Yesterday, I posited silver was acting so heavy and so terrible that it just might be JP Morgan and HSBC were burying the price in order to effect an exit strategy from their manipulation scheme … that this plan might entail destroying the price: making sure the specs ran for the hills; even getting some short; then turning around and buying all they could as fast as they could; before the trading community caught on.

Only time will tell if this is the case. However, two little tidbits in the following two news stories caught my attention and may provide some smoke in this regard…

US's Geithner seeks clampdown on derivatives dealers

* Says aims to prevent mark manipulation, other abuses

* Major dealers to be subject to supervision, regulation

* SEC, CFTC would impose recordkeeping, reporting rules

…CFTC to move quickly on position limits

WASHINGTON, July 10 (Reuters) - The Commodity Futures Trading Commission will move aggressively to rein in excessive speculation in the energy and metals markets by focusing largely on expanding their existing authority, and could have new regulations in place as early as late October.

"We're looking at a pretty fast time line," Bart Chilton, a CFTC Commissioner, said in an interview. "We're going to use our authority to the fullest extent possible. That doesn't mean we're going to be draconian or go too far."

…Could it be the Obama Administration is really going to do something meaningful when it comes to market manipulation? (Before I get a zillion emails decrying this notion, I am only saying there is a shot here.) That shot entails the Obama camp knowing the prices of gold and silver are WAY underpriced and undervalued due to the price suppression scheme. After all, the architects of the scheme include Geithner and key economic advisor, Lawrence Summers. But, the key is, if the GATA camp is correct, THEY know The Gold Cartel is going to hit the wall in the months and years ahead when it comes to available central bank gold and silver to meet annual supply/demand deficits. It just won’t be there, especially as other governments want to hold on to the gold they have left and other governments are accumulating gold.

…We are now only a couple weeks away from the G/S rocket. Armstrong's cycle work is based on nature and cannot be turned by any force on earth.

Additionally, I have a reliable source that says July 22nd will start a new derivative meltdown, possible originating in Gold and Silver thereby causing a COMEX default.

This dovetails nicely with Adrian's upcoming article where he will make a case that COMEX inventory data is a scam/sham.

Therefore, I disagree we have to wait to September, it will happen this month. Joe M.

It very well could Joe. I didn’t mean to say we had to wait until September. There is a very good shot gold and silver will turn around soon and go back up, especially in light of the extensive liquidation in the gold pits. If all heck is going to break loose at "the end of the summer," it is likely the shorts will want to be out ahead of "the financial events." It is also likely the smart money will be the first to move in ahead of time. And it is also unlikely gold will trade to the objective of many at $880, and then turn around at that point as a number of bears are anticipating.

Should gold take out $920 on the upside, the odds favor the bottom is in and it’s off to the races.

…Not a fun week and a good one to get behind us. That said, it seems to me we are getting ready for the gold and silver bull to reappear VERY soon... *The sentiment remains terrible.
*Too many shorts looking for gold to break $900.
*The physical market has really firmed up.
*The Gold Cartel has done its thing and now the commercials are covering.
*While there have been some significant market moves, it still feels like the calm before the storm.
*The potential for US financial chaos and a US stock market battering is quite high, which is likely to put the "crisis bid" back in the gold and silver pits.

And just perhaps the efforts of the GATA camp, and Ted Butler's followers, with Bart Chilton and the CFTC might pay off. Sure, we will believe it when we see it, but it's at least time to step back and realize there is a real shot our efforts all these years to expose, and defeat, the gold price manipulation scheme has a shot to pay off ... and in spades. After all the aggravation and disappointment we have been through the past decade, who would have thought there would be a chance of position limits on "Hannibal Lechter" (GS) and his cabal cohorts? IF this ever comes into being, The Gold Cartel is toast.