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A Nice Set Up

This is from the 6th paragraph..

Further, the Bank Participation Report data show that one or two U.S. banks (JPMorgan) make up 96% of the entire commercial net short position in COMEX silver futures. Not the 4 largest traders, as in gold, but the one or two largest traders. And we know it is a U.S. bank or banks. That should have your head spinning. The big U.S. banks have masterminded the financial disaster impacting us all, and should be barred from trading of any sort. Yet one or two of them hold the entire commercial net short position in COMEX silver futures.

this is Criminal.. This Criminal activity is being aided by the Federal Government. The banks have their nuts on the chopping block.
The government is aiding them in criminal activities to help them unwind 250 billion in potential losses with the silver market ALONE.
If you people are not up in arms over this blatant Government Criminal activity, why are you on the daily paul? Please read the whole article below.

A Nice Set Up

By: Theodore Butler

-- Posted 14 April, 2009 | Digg This Article | Discuss This Article - Comments: 0

A number of different factors have converged, creating what could be a lift-off point for the price of silver (and gold). This confluence of readily verifiable factors shows the silver market to be in a low risk and high reward situation. The factors involve both the paper and physical silver markets. The only question, as always, is if the manipulators, led by JPMorgan and protected by the CFTC, can thwart the set up once prices rally.

The structure in the paper markets, as defined by the CFTC’s latest Commitment of Traders (COT) and Bank Participation Reports, as well as the year-end OTC Derivatives Report by The Office of the Comptroller of the Currency, are extremely bullish on any objective historical basis. This means that the commercials, as a whole, have a greatly reduced total net short silver position after the recent engineered sharp sell-off. Normally, when the commercials have forcibly liquidated as many leveraged longs as possible, prices stop declining and begin to rally. This is the rhythm of the market.

The latest COT and Bank Participation Reports, for positions as of April 7, show the smallest total commercial net short positions in gold and silver since Feb 17-24, when gold was $1000 and silver $14.50. Since those highs, on the $150 gold price decline and a $2.50 silver drop, the commercials have reduced overall gold shorts by over 40,000 gold contracts and 9,000 silver contracts, or the equivalent of 4 million gold ounces and 45 million silver ounces. This is subjective, but those reductions, particularly in silver, look complete. Not at all subjective is the observation that the only reason for the price declines over the past six weeks was to effect the liquidation of the maximum number of leveraged longs on the COMEX. This is the rhythm of the manipulation.

Despite the big reductions in net commercial short positions, the ongoing manipulation in silver (and gold), based upon a freakish short concentration, is still evident. If anything, the short concentration has grown more extreme. In COMEX gold futures, the four largest shorts hold more than 98% of the entire commercial net short position. In other words, without the 4 large shorts, there would be little or no commercial short position in gold futures at all. Bank Participation Report data show that three or less U.S. banks are the big shorts, while foreign banks are net long.

In silver, the concentration is more extreme, making the manipulation more extreme. The four largest traders in COMEX silver futures hold a net short position almost 50% greater than the entire total commercial net short position. How is this possible? It is possible because, as a group, the rest of the commercials apart from the big 4 are net long. In other words, if it weren’t for the big 4, there would be a big commercial net long position in COMEX silver futures.


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with this kind of demand in

with this kind of demand in gold and silver how is it the price is going down?

In gold, some 14 million ounces, worth close to $13 billion, have been absorbed by the world’s various public metal investment vehicles in the first quarter. This compares to 10 million ounces absorbed in all of 2008, in turn one of the best years for this type of gold investment. Yes, there has been a notable decline in Indian gold demand and a sharp increase in scrap gold recycling, but the demand in gold investment vehicles has been nothing short of outstanding

this type of action goes against free market economies! look and see what the demand was for silver!

"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson

I am more concerned about the return of my money than the return on my money. --Mark Twain