this is from today's commentary by bill murphy of gata:

That makes it back to back waterfall raids about the same time of day. The Gold Cartel must want gold down in the worst of ways. After their first attack, gold rallied back $10 off a $1096 low, in extraordinary fashion, to $1106 for the PM Fix, indicating strong physical market demand. However, as soon as the Fix concluded, they attacked again, this time with the aid of a strengthening dollar … which was also a bit weird as there was no news to account for the euro dropping an entire point off of its high.

Silver went into free fall right from the get-go, and barely budged off its early low when gold rallied sharply for the PM Fix. JP Morgan Chase continues to use silver as its personal investment play toy, as the CFTC continues its pitiful silence regarding its 18 month investigation into charges of silver price manipulation. This organization is a joke (while not putting words in his mouth, I think CFTC Commissioner Bart Chilton privately would say the same thing). As Dave from Denver put it regarding the CFTC, if there is no silver market manipulation explain the outrageous, concentrated position of JP Morgan Chase and explain why that position is not prima fascia evidence of such … especially when the CFTC is making a big deal of limiting positions in other commodities. Why bother if they are going to let JP Morgan’s silver short position be so egregious? Their staggering short position dwarfs that of any other concentrated commodity position.

The reason the CFTC won’t say anything is because the charges, by all reasonable definitions of market manipulation, are correct. They can’t lie without dismantling all their efforts over position limit restrictions in other commodities. But, even more of a problem, they don’t want to bring any attention and general scrutiny to the size of Morgan’s humongous silver short position. Their motto is to let the sleeping dog lie … and lie quietly. They know the inept, cowardly leaders of the silver industry won’t make a peep … so Morgan has free reign to jerk the silver market around anyway they desire, and when … like today.

It seems like today is the day to get into the manipulation story. As I’ve mentioned in the past, I have gone to Washington and met with Bart Chilton, and believe him to be a man of integrity and one who is doing his best in that bureaucratic world to deal with the gold and silver manipulation issues raised by so many of us. Just in, in an email from Bart C to Florida Café member Donna B:

"I proposed a rule to implement hard cap position limits is imminent from the CFTC. As I think I’ve said, holding a large percentage of the market isn’t currently considered manipulation. That’s why we need our position limits and why we need to change the manipulation standard of the Commodity Exchange Act or CEA – that currently requires that we prove intent (an email or wire tap etc..) and that an artificial price existed. I’m working with members of congress on that an hope such a change in the law will be included in any financial regulatory reform bill that is approved."

Bart is explaining what we are dealing with, not justifying it. But huh? Why have any market manipulation laws at all? Not with the way the tail can wag the dog these days with the use of derivatives.