Well the banks are really getting the message! This time they are scared... or not. They respond to the latest lawsuit against manipulation by going out and manipulating gold and silver some more today. This is the behaviour of a group that has been assured from the highest level of government that no matter what they will be excused from any prosecution. At the end of the process they will play the sovereign immunity card and state they were acting as agents on behalf of the Federal government to keep the metals in check as part of economic policy. Case dismissed.

Now you have to love the irony of one federal department going after the banks and getting stuffed by another federal decision. But however you slice it, it is clear the banks have no intention of backing off their activity. Once again, for the umpteenth time this year, gold has been stopped at exactly 1% upside on the day. Anyone that claims there is no manipulation needs to have a look at that statistic and try to come up with a viable explanation on how a freely traded market can be so predictable and obvious. No way...

I have stated my opinion many times on this forum. They can lean all over the metals and contain the interest in the PM stocks, but that is a policy of diminishing returns. There is only so much juice to be squeezed from a lemon, and once the weak specs have sold, then the shorting is vulnerable. Buying pressure is cyclical and the funds will become more aggressive to accumulate when they perceive that the market has bottomed. It looks like we are there now. And the metals can be restrained with paper contracts but physical demand must be met with physcial bullion inventory. The decline in real gold and silver bullion is probably going to be the factor that triggers the next major uptick for the sector.

Once the public rediscovers the mining stocks - and they will - then there is no amount of manipulation that can prevent the next big move. It is only at times of weak sentiment and low volume that the entire sector becomes a zombie for the banks to push around.

I am pissed off and fed up but I have remained committed to my personal investment strategy to buy dips and accumulate bullion on weakness. Fak the banks and their connected criminals in the administration. They can only steal from me if I sell.

cheers!

mike