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Read the Monday Afternoon Wrap-Up for 10/15/2012 and the Tuesday Morning Commentary for 10/16/2012

In my January 31st RANT, “SUNDAY NIGHT SENTIMENT,” I wrote of the Cartel’s decade-long penchant for attacking PAPER Precious Metals in the thinly-traded Sunday night markets; i.e., when only Hong Kong – or even Sydney – have available trading platforms.

Call it a curse or blessing, but Precious Metals trade 24/5 – plus – care of electronic trading platforms, subject to heavy intervention.   Consequently, PM’s are typically lower 90% of the time after the NYSE closes, for example.  Other markets also trade overnight, such as currencies and crude oil.  However, they rarely have material moves in the wee hours; as no one MANIPULATES them with the same intensity.

I have long noted TPTB’s last remaining “weapons” of MONEY PRINTING, MARKET MANIPULATION, and PROPAGANDA; cumulatively, utilized to affect popular PERCEPTION; i.e., sentiment.

Moreover, given the tiny size of the global PM community, it doesn’t take much to dissipate bullishness; particularly given the constant attacks, smashes, and WATERFALL DECLINES characterizing the market; let alone, the relentless stream of fear-mongering – both inside and outside the PM community; and, most importantly, the tendency of PM believers to avoid PHYSICAL bullion in lieu of highly speculative “PAPER PM Investments” like ETFs and mining shares.

The most notorious “SENTIMENT” attack was the May 1st, 2011 “SUNDAY NIGHT PAPER SILVER MASSACRE”, per below.  As silver approached its “ultimate triple-top breakout” at $50/oz, industry supply SOLD OUT, yielding genuine Cartel fear of a monetary meltdown.

Thus, with the Chinese market CLOSED for a holiday, and only the thinly-traded Sydney platform open, they attacked silver for $6/oz in roughly 12 minutes; stooping so low as to use the “bin Laden killed card” as cover to “double down” when silver attempted to recoup its losses (as if bin Laden had anything to do with silver)…

Aside from such dramatic, “blitzkrieg” attacks, PMs are always “capped” on Sunday nights during upcycle periods – as we saw from mid-August through the “QE3” announcement in mid-September – and ATTACKED during (Cartel-engineered) downcycles.

Consequently, I do as much manipulation analysis on the upside as the downside.  Only after reviewing both sets of data does it become clear just how pervasive the Cartel’s activities are; as described in my March 9th RANT, “CHUTES AND LADDERS.”

Below, I compared the level of Sunday night silver increases during the three upcycles of the past year, as well as the four downcycles.  As anticipated, the average Sunday night increase during PM upcycles – comprising 24 weeks of data – was a miniscule $0.10/ounce…

less than a third the average $0.32/ounce decline during the 22 down weeks…

Of course, the latter data ignores the fact that Cartel blitzkrieg attacks often occur during COMEX hours, negating the need to attack Sunday night, given how much damage was already done; such as was the February 2012 “LEAP DAY VIOLATION,” when Cartel forces inflicted a $2.50/oz decline.  Conversely, similarly-sized COMEX surges NEVER occur…

The key takeaway – as always – is to understand PAPER markets are but an ILLUSION; following a stale, transparent SCRIPT aiming to divert your capital from PHYSICAL Precious Metals.  If you understand, you’ll realize why “PAPER PM Investments” are a one-way ticket to the poorhouse, and PHYSICAL gold and silver impervious to such criminal machinations.

PROTECT YOURSELF, and do it NOW!

Call Miles Franklin at 800-822-8080, and talk to one of our brokers.  Through industry-leading customer service and competitive pricing, we aim to EARN your business.