Bombs away!...................from Rico

The 'paper' bombing raids continue.

Gold hit a 4-month low yesterday, Silver followed. They are being 'bombed' again today.

The ONLY reason Gold & Silver have 'fallen' for the past four months is not because anything has been 'fixed' in EUrope or the US. Equities, paper fiat and Sovereign debt are not suddenly safe places to be again. Nyet and Nope!
- It is due SOLELY to market manipulation and massive paper shorting.
- Yesterday was again an example of the 'unusual' trading activity that is increasingly becoming commonplace [read: manipulation]. At the NY trading open 6,000 Gold futures were sold in minutes, triggering momentum-driven algorithm follow-on selling.

This allows the paper shorts to 'cover' at lower than what true/free-market prices would otherwise be.
- It also allows those 'uncivilized' Chinese (and others) to happily scoop-up more physical at bargain prices, thanks to these games being played by our paper 'masters of the universe.'

Something BIG is coming our way, as evidenced by the continued ferocity of these paper bombing raids.
- When the last of the physical has been drained from CME's COMEX and/or London's LBMA and repatriated to other depositories, the proverbial 'jig' will be up...and only those holding physical will be laughing!

There will be a paper failure/default, and I am now considering that MF Global may have been a 'dry run' for the BIG default that is coming.
- There is only so much physical metal. Sure, paper metals (just like paper fiat) can be created with the stroke of a keyboard, but at some point they get caught-out as a fractional [read: Ponzi] scheme, and will fail to deliver the goods. These paper raids are only accelerating the coming failure, and only those holding physical will be able to crawl out of the rubble as survivors. [Note: If you are dumb enough to be holding paper GLD and SLV, you will not be one of the survivors!]

To badly paraphrase the legendary Jesse Livermore and Jim Sinclair: "be right and sit tight."

CIGA Rico sends w/ rgds