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"In closing, let’s look at the possible effects of manipulation on the recent price of silver, which I discussed in my previous article.

Long term silver prices have been depressed by market manipulation for many years despite strong fundamentals, yet have been steadily climbing since 2000 despite all the manipulation. What might be some short term reasons that insiders in power would want to suppress silver prices over the last month?

On March 20th, 2009 SLV closed at $13.69, the highest close since February 24th. The following trading day, on March 23rd, 2009, Tim Geithner announced his new PPIF plan to the general public, to buy so called “toxic assets” using government sponsorship of private hedge funds. Of course it would not have looked good for silver prices to increase on that day (since it might make the dollar look weak), and the price of silver has been declining ever since as the treasury secretary continues to sell his pet program to congress and the general public. SLV’s share price has been declining ever since, closing at $12.60 last Friday.

Also, our president has been in the public eye every day since he left for the G20 summit in London on March 31st. It would not look good for the dollar price of precious metals to increase during that span of time.

GLD, the proxy for gold prices, has also been declining steadily since March 20th, when it closed at $93.59, 2.4% above its 26 day EMA. On Friday April 3, it closed at $87.59, 3.7% below its 26 day EMA. It would not look good for the dollar gold price to be rising when our president was conferring with world leaders whose countrymen buy our treasury bonds and other dollar denominated assets.

XLF, the proxy for big banks and the financial sector in general, has rallied 19% since the March 20th close, even though it had just rallied 30% since the March 9th market bottom.

SPY, the proxy for the overall US stock market, has rallied 10% since March 20th close, even though it had just rallied 12.6% since the March 9th market bottom.

This looks to me like financials have been being bought by insiders, in an attempt to manipulate public opinion in favor of the Geithner PPIF plan, and to support President Obama as he appeared on the world stage, pulling the S&P 500 up along with it.

But I doubt that these insiders would want to hold stocks in the incredibly weak financial sector any longer than necessary, and now they will begin to unload, making SKF a great buy right now near its one year lows. For the next few weeks, selling or shorting banks should be a good trade, especially the weaker banks such as BAC, C, and JPM."


Gold and silver from the dead turn often into lead.
R. Buckminster Fuller
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