David Morgan: Silver price manipulation

10:15p ET Thursday, May 22, 2008

Dear Friend of GATA and Gold (and Silver):

David Morgan of SilverInvestor.com and The Morgan Report today may have settled the question of manipulation of the silver market. In his new essay, "Silver Price Manipulation," Morgan notes that while there is no limit on the creation of paper promises to deliver silver on the New York Commodities Exchange, the exchange limits silver deliveries to 7.5 million ounces per month. That is, the exchange's rules are overwhelmingly stacked in favor of those shorting the metal.

Morgan concludes: "Think about how much paper is flying around compared to the amount of physical silver that exists. Think about the derivatives problem we are witnessing in the mortgage markets, and ask, 'Can the precious metals derivatives be far behind?'"

You can find Morgan's analysis at GoldSeek's companion site, SilverSeek, here:

http://news.silverseek.com/SilverInvestor/1211435880.php

And at 24hGold here:

http://www.24hgold.com/viewarticle.aspx?langue=en&articleid=259200_Silve...

Or try this abbreviated link for 24hGold:

http://tinyurl.com/43wejg

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

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