Comex…Gold/Silver…finding drafts & publishing…10/12/11

Butler writes:

The ability of the COMEX commercial crooks to go short in unlimited quantities and the ability of these crooks to game the leveraged longs are the precise mechanisms behind the silver manipulation.

Wall Street and the large banks control congress and the precious metals pricing. The ability to borrow endless amounts of dollars (via deficit spending and Treasury sales) is what gives our politicians power. Both Wall Street and government need to perpetuate the dollar and need to discredit gold and silver. There is no government oversight in the gold and silver markets. The big banks (JPM and HSBC) and the CME are allowed to do as they please. Margins are increased in order to favor those of their buddies who are short, and to rape those funds and investors who are long. Butler and Chapman have called attention to these policies for years and nothing is done to stop the abuses.

What does gold want to do – go up or go down? Gold has essentially gone nowhere in the last three days. So you sit there, confused and waiting for a signal and do nothing. That is exactly what they want you to do – nothing. In the meantime you stay in dollars.

Fortunately, we do not have to rely on congress or the CFTC to set things straight. The Chinese and Indians are doing it for them. Every time the Cartel forces prices lower on the Comex, the Chinese and Indians move in with large orders for PHYSICAL gold and silver and the prices revert back to where they were and continue to climb. The free market is working. As Butler points out, it would be better if Comex totally got out of the gold and silver paper markets. All that they accomplish is to put a cap on the price of gold and silver. But as you have witnessed for the last decade, their raids have done nothing to stop the ongoing bull market in the metals and the erosion of paper currencies.

I know that it gets confusing for you. It gets confusing for me too, sometimes, until I step back and realize that all of the back-and-forth movement in the Dow, gold and silver is just “noise.” Nothing much is changing. Up one day, down the next, back up the next. The markets are rather “spinning their wheels” and that makes investors unsure of what to do and what to believe. That is why I am constantly asking you to focus on the Big Picture and to ignore the day-to-day noise of the markets. Just look at the following gold chart and try and make sense out of what is happening.

What does gold want to do – go up or go down? Gold has essentially gone nowhere in the last three days. So you sit there, confused and waiting for a signal and do nothing. That is exactly what they want you to do – nothing. In the meantime you stay in dollars.

A few days ago I wrote that gold has to close above $1,690 for a day or two and then you can feel safer that the recent takedown is behind us. At the close today, gold is only $15.50 away. Silver has to close above $32 and silver is $32.58 right now. Let’s hope that the worst is behind us here too. However, Richard Russell isn’t so sure. (Read his comments below)

Related articles

• Silver is Oversold “It’s a License to Steal” (politicalmetals.com)
• Are “Short Contracts” Manipulating the Price of Silver? (prweb.com)