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I heard from a very reliable source yesterday (April 19th)
that the COMEX was meeting in emergency session. Knowing the reputation of
this organization, I imagined that it certainly had to do with the current
goings on in the precious metals market…especially silver.
It was obvious to just about everyone who knows about the massive
short positions in gold and silver that a short squeeze of biblical
proportions was underway. Bill Murphy over at LeMetropole
Café had been shouting it from the rooftops for some time as the
open interest numbers were indicating just that. Then Ted Butler’s
latest commentary “A
Cornered Rat?” put the icing on the cake.
The COMEX had been raising the margin requirements for silver at a
pretty steady clip, with another one just announced for May…so I was
wondering, as I sat at my computer terminal last night, what nefarious act
they could come up with to put the kibosh on this parabolic rise in the gold
and silver price. Well, I found out when I turned on the computer this
morning…the dealers (commercials) had pulled their bids in the COMEX
silver and gold pits.
Since Ted Butler won’t be writing for at least another week, I
thought I’d comment for him. I could just see the dealers in the pits
right now…standing there with their arms folded as the longs (including
the tech funds) sold into a vacuum. Since there were no buyers…the
price fell off a cliff immediately.
When the sellers did catch a bid, it was the desperate dealer shorts
standing there with buckets to collect the equally desperate long positions
that were being dumped. This is the engineered sell-off that Ted Butler had
been waiting for for so long. This is brazen market
manipulation at its worst…engineered by the very people are supposed to
be preventing this sort of thing.
Is this the last desperate act of desperate men? I think it is. This
is Cartel rearguard action at its finest. They are in a far better position
to see things than we are. With the Iranian situation coming to a head within
the next two weeks, the US
is now in a position where it (probably in conjunction with a client state)
must act against Iran or
lose all credibility in the Middle East. The
dealer shorts know that too. They also know all about peak oil, fiat
currencies and the upcoming silver ETF…and want to be on the last
stagecoach out of Dodge before everything comes unglued.
Hold onto your precious metals positions, boys
and girls…as this too shall pass!
Ed Steer
Director
Gold Anti-Trust
Action Committee
www.GATA.org
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