Will the COMEX Manipulation Ever End?

Jim SinclairThe headline above echoes a popular question asked by all who suddenly realize gold and silver prices have been manipulated on the COMEX. No less an authority than Jim Sinclair (of JSMineset.com) answered this query Monday, June 8, 2009:

You always offer me, among the many other lamentations in your communication, the fear that gold and the dollar will always be manipulated to withhold true pricing.

My answer is manipulation only works in the direction anything wants to go in the first place, which gold and the dollar have so far proven correct. Step back and from the day to day ticks and look at the big picture.

The problems out there are so big that no central bank, treasury or group of Banksters anywhere on the planet can afford to handle them. Right now if it were not for the charisma of the new Administration things would have unwound completely.

In time, the problems of today’s financial world to which there is no practical solution will overwhelm the manipulation by simple size of money motivated into the gold market and the number of newly created dollars for sale.

The size of the dollar pool is infinite, and the amount of gold is finite. That is the equation which will make Alf right in his take on the price. It only takes a failure of confidence to motivate the equation. This is why I have been trying to give you clear direction free of the fog of emotion and spin in order to protect you.

At every turn the media, government and Banksters have been trying to get you to dump your protection.

Stay the course. Gold is going to save more than your financial position.

Jim Sinclair

Editor’s note: Alf’s numbers are predicting $3,000 to $4,000 per ounce for gold during this next leg up.

Jim has said this move will begin in just a few days, around June 15, 2009.

I say, “Where gold goes, silver will follow at a ratio between 1:16 to 1:75. Silver is the poor man’s gold.”

$3,500 gold implies silver at $47 (1:75) to $219 (1:16).


12 Responses

  1. People refuse to see, hear and feel past THE GRAND ILLUSSION that has blossemed at this time. Most living in fantasy land in their minds , via the seven deadly sins. The internet, cell phone and All other media ways leading us like the pipe pipper to our doom. AMERICA get down on your knees and pray to the REAL GOD WE CAN TRUST, he who always was. Invest in the PM ‘s he has made and the meldown/fall won’t be as painful. Paper is worth whatever you believe it is. Thanks Roger

  2. The paper shorts can not manipulate the market forever – this game will end, and only the holders of physical silver will win.

  3. I’ve been studying silver for 20 years…big investor of physical.
    My expert take on the silver market is the POS should currently be at $28 to $32. an ounce.
    Then neglecting the shorts, industrial uses and mining costs….those aren’t a big factor on price, say $147./ ounce during the brief implode
    Now, If you really want to take a real accurate glimpse into silver don’t look 5 or 10 years out….look 20 to 35 years out when the Earth’s Crust stops producing the silver we need. At that time silver will surpass Gold’s price. That’s silver’s end of story….everyone saw it coming but few acted.

  4. Very good point about the underwater shorts who may decide to walk away. That is why i also feel that diversifying into certain gold mining companies is beneficial, because they are not all shorted as much, especially the juniors, with single digit stock prices and less liquid shares that are harder to borrow. I recently read some interesting articles at http://www.goldalert.com/gold_news.php that provide good analysis on certain gold mining companies and why they should continue to benefit from the government’s efforts easy monetary policies to prevent deflation. I think it would be useful for any type of investor to check these articles out and potentially learn of a new way to protect your wealth.

  5. Think about this for a second…as I type this, Gold is at an all-time high ($1,058) and slowing climbing…


    • Yes,

      and anyone who isn’t holding physical is about to be screwed right along side the underwater shorts.

      The big shorts aren’t going to deliver, they are going to walk away and say…”bankrupt….so sue us…we didn’t understand the terms of these predatory deals, will you accept some paper to make it right because we have plenty of paper.”

      • Agreed…I would not want “paper” gold right now. When someone big defaults; watch the price double overnight…Antal Fekete’s writings are good stuff…yo should read it.

  6. The caveat is that every long should probably be “scared sh*tless” as well.

    You can’t squeeze blood from a turnip or in this case gold or silver from a naked short.

  7. Food for thought…

    If the Dec. Comex gold contract closes at an all-time high today, that means EVERY short is underwater and probably scared sh*tless as to how far gold is going to run-up…I smell a violent short-squeeze in the near-term…

  8. Will the manipulation ever end? Only when the fed gov gives in. An they finely find the answers to all there troubles. Have the price of something go up so high it gives masive wealth back to the people. An actually too the gov to through taxes. An yes a perfect commodity that doesnt cause instant inflation. When it increases 50 fold in price. Doesnt make the poor people suffer. An actualy would help the debt of the usa problem also. Let the price of pms run only by Gods law. Go gradualy at first $1500 next month $1700 another three months $2000. Let it hit $2500 an stall for awhile till people start selling. Then next leg up the gov starts buying. An then let it hit $5000. It would probably do this without the gov buying.. The gov would come out since taxes have to be paid. An the dollar wouldnt go since people will sell gold they have at such a high price. The price of pm could rise up an down like the stock market did for 15years. The only bad thing here. everybody be putting there money in gold not the stock market. Or possiblity 2, the only way out of all this debt yes i mean all. No more national debt. Make all gone dissappear forever an never to have again. This one is easy, an no one world order either. Just simple default on all the goverment debt start over. But this is best in the long run, Since nobody would invest in the usa gov again. They have to live day by day year by year just on the take money the recieve. No social secerity, medicare, And taxes be so low again

  9. I discovered Sinclair late last year, love his unique style, and he’s right – real vs fake, finite vs infinite.

    Interest Rate Swaps are next on the derivative blow-up docket. The fact that the banks are able to issue equity at this late stage of the game is a phenomenal testament to the public’s cluelessness of the reality and severeity of the situation. They’ll get their asses handed to them, and they deserve to lose every penny for not informing themselves of the truth.

    The American Idol, vapid society will reap what it sows.

    Silver is a savior. http://www.spdbrnr.wordpress.com

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