Monday, February 21, 2011

Turk - Silver Backwardation Now “Unprecedented 73 Cents” We Are Winning

I cannot stress this enough, there is something BIG happening in silver.  On KWN James Turk discusses how silver backwardation is now at a whopping $.73!!!  Investors are willing to pay a premium to get physical silver in their hands today, as opposed to waiting.  The problem is backwardation is a sure sign there are shortages in physical silver, so this backwardation spread will likely increase.  Priced in Euros silver has already taken out all time Hunt Brother highs. 

The positive news is silver investors are on the verge of looking like geniuses.  The negative is I believe the US Dollar and silver are intertwined.  What I mean by this is after silver exploded through key resistance of $31.23 the silver fraud officially ended.  Although we have not seen the massive fireworks yet, the evidence this fraud has ended will soon be noticeable to all. 

The problem moving forward is I believe for every $1 dollar silver moves higher we will see a noticeable weakness in the US Dollar.  I believe silver backwardation will increase not only because there is little physical demand, also because investors do not want  fiat paper.  When silver hits $40 it will be obvious the economy is much worse than what the media wants you to believe.  When silver hits $50 the dollar could be in free fall.  The amazing thing is the public will not get a clue until we hit $50, then more money will flood into this tiny sector sending silver even higher. 

The silver fraud is over.  We won the war against JP Morgan and HSBC, you will realize this when silver hits $50.  GREAT JOB!!  Moving forward we will not see a straight line higher, however we will likely see a disorderly move higher.  Continue to add to you physical position monthly. 

Full Article Here

Sunday, February 20, 2011

Will We See Fireworks Going Into Option Expiration????

With option expiration coming up will we see any fireworks? Typically we see pullbacks in gold and silver going into option expiration, however with the technical breakout last week we may see upward momentum accelerated.  This week will be interesting, particularly for silver.  It feels like silver is moving higher.  With silver at these levels more shorts will likely be forced to cover.

Saturday, February 19, 2011

Silver Bankers May Be Sitting on Big Derivatives Losses and the Fed May Be Funding Them By: Jesse's Café Américain

Jesse's Café Américain had a great article asking important questions concerning bullion banks, specifically JP Morgan and HSBC.  These questions include:

Why do these banks have such massive naked short positions in silver?

If this is legitimate, what is with the secrecy? 

The banks are in big trouble, this silver manipulation fraud is coming to an end.  It does not matter what the banks do at this point, physical demand is to strong.   Here is a quote from Harvey Organ recent post:

"The huge rise in silver price has caught the silver bankers totally offside on the silver banking. The BIS data released in November ( shows that the G 10 bankers have collectively sold forwards and swaps to the tune of 4 billion oz and short naked calls for another 3 billion oz. The total, 7 billion oz represents 10 years of production. If you just do the forwards, then it is 7 years of annual silver production.

Let us say the average cost of acquiring these derivatives and forwards equate to $15.00 for silver. Thus collectively the entire G10 bankers are feeling massive pain (losses) to the tune of:

7 billion oz of silver( 32.30-15.00) = 7 billion x $17.30 = 121.1 billion dollars of losses.
This is in a market of only 14 billion dollars. It begs the question to what economic need was this done.This is still off balance sheet.

If you include only the forwards or swaps (the lending of actual metal to which nothing has come back yet) then the losses are:

4 billion x 17.30 or 69 billion dollars.
Regardless how you look at it, the bankers are in serious trouble with this huge rise in silver prices. I hope you understand the severity of the situation."
There is blood in the water.  Think of JP Morgan and HSBC as a grenade.  Silver is the pin in the grenade.  When you pull the pin the grenade explodes.  Get ready the pin has been pulled.

Full Article Here

COMEX gold, silver margins raised 50%

In another sign of desperation the COMEX has raised gold and silver futures trading margins by 50%.  The COMEX has raised gold and silver trading margins multiple times over the past several months.  The COMEX needs to understand, THEY CANNOT SUPPRESS THE PRICE!!  If you want to suppress the price talk to Helicopter Ben and other central banks around the world about stopping the currency war.  You cannot continue to create fiat paper out of thin air and expect people to believe that fiat paper stores value.  The big secret is central banks will not stop until the whole damn system blows up, they have no other options.

Precious metals are the cannery in the coal mine.  When metals soar, we know there is something seriously wrong in fiat paper.  We are on the verge of seeing something spectacular.  It may very well implode the COMEX in the process.  Buy physical while you still can.

Article here, here

KWN Weekly Metals Wrap

This week was a game changer.  We saw a technical breakout in silver, it feels like silver is going to explode higher, my guess is we will see $37 soon.  We have stressed the importance of following the physical market weekly, here we have the weekly wrap on KWN.  This should be considered a must listen to interview each week.

Listen Here

Friday, February 18, 2011

Silver Squeeze??

There is something big happening here. 

Could This Be The Silver Short Squeeze We Have Been Waiting For?

How long have we been discussing the silver short squeeze?  Yesterday was a very important day that may have solidified the silver short squeeze.  Slicing through $31.23 on high volume may have been the catalyst which will send silver soaring.  If this is the short squeeze we have been patiently waiting for, it will not be a straight line up.  There will be dips and you need to take advantage of dips. 

Silver longs won a major battle yesterday, but we cannot declare victory on the war.  Bullion banks have enormous amounts of capital, and our system is filled with fraud and corruption at every level.  However, there is nothing the bullion banks can do about the demand for physical silver we are seeing.  Campaigns like Keiser's "Buy Silver Crash JP Morgan" have gone viral.  We are seeing large withdrawals from the COMEX, when the COMEX admittedly does not have silver to cover their contractual obligations.The scenario we may see if silver continues to rise, is an implosion of the COMEX sending silver much higher.  We do know there is explosive news on the horizon that according to Keiser "will send people to jail." 

This year is going to be wild.  The people informed will have opportunities, but things are accelerating, you must pay close attention.

Thursday, February 17, 2011

Zerohedge: Silver Hits Highest Price Since March 7, 1980

This is a victory for all of you out there sick and tired of our fiat fraudulent system.  If we close above this $31.23 on high volume the silver fraud is likely over.  Congratulations, continue to accumulate physical.  Cash is trash!!

Article here

Wednesday, February 16, 2011

Turk Interviews Hugo Salinas Price on Silver and the Importance of Sound Money

In this 22 minute video we have two legends in the silver sector discussing the importance of sound money.  Hugo and Turk believe our roller coaster economy can be blamed on our fiat system.  When you have sound money politicians and central banks have a difficult time manipulating the economy, as you cannot create physical silver or gold out of thin air.  This interview is for silver investors who want to hear how top investors in this sector think. 

Interview Here

Tuesday, February 15, 2011

Silver Is Approaching Stage Two of Its Bull Market

As silver continues to move higher, it's getting closer to stage two, according to James Turk.  The precious metal bull market can be broken down into three stages.  Turk believes silver is still in stage one and will not enter stage two until $50.  Here is the breakdown on stage one, two and three.

Stage one
  1. Denial Phase
  2. Only smart money is in the game
  3. The bull market is under the radar.  You will see very little if any media attention
Stage two
  1. Continues to climb a wall of worry. 
  2. The public finally becomes aware of the bull market
  3. Mutual funds are created to invest into the sector
  4. Professionals invest money in the sector, accelerating the bull market
Stage three
  1. Public finally invest in the bull market.  "Dumb money" moves into the sector
  2. Smart money exits
  3. There is a Euphoria phase where everyone feels the sector will go up forever.  Think of the recent real estate bubble.
Moving forward when you think of silver remember these three stages.  If you are paying attention, you will see when we enter stage two and eventually stage three.

Full Turk Article Here

Monday, February 14, 2011

Ted Butler:Silver Soon May Be The Rarest Rare Earth

Rare earth elements have been a hot topic recently.  China recently put export restrictions on these minerals sending prices much higher.  Some of these elements include names such cerium, yrttrium and praseodymium.  These minerals play very important role in our high-tech world. 

Top silver silver market analyst Ted Butler discusses how silver may soon be rarer than what we now consider rare earth metals.  Ted explains many of the rare earth elements are actually abundant in the earth's crust:"What makes them rare is that they are generally not concentrated in ore bodies offering economically feasible extraction."

Butler continues to explain why silver could be considered rarer than rare earth elements.  Here are few of his reasons.

  1. Both silver and rare earths are used in many industrial applications and difficult to substitute because of the chemical properties
  2. Typically both silver and rare earth elements must be used regardless of price.  If these elements sky rocket higher it will not discourage applications, as there is little to substitute the elements.
  3. Unlike rare earths, silver can be held in it's purest element form!!
Try and buy an ounce of yrttrium, not going to happen.  You can own rare earth stocks but you cannot own rare earths in their pure form.  This is the reason that makes silver rarer than rare earths.  When the world realizes the silver shortage is here, silver will skyrocket and you will hold this rare earth mineral in it's purest form. 
Full Article Here

Sunday, February 13, 2011

Silver Backwardation Hits Mainstream

The silver backwardation story is huge and is now mainstream.  Backwardation proves beyond a reasonable doubt that shortages are happening in silver. For the most part this story has only hit blogs and websites who specialize in the silver sector, now Reuters has picked up on this explosive story.

What we are seeing is extremely bullish for physical silver.  Bullion dealer GoldCore said:  "The extent of the backwardation in silver is unprecedented. It suggests that retail investment and industrial demand internationally is very robust and the small silver bullion market cannot cater to the level of demand for refined coin and bar product."

The article goes on to say: "Strong silver coin sales have more than offset outflow from the world's largest silver-backed exchange traded fund iShares Silver Trust (SLV), which notched its biggest one-month drop in its silver holdings in January."

The outflow from the SLV is bullish.  This means large investors are demanding delivery.  We are getting very close to the next leg up and it will be breath taking.

Full Reuters Article Here

Saturday, February 12, 2011

KWN Weekly Metals Wrap

As we continue to move forward in this precious metal bull market, it's important to follow gold and silver weekly.  There is no better place to get a weekly snapshot than KWN Weekly Metals Wrap.  Take twenty minutes a week and listen to this interview.  Here are a few key points.

  1. For every $1 going into gold, $10 is going into silver!!!
  2. The silver backwardation shows the demand for physical silver. 
  3. This silver backwardation which goes out to 2015, shows this is going to be one hell of a bull market.
  4. Chinese government continues to encourage their people to buy gold and silver.  The Chinese understand when fiat currencies collapse they will need a functional economy to continue.  Gold and silver will help China keep a functional economy, potentially using gold and silver as currency.
  5. The silver story is becoming more well known globally.
  6. Silver holds greater upside potential on a percentage basis.
  7. If demand continues to soar we will have a shortage in silver.
  8. Big surge in gold net longs

Full Interview Here

James Turk: Watch the gold/silver ratio

James Turk founder of GoldMoney said the gold/silver ratio is set to break out.  According to Turk this break out will confirm the precious metals bull market and possibly take silver back to the historic ratio. 

At Yourhedge we have discussed the importance of watching the gold/silver ratio.  In a precious metals bull market silver will typically lead the way on a percentage basis.  Last year we had gold/silver ratio of 65, today we have a ratio of 45.39.  This means it takes 45.39 ounces of silver to equal one ounce of gold.  Historically we have seen a ratio around 16.  We are not even close to seeing a top in this precious metals bull market.  Continue to accumulate physical.

Full Article Here

Friday, February 11, 2011

The Silver Bears Are Back.. Part 4

The silver bears are back to discuss what is happening in the physical gold and silver market.  If the bears are correct, we are going to see major fireworks.  If you have not seen parts 1-3 you can find them here

Andrew Maguire Ready to Release Bombshell Information: Max Keiser on AJ Show

Andrew Maguire is set to release bombshell information regarding gold and silver manipulation that according to Max Keiser "will send people to jail." During the interview on The Alex Jones Show, Keiser said this information will be released in the next few weeks.  Jones made a great point, Maguire should release this information now.  It is very dangerous to hold onto information that could take down powerful people and entities.  For those who have followed this story remember after Maguire released the bombshell information at the CFTC hearing, Maguire was ironically involved in a hit and run after the hearing.  We hope Maguire releases this information ASAP.

Monday, February 7, 2011

Banks covering silver shorts fast

Gene Arensberg from The Got Gold Report, discusses the recent trader positions report, for futures in the silver market.  Large commercial traders are reducing their silver short position as silver moves higher.  Commerical traders covering their shorts will be a catalyst propelling prices even higher. 

We have many catalysts in silver showing silver is ready to move higher. 
  1. Shortages
  2. Backwardation
  3. Large commercial traders reducing their short position
  4. Large withdrawals from the COMEX
You can find Arensberg's article "Bullion Banks Get Smaller in Comex Silver Futures" here.

King World News-Expect Massive Chinese Gold Buying Using GLD

Eric King from King World News has been covering massive Asian buying for quite sometime.  According King's London Source, Asian buyers have a new strategy, which is buy massive amounts of ETF GLD, then tender the shares for immediate delivery.  From Kings's source: "So the Chinese have a new method.  They are now planning to buy tremendous amounts of the ETF GLD.  They will then tender the GLD shares for immediate delivery of the gold."

The goal of this strategy is bypassing the COMEX, there is no limit on how much Asians can buy in the GLD.  As you can imagine Asians have a huge desire to convert their fiat holdings into hard assets.  Yourhedge has covered extensively Asians desire to attain physical metal. 

FOFOA had a recent article called "Who Is Draining GLD", we may have our answer.  This should be seen as another catalyst for gold.  Who knows how paper gold will trade over the next several weeks, however this is more evidence we are moving closer to a complete disconnection between paper gold and physical gold.

KWN Article Here

Sunday, February 6, 2011

A Quick Update On Food Prices By The Money And Economics Gazette Blog

Can anyone argue that inflation is here for products we need such as food, energy, health care and education.  Unfortunately we are only scratching the surface.  When you go into an inflationary environment things tend to accelerate quickly.  The Federal Reserve has worked hard devaluing our currency.  Here are a few commodities listed by The Money And Economics Gazette Blog, these percentage gains are for one month!!

We are living on borrowed time.  You must protect yourself and your family from the inevitable destruction of the dollar.  Continue buying physical metal and begin building a food supply.  Think of building your food supply as a form of savings.  If you begin now, you can lock in your food at today's pricing, allowing you to avoid some effects of our future inflationary depression.

Adrian Douglas: Silver breaks its golden shackles

Market Force Analysis publisher Adrian Douglas discusses silver, and how we don't know what the price of silver should because of manipulation. Douglas argues, "Because silver has been suppressed for so long we do not know what its free-market price should be, but we are going to find out soon and I strongly suspect it will be many multiples of the current price."

For those of you who are not familiar with Adrian Douglas, Adrian Douglas is director of GATA who was involved in proving silver is manipulated.  At Yourhedge we have made the same point for months regarding silver.  Unlike palladium or platinum, silver has never traded freely.  It is very difficult to guess how high silver will go when the manipulation ends. 

Yourhedge believes silver will be one of the top investments over the next decade.  At some point this fraud, and many other frauds in our financial system will come to an end.  If I had to guess, we may not see the multiple frauds in our financial system end, until we see our dollar collapse.  When this happens, who knows.  The dollar collapse may be sooner than many think as the Federal Reserve seems to be the only buyer of US Treasuries and the world is making it obvious the dollar global reserve status should end.  When the dollar looses it's global reserve status Americans will be devastated.

Adrian Douglas Article Here

Saturday, February 5, 2011

Silver Shortage and Backwardation

Backwardation continues in silver showing huge potential to the upside.  What is backwardation?  Gene Aresberg from the explains backwardation:
"Backwardation means that the cash or spot price is higher than the futures price for the same commodity.  Backwardation occurs when demand for immediate delivery outstrips the market’s ability to deliver the commodity.  Backwardation occurs when there are too few sellers of the physical commodity to accommodate all of the actual buyers, so a near-premium develops to compensate the sellers willing to part with metal in return for taking delivery later." 

Backwardation goes hand and hand with the recent reports of silver shortages and huge demand for American Eagles according to the US Mint

Along with the backwardation we are seeing hardly any contago in Silver COMEX Futures.  Gene Aresberg explains why little contago is very bullish:

"When there is zero contango, it means that there is not even one futures contract that is higher than the current spot or cash price.  Zero contango and structural backwardation (where each succeeding futures contract is lower for most or the entire strip) is also known as an “inverse carry” market because the futures no longer compensate holders for the cost of carry, capital, storage and insurance relative to the spot price."

The stars are lining up for silver.  Along with shortages, zero contango and backwardation we broke through key resistance of $28.70 this week.  It is very likely silver begins picking up momentum to the upside.  During the next leg up for gold and silver it is likely silver will lead on a percentage basis.  We are starting see the silver lining.

Gene Arsenberg Article Here

Friday, February 4, 2011

Peter Schiff: The Simple Truth About Gold Leverage Programs

In this article Peter Schiff explains the new craze of leveraged gold accounts.  Haven't people learned their lessons about large amounts of "leverage"?  Peter wrote the following explaining how this program works: "the dealer lends you money to buy gold, on the assumption that gold will go up faster than the rate of interest on the loan. In other words, if you call with $5K, they'll give you another $20K in credit to make a $25K total purchase of gold bullion."

If you have the gambler mentality maybe this would interest you, however in my opinion this sounds like a potential disaster.  Here are a few items that make this to risky in my opinion.
  1. You do not take possession of the gold. 
  2. Additional fees such as leasing fees, administration fees, storage fees, eat at your potential profits
  3. If gold corrects you will most likely see a substantial loss and you can expect a "margin call."
  4. You pay a commission on the value of the purchase
We are still in stage two of this gold bull market.  We will see many corrections ahead.  As we get deeper into stage two and then stage three, there will be days where gold may drop $100 - $300 or go up $100-$300.  Like any mania we will also see services like this coming out of the woodwork.  Keep it simple buy physical gold and take possession.  There is no reason to take this type of risk.  As the Fed continues it's dollar devaluation policy and we see hardcore inflation you want to hold physical metal.  As a reminder this is what a mania chart looks like.

As you can see by the ten year gold chart below we are no where near a mania.

Full Article Here

Gold This Decade

Wednesday, February 2, 2011

Scotia Mocatta Sells Out Of All Silver Bars

There is no doubt demand for physical silver bullion is exploding higher.  Our previous article covered US Mint sales shattering all records and now we will take a look at ScotiaMocatta, Canada's largest bullion bank. 

Last week Zerohedge covered  ScotiaMocatta selling out Valcambi 1kg block and January 1st we covered how ScotiaMocatta ran out of some silver bars.  Now Canada's largest bank is sold out of all silver bars!!! Yes all silver bars!!!

Can anyone deny demand for physical is here to stay.  People around the world are sick and tired of Central Banks robbing the middle class and starving others over their currency wars.  Go ahead corrupt banks push that spot price lower, that will give the people opportunity to protect themselves and their families.

As the great Thomas Jefferson said:

“I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.” Thomas Jefferson

How about a Alan Greenspan quote before he sold out to the establishment:

“In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value…The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.  This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard.”  Alan Greenspan, 1966

You have the answer, buy physical and protect what you have, before the corrupt banks destroy everything you have worked for over the years.  KNOWLEDGE IS POWER!!!

FOFOA: Who is draining GLD? Probably giants who want metal

FOFOA had an interesting article on the gold ETF known as GLD. One key topic of the post is the massive liquidation of GLD shares. FOFOA argues the liquidation is very bullish for gold, large investors are likely converting GLD shares into physical gold. FOFOA discusses a quote from Lance Lewis a writer of a financial letter who observed large liquidation of GLD shares correspond with important key support levels that are quickly reversed.

This should not be surprising to anyone.  Many realize the GLD is not gold, only paper gold that can be created out of thin air.  The GLD is yet another scam created by the banks to make people believe they actually have something valuable, in this case gold.  As chaos continues around the world and physical assets disconnect with paper assets having the GLD will do you little good. 

Article Here

Examine the GLD Prospectus Here

Tuesday, February 1, 2011

US Mint Sells Absolute Record 6.4 Million Ounces Of Silver In January

Wow!!  We have been following US Mint silver sales closely this month.  The final January sales for silver have come in at a whopping 6.4 million ounces, destroying all previous records. 

I feel like a broken record trying to explain the bullion banks do themselves no favors by pushing spot prices down, while Central Banks have openly announced currency wars.  You do not need to be a rocket scientist to realize currency wars will create huge inflation in gold, silver, food and oil. 

The Federal Reserve will continue with their easy money policies, there is nothing else they can do.  We understand gold and silver have been manipulated for years, adding fuel to the fire.  Can you say perfect storm? 

Moving forward we will continue seeing a tug of war between  physical and paper markets.  Ultimately the physical market will win and we will see a complete disconnect between paper and physical.  This will be a bull market for the history books.

Gold and silver decline is over, Turk tells King World News

James Turk was interviewed on King World News yesterday.  According to Turk the price decline in gold and silver is over.  The reality is gold and silver will not continue to decline as other commodities skyrocket.  Gold and silver will participate in the commodity explosion. 

Turk said the following: "Given the usual close correlation between the Continuous Commodity Index and global crude oil prices and gold and silver, we can reasonably conclude that the correction in gold and silver is over and that the precious metals are going to start climbing higher."

During precious metal bull markets it's important to use pullbacks as opportunities to add to your position.  Create your monthly budget and buy every month, focus on accumulation.  The currency war will continue to accelerate forcing commodity prices much higher.

Full Article Here

Monday, January 31, 2011

Gold Bar Premiums At 17-Year High In Hong Kong

As the physical gold and silver market continue to tighten we can expect premiums to move much higher in the US and around the world.  Although we have forces like JP Morgan working overtime trying to keep spot prices down utilizing paper, physical demand continues to explode higher. 

Premiums in Hong Kong are at their highest levels since 1994 according to Zerohedge.  As the Middle East and other parts of the world (including the US) continue to show signs of instability people will look for a way to protect their wealth.  As more money flows into physical gold and silver spot prices will move up and premiums will explode higher. 

In other news the People's Bank of China is urging China leaders to buy gold and silver on any dips.  Xia Bin who is an advisor of PBOC said the following "holdings of gold and silver can help establish the yuan as an international currency by increasing China's "final payment capacity."  This piece of advice from Xia comes after is comments from last month where Xia said the PBOC should diversify their $2.7 trillion in foreign reserves and increase gold reserves.  Of course when Xia says "foreign reserves" he means get away from the US Dollar and US Treasuries.

We are living in interesting times.  Protect your wealth!

Article Here

Sunday, January 30, 2011

Silver bars likely to be gone within days, dealer tells King World News

Bill Haynes of CMI Gold and Silver was recently interviewed by King World News.  The topic of discussion the extreme tightness in silver.  The hundred-ounce silver bar which is the most popular for silver investors will likely be out of stock within days.

What we have been discussing for months is becoming reality, we are seeing shortages in physical silver.  As paper prices are pushed down physical demand spikes much higher, nothing has changed on the global debt scene.  It is amazing to watch bullion banks making the same mistake over and over again.  The problem is pushing spot price down with massive naked short positions is the only strategy available for the bullion banks.  Long term the physical market will win this fascinating battle.

Full Article Here

NIA Inflation Update

Here we have an inflation update from NIA.  This clip also has important updates in the physical silver market regardless manipulate paper prices.

Harvey Organ’s Nasty Email to the CFTC

The organizations involved in silver manipulation are working overtime.  We are seeing forces in the open (for those who understand the game) pushing prices down.  Harvey Organ has been working tirelessly to end this fraud.  If you are not aware of who Harvey Organ is please see the clip below of Harvey at the famous CFTC hearing, which proved beyond a reasonable doubt gold and silver are manipulated.

Recently Harvey sent a nasty email to the CFTC and I thought our readers would appreciate the email.  You can see the email addresses of key players at the CFTC, feel free to send them an email voicing your frustration.


Subject: Position limits and elimination of exemptions. Date: 1/20/2011 9:40:56 P.M.

I am rather disappointed that you have allowed the major banking short interests to continue with their fraudulent and manipulative practices in the precious metals. You have allowed another 60 days of massive shorting by the bankers to allow for yet another public input. The public for the past 2 1/2 years have bombarded you with millions of emails with the hope that you will see the light and put position limits on silver and eliminate the phony exemptions. Mr O'Malia was the lone dissenter on your latest vote voicing his concern that the swap books on JPMorgan once opened would be a shock and that the CFTC would not know how to handle the situation. It has been my contention all along that the major short, is in reality the Chinese government who lent their hoard of silver in support of the suppression of gold. It would be difficult to suppress gold while allowing silver to advance in price. The gold was supplied by central authorities. The USA ran out of silver in 2003 and in order to receive most favoured nation status, the Chinese have done a swap with the USA with a date certain to re-swap. It is quite conceivable that the Chinese have asked for their silver back but were refused as global supplies for silver are vanishing.

Yesterday, the USA Mint announced a record 4.6 million oz of silver eagles sold in the first 3 week period of January which is a record. The USA produces 40 million oz from their mines so for the first time, the USA must import silver from the rest of the world to satisfy the mint's requirements.

The comex is witnessing massive movements of silver into and out of registered vaults signifying turmoil as this silver is putting out fires in other jurisdictions. In gold we are witnessing the opposite. How on earth is gold being settled?

What is even more troubling to me is this:

How could you even discuss position limits and the elimination of exemptions without first telling us what happened in July 2008 which caused you to bring in the enforcement division of the CFTC? Mr Chilton has decided to act unilaterally in proclaiming one trader, JPMorgan, with fraud, and from his statement to the press, major class action law suits have been initiated and filed.

It is frustrating to many of us who witness time and time again massive un-backed paper driving the commodity price of silver and gold down like today. I guess the CFTC's motto that the futures market is a price discovery mechanism is out the window. Mr Dunn has stated that he needs more manpower to try and catch manipulation. Yet when a whistle blower is presented to you and this person describes in detail the accounting of how the crime has been committed in the past and how it will happen in the future and yet you refuse to listen to this gentleman.

Mr Sprott of Sprott Asset Management is having a tough time trying to find any physical silver for his silver fund and yet the bankers massive sell huge amounts of paper silver. The SLV also has liquidated massive amounts of "paper silver". The real stuff is difficult to find in quantity.

Sooner or later, this fraud will end and I guess there is going to be a lot of explaining to do.

I urge you to do the right thing and order JPMorgan and friends to stop this massive fraud and manipulation immediately.

Harvey Organ.

Hillary Propaganda Filter

If you understand propaganda, you realize we are seeing propaganda on a regular basis on multiple fronts.  This is an interesting clip called "Hillary Propaganda Filter" regarding the Egypt crisis.

Xtranormal Cartoon Explains POMO

Zerohedge posted an Xtranormal Cartoon that explains POMO.  POMO is a key part of our rigged market these days.  If you wonder why the market has been moving up on no volume understanding POMO is key.

Silver futures trading has nothing to do with metal's real price, Sprott says

Eric Sprott CEO of Sprott Asset Management was interviewed this week on King World News.  Billionaire Eric Sprott is an expert in precious metals along with many other topics.  Sprott covers many key issues in this interview such as silver shortages, gold and silver price predictions, inflation and much more.

Sprott believes gold will take off this year.  One key factor discussed in this interview that will surely be a catalyst for gold is the millions of new retail gold accounts available in China banks.  This interview is about 18 minutes long and should be considered a must listen to interview.

Listen Here

The Bears Explain Banker Bailouts And The Screwing Of The American People