In just 90 minutes, $1.7 trillion has disappeared from the market cap of gold and silver❗. Note that the number is not billions, but trillions. Such a scenario has never been seen before in history.
This is probably one of the most terrifying examples of modern financial engineering. At first glance, you may think this is panic selling, but if you analyze the charts and volumes, you will understand that this game is completely rigged or rigged. In the financial world, it is called paper dumping. That is, there is no movement in the pricing of physical assets (gold, silver) on the Shanghai Exchange in China, but a huge pricing gap has been created in the New York Paper Market Comex Futures. What else is called manipulation in the derivatives market.
The real game is this mismatch between paper vs. physical gold or silver. Which you can understand by looking at the pricing chart in the picture. In the current market, an average of more than 100 ounces of paper contracts or futures are traded against every 1 ounce of physical asset. Bullion banks or large institutional players take advantage of this leverage and flood the market without physical gold. Whenever they see that the liquidity in the market is low (such as during the #US closing or Asian opening session), they place huge sell orders or spoofing orders.
Their main goal is to make retail traders hit their stop-losses, which is called liquidity hunting. When algorithmic trading bots see that the price has dropped below a critical level, an automatic sell is triggered and creates a cascading effect or chain reaction. The result is that trillions of dollars of valuation disappear in the blink of an eye. But in reality, there has been no change in the supply or demand for physical #GOLD .
Bankers do this manipulation mainly for two reasons. First, to take profits from short positions and take cheap re-entry. Second, to artificially suppress or suppress the price of the asset to cover up the weakness of the currency or dollar. This incident has proven once again that if you hold paper assets, then you are actually living at the mercy of the bankers' algorithms. This means that retail traders will no longer have the courage to blindly trust even traditional safe haven assets.
