Lucky us, third posting today from Coach this one from Tonight's MIDAS without anybody's authorisation if I may. Lo siento mucho!

Silver Vigilante, I kind of like that.

Mexico Mike:

Silver!

Hi Bill!
It was not that long ago when the interventions in the metals markets were prolonged takedowns that lasted weeks before sentiment improved. More recently the washouts were truncated to a matter of days and became prime buying opps to get cheap bullion. And now it appears that the best the criminals can do is buy a few hours with the raids.

Yesterday there were several attempts to smash gold and all were stuffed. I can only think of one other time in the last 5 years when gold was rising in the days immediately before and during COMEX options expiry. Today silver has rebounded nicely as the buyers are quite happy to step up and take advantage of the price weakness. What has led to this profound change in market behaviour?

I think the criminals are still just as active as they have always been. In fact, I think the complete sham of the CFTC hearings has made them even more aggressive since it is more obvious now that the regulators have no

intention of even pretending to enforce the rules. The biggest change that is driving the markets now is that people are finally coming to realize that the inventory of physical bullion is shrinking. Just as more investors are looking to own real metal there is this awareness that gold and silver are not to be had in infinite quantities after all. Remember the analysts telling us all how rising metals prices would flood the market with bullion? Funny we don't hear that much anymore. And even if it was true, it was only 30 years ago that silver bullion inventory levels worldwide surpassed 2 billion ounces! And yet, even that huge supply did not prevent silver from climbing to $50 in 1980. So now that we know there is only a few hundred million ounces of silver bullion in the world left, how much higher will silver ultimately rise once investors figure out that paper silver is not all that. And they are starting to figure that out in real time, thanks in part to the work of GATA over the last few years.

I believe we live in a historic age. Centuries from now people will look back and wonder how silver could ever have been priced so cheaply in a world of fake investment products and doomed paper currencies. How can so many people be so clueless to miss this? Already things have become so acute that one motivated investor could theoretically buy all of the remaining bullion in the world with less money than has been dumped to bail out a few of the crooked banks. We hear about the bond vigilantes but the day is coming when silver vigilantes step up and start taking down the silver inventory. Maybe that is already happening.

I do not think silver is just going to stop at $50 when the market wakes up to just how thin the real inventory situation is. But even so, at $50 silver how high do you think most of the silver juniors are going to trade? When it is so obvious to all just what the real supply/demand situation is for silver, and just how the fraud of many ETFs has been used to cap the metal, and the competition starts among investors to get real bullion in hand, I think the lid is going to blow right off this market. In hindsight people will look back in disgust at how the metal traded for years with no real interest and the criminals had their way for so long.

The Madoff trial frenzy and the Enron scandal are just a prelude to what is waiting for the crooks, corrupt regulators, and inept politicians that let all of this go on. I think people are starting to figure it out Bill. We have not reached that point of desperation or panic, but there is a definitely a sense of urgency now among a few that get it to buy physical. That will grow with each day, and each discredited media report, each clueless analyst repeating the same silly lies, and every failed intervention and bear raid.
Cheers!
MexicoMike