The Chinese are shorting silver to cap the price while they continue to buy. Since the metals are in short and finite supply, China cannot just go out openly and buy in quantity without pushing the price sky high. By shorting they contain the price with paper metals while they accumulate the physical bullion quietly and steadily. By the time the shorts are no longer sustainable and the scheme collapses, they just pay off the losses with devalued dollars, or blame a rogue trader and default.

With the copper scam a few years ago it was a rogue trader that was blamed.

It is the greed and fraud that is rampant at the COMEX that has allowed this scam to work. Blaming the Chinese is not going to hold water. The COMEX has maintained that the short interest is not manipulative, regardless of who is behind it. They state that this shorting is not influencing the price of silver, which is pure nonsense. They overlook irregularities in the trading and red flags that should be investigated. So if some connected bullion banks and institutions are profiting from this scam it will not be prevented, despite the fact that it may be harming national interests and allowing the accumulated wealth endowment of a nation to be peddled out the back door.

This is economic warefare and a handful of crooks are enabling the scam. If position limits were enforced then the price of the metals could not be easily capped while China was buying heavily.

I have been buying bullion to protect against inflation and declining currency. I own a lot of it but I still do not think I own enough. There is not enough bullion left in the world to allow even a fraction of the population to buy even a small amount of financial insurance, even if people were provided with an honest system and unbiased reporting. This is the real tragedy in my opinion. It is too late for most people to take action now, and most of the bullion is long gone.

cheers!

mike