Let’s just put some closure to the “LEAP DAY VIOLATION and with it any remaining pretense that GOVERNMENT SUPPRESSION is not the most important aspect in the fraudulent PAPER gold and silver markets.

As far as attack intensity goes, does anyone remember the below article from a few trading days before the “LEAP DAY VIOLATION”  describing how the Cartel UNSUCCESSFULLY attempted to smash silver late Friday afternoon by bombing the market with the equivalent of 102 million PAPER ounces?

Cartel Dumps 102.5 Million Ounces of Paper Silver in 7 Minutes, Yet RAID FAILS!

It appears the primary catalyst for the  “LEAP DAY VIOLATION” attack was the same phenomenon they tried to use as outlined in the above article, only this time they made sure to get the job done by naked shorting an astonishing 375 million PAPER ounces while Helicopter Ben was speaking, or 50% of TOTAL ANNUAL GLOBAL SILVER PRODUCTION!  For those that have a few remaining “anti-conspiracy” cells left in their brains, is it sinking in yet?

Silver – Cartel Has Now Shorted Today 1/2 The Yearly Mine Supply Of 375 Million Ounces

From numerous sources it has officially been established that there was indeed 375 million PAPER silver ounces dumped onto the market within seconds of Quivering Lip Bernanke opening his mouth at the now regular U.S Federal Reserve press conferences, but we also learned of a MASSIVE 31 tonne gold order dumped on the market on the same day – quite obviously at “market” – simultaneously.  For non-traders who are reading our posts here, a “market order” has no price limit, essentially instructing the broker to HIT ALL BIDS, which for an order this size equates to trying to stop a freight train with a piece of balsa wood.  This Gold dump order equated to $1.75 billion, which ONLY a Central Bank could initiate – and given the order’s timing and recklessness, any discussions of “free markets” in Precious Metals should be PERMANENTLY ended.

Massive gold sell order serves up opportunity to buy at lower price, says Sharps Pixley

So focusing on the true picture of what is happening let’s discuss the two most important charts in the Precious Metal Arena, starting with gold.  Remember, in the Precious Metals markets, only long-term charts are relevant – in fact, more so than other sectors due to the massive support and resistance patterns created by relentless naked shorting.

As for short-term charts – such as the ones that predicted a silver LAUNCH just minutes before the “LEAP DAY VIOLATION”  –  the only way we can describe them are abortive, bootless, counterproductive, disadvantageous, meaningless!

Here is the three-year gold chart following the “LEAP DAY VIOLATION”   action, of which the $100/oz decline is barely noticeable.  Notice how gold never even approached its 200 DMA of $1,670/oz – which steadily rises each week, month, and year – effectively doing nothing more than carving out the right shoulder of a MASSIVELY BULLISH, six-month “reverse head-and-shoulders” pattern.  Nothing is certain in markets, but the odds of such a formation resolving to the downside are as miniscule as the price of gold trading below its 200 DMA for more than a few weeks at a time, as demonstrated amidst “OPERATION PM ANNIHILATION II” in December 2011.  Moreover, the Cartel’s ULTIMATE line in the sand at the KEY ROUND NUMBER of $1,750 will soon be surpassed by the 200 DMA, probably by around August this year (2012) at the current rate of increase.

As for silver, has anyone seen a chart so obviously MANIPULATED in any market, at any time?  Since silver attempted the ULTIMATE TRIPLE TOP BREAKOUT last April, the Cartel has pulled out every possible stop to prevent such from occurring.  We have seen as many LTTD (Let’s Take Them Down) attacks in the last year as during 2008′s Global Meltdown I, the result of “Count Cartel’s” desperation to prevent the “silver stake” from being driven through its heart.

However, as noted above, all this series of blatant “LTTD” attacks has accomplished is solidifying the KEY ROUND NUMBER of $30/oz as likely impregnable long-term support, and creating yet another MASSIVELY bullish, six-month “reverse head-and-shoulders” chart formation.  Following the “LEAP DAY VIOLATION,” silver action was spectacular, recouping nearly half its losses while closing $0.60 above its 200 DMA and $1.50 above the Cartel’s ULTIMATE line in the sand of the past five months, at $34.00/ounce.

This is why we long ago identified “D-DAY” – November 9, 2010 – as the day the Cartel MASSIVELY stepped up its manipulative activities, the first time we saw FEAR of their imminent demise in their eyes.  It is thus no surprise that mining shares have MASSIVELY underperformed the metals since that time, and that both the intensity and frequency of such “LTTD” attacks have increased dramatically.

One of our favorite PM analysis tools, the handy-dandy is the “PHYSICAL PM CRISIS TABLE.”  This table predicted a PM explosion in early July of last year, defined as the time when the time intervals between “LTTD” attacks fall to zero.  Essentially, it measures “CARTEL FEAR” by how often they feel compelled to violently attack with patented, blatant paper attacks like the “LEAP DAY VIOLATION.”

Mind you, the “PHYSICAL PM CRISIS TABLE” that predicted last summer’s PM surge included a number of more modest “LTTD” attacks, which we still incorporated due to the obvious “CARTEL FEAR” they engendered.  However, the chart below includes only MAJOR attacks, these are some MAJOR attacks, entailing MASSIVE amounts of (printed) capital, logistics Yet the gold price sits above $1,700/oz as I write, and silver around $35/oz (a perfect 50:1 ratio.), with each successive “LTTD” attack occurring at dramatically tightening time intervals.

Wouldn’t it be a hoot if the time for ultimate PM launch was predicted two years in a row by this impromptu model, based on nothing but pure market observation?  For the record, based on the rate of shrinkage between attack dates, our current estimate for gold’s imminent surge through $2,000/oz is late March/early April, which happens to sync with Egon von Greyerz’ forecast from early last week. We guess we’ll have to wait and see, won’t we?