Gold And Silver Prices Did Not Rise on The Back of The Coronavirus Threat

The comments below are an edited and abridged synopsis of an article by Malamalama

There has been much misinformation regarding why gold and silver have spiked recently, and the media wants to know how long it can last. Asking this is conflating correlation and causation, a mistake frequently made by the media.

Gold And Silver Prices Did Not Rise on The Back of The Coronavirus Threat | BullionBuzz
Gold and silver coins in close up isolated on light gray background.

Gold and silver were heading for a significant price spike. The fact that they rose during growing concerns about the spread of coronavirus does not make it the primary reason why gold and silver prices have indeed spiked.

The US stock market bubble has been building since the last global financial crisis in 2008, so we cannot say that the rapidity of market drops over the last few trading days have been a surprise. This was bound to happen, coronavirus or not, and if it did so while fears of coronavirus were elevated, the media would scapegoat coronavirus for the world’s  economic problems, created by central bank monetary policies for the duration of the last decade.

Both precious metal prices have pulled back from their highs, as expected at month end, as the pro-US dollar, anti-gold banking cartel pushes them back at month-end options and futures expiration dates. It was curious, however, that there was no mention, by the media or online, of the CME raising margins on gold and silver futures.

There was nothing reported on the decision to increase gold and silver futures margin levels, even though they undoubtedly contributed to margin calls and some of the downward selling pressure on gold and silver in recent days. Gold and silver margins were still at the lower levels on January 13, 2020, and then raised to the higher levels by February 25, 2020. The exact details of this gold and silver margin hike should be available online and also at the CME’s website but, instead, opacity, not transparency, seems to be the norm when it comes to precious metal markets.

Because the CME raised margins on silver futures five times, by a massive 68% in just nine trading days, in 2011 to collapse silver prices during a raging silver bull that carried silver prices to $50, we have to be wary of the CME utilizing this tool again.

When gold and silver continue their upward march, it will not be predicated upon coronavirus fears, but continuing central bank destruction of fiat currencies’ purchasing power globally. And if any further precipitous drop in gold and silver occurs, check to see if the CME has raised margins on gold and silver futures.

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