I heard from a very reliable source yesterday (April 19^th) 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!

© 2006 Ed Steer

Contact Information
Ed Steer, Director
Gold Anti-Trust Action Committee, Inc.
Edmonton, Alberta
Canada
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