I hope precious metals newbies have not been emotionally derailed by last night's obvious ambush of silver by the corrupt Wall Street bullion bank cartel. It's funny because just yesterday I was chatting with my significant other, who happens to be from Las Vegas, about organized crime. She mentioned that Vegas is full of organized crime gangs, not just the casino mafia. I replied that any area that generates tons of cash flow is mired with organized crime and extreme corruption: Vegas, DC and Wall Street most prominently (obviously there are others but those are the biggest). Little did I know that several hours later the action in electronic silver trading would ironically highlight my point about Wall Street!Make no mistake about it, what occurred last night right at the open of electronic futures trading in gold and silver was nothing more than a very aggressive attempt by the big Wall Street banks who are irrationally short paper silver to shake out weak hands in order to reduce the fraudulent short positions in paper silver. Anyone who thinks last night's action - as reported in the mainstream media - was connected to a feared slowdown in China or the Bin Laden thing or the Bolivian mining news is either hopelessly naive or pathetically ignorant of the facts.
So let's look at some facts. First, no other commodities were hammered. If China slowdown fears were the culprit, shouldn't all of the base metals used in industrial production have been hit hard along with silver? Seriously. Even more telling was the fact that the dollar barely moved in either direction last night - and it's below 73 right now. The media loves to explain movements in gold/silver with inverse movements in the dollar. How come the dollar was not doing a moonshot in response to the gold/silver cliff-dive? (read more)
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