Conspiracy theory?

Do you think I am crazy to get out of gold and silver?

It is an April Fool’s joke. I hope none of you bail out of these precise metals! I am more bullish than ever. Short term, it may be trading in a range but there is no doubt it will be a lot higher by the end of the year.

I believe the market may continue bullish for a while but sooner or later a bigger crisis will hit.

I believe that inflation will catch up. US$ will fall drastically, interest rates will go up and commodities price will continue to rise. These are my investment themes for 2010.

What I had written are views thrown to the public by the media and the government. The government wants to claim credit and get elected again propagates these ideas.

I hate to believe in a theory of conspiracy but strangely the main stream medias especially CNNBC are infusing these ideas into the investment communities.

Following are some events that are very interesting.

Last week, CFTC held a hearing regarding position limits in the futures market. You can listen to the hearing. There has been a belief of manipulation notably by JP Morgan and Goldman Sachs for years. People like Ted Butler – precious metal analysts, Eric Sprott – multi billionaire and hedge fund giant focussed on gold in Canada, and GATA ( www.gata.org ) have been collecting evidence.

Gata’s founder, Bill Murphy was invited to testify at the hearing.

Something very intriguing happened. A metal trader from London, Andrew Maguire became the whistle blower giving detailed facts on how the manipulation at JP Morgan took price giving precious time and showed emails sent to CFTC on how and when it happened.

During the hearing, Jeffrey Christian of CPM Group told the group that the there are hundred times more gold paper trader deposits than actual physical gold. This is startling as it could mean the whole entire bullion market is a completed ponzi scheme and scandal of much greater multitude than Bernie Madoff. It also mean that all the ETFs like GLD and SLV are frauds as they do not have the backing of the physical metals of which JP Morgan are one of the custodians. If you ask for delivery, there would be a run on the bank and panic.

Spend time and listen to the following exciting interviews. It is worth your time.

http://www.gata.org/node/8478/
http://www.zerohedge.com/article/former-goldman-commodities-research-analyst-confirms-lmba-otc-gold-market-paper-gold-ponzi
http://www.kingworldnews.com/kingworldnews/Broadcast/Broadcast.html
http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2010/3/31_GATA.html

A number of events during and after the event support further the case for conspiracy. I find it difficult to accept that this is happening to America. It is a country that I respect for upholding the baton of freedom of free speech and democracy. What happen?? Lets present the facts:

· There were not single mainstream media coverage despite the sensational nature and newsworthiness of these events.
· Bill Murphy was contacted by major media outlets for more interviews. Within 24 hours, ALL the interviews were cancelled.
· Immediately after Maguire testified, he was run over by a car while driving down the street with his wife. The driver sped away running away other pedestrians in his haste to escape! Coincidence?
· KingWorld News is one of the alternative websites that conducted the post interviews with GATA and Maguire. Internet servers of the website were attacked and disabled yesterday from 8 to 10 am ET by very sophisticated hackers. The servers are maintained by one of the largest Internet site hosting companies in the world and they “could not figure out why this cluster of servers is being attacked”.

There were more than a few strange goings on at the hearing, one of which was that the video feed went dead just as Bill Murphy was about to detail the Maguire story for the CFTC. Here’s the video which was not available at that time, see below:
It contains details on Maguire’s charges that massive short positions by HSBC (HBC) and JP Morgan aimed out flushing out longs occur regularly and predictably, in a coordinated fashion.



Even Dennis Gartman who is a sceptic on Bill Murphy and Gata’s activities is starting to acknowledge that there could be truth in the findings.

http://watch.bnn.ca/clip283224#clip283224

If these guys are right, we are in for some fireworks in the physical silver and gold market!