Crimex Lies and Videotape

As you all know by now that Silver was trounced (15%) Sunday night as the banksters took advantage of the May Day Holiday (Light Volume) to scare people to sell out of there newly acquired positions. The session began with an amazing reversal of the selling and Silver actually was down a little more than a 1% when the news hit of another margin hike at the Crimex, the selling started all over again. This was the third such rate hike in 5 days, needless to say this is unprecedented. So why are they so desperate? My friends explain below:

There are excellent posts by the bloggers I read and I implore you to read the links provided here before you put another dime in Silver or Gold.

Pure Criminality

"Make no mistake about it, what occurred last night right at the open of electronic futures trading in gold and silver was nothing more than a very aggressive attempt by the big Wall Street banks who are irrationally short paper silver to shake out weak hands in order to reduce the fraudulent short positions in paper silver.  Anyone who thinks last night's action - as reported in the mainstream media - was connected to a feared slowdown in China or the Bin Laden thing or the Bolivian mining news is either hopelessly naive or pathetically ignorant of the facts".

Third Hike, Ain't it a Bitch 
"This does not look like a market showing anything like classic buyer exhaustion. This is more like a speeding train, running higher in response to a short squeeze on a massive overhang of paper silver obligations that cannot be delivered at current prices. The exchange authorities are throwing everything but the kitchen sink at it to try and slow it down, to break its momentum. I obviously do not have a problem with that per se. But it would be nice to see the regulators and exchanges occasionally intervening on behalf of the broader class of investors, and not so exclusively for the benefit of their insiders". 

Three times in 5 days

"Ask yourself, why is it suddenly so vital to raise silver margins by 35%? Then ask yourself, why did the CME act in stages? They clearly knew that margin rates were going higher. These hikes were planned well in advance. Why did they not raise margins 35% last Monday and call it a day? I'll tell you why...because they knew that a one-time increase would be quickly shrugged off by silver longs and the hike would have no lasting impact. No, instead, they've chosen to raise in stages, thereby, holding longs at bay for fear of additional hikes at any time".

There is really no point in doing any real analysis on Silver because the rules of the game are being changed while the game is being played. I mean whats the point, "fair is foul and foul is fair"! 

All the brains, experience and charts in the world won't help you in this game, one day the world is round and then it's flat where do you go. I took an enormous beating yesterday and there will be more to come today. I went all in at the open, that was a huge mistake. 

Where to go from here? I believe more hikes will come (they have already increased margins by 35% in a week), they will probably go up to a 100% and by now the players in this market get that so will prepare better. 

The last step by the government will be to halt Silver trading all together and then ownership of the Gold and Silver by private citizens. Al in the name of the greater good, they will manufacture something.

This just tells you, you can't not prepare for whats to come. They won't let you. 


Shorting Gold and Silver is in the interest of the government, they will keep JPM and HSBC and who ever else supplied with enough paper to keep prices down. They will change the laws to benefit the groups (banking cartels) involved.