Silver volume - Have the Huge volume MMs thrown in the towel

[richiedoc]

Today in NY volume is back to pre-Sept levels. This is a potentially huge develpoment. Silver is now above 11.50 and could break out to the upside at any time. I will post a chart later when NY closes.

We may be in for a ride folks. Load up and hang on.

I repeat - trading is now back to normal volume levels in NY.

R

[oroborean]

While I don't necessarily disagree that there is manipulation in the silver market, I don't see the recent action as inherently manipulative. Silver and commodities seem to be rallying now on confirmation of a relatively strong economy (versus a recession) and therefore relatively high demand. It would have made total sense for large players to be short silver and commodities as prices were coming down amidst an uncertain economic outlook and Fed stance. Now that the bond market is selling off and recession fears are themselves receding (even if only temporarily), it makes perfect sense to cover that position and possibly even go long again. Hence, the volume action you describe is not necessarily manipulative, but smart investing. If you have specific evidence that indicates manipulation as opposed to legal trading, I'd love to see it.

As discussed in my Fed (http://forums.silverseek.com/viewtopic.php?t=120) thread, silver is moving more or less with gold and oil and commodities, although performing relatively well against these others due to its legitimate supply/demand fundamentals. My view continues to be that there is still upside here for silver, but that it is inherently limited until the market again begins to expect a Fed rate-cut. The limited upside view is echoed in the most recent market report by Clive Maund (http://news.silverseek.com/CliveMaund/1160676506.php). For the next major move to occur, I believe inflation should appear contained and economic outlook poor, both of which would appear to justify rate-cutting. An argument that gold/silver did best, not when Greenspan last took down rates in 2001, but in 2005 as he started raising them again is a valid position. My rebuttal would simply be that gold and silver have duel investment purposes and that the momentum of the rate-raising strong demand buying is reaching its peak, but rate-cutting would re-ignite the silver-as-money, inflation hedge buyers while continued global demand compensates for the slower-demand selling. Of course, to the extent that Barclay's or other large silver market makers can short silver to infinity, any unwanted spike in the commodity can be curtailed to some degree.

Given the prodigious and concerted effort that has gone into the Potemkin village facade that is the current market environment, I feel it is quite likely that a Democratic sweep could prompt a reversal and opposite reaction that might be used to paint democrats as inflationary and fiscally irresponsible. On a long enough time line, whatever happens in the short term, silver does seem to have a date with destiny . . . and much higher prices.