the great manipulation debate, page-20

sadly that is the case most of the time rb.

The irony is , when metal/commodity markets are "manipulated" on the long side the conspiracybugs are silent.

If these guys actually new anything they would discover that all the great manipulations in commodity markets via the forward markets started on the long side, the classic corner, the accumulation of long positions or actual delivery of the physical

In fact some might argue that Warren Buffets purchase of silver in 97/98 was a quasi corner. It pushed the price form 3.5 to 7 in about 6 months. Buffett accumulated silver futures , he had to make sure that the floor traders never suspected that the buyer of the long contracts was a financial gorilla who could wipe them out. When he demanded delivery the shorts were stuffed, but being a gentleman he gave them 6 months to get the physical to him. Once the "corner" collapsed the price was back to 4. the conspiracy bugs would have argued the price collapsed due to manipulation . Manipulation by the longs!

The latest rather pathetic attempt at a corner in silver was the Crash Morgan madness in April. The Crash Morgan crowd thought that if enough punters bought silver they could destroy J P Morgan who they believed had some massive undeliverable naked short position in silver that was holding the price down. This is a classic attempt at a corner, but unusually the manipulation was designed by the conspiracy bugs themselves!

Now I personally knew some protagonists in this corner beacuse my stepson had a bunch of mates who were buying silver bullion , spurred on by the Crash Morgan madness which was going viral via youtube downloaded on their iphones. When the price was around $44 I told my stepson I was offloading all my 1 kilo bars. He told me his mates would buy them, there were desperate for bullion to Crash Morgan

They EFTed the money straight away and delivery of my bars took place the next day and a week later they were down 25%. They are young and will live to fight another day!

Jeff Christian knew that in the months leading up to the April blow off in silver there could be a squeeze, he even posted an article on Kitco alluding to it. I took note of what he said and prepared for action. Of course when silver blew off Christian was telling his clients to sell and I am sure some made fortunes in the trade.


I still believe we see $100 silver sometime, dont know when, and only sold 1/3 of my silver equity position, but there is no better feeling than taking a profit in a big rally. I am looking to accumulate KCN now because if silver does go to 100 that stock will be a monster.