*Updated: 2nd wave of attack in progress, silver smashed under $33.70
Friday’s desperate attempts by the cartel to prevent a weekly close about $35 in silver and $1800 in gold were well documented on SD (and even Kitco’s weak attempt to erase the evidence of the massive raid).
This week’s silver COT report revealed that the cartel piled on another 31 million ounces to their net shorts, bringing the commercial net short position in silver to a mind-blowing 289 million ounces.

Thus, it should be no surprise to SD readers that the cartel has just initiated another water-fall decline smash in silver.

Submitted by SD Contributor FW:

Frequently, silver worrywarts claim the cartel can ultimately control the price of silver, and that no advance will come beyond levels the cartel deems appropriate.  This logic fails in the face of the 12 year old bull market.  More to the point, the argument fails to factor the importance the powers that be assign to keeping the rigged game going.  Sure, the cartel cheats.  It’s like they play poker with 15 extra decks of cards under the table, able to pull needed cards at will just as easily as manufacturing naked short sales.  But they sure as heck don’t want to flip the entire poker table over and end the game forever.  It’s critical that you understand this analogy.  On an incremental basis, as the cartel’s manufacture of naked shorting becomes increasingly brazen and ever more separated from the realities of the true physical market, they run the risk of flipping over the poker table.  They lose all power to control paper prices when the game is seen by all as over — when the poker table is flipped over.

Silver guru David Morgan of Silver-Investor.com is looking for a massive rally in silver over the next 12 months (Morgan informed The Doc recently that he expects silver to target $60-$75/oz over the next 12-15 months), stating this move in silver is ‘just getting started on the next move up‘.

Full interview and Morgan’s outlook on silver below:

SGTReport.com has released a MUST LISTEN interview with Greg Mannarino discussing what Mannarino describes as the END GAME.

Greg warns that “we are literally at the financial, global, economic end game.” And the result will likely be world government and the permanent end of our Liberty. Our situation could not be more dire, although you’ve heard others sound the alarm about the “end of America” – listen to this gripping interview and consider it very carefully.

This is a red alert warning.

Sitting Bull writes:

I am a physician and have converted my entire portfolio to 50% gold and silver bullion and 50% quality mining stocks. So I am with you. What I am trying to understand is exactly how a 40% devaluation of the dollar will immediately affect American’s day to day lives. Can you help me with this? I have studied and studied, but I am trying to understand how prices will be affected for the average person initially. What happened in Mexico? What happens here? Does gasoline go up 80% overnight? Does food go up 80% overnight? I was a Peace Corps volunteer, so I can explain the inner workings of certain pacific island cultures in ways no text book can seem to get right. I was hoping you could do the same thing for me involving this. Thanks.

Somehow we missed this over the summer.
In an excellent economic lecture series presented by the BBC, economic historian (& author of the recent Newsweek piece Hit the Road Barack) Niall Ferguson states that the total US unfunded liabilities is a mind-blowing $238 TRILLION- over 16 times the total US debt claimed by the Treasury Department of $16 trillion!!

Can you say QE to INFINITY….AND BEYOND!!!  ?  There is simply no other viable solution.

Submitted by SD Contributor Marshall Swing:

Silver COT Report 10/5/12

Commercials added 1,337 longs on the week and a sizeable 7,518 shorts to end the week with 46.51% of all open interest, an increase of -1.25% in their share since last week, and now stand as a group at 289,200,000 ounces net short, which is an increase of another 30,905,000 net short ounces from the previous week

And…it’s gone!

As we have documented in depth throughout the day (here and here), the cartel instigated a waterfall decline in silver this morning co-inciding with the 8:30am EST NFP release, dropping silver to $34.15.
Kitco has just decided to erase the evidence, as they have just removed the entire manipulative takedown from their charts. 

There’s no manipulation in silver! See? Show me on the chart any manipulative price action!

Fortunately, SD captured the data this morning on more than one platform.

Full evidence of raid and subsequent chart fudging below:

In an attempt to flash-smash silver and prevent a weekly close above the critical $35 level, the cartel dumped an estimated 51 MILLION OUNCES of paper silver on the futures market in only 5 minutes on this morning’s non-farm payrolls release between 8:30 and 8:35 AM EST.

Net Dania’s spot silver chart, which is not a precise futures volume measure but approximates the volume, indicates nearly 10,500 contracts were dumped in a span of merely 5 minutes, and half of those were dumped in a span of 2 minutes between 8:30 and 8:32am EST.

In the wake of last week’s report of tungsten filled gold bars discovered in Manhatan’s jewelry district, and our subsequent discovery of this Chinese firm openly advertising tungsten filled gold products, an SD reader has contacted the Chinese firm to see just how easy it is to acquire tungsten filled gold coins.

Full details below:

In his latest MUST WATCH update, Greg Mannarino states that we are only months away from the BURSTING of the US Treasury bond bubble.

As SD has pointed out repeatedly, Mannarino states out that the nations who have funded the US deficit over the past 10-20 years such as China and Japan are backing away from US debt, and the Federal Reserve has become the lender of last resort.
Greg compares the chart of the DJIA during the equities bubble with the current chart of the 30 year bond.  The 30 year has been rising in an unsustainable uptrend as the Federal Reserve is buying US debt like its going out of style.  Greg states that the free market will take over the manipulation of the bond market by the Fed, and the FREE MARKET WILL inevitably pop the bond market bubble blown by the Fed.

Mannarino states that when the bond bubble bursts (he believes this is only months away), faith will be lost in the entire fiat monetary system and we will see the MOTHER OF ALL COLLAPSESGreg states that all of the fiat monetary system cash will flow like a tsunami into the only safe haven assets remaining; gold, silver, and oil
Gold and silver prices will be absolutely staggering due to the collapse in the bond bubble, which will be the final nail in the coffin of the US dollar.
You must become your own central bank today by exchanging your fiat Federal Reserve notes into physical gold and silver.

Got PHYZZ??

“The labour market needs to improve for QE3 to end and, if it does not improve as the Fed wants, other [monetary policy] measures will be introduced,” reckons Standard Bank strategist Steven Barrow.

“If the third round of quantitative easing leads to further weakness of the US Dollar, [other] central banks may be prompted to switch more cash reserves into gold,” says Evy Hambro, co-manager of the UK’s giant Blackrock Gold & General mining-stock fund.
The chart of Dollar gold prices, says a new report from Hambro’s team, “has turned decidedly bullish with the 50-day moving average rising above the 200-day moving average.
The last time this happened was in February 2009…shortly after the implementation of QE1. Then, gold was $900 and never looked back. Should we witness a similar rally, prices would be taken to $2,400 by midsummer next year.

The cartel has just flashed smashed gold and silver on the NFP release, with silver dropping down a vertical mine-shaft to $34.15, and gold down $20 to $1770.

In an unbelievable turn of events and what likely has just induced a collective myocardial infarction among the cartel, rather than triggering long liquidation and a massive sell-off, the $1 cartel raid has been met with MASSIVE BUYING as virtually the entire move has been retraced with silver back above $34.90!!

*Epic cartel fail as silver has retraced the entire flash-smash in under 30 minutes, trading back to $35!!

Precious metals have all run up with the recent loose money policies enacted by various governments.  Clearly the market darling of late is silver which is now gaining favour in Asia for its value appeal.  Spot silver traded in New York has risen by 27% since the end of June, while the price of spot gold has increased by a meek 12%. Analysts say future Indian demand is key for silver’s price to climb. Futures contracts for silver at India’s largest commodity exchange, the Multi Commodity Exchange, rocketed 30% in September compared with July, while volumes fell by 10% for gold futures contracts over the same period. Indian rupee weakness sent gold prices in rupees to an all time high this year, while silver never exceeded the record it hit last April. Rupee-denominated silver is currently being quoted around 20% below the record. Indian investors have ceased purchasing because the 2 weeks ending Oct. 15th is regarded as inauspicious.  The buying will commence and peak during the week ahead of the Hindu festival of Diwali on November 13th. In China, on the Shanghai Futures Exchange silver futures were up 29% at the end of September verses the end of June, while gold climbed 13%, according to data from the exchange’s website.