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I am flying back to Miami on Monday along with Susan and Shuggi.  I don’t expect to have time to put out a newsletter on Tuesday, but will be back at it on Wednesday.

That’s the Shug on Susan’s lap.  She’s a great traveler.

Now, onto Friday’s gold and silver markets…  Note the waterfall drop in gold, the tell-tale “signature” of a mega-hedge fund, a not for profit motivated seller, at work at 11:45 New York time.  No one sells like this unless they are trying to influence the market (to the downside).

I sent Sinclair’s comments to trader David R.  He replied:

I laughed out loud, because this exactly what I told your son last week…. I doubled checked to make sure it wasn’t Andy who sent this out, but Jim….

Have a nice weekend!

Let’s go Denver and 49ers!!

David

Whereas many of the people I follow (including Ranting Andy) insist that it’s the big bullion banks (JPMorgan, HSBC, etc.) that are manipulating gold, David R says, no, no, it’s the large hedge funds.  Looks like Sinclair is in his camp as well.  It doesn’t make any difference; the fact is that manipulation IS taking place.  The result is the same whether caused by banks or funds.  I don’t get hung up over the details; it’s the results that matter.

I discussed this with Andy Hoffman and he has a different take on Sinclair and David R’s comments.  He sent me a long email on the topic and here is what he had to say.

David,

I have NEVER said hedge funds are not involved in PM markets.  Only that they have NOTHING to do with rigging it – just riding the riggers’ coattails. 

It is the U.S. government that creates the WATERFALL DECLINES; particularly in off hours – like the open of the Globex market at 6 PM EST – or in “SUNDAY NIGHT SENTIMENT” attacks.  END OF STORY!

It is hedge funds – led by guys like Andrew McGuire (before he found religion) and David R. that act as what Butler calls “raptors.”

Hedge funds – unlike the government – have ZERO motivation to see lower prices.  In fact – per what I’ve written countless times about hedge funds (such as in THURSDAY’S RANT, “HEDGE BOMBS”); per my personal experience having worked for one – and catered to hundreds as a sell-side analyst before that; more than 90% of hedge funds are LONG-ONLY.  In other words, hedge funds are biased to be LONG assets, NOT short; and VERY few would even be eligible to heavily short COMEX futures (or very expensive GLD shares) on margin to start with; let alone, enough to actually MOVE the market.  Thus, there is NO WAY hedge funds are a major factor in constant gold WATERFALL DECLINES.  And if there are in fact a few of the “mega-hedge funds” involved, they are doing so in the same manner as JPM – as AGENTS of the government and/or paid co-conspirators.  Just look at John Paulsen, the so-called “brilliant” mega-hedge fund manager, who was caught creating crap MBS portfolios WITH Goldman Sachs so they could sell them to clients while he simultaneously shorted them.

When I post these “CARTEL HERALD” charts, I do it on INSTINCT!  How many dozens of times have I shown a chart such as below (YESTERDAY), in real time…

…only to see THIS happen shortly afterwards; and again, this is YESTERDAY!  Do you really think DR, who has worked in the PM markets for years, with OTHER PEOPLE’S MONEY – and who clearly has sociopathic tendencies if he won’t acknowledge government manipulation – doesn’t see this as well?  David, I’ve been posting these charts for years on GATA – as has Bill Murphy and ANYONE with half a brain that watches PM markets.

Heck, here’s what I posted in my blog on MONDAY…

…only to see THIS happen right afterwards (I’d have spotted it earlier, only I wasn’t watching the screen as I was WORKING – something DR isn’t required to do)…

Next, let’s go back to the LAST WATERFALL DECLINE – on 12/28.  Here’s the “CARTEL HERALD” I posted in my blog – again, in REAL TIME…

…and here’s what happened 20 minutes later – at the KEY ATTACK TIME of 10:00 AM EST.  I get it right EVERY TIME – well in advance to make money if I were a trader like DR – b/c the Cartel SIGNALS it EVERY TIME; which is EXACTLY what Andrew McGuire told the CFTC.  And BTW, I was writing of the EXACT same things McGuire disclosed for years before he spoke out; including the “false flag” gold mini-surges that typically occurred right after NFP reports, presaging massive WATERFALL DECLINES minutes later…

And then you have DR’s arrogance; “laughing out loud” b/c Sinclair said hedge funds manipulate markets.  What does Sinclair’s comments PROVE?  NOTHING!  And do they PROVE the government is not also (and predominantly) involved?  OF COURSE NOT!  And are we supposed to believe Sinclair – who in the SAME missive ADMITS he personally manipulated markets?  NO WAY!

And by the way, Sinclair has also said – on COUNTLESS occasions – that the government is indeed manipulating gold.  Here’s what he told KWN last April, after what I deemed the “FOMC MINUTES DECIMATION.”  So tell DR not to get too excited about one quote…
On the heels of the release of the Fed minutes, today legendary trader and investor Jim Sinclair told King World News the release of the Fed minutes and subsequent market reaction in gold was orchestrated.  Sinclair also said this is government manipulation against the tide of the bull market and it will be overrun.
And here’s what Sinclair said on 12/21 – just three weeks ago – after another orchestrated WATERFALL DECLINE.  As you can see, he EXPLICITLY states it is the FED (i.e., the GOVERNMENT) – using the “gold banks” as AGENTS – that is the seller!
Charts and TA in such a manipulated, manufactured market, as understood by you, are totally useless. This is a move of desperation by the Fed via the gold banks based on the false premise that attacking symptoms without meaningful economic intervention is going to cure the problem.

Ranting Andy is never one to mince words.

You see, that’s one of Miles Franklin’s strengths – we all have our own views and are free to express them.  The company “line” is to tell it like we see it.  Within the bounds of good taste, Andy and Bill can write anything that they please.  And so can I.