Dear Size 13: You have to realize that there is, has been and will be massive manipulation in the gold and silver markets. They go on daily when the London exchange opens, again when New York opens, and then at any time there can be a sudden sell-off and a little gradual recovery. The only reason is that one of them, perhaps after a telephone call decides gold has gone up high enough.

They are led by the four big banks, and nine + lessor ones - J.P. Morgan, Goldman Sachs are the most active. Evey day huge illegal gold or silver contract trading goes on and nothing has been done about it. They have massive short positions that they are trying to cover, and are doing so rather well. I don't know if they can ever cover their derivative positions they obtained by betting the wrong way on the Euro, gold and silver etc., but probably not. For example the Bank of America owes 73 trillion dollars! Not million, but trillion!

No one knows if the US Secretary of the Treasury engages in this or not. This one man can buy and sell anything he wants without the approval of Congress. The boys that know about this mention that if you had a herd of top economists and scholars it would be hard for them to do what this one position does, yet it is all performed on a daily basis by one man that reports to no one!

There is such a world wide pressure buying gold that they can't get away with a massive sell-off and perhaps the time will come that there will be a situation (e.g. the straight of Hormuz) where there is a gold fever and the price of gold and silver will just explode. If it weren't for the manipulations, the POG probably would be at least $2500, and with the buying from Europe, India and China increasing it still goes up steadily.