Morning luv: coffe, tea or me? Seriously, here is an interesting little article which tends to explain many things.

Don Jose de La Mancha

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02/27/2012

Silver Doctor is reporting a very interesting event that appears to have occurred last Friday.

The price of silver, you recall, went up nearly to to $50/oz. last April before the government changed the rules and imposed higher margin requirements in purchasing silver. This restricted purchases and immediately had the desired effect of forcing silver prices to drop nearly in half.

Prices fluttered between $28 and $32 in the past few months. Now the price is over $35, as it began to soar last week.

On Friday the cartels tried once again to drive down the price of silver. They dumped huge paper silver contracts into the market all within a 7-minute period. Charts went wild as they dumped over 100 million ounces of silver contracts, pretending that they actually had that much silver to sell.

http://silverdoctors.blogspot.com/2012/02/cartel-dumps-1025-million-ounces-of.html

They have done this trick over and over again for many years, and each time, they have succeeded in artificially driving down the price. But someone was ready for them this time. Someone was ready to buy up what they were selling, and after the dust settled, the price continued to rise!

It looks like someone is finally calling JP Morgan's bluff. Asians, perhaps? The Silver Doctor seems to think so.

When a major commercial bank like JP Morgan shorts the market, they issue contracts to sell silver at the current price, believing that the price will go down before the contracts expire. Most contracts are simply settled when the losing party pays the difference to the winner of the bet. Those shorting the markets do their best to bring the silver price as low as possible, so that they make the most money fleecing those who dared to bet against them.

Those 7 minutes may be prophesying a whole new ballgame.