silver futures at $42, page-3

Just exactly on this topic & the market manipulation of futures/paper investments v a direct investment in bullion.

http://www.24hgold.com/english/news-gold-silver-%20-50-Silver--The-ultimate-resistance-.aspx?langue=en&article=3580675524G10020

Now while I do not see this manipulation going away, clearly silver/gold/platinum should increase substantially in value over the latter part of this year. Especially if the US default. Expect to see these prices go up exponentially. Even if there is no default there is only likely to be a short term increase to the 14.7 trillion national defecit they have.

what this means is
1) these debt issues are not going away anytime soon.
2) increase risk aversion & a further flight to safe havens (not the US dollar)
3) QE3 will again force the dollar down instead of any true inflationary effect, this in turn will force the gold/silver price higher
4) be very aware that everyone/every broker, every economist, every idiot on TV/print/net etc says that the US debt problem is not an issue as they can print themselves out of trouble. Clearly this is not true as their growth is non existent/job creation is next to zero.Bear in mind these are teh exact same idiots who, not a single one of them (ok a very limited few, who did not get any air time) predicted the GFC & subsequent debt crisis.
5) lets remeber 1956, the anglo-franco/israeli invasion of the suez canal. The effective end of the british empire. Now how was that caused ? this was caused by the US calling in all the debt that the UK held, which would have effectively bankrupt the country. Forcing the UK to instantly pack its bags and leave egypt. China is the biggest holder of US debt. How would a re-rating effect that ? like greece, new debt at higher rates ? this is a downward spiral. Since capitol hill is too quagmired in self interests it is unlikely to me that any deal will be done to significantly reduce this deficit. So at some point, whether in 2 years, 10, 50 years this will all fall down like a house of cards.

So all in all, the world economy isnt going anywhere for years.Gold/silver etc can only go higher irrespective of short term manipulation.

Whether you hold the bullion, the bluer chip gold companies or try your luck with junior miners/explorers depends on your tolerance for risk. To me though all of tehse options are probably safer longer term than the likes of your common as dirt haematite/magnetite miners
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HOLDING:
AYN,HAW