a worthy patriotic sacrifice. People are being manipulated into rationalizing the NSA’s troubling privacy intrusion away.

The Virtually Inevitable Return to Value

The precious metals remain the greatest threat to the entire paper and electronic monetary system, with its trillions in liabilities and nearly a quadrillion in derivatives based on that intrinsically worthless currency system.

If precious metal prices were to surge, or all of sudden multiple claims came in at once with a massive short covering and industrial user panic, then the ensuing scandal would spread far and wide, perhaps threatening confidence in the entire monetary system.

Silver and gold prices will eventually return to their true value — if nothing more than simply a counterweight to the abusive proliferation of debt based fiat currency. Nevertheless, to expect the authorities — who were once capable but now captured — to act to protect investors against the manipulators sadly seems to be bordering on the naive.

About the Author

Jeffrey Lewis has been an advocate for silver purchasing for the past six years. He writes regularly about it at