"Is silver being manipulated?"

David Fuller's view I have received a few similar emails with attached links to articles written by people who see another conspiracy theory. I see no merit in posting and therefore publicising these but I will address the question.

Some people see conspiracies everywhere, especially in precious metals and particularly when they are fooled by market action.

I am not saying that there is no manipulation; one of the best examples is Mr Bernanke's stated intention to encourage the US stock market rally with his QE programmes. Another example is the manipulative HFT tactic known as "spoofing", mentioned in the next email below.

The main point for investors to remember about silver or any other market is that it will trend consistently when there is a clear imbalance between supply and demand. However, this will inevitably change at some point, as we saw a year ago with silver. Following sharp reactions, when supply and demand are more or less back in balance within an active market, we get whipsaw action and lots of ranging in a tug-of-war between buyers and sellers. When a clear winner eventually emerges, the next consistent trend is underway, driven by another self-feeding imbalance between supply and demand.

My guess is that it will be to the upside for silver but first it has to establish a new sequence of higher reaction lows. Might silver be working on that first higher low at present? Possibly, and I am currently positioned for that outcome with a small long position but it is too soon to say. Gold will probably lead, initially.