I watch the silver Yo-Yo on a daily basis, for about 10 years, and I think I am at the point now where the manipulation has become irrelevant. Yes, I own a chunk of bullion, and the majority of my stock PF is leveraged to the performance of silver. But I no longer get stressed when the crooks pull a stunt with paper silver and tank the spot market.

I put up with various analysts that roll their eyes at me when I point out that spot silver is manipulated all to hell. I might as well try to argue that the earth is flat. But what these people fail to consider is that there are facts to support my opinion. They won't go there.

The CFTC is an inept and incompetent organization, and that is putting it mildly. Never has a regulatory agency done so much to AVOID dealing with blatant fraud. But at least they have announced an investigation into trading irregularities. That is a fact. If they made the decision to investigate, then the concept of manipulation is not flat earth stuff.

The US mint has suspended sales of silver eagles several times in the last few years. This despite a constitutional requirement to supply silver eagles and use domestic produced silver to mint them. If there is unlimited supply of silver, where the hell are the eagles? Since the party line explanation is that there are not enough blanks available to keep the mints stamping, then I just point out that many times in prior years there were more eagles minted than have been stamped recently, yet there was never an issue about a shortage of blanks then. Why now? This is a fact.

The net open short interest in COMEX silver futures now stands at roughly ten times the total silver production worldwide for a year. The concept that those outstanding contracts have real silver bullion to back them is absurd. The COMEX inventories is a fraction of the total silver necessary should all those contracts be called for delivery. Why is the notion so widely ridiculed that the parties who are on the hook for delivery would be manipulating the market to tank silver and discourage outstanding contracts from being called for delivery?

A final point of consideration is that there have been widely reported examples of fraud in most other market sectors, where far less data was available to expose it, yet those situations were uncovered and prosecuted. Why would silver and gold be the only sectors in which large money was on the line and no such fraud or manipulation is possible?

Given all of the above, I think the time for silver to break out is coming. I do not know if it is next week or next year, or ten years from now. I just cannot conceive of any scenario in which this scam is not eventually blown up and we regain the lost value very quickly. So too for all of the junior mining stocks that are producers of silver. It is a question of faith to understand the facts, and believe the reality and not the spin and lies that are circulated most of the time.

I really dont give a big rats ass that some people refuse to accept this reality. If the Prechters of the world still think silver is doomed, let them short it and suffer the consequences. Thank you very much, I will continue to accumulate and not worry too much if the scam drags on longer than I thought it might. The breakout is inevitable in my opinon.

cheers!

mike