This is how JP Morgan has made a great deal of money over the years by being short during an eight year bull move. They borrow gold from a central bank at 1% interest rates and use the money to fund their operations. Think of all the talk these days how the banks need "capital," which is what the bailouts are all about. Outside of donated government money, there is nothing cheaper than gold loan money. The key for the loan is that the price of gold must stay the same or go down, as, theoretically, the gold must be paid back at the market price.

Every few months The Gold Cartel mauls the price of gold, forcing the funds to sell, and then they cover. On certain bashings, with the aid of sizeable amounts of physical gold hitting the marketplace, they have taken more than $100 out of one of their raid trades. The cabal has made a great deal of money trading this way over the years.

If they have managed 3 trades a year at $40 a pop average, they have taken $1200 out of the short side on trades over the past decade. If they have been short from say, $300 to $800, they have lost $500, but their net contract profit is $700 … not bad when you get virtually free money to boot to use as you wish.

If it were just a trading program, good for them. The problem is they are doing so in coordinated fashion with other bullion banks and with the US Government aiding and abetting the trade in anti-trust fashion. It is supposed to be illegal and is why we have laws against such activity.

They did it again. The gold open interest dropped 15,318 contracts to 318,348, as specs sold and the cabal crowd began to cover.

At one point today, gold made it back up to an old key resistance point at $830, but the liquidation process was too much and it flopped on the gold close, giving up its small gains on the day. Physical buying was evident as the PM Fix was $826.50.

The silver open interest only fell 127 contracts to 87,193. As mentioned yesterday, there aren’t a lot of long silver specs to flush out. They have been so demoralized by the rigged market trading they have stayed out from the scene.

Silver fell to $10.40 early and, after going up a bit on the day, still managed close above key support at $10.50. Its massive rounded bottom is still intact…

From tonight's midas. The more things change the more s#it is piled on the people.