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Sunday, April 11, 2010

WHERE ARE THE MANIPULATORS?

Let me apologize in advance but I just couldn't resist.

If the gold market is manipulated like so many people want to believe, then how in the world did they let gold rally 10 out of the last 11 days?

39 comments:

  1. Gold is up due to GATA's efforts in exposing manipulators/

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  2. Gary,

    I got your portfolio change email earlier tonight. (I won't go into detail since I assume you prefer to keep that for subscribers). I see your point about the dollar, but does that mean your expectation of a short-term stock market correction has changed? Thanks.

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  3. go and get some gold bullions and there is a news just up in NY post, U.S and AU...all about manipulation....has gone onto mainstream media...keep google it and get some gold bars....

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  4. check it out then

    http://news.goldseek.com/GoldSeek/1271052300.php

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  5. no, let me apologize: why have you been so wrong so often this year?

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  6. Jim,
    No I still expect a correction. I just added a small amount as a sacrifice to the market gods is all :)

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  7. Gary,

    It's funny how the rally has come about shortly after the manipulation has been exposure in main stream media...coincidence? Perhaps, perhaps not.

    I also find it ironically hilarious that you are quick to dismiss the manipulation theories based on "no evidence" and then make the call that there mustn't be manipulation based on a short rally. Are we to believe that this 10 out of 11 day rally is your "evidence" of there being no manipulation?

    Perhaps you should spend less time trying to make a case against manipulation and more time working out what cycle we are in, because you seem to be changing your mind every other week recently.

    Joseph

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  8. Give me a break. GATA has been "exposing" for years. Seriously people wake up and smell the coffee.

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  9. There were people trying to expose Madoff for years before his ponzi scheme blew up as well.

    Joseph

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  10. Trust me the government has bigger things to worry about than the price of a shiny piece of metal.

    Jim Rogers and Marc Faber both scoffed at the notion of manipulation. George Soros and John Paulson both have big positions in gold and miners. Do you really think some of the smartest people in the world would invest in a sector if they thought it was being suppressed?

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  11. Gary, if it corrects from here on now, you would consider the move till date as A-wave, and the correction as B-wave, right? If, yes, what point exactly do you expect us to go all-in or like you mentioned previously, leverage ourselves 110% ? :)

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  12. I think the leverage part is done since we don't really have anyway to tell if this is an A wave or not.

    I will move up to 100% as soon as the stock market corrects but I do so fully realizing that this may be an A-wave and I'm going to have to ride the ups and downs, probably for months.

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  13. The government is large enough to worry about everything, but they fix nothing. If they need more people to worry about things, they will just contract them out. They own it all.

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  14. Could it be that the manipulators are now pushing gold up? After all, I think this is the A-wave (whether or not we look for a 'confirmation' or not). ...

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  15. Part I
    BOMBSHELL – Whistle Blower Comes Forward With Solid
    Proof The Price Of Gold And Silver Is Being Manipulated By Major Financial
    Institutions



    Posted on
    04/12/10 at 2:13am by Michael
    Snyder
    For a long time many of us have had very
    serious suspicions that the prices of gold and silver were being highly
    manipulated. But now, thanks to the mind blowing testimony of one very brave
    whistle blower, the blatant manipulation of the world gold and silver markets
    is being blown wide open. What you are about to read below is absolutely
    staggering. Once the American people learn how incredibly
    corrupt the world financial system is, it is going to change
    everything. The government that we are all trusting to guard the
    integrity of the financial system is failing to do that job. It
    turns out that the Commodities Futures Trading
    Commission has been sitting on solid evidence that the elite banking
    powers have been openly and blatantly manipulating the price of gold and silver. Even
    though they were basically handed a "smoking gun", they have done
    absolutely nothing with it. But now the information has gone public and
    the CFTC is red-faced.
    Back in November 2009, Andrew Maguire, a former Goldman Sachs
    silver trader in Goldman's London office, contacted the CFTC's Enforcement
    Division and reported the illegal manipulation of the silver market by traders at JPMorgan Chase.
    Maguire told the CFTC how silver
    traders at JPMorgan Chase openly bragged about their exploits - including
    how they sent a signal to the market in advance so that other traders
    could make a profit during price suppression episodes.
    Traders would recognize these
    signals and would make money shorting precious metals alongside JPMorgan
    Chase. Maguire explained to the CFTC how
    there would routinely be market manipulations at the time of
    option expiries, during non-farm payroll data releases, during commodities
    exchange contract rollovers, as well as at other times if it was deemed
    necessary.

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  16. Part II
    On February 3rd, Maguire gave the
    CFTC a two day warning of a market manipulation event by email to Eliud
    Ramirez, who is a senior investigator for the CFTC’s Enforcement Division.
    Maguire warned Ramirez that the price of
    precious metals would be suppressed upon the release of non-farm payroll
    data on February 5th. As the manipulation of the precious
    metals markets was unfolding on February 5th, Maguire sent additional
    emails to Ramirez explaining exactly what was going on.
    And it wasn't just that Maguire predicted
    that the price would be forced down. It was the level of precision that
    he was able to communicate to the CFTC that was the most stunning. He
    warned the CFTC that the price of silver was to be taken
    down regardless of what happened to the employment numbers and that the
    price of silver would end up below $15 per ounce. Over the next
    couple of days, the price of silver was indeed taken down from $16.17
    per ounce down to a low of $14.62 per ounce.
    Because of Maguire’s warning,
    the CFTC was able to watch a crime unfold, right in front
    of their eyes, in real time.
    So what did the CFTC do about it?
    Nothing.
    Absolutely nothing.
    Which is extremely alarming, because the
    size of this fraud absolutely dwarfs the Madoff or Enron scandals. In
    fact, this fraud is so gigantic that it is not even worth comparing to any of
    the other major financial scandals of recent times.
    But Maguire did not give up. He
    sent several more emails to the CFTC detailing the open manipulation of the
    gold and silver markets.
    The CFTC did not reply.
    Finally he sent them a final email: "I
    have honored my commitment to assist you and keep any information we discuss
    private, however if you are going to ignore my information I will deem that
    commitment to have expired."
    The reply by the CFTC?
    "I have received and reviewed your
    email communications. Thank you so very much for your observations."
    No action.
    No acknowledgement that anything was
    wrong.
    No recognition that a massive crime had
    been committed.
    Fortunately, that was not the end of it.
    On March 25th, the CFTC held
    a hearing on alleged manipulation in the gold market by the major
    banking powers.
    Maguire wanted to testify during that
    hearing but he was not invited.
    But William Murphy, chairman of Gold Anti-Trust Action (GATA), was invited to
    testify. GATA has been compiling data on the manipulation of the gold and
    silver markets for quite a long time now.
    Murphy was only given five minutes to
    deliver his testimony. He raced through his presentation so that he could
    get as much information on the record as possible.
    Very curiously, the live television
    broadcast of the CFTC hearing suffered a technical failure the minute
    before Murphy began his testimony. The technical failure was
    corrected the minute after Murphy was finished.
    Coincidence?

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  17. Part III
    Maguire and his wife were subsequently injured and hospitalized when their car
    was struck by a hit-and-run driver in the London suburbs.
    When a bystander who saw
    the "accident" tried to block the other driver from getting
    away, the other driver accelerated directly towards the
    witness, forcing him to leap out of the way to avoid being hit.
    The hit-and-run driver’s car then hit two additional cars as he left
    the area.
    But Maguire and his wife were fortunate.
    In the past, other would-be whistle
    blowers that had evidence regarding the manipulation in the gold and
    silver markets died in "unusual accidents" before they were able to
    bring their evidence to light.
    But there were even more
    "coincidences" surrounding this hearing.
    A week before the hearing, the CFTC
    announced that they had had a fire in the room where its gold and silver
    records are held.
    Isn't that convenient?
    In addition, after the hearing was
    over, Murphy was contacted by a number of major media outlets
    for interviews.
    Within 24 hours, every single interview
    was cancelled.
    Every single one.
    Is that a coincidence too?
    It appears that some very powerful people
    do not want this information to get out.
    It also shows how corrupt the mainstream
    media has become.
    This is a story that is so much bigger
    than the Madoff scandal or the Enron scandal that it is not even funny.
    And yet the mainstream media is avoiding
    it like the plague.
    But there were additional bombshells that
    came out during the hearing as well.
    During the hearing it was revealed that
    the gold manipulators have accumulated a huge short position in gold and
    that these huge short positions are "naked", which means that
    these positions are not hedged.
    These massive short positions have put
    some of the largest financial institutions in the world in an extremely
    vulnerable position.

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  18. Part IV
    In addition, it has now come out that
    most "gold" that is traded is not backed by the actual metal
    itself. For years, most people have assumed that the London
    Bullion Market Association (LBMA), the world's
    largest gold market, had actual gold to back up the massive "gold
    deposits" at the major LBMA banks.
    But that is not the case.
    People are now realizing that there
    is very little actual gold in the LBMA system.
    When people think they are buying
    "gold", they are actually just buying pieces of paper that say they
    own gold.
    In fact, during the CFTC hearings,
    Jeffrey Christian of CPM Group confirmed
    that the LBMA banks actually have approximately a hundred times more gold
    deposits than actual gold bullion.
    Uh oh.
    So what happens if everyone decides that
    they want actual physical delivery of their gold?
    It would be such a mess that it is
    painful even to think about it.
    The truth is that right now most of the
    trading activities on the London exchange are just paper for paper.
    But people get into gold because they
    want to be in a real commodity.
    In fact, there are thousands of
    clients around the globe who think they own huge
    deposits of gold bullion, and are being charged large storage fees on
    that imaginary bullion, but what they really own are a bunch of pieces of
    paper.
    If there comes a time when everyone
    starts asking for their gold it is going to create a squeeze of unimaginable
    proportions.
    Maguire
    explains this situation this way: "for 100 customers who
    show up there is only one guy who is going to get his gold or silver and
    there’s 99 who will be disappointed, so without any new money coming into the
    market, just asking for that gold and silver will create a default."
    The truth is that it is absolutely
    impossible for the LBMA to ever deliver all the gold and silver owed to
    the owners of contracts.
    Yes, it is a gigantic mess.
    But this type of things is not entirely
    unprecedented. For example, Morgan Stanley paid out several million
    dollars back in 2007 to settle claims that it had charged 22,000
    clients storage fees on silver bullion that did not exist.
    But the scale of the fraud going on now
    is absolutely mind blowing. The following video contains footage from the
    hearing related to these issues....
    So what is the bottom line?
    The bottom line is that the precious
    metals markets are cesspools of fraud and manipulation.
    The markets have been suppressed by
    the major financial institutions for years, and this has created the potential
    for a "squeeze" in the precious metals markets that could send the
    prices of gold and silver into the stratosphere.
    You see, the reality is that there
    would be no gold left in the entire world if all the Gold ETFs (Exchange Traded Funds) asked for physical
    delivery.
    Are you starting to get the picture?
    In fact, Maguire claims that
    the naked short selling scam by the major financial institutions is well
    into the trillions of dollars, making it by far the biggest financial fraud in
    history.

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  19. Part V
    Maguire calls what has been going
    on "financial terrorism", and he accuses the financial
    institutions involved in this fraud of "treason" for putting
    national security at risk.
    And national security is at risk.
    Because if the true extent of this fraud
    comes out, it could collapse the entire financial system.
    If you have never heard an interview
    with Andrew Maguire, we encourage you to listen to the audio interview
    posted below. It will really open your eyes to what is going on in the
    precious metals markets....
    The
    Century's Biggest Fraud Revealed
    This is one of the biggest financial
    stories of the decade. Because it is complex, most Americans will not
    understand it. But the fraud and manipulation in the gold and silver
    markets has the potential to cause a massive economic collapse even
    without all of the other factors talked about on this blog.
    Some very powerful people have been doing
    some really, really bad things. Once people understand the truth, they
    will never look at the financial markets the same way again. Already,
    faith in the major financial institutions of this country has been shaken by
    revelations about what has been going on over at Goldman Sachs. The
    American people have no more appetite for any more financial scandals or for
    any more Wall Street bailouts. But if the fraud and
    manipulation taking place in the precious metal markets ever gets
    totally exposed it will change the U.S. financial system
    forever.
    Please get this information out to as
    many people as you can. There are a number of very
    powerful people who are not going to be pleased that sites like this are
    attempting to get the truth about this massive scandal out.

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  20. An Indicator?

    AAR Reports Sharp Traffic Gains on U.S. Railroads for Most Recent Week
    Carloads Up for Sixth Straight Week; Intermodal Up for Twelfth Straight Week

    WASHINGTON, D.C. - April 8, 2010 - The Association of American Railroads today reported that U.S. railroads saw sharp gains in traffic for the week ending April 3, 2010, compared with levels from one year ago. U.S. railroads originated 290,217 carloads during the week, up 10.7 percent from the comparable week in 2009. This was the sixth consecutive week carload volume has topped year-over-year levels compared with 2009, while traffic was still down 11.8 percent compared with 2008.

    In order to offer a complete picture of the progress in rail traffic, AAR now reports 2010 weekly rail traffic with comparison weeks in both 2009 and 2008. Good Friday, which is observed as a holiday on many railroads, occurred during the 2010 week but not in the comparison weeks from 2009 and 2008.

    Intermodal traffic totaled 196,257 trailers and containers, up 6.2 percent from last year but down 9.4 percent compared with 2008. Compared with the same week in 2009, container volume increased 7.8 percent and trailer volume dipped 1.5 percent. Compared with the same week in 2008, container volume was down 1.9 percent while trailer volume fell 35 percent. This was the twelfth straight week intermodal volume was above 2009 levels.

    Total volume for the week was estimated at 31.3 billion ton-miles, up 11 percent from last year, but down 9.3 percent from 2008.

    In the Western U.S., carloads were up 12.7 percent compared with the same week last year, but off 9.2 percent compared with 2008. In the Eastern U.S., carloads were up 7.8 percent compared with 2009, but down 15.3 percent compared with 2008.

    Seventeen of 19 carload commodity groups showed gains from a year ago, with the largest coming from products associated with metals: metallic ores, up 104.2 percent; metals, up 84.1 percent; scrap, up 39.8 percent; and coke, up 30.3 percent. Other notable increases included motor vehicles and equipment, 21.3 percent; grain, 18 percent; primary forest products, 34.8 percent; lumber, 21.6 percent; and chemicals, 11.5 percent. Loadings of pulp, paper and allied products were off 5.1 percent.

    For the first 13 weeks of 2010, U.S. railroads reported cumulative volume of 3,590,628 carloads, up 2.2 percent from 2009, but down 14.7 percent from 2008; 2,627,231 trailers or containers, up 8.4 percent from 2009, but down 8.5 percent from 2008, and total volume of an estimated 390.1 billion ton-miles, up 3.1 percent from 2009 but down 11.8 percent from 2008.

    Canadian railroads reported volume of 70,786 cars for the week, up 14.8 percent from last year, and 42,025 trailers or containers, up 6.1 percent from 2009. For the first 13 weeks of 2010, Canadian railroads reported cumulative volume of 933,743 carloads, up 15.9 percent from last year, and 568,737 trailers or containers, up 7.4 percent from last year. Carload volume on Canadian railroads has been ahead of year ago levels every one of the first 13 weeks this year.

    Mexican railroads reported originated volume of 11,267 cars, up 4.3 percent from the same week last year, and 5,069 trailers or containers, up 0.4 percent. Cumulative volume on Mexican railroads for the first 13 weeks of 2010 was reported as 172,819 carloads, up 20 percent from last year; and 83,544 trailers or containers, up 37.3 percent.

    Combined North American rail volume for the first 13 weeks of 2010 on 13 reporting U.S., Canadian and Mexican railroads totaled 4,697,190 carloads, up 5.2 percent from last year, and 3,279,512 trailers and containers, up 8.8 percent from last year.

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  21. Gary, I feel sorry for you. Whenever I read through the comments section of these financial blogs, I feel like I'm being struck with a radioactive dose of stupidity. I do my best to avoid it.

    Right now, I this is in reference to the manipulation theorist, but there are endless variations on the themes.

    You're a brave man for exposing yourself to this.

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  22. I've said it before and I'll say it again. All markets will be manipulated from time to time. Short term certainly gold could be affected. But any serious manipulation would only act to drive prices much much higher than they normally would be.

    So all this drivel trying to prove that gold is being supressed is just crazy. If it's actually happening then it's the reason gold is as high as it is not the reason it isn't higher.

    Any huge short positions have to be covered when price runs over them thus sending gold rocketing much higher than it would normally.

    Apparently the conspiracy theorists don't understand how markets work. If they did they would be cheering on the manipulators.

    But then all this nonsense isn't really about whether gold is tampered with, it's about needing an excuse for why gold doesn't do what they want it to do when they want it to do it.

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  23. Gold is doing what I want it to do!

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  24. Gary,
    I was looking at the chart (danger) and just going back to November, that's when I jumped short and lost a bit. My point after chart gazing is - Could Nov. been the start of A wave, with B wave retesting the whole move, followed by the C wave that's topping out now?

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  25. I think the move into Dec. was clearly a C-wave.

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  26. I agree with Gary - C wave ended in December. D-wave always goes down WITH the market - would you agree Gary?

    I still think we're in the A wave - started Feb5/8th. Won't top until after reaching 1186. The A-wave PEAK should occur around the same time that major indexes are hitting NEW LOWS. The divergences should take place with their pivots being within a couple weeks of one another.

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  27. Top is in?; big selling of SPY $201MM):

    http://online.wsj.com/mdc/public/page/2_3022-mflppg-moneyflow.html?mod=topnav_2_3000

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  28. Deflation all the way...
    Gold back to 1000
    Oil to 30
    We are close to the top in equities...
    Dawler higher...

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  29. Whew I would certainly be afraid to bet on that trade. I think Ben has pretty much proved his point that with an unrestrained printing press deflation has no chance.

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  30. Bernanke has proved nothing except that he is exceedingly short-sighted and incognizant of the damage wrought by his increasingly desperate efforts at preventing the deflationary collapse.

    Since most people think of inflation strictly in terms of pricing, I have to wonder where is the inflation in, say, corn and wheat? Oil is a scarce resource, it is no surprise to see a price increase as global demand ramps up.

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  31. I think anyone in the deflation camp by this time is in severe denial. Oil is hardly in short supply. We have so much of it we are running out of storage.

    Certainly some things with very low demand are not increasing but most commodities other than grains and nat gas have been soaring since last year. resturant prices are up considerably over the last 5 years. health care is skyrocketing. Medical bills and tuitions are up. Most service industry pricing is up considerably over the last 5 years.

    Inflation is a monetary phenomenon. Rising prices are just a symptom. We certainly have expanding monetary bases and monstrously expanding credit (government).

    That money is going unevenly into asset markets.

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  32. Medicine is an oligarchy, the perpetual shortage of US doctors is a deliberate policy of AMA to keep doctor wages high. In a free market, prices in this area would plainly fall. Doesn't the US have one of the most expensive medical systems in the entire world?

    Restaurant prices up considerably? Perhaps at Ruth Chris steak house, but the general populace doesn't eat there. At McDonalds, I would say that prices haven't gone up much, if at all, and they have also introduced some lower price options on their menu. Like the McSnack or whatever the hell it is called.

    Yes, asset prices are being bid up in a liquidity-fueled frenzy. When everybody is all in on the inflation trade, those prices will have nowhere else to go but...down.

    How is your aluminum hoard coming along? Alcoa sees increasing prices. I see them going bankrupt in a few more quarters. ;-)

    And finally, the highlight of this depression is going to be the refutation of monetarist nonsense. A hundred years from now, some dumbass fedhead will be thanking some theoretical economist for pointing out the errors of Bernanke and claiming, "Yes, we did it. But thanks to you, it won't happen again." (Note that the proposed refutation has already occurred in Japan, but Anglo-Saxon types are convinced that the Japanese are "different". Sure they are.)

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  33. If you will notice prices aren't falling. In a deflation prices should be falling. Even grains and nat gas are just stagnate. Even housing prices have ground to a standstill.

    If we were really experiencng deflation prices of everything would be dropping like a rock...just like they did in 08.

    That's just not happening anywhere.

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  34. Gary of SMT blog said: "Do you really think some of the smartest people in the world would invest in a sector if they thought it was being suppressed?"

    Eric Sprott: "I’m a 100% believer that central banks have suppressed the price of Gold."

    Do I take the word of a random blogger or a chairman, ceo & portfolio manager with $5 billion under management? hmmm...

    Joseph

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  35. Do I trust Eric Sprott or Jim Rogers, Marc Faber, George Soros, John Paulson, etc.

    I think I got to go with the big boys :)

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  36. Greg,
    Do you really consider any of this as serious evidence of anything other than short term manipulation (happens in every market).

    My gosh on Feb. 5th the market was moving into an intermediate cycle low. There was margin selling across the board in everything. To expect that to not effect the metals would be ludicrous.

    I think part five makes a perfect case for owning gold. If there are outlandishly large short positions they will have to be covered when price rolls over them. That means gold will rocket higher. What's bad about that? Isn't that what we want to happen?

    Why are you concerned about something that's guaranteed to send gold soaring?

    And all this based on some trader who openly admits to making money of the manipulation. Why did he now all of a sudden decide to kill the goose that lays the golden eggs.

    Perhaps you might want to read a little commonsense once in a while.

    http://www.safehaven.com/article/16285/what-isnt-manipulated

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  37. http://www.safehaven.com/article/16285/what-isnt-manipulated

    Hmmm. This bozo doesn't know the difference between conscious and conscience.

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  38. http://www.safehaven.com/article/16285/what-isnt-manipulated

    Hmmm. This bozo doesn't know the difference between conscious and conscience.

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  39. After looking at the posts here, I see that they are all pretty ancient.... around April of 2010, and at this time of this posting, it is near the end of August 2011.

    Of course gold is being manipulated, only a village idiot would think otherwise.
    However, with patience, and if you already have physical gold, (the only real money saved toward your retirement), then play the waiting game.
    For the past ten years it's been a case of three steps forward and two steps back, at times it was four steps backward, but not very often, all in all, it's been a steady move forward for gold, and a steep decline for Ben Bernanke and his ilk's paper dollar.

    Wait... let those with billions continue to sucker in the rubes by raising the price of gold with their paper purchases. The rubes seeing the price of gold rising then jump in hoping to become wealthy also.
    When enough of the simpletons have invested their life savings, the Wise Guys bail out taking all of the gullible ones money with them.
    A few weeks are allowed to pass in order to let the sheep forget, then the game begins, over and over, and over again.
    You don't have to go back very far to see how much gold has increased, or if you prefer, how much the Dollar has collapsed.

    January of 2010 saw a gold price of $1097.30
    Sit on your golden egg until the "hatching" is complete.
    Wait until long AFTER the crap has hit the fan.

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