This is the testimony of Martin Armstrong a well-reknowned hedge fund manager:
"At the start of the silver manipulation I was flat. I had taken all profits and closed out all short positions. Silver was trading around $4.29 when PhiBro walked across the ring and handed to my broker an order to buy 1,000 lots of silver every penny down for as far as you could see. They intentionally showed me the Buffet order. Later Bob Gotlieb from Republic Bank call me and tried to get me to join the manipulation. He said, "Something big is coming down in silver," and when I asked who was behind it, he said, "Your friends in Connecticut." After being approached several times to join the manipulation, I reported to my clients that "they" were back. I would not have used the term "they" if it had been someone other than the same crew as in 1995. I was told that the silver price target was $7. I reported that information on our website. I was NOT short. I knew what they were capable of doing. Then I left the country for my usual fall tour. I was invited by the government of China to discuss the Asian crisis. I visited the government there in December 1997. Upon my return silver was at $6.40 and everyone indeed had been led to believe that it was me because the orders were routed through Republic to give the market the impression that I was the one buying the silver. In fact, it was Republic buying the silver itself and moving it to London. "
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"There are also misconceptions about the current class-action lawsuit in silver and copper. Some try to portray this suit in silver as only one player. In fact, a class-action lawsuit is significantly different from merely a garden-variety lawsuit. Class-actions are open to EVERYONE and ANYONE who has lost money trading silver. This will include industrial users or the jewelry-trade who were harmed by the 70% lease rates. Such class-actions are NOT funded by one small investor, but are funded by the law firms who are defending the public on a performance basis. While one particular individual may appear as the defendant, it becomes irrelavent as to who that individual is. Such suits allow the small individual to go against a major group or institution on an equal footing.
Unfortunately, we must deal with reality - not bias, passion or prejudice. There is NO question in our mind that silver has been the target of a concerted effort to force its price higher through an all out attack on this market including - forwards, borrowing, options, futures and bogus analytical hype by not so independent analysts. In fact the evidence taken as a whole, suggests that this current rally in silver is merely phase II of a previous attempt to force silver higher, which most likely began back in 1995. And of course there is Warren Buffett who is now being portrayed as Saint Buffett among silver's passionate followers. Somehow, Mr. Buffett who purchased 129,710,000 ounces of silver is being portrayed as the avenger against those most disgusting of all people - the dreaded shorts and industrial users. Nonetheless, there are serious questions as to why Mr. Buffett's order was executed in London at a premium price when the silver was available at a discount in New York all the time. Some have tried to argue that London silver is a better grade of silver than that in New York. Perhaps this myth was propagated by the September COMEX meeting when it was discovered that some silver stored at the COMEX bore hallmarks that had been delisted by London. The "quality" of silver was none the less the same - .999. However, because the hallmarks were of 1974 vintage by firms that no longer existed, prompted the need to have a portion of the COMEX stockpile reassayed making the move of silver from NY to London even more expensive.
Still, in the midst of this passion and confusion, many are afraid to look beyond the hype for the truth may indeed uncover something far less than a natural bull market at work. A closer inspection of the issues behind silver, will reveal that there are indeed players who are up to something very serious and strange to say the least. In fact, the passionate silver supporters are so desperate for a bull market they are willing to look the other way regardless of the facts as long as their precious commodity rises in value.
There is no doubt that silver has been manipulated on numerous occasions both in recent times as well as in the past. Silver has in fact filled the history books with legend, riots, manipulations and financial panics, one of which nearly bankrupted the United States in the process during the late 19th century. Silver was also responsible for bankrupting the Hunt Brothers in 1980 and of course there was the ultimate victim, Ogden Armour, who lost the equivalent of nearly $1 billion per day for 120 days straight following the Great Commodity Crash of 1920. In fact, to date, no one has EVER financially survived an attempt to corner the silver market. As far as gold is concerned, no one has enough money to even attempt such a scheme during this century - at least so far. The last such attempt to corner the gold market took place back in 1869 when Jim Fisk and Jay Gould sent gold soaring to $162 on the New York Stock Exchange creating a wide-scale panic on Wall Street that had to be suppressed by sending in government troops. That Panic of 1869 was the first "Black Friday" in history - the term "Black" referring to the deaths that occurred at the hands of the mob. "
