First, I left out an important short-term silver chart yesterday - an updated version of my chart from last week suggesting good entry points into the silver market after the strong move two weeks ago. My omission turned out fortuitous, because the dotted green trend line I was watching was hit again today, making tomorrow's action worth following closely. Will silver bounce up, or close below it -- perhaps all the way down to the solid green line (which would be an even better entry point, IMO). I'm short term bullish so long as that solid line isn't broken, the overbought status on most momentum indicators notwithstanding.
Moving on, I'd like to open a discussion concerning manipulation. I find myself far closer to the "tinfoil hat" side of the debate than most of the contributors here, including most of our distinguished commenters, who are all strongly skeptical of any pervasive interference in the metals markets (as alleged by GATA, Turd Ferguson, Ranting Andy Hoffman, SGS, etc.)
I defend my position using three simple axioms, from which, as I see it, the necessity for manipulative mechanisms (if not the actual constant perpetration thereof) follows rather plainly: (1) The demand for gold and silver increases as the price goes up; (2) "a runaway gold price would certainly be the end of the current fiat money system in very short order" (Ed Steer); and (3) every ruling class (indeed every organic entity) will fight relentlessly for its self-preservation.
So I'd be interested in how those I will rather uncharitably call "manipulation deniers" would explain the following popular chart from Ed Steer, of Casey Research and GATA, which I regard as pretty strong empirical evidence of the axiom-based manipulation hypothesis:
Steer explains this chart, made for him by Nick Laird, as follows:
The red line is the price rise or fall that occurs between the London AM fix and the London PM fix ... Except for a handful of years, it's been showing a negative price bias just about every year for the last 42 years. It's particularly noticeable during the current bull market.So what the overnight markets giveth, the London and New York markets, working together, make every attempt to taketh away. This is where the name of the chart comes from "LBMA London AM-PM Bias."[In] January [data not shown on above chart]… the overnight bias showed an increase of $169...or 10.4%. The London intraday bias was -0.02%. So here we have one of the biggest bull market rallies in January in recorded history, and the cumulative move during the 4.5 hour intra-London trading hours during January was actually negative. This is Anglo/American price fixing scheme laid bare [emphasis mine].