Last year, Jim Sinclair was initiating an action plan to to fight illegal naked shorting f the JPMs by establishing a Chamber of Mines. “My request is simple: Contact the management of every junior precious metals producer, exploration and developer, asking them to contact Editor Dan at information@jsmineset.com so that the Chamber can take form.”

Also, last June, Jim Puplava was requesting mining companies that suspect their shares are being illegally suppressed to contact him. He wants to prove how the stocks have been manipulated. Various action groups, such as on Stockhouse seem to have gone nowhere. Dr. Patrick Byrne, prominent academician and CEO of Overstock.com. has relentlessly crusaded against naked shorting . His expose, “The Darkside of The Looking Glass” (http://www.businessjive.com/nss/dark... ) outlines how naked shorting is accomplished. It is a stunning, shocking presentation given by Dr. Patrick Byrne, prominent academician and CEO of Overstock.com. This recent presentation has been downloaded well over two hundred and fifty thousand times and it is gaining huge momentum. There are also many other informative papers such as “Settlement Failures in the US Markets” by Professor L. Boni (Lesley Boni Study (.PDF), and UNC/Wharton Study (.PDF), plus Finnerty Study (.PDF) available for quick reference.

A market reform movement has been commenced in the US composed of an affiliation of shareholder advocates, websites, attorneys, market experts, shareholders and investors who are concerned about the manipulative practices in the US stock markets. The primary focus is on naked short selling/failure to deliver (FTD), which many feel pose a systemic crisis to the market system. With such a backdrop, I have been suspect of the trading charts of many of the gold and silver stocks I follow that trade in Canada for quite some time. Should such a movement be initiated here?

• Are more shares being traded in certain company’s stocks than exist?
• How much does the stock borrow program in Canada fail its obligation? For instance, is there enough metal to back the shares of gold and silver ETFs?
• How many Failure-to-Delivers (IOUs) are delivered instead of actual shares?
• What is the incidence of systemic failures in Canada, if any?
• Do any occur directly between brokers? In many
• US companies, there are more FTDs or IOUs for stock than stock that has been issued by the company. Does/can this exist in Canada?
• Are Canadian regulators and watchdogs protecting the investments of average Canadian investors?
• If there is exposure, how and where does it exist? By which players?

In the above cited presentation by Dr. Byrne, illustrations are given on how some broker-dealers and their biggest clients, hedge funds and their financial backers can and do operate outside the confines of the Depository Trust and Clearing Corporation (DTCC).