Conspiracy - True or False?

It is difficult to judge whether the silver and gold manipulation and conspiracy theories proposed by the GATA gang is true or false.

GATA has been in existence for many years. While there are claims on manipulation, the price of gold has been going straight up since 2002.There is no mathematical correlation to the index to show that it is true.

Also, one have to admit that manipulation is part of the market reality. It is the big boys playing the small boys.

As to the claims of paper gold versus physical gold to the ratio of 100:1, I suspect that this is part of futures trading. It is a leveraged. Quite commonly, you see such ratios in future market and that's why they are extremely volatile. Look at prices of sugar, coffee, wheat, futures etc - you see big swings! A good trader can make a lot of money from futures.

The most credible claim in this saga is that of Ted Butler where he said there are concentrated positions of shorts by JP Morgan and HSBC. The figures are astounding and this could possible cause a short squeeze.

How do I deal with information or perhaps "rumors" or wild events happening like this?

Simply, I let the price actions verify itself. So far, the actions are good. So there could be some truths in all the allegations. I am sure not all are true but something is certainly cooking.

So if price of gold shoots up quick >1140 and then 1160, I should be pyramiding into my long positions.