In 2011, so far gold has been the champion investment above and beyond any contender, including stocks and equities. At the announcement of the S&P downgrade of America’s credit rating, only gold showcased immunity. In fact, gold has thrived (as we predicted) in the face of any potential economic threat, from deflation in stocks, to inflation of fiat currencies. Some may wonder, though, where silver has been while its big brother is flexing its investment muscle? While traditionally, silver tends to follow market surges in gold, the past eight months have been rather confusing for the cheaper metal. Admittedly, silver has performed far beyond the predictions of slow witted mainstream skeptics, but it still has not come anywhere near its true potential, especially in light of gold’s incredible strides. Many may be wondering how it was possible for gold to stampede into the $1800 an ounce range after the downgrade while silver stayed completely static at around $40 an ounce. The behavior of commodities markets has been, indeed, very strange…
The common assertion by MSM pundits is that because silver has a larger industrial market than gold, silver is affected more negatively when stocks decline. This is absurd logic. Silver is still very much an alternative currency and just as much a hedge against market instability as gold is. All told, silver should actually be MORE apt to increase during economic uncertainty than gold, because of its wider industrial usage and subsequent decreasing supply. The “utility argument” for decreasing silver values just doesn’t fly.
As many are well aware, silver is a much smaller market than gold, with fewer primary players in control of tighter trade. Most of us are also well aware that one of these players, JP Morgan Chase, was exposed as a massive silver manipulator in 2010 by commodities trader Andrew Maguire. Gold and silver investors have been demanding a Commodity Futures Trading Commission (CFTC) investigation of such manipulation for decades. These demands fell on deaf ears, and claimants were quickly disregarded as “conspiracy theorists”. Issuers of ETFs (paper silver or gold) have long circulated silver equities supposedly backed by real metal, but when investors began to notice that the amount of paper issued far surpassed the amount of real silver in actual circulation, the scale of the manipulation in progress became quite clear. Global banks were purposely driving down the value of silver by creating the illusion that there is a greater silver supply than there actually is. JP Morgan has also been caught red handed initiating coordinated naked short selling of silver equities as a way to fool average investors into believing that demand for the metal is falling.
With the Maguire revelation, the hope was that the CFTC would finally do their job and take market manipulation seriously. So far, they have not. Maguire’s evidence and testimony have been ignored, investigations were limited to a few pointless committee hearings, and the global bank ETF fraud continues.
Another snake in the grass when it comes to precious metals investment is the COMEX itself. The COMEX is not a free market by any means of the term. It is in fact a highly micromanaged exchange owned and operated by an organization called the CME Group based out of Chicago. CME is the preeminent hand in the flow of trade in all commodities (at least until recently). Their main method for stifling the rise in metals is the use of “margin hikes”. Buying silver equities “on margin” allows investors to borrow capital from a company with a certain percentage of their own cash as collateral, in order to get more silver than they would using their personal funds alone. When the silver margin sits at 50%, for example, an investor with $10,000 can borrow from the company to buy $20,000 worth of securities (ETFs). However, if the CME increases the margin from 50% to 75%, that investor will have to quickly increase his collateral by 25% or lower his silver holdings. CME has the ability to make these changes at will, and such margin hikes have the ability to trigger massive sell-offs in metals, especially silver. In May of this year, as silver edged towards $50 an ounce, CME hiked margins four times! Three times in the span of only seven days! Investors scrambled to unload their ETF’s, which they could no longer afford to collateralize, and silver’s price plummeted to around $30 an ounce.
The CME (and the idiots who defend the CME) often claim that they must raise margins aggressively in order to offset market volatility caused by “speculators”. Strangely, though, there was NO VOLATILITY in silver markets in May. Not until the CME actually increased margins, creating an engineered dump of equities. This forced reduction in silver prices also greatly benefits consistent short selling manipulators like JP Morgan and HSBC, but that’s just a coincidence, I’m sure.
Obviously, someone out there does not like the idea of silver crossing the historic $50 an ounce mark…
So, the next logical question is; how long will this manipulation go on, and how can we fight back? The keys to the end of commodities manipulation may already be in play, while methods for combating centralized control of metals are increasing. Here’s why…
China Competes With The Comex
As of this summer China now has its own Comex, called the Hong Kong Mercantile Exchange. The exchange opened for trade on May 18th (the CME’s incredible margin hikes in silver began only weeks before, which suggests to me that they were trying to preempt the positive effects the HKMEX would have on metals). The HKMEX moved into action only five months after the Chinese Pan American Gold Exchange was instituted. The exchange issues its own ETF’s in gold and silver. These securities, though, are not based on leverage or derivatives like most Comex based ETFs. The bottom line; the Comex global monopoly on commodities trade is over:
http://www.chinadaily.com.cn/bizchina/2011-01/13/content_11846539.htm
http://af.reuters.com/article/metalsNews/idAFL3E7II0W920110718
This would explain gold’s unstoppable expansion into the $1800 range, and how silver was able to climb back after the CME’s brutal margin manipulation into the $40 range. Only last week, the CME issued a margin hike on gold of 22%. Despite this the fall in gold was minimal, showing that their influence, though vast, is beginning to wane. With competition, manipulation becomes more difficult, and room for growth is created.
The new Hong Kong Exchange coupled with the now explosive buying of physical PM’s by Chinese consumers is slowly but surely overriding the long prevailing manipulations of corporate robber barons intent on ensuring gold and silver are never treated as a currency alternative to the dollar. Silver markets in the East were set into motion a bit more slowly than gold markets were, but given a little more time, I suspect that the resultant spike in silver prices will be the same.
Global Silver Investment Growing
World investment in silver rose by an impressive 40% in 2010 and industrial use increased by 12%, while global supply from mining production only increased by 5%. Growth of demand severely outweighs the growth of supply. After the opening of the HKMEX, China rushed into silver markets. The CME margin hikes that caused the substantial drop in silver spot price in May only served to create a buying opportunity for those investors smart enough to see the writing on the wall. After the S&P downgrade of the U.S. AAA credit rating, silver values did not skyrocket like gold’s, but in the face of extensive manipulation attempts by the CME and major banks, silver’s steadfast hold to its current prices says quite a bit about is resiliency.
One very important factor to consider is that silver is the common man’s currency, and has been for thousands of years. Both gold and silver are solid hedges against financial crisis, especially inflation. However, silver retains more accessibility. As gold continues its climb into the thousands of dollars per ounce, silver will become more appealing to those of us who want to protect our savings, but can’t afford gold. Being that the economic crisis we currently face is unfolding in almost every nation, the demand for a safe haven will increase exponentially. It is only a matter of time before silver is engulfed by an enormous surge of buyers.
With the Federal Reserve continuing to print progressively devaluing dollars, the European Central Bank announcing its own TARP measures, and China in the midst of a full-on inflationary battle royale, national currencies are undoubtedly losing market favor. Gold’s price will soon become unreachable for common people, but silver will be there to fill the void.
How To Break The Barrier
Methods for smaller investors to fight back against the market manipulations of large banks have been sparse, and often limited to desperate appeals to the CFTC and the government, who are bought and paid for, and who have no intention of ever stopping global financiers from dragging their unwashed behinds across the face of the planet. Relying on bureaucrats to mend the wounds they themselves encouraged or inflicted is foolhardy, to say the least. Top down solutions are NOT an option now, and I’m not sure if they ever were. This leaves us with only one other choice; to fix the problem with our own hands from the bottom up. This is, of course, easier said than done…
In the case of silver manipulation, what we are faced with is an unprecedented effort to subvert and suppress an alternative system so that the mainstream system can continue to assert control over our financial lives. To effectively confront this issue, we must first end our reliance of the mainstream system. The longer we continue to participate in the fraud, the longer it will go on. Here are just a few strategies for decoupling, and walking away from the rigged game…
1) End The ETF Casino: If you play the ETF lottery, for god sakes, STOP! You are only perpetuating the con-game that is paper silver. While the allure of speed of light silver trade can be overwhelming, the bottom line is that even though you may think you have the market right where you want it, you don’t. ETFs are an amazing rip off. Trade fees can nickel and dime smaller traders to death. ETFs being held, even without trade, lose value through numerous surcharges as companies nibble away at your holdings. Most ETFs also will NOT allow you to take physical delivery of silver when cashing out your equities unless you have extensive holdings, and even then, it may take months for the silver to reach your doorstep. Because banks issue ETFs for silver they don’t actually have, they would never allow you to exchange them for physical if they can help it. Otherwise, the scam would be exposed, and they would be out of business.
Playing the margins is shear stupidity when you realize that global banks are hell bent on suppressing silver values. There is no rhyme or reason to silver ETFs and margin hikes beyond the whims of corporate puppeteers. Mainstream analysts can pretend as if there is a hard science to this brand of investment, but in reality, it is a large and very expensive joke. Unless you have a crystal ball, your only other tactic for discerning when to sell is pure luck. The very idea of the CME being able to control the price of physical by hiking the margins of paper securities that represent silver that doesn’t even exist is a farce beyond reckoning.
Buy physical, not paper. Be a part of the solution, not part of the problem.
2) Vault Storage Depositories: If you aren’t a buy and hold investor, and insist on participating in short term selling strategies, there is an effective (and smarter) alternative to ETFs and the fake paper market. Silver and gold vault storage depositories allow you to buy and store large quantities of physical metal while having the option of liquidating your holdings for cash just as quickly as if you were selling ETFs. Depositories do not charge hidden fees and do not reduce your silver holdings while they are in the vault. What you put in is what you get back. Period.
Because your silver is already sitting in their vault, a mere phone call allows you to liquidate a portion or all of your stock into cash whenever you wish, just like ETFs, but without the fraud. On top of this, depositories will deliver any or all of your silver or gold on demand to your doorstep, usually within 48 hours. If a sizable number of silver investors switched from ETFs to vault depositories, the ETF market would crumble, and market manipulation would end.
3) Encourage Physical Trade: Max Keiser’s ‘Crash JP Morgan’ campaign was an excellent first step in encouraging silver investment by showing average Americans that they can hurt the big banks simply by purchasing something they don’t want you to have. The next logical step would be to, of course, encourage larger ETF investors to demand physical delivery on their holdings by showing them the folly of the market itself, and, to encourage average investors to actually utilize the silver they buy not just to crash the banks, but for organized trade.
The construction of silver based barter markets must become a priority. Owning silver is not enough. We must start to use it in place of dollars if we are to have any control over our own economy. Barter efforts like this are becoming much more common, but we are still a far cry from full scale utilization of alternative currencies. With the implosion of
the dollar, it will only be a matter of time before metals take primacy as a means of trade, so why not get a head start now? Eventually, the increased circulation of physical will allow the free market to determine the natural value of silver and gold, instead of the subjugated paper market, until finally, the mainstream spot price is completely irrelevant.
4) Offer Incentives: For business owners or for those who are involved in private barter, offering incentives to those who pay in physical would encourage more silver investment, and by extension, more silver circulation as a currency. Add a certain percentage above spot price for silver trade, or, offer a discount on goods or services to those who pay in silver. Businesses, for that matter, could very well give their employees the option of being paid in silver, completing the currency circle and the flow of commerce. The more silver is used day to day, the harder it is for banks to control, and the more its value will rise.
All economies larger than a small village need a unit of trade beyond the barter of goods and services. They also need a unit of trade that maintains its value and buying power, instead of devaluing, inflating, and destroying the savings of those who hold it. Precious metals are the only existing option that can take on this role, and silver is the most attainable for average people. There is a reason why MSM analysts and establishment economists have been trying to crush interest in PM’s for years. There is a reason why global banks have gone out of their way to suppress the market values of metals. The second Americans realize there are other choices, other systems for living and working beyond the controlled paradigm we have been handed, the illusion slips away, and centralization becomes a memory. This is true for all aspects of economic structure, social structure, and political structure, not just for silver or gold. Ultimately, though, we have to start somewhere, and silver is as good a place as any.
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written by Hognutz , August 15, 2011
There is not to much that one could add.
"Gold is the money of Kings"
"Silver is the money of the people."
"Paper is the money of slaves."
Buy and hold. If what I think is going to happen , happens, those holding physical metal will be way ahead in the "game" that we call life......
written by Hognutz , August 15, 2011
I have already been using silver to a degree, Sometimes I will do odd jobs for someone who is a known silver hoarder. When requesting payment I usuall request it in "junk" silver in the appropriate weight ratio. Anyway It is a good win/win situation for us both. ;-)
written by Les Gov , August 15, 2011
I've been listening to Brandon's advise for years pertaining to silver and gold purchasing. I always took physical delivery and have spread the word for anyone who cared to listen. I have to say i look like a genius to these people now, especially the ones who have made a nice profit. Another good idea is trying to implement silver in our everday lives.
written by Brandon Smith , August 15, 2011
@Bajabandit
The CME has never cited margin hikes in response to "higher prices". They have always cited "volatility" as the reason for sudden and violent margin increases. Dollar amounts have absolutely NOTHING to do with margin maintenance. I'm not sure where you are getting that information.
Your position doesn't make sense. Why should the CME hike margins, punishing smaller investors and driving them to sell, simply because a commodity is doing well in the marketplace? It only makes sense if a commodity is being cornered by speculation, and the price is being driven higher through artificial volatility (ala Hunt Brothers). Check your facts.
written by End The FED , August 15, 2011
Brandon, thanks for the excellent article that included SOLUTIONS, not simply more banter about what we've all (those of us in the know) heard already. It is a welcome and refreshing insight. I've followed your writings for some time time now and you are getting better every time I read another article by you.
Keep up the excellent work, I agree fully with everything you mentioned especially the part about using silver in commerce as that simple fact gives us a parallel currency to keep our lives running amidst all the bankster fraud.
written by Wolfgang , August 15, 2011
Stocks and Equities are the same thing.
written by newbie , August 15, 2011
Good article. Can you recommend or provide links to a review of Vault Storage Depositories available with competitive charges and rates (buying/selling)? I think it maybe part of the problem too that ETF holders do not understand such "better alternatives" exists. I have personally seen some which charge exorbitant premium/fees/rates that deter people from owning physical. It makes one wonder if these companies are part of the cartel too.
written by Brandon Smith , August 15, 2011
@Wolfgang
All stocks are equities, but not all equities are stocks. Please google the definition of 'Equities' before trying to correct someone who has been writing on economics and investment for years. It would prevent me from having to explain something so simple to you, and save us both precious time.
written by Brandon Smith , August 15, 2011
@newbie
There are quite a few vault storage depositories, and I will not venture to recommend any specific one, however, I would recommend looking into how much of your holdings they insure. I would only do business with a depository that insures 100% of your deposit, and which ensures through contract full physical delivery whenever you see fit to withdraw. Not all depositories are the same, so choose wisely. Ultimately, though, almost anything is better than wasting your hard earned money on the fraudulent ETF market.
written by Wolfgang , August 15, 2011
Brandon,
Clearly... writing for years on the topic doesn't preclude you from silly milstakes.
We all know there is such a thing as sweat equity and such, but considering the topic is investment in nature you would have been better to say stocks(equities) and bonds (debt) as per investopedia below.
"In terms of investment strategies, equity (stocks) is one of the principal asset classes. The other two are fixed-income (bonds) and cash/cash-equivalents. These are used in asset allocation planning to structure a desired risk and return profile for an investor's portfolio."
written by Wolfgang , August 15, 2011
By the way. What sort of "equities" might you be talking about if not stocks?
My house equity?
my car equity?
written by Brandon Smith , August 15, 2011
@Wolfgang
Now you really are wasting my time.
How about ETF's for one. Or REITS. What about derivatives? Clearly you are relying on investopedia a little too much, and not enough on common sense. Please come back again when you have done a little more homework.
written by Wolfgang , August 15, 2011
A. your a little sensitive
B. I took your advice and googled equities for your sake and what I found supported my position. You ignore it.
C. You are the first person I have ever heard use "equities" to mean anything other than stocks.
D. ETF's/Derrivatives are a convoluted asset vehicle that can hold any securities (bonds, stocks, paper gold)
E. Reits can also hold stock in addtion to real estate.
I am dissapointed that you defend your weak postion when you clearly left out a whole asset class (bonds). My point is that you would be more correct to have used bonds instead of equities.
Equities as you define it could mean anything. Maybe you should have just said equities and not said stocks at all.
For the record, I love your writing. Your very good.
written by Brandon Smith , August 15, 2011
@Wolfgang
I take offense when people attempt to argue the semantics of a point while ignoring the point itself. I find it petty, and the source of a number of ills in this country. You used one very broad definition and failed to look deeper into the specifics of the matter, which is also another problem very common in this country.
When I mentioned equities, my purpose was to cover all those vehicles that trade like stocks, but are not quite "stocks". ETFs and Derivatives fall into that category, and the rest is a matter of opinion. If you had researched further, instead of grasping onto one line from "investopedia", you would have discovered this. There are certainly gray areas that need to be considered, not just stocks. Bonds were not necessarily pertinent to this particular article. This should have been perfectly apparent, considering you are the only person so far to not get it.
In the future, I suggest refraining from nitpicking nomenclature. Its a nasty habit, especially when its wrongly applied.
written by Wolfgang , August 15, 2011
You said previously.
"All stocks are equities, but not all equities are stocks"
True enough... but why then say stocks at all? Just say equities. In any case you left out a very large asset class--- bonds.
written by Brandon Smith , August 15, 2011
@Wolfgang
At least you are able to admit that not all equities are stocks. The first steps are always the hardest I suppose...
written by kingin , August 16, 2011
>As of this summer China now has its own Comex, called the Hong Kong Mercantile Exchange. […] The bottom line; the Comex global monopoly on commodities trade is over.
Perhaps not. At the very top it appears as though the same crowd are still controlling the market. According to an article by Silver Shield:
"… When I first looked into the HKMEx I was mainly looking to see if silver manipulators JP Morgan,Goldman or HSBC were involved. The good news, I did not see that they had any controlling or operational influence in the HKMEx.
"The worst thing I guess I found out of the list of board members was President Albert Helmig was a former VP of the NYMEX. The amount of information on the rest of the board is limited most likely because they are Chinese and English Google is limited. I then looked a little further to see who was paying the board.
"I have discovered that Nathan Rothschild along with the People’s Bank of China created the privately owned Hong Kong Mercantile Exchange.
"According to MarketsWiki the HKMEx was founded by En+ Group. On the face of it,it looks like a Russian company is partnering with China as they strengthen ties inside of the anti-Hegemon. When you look at the board of En+ Group you see Nathan Rothschild is at the genesis of this new market that looks poised to take down the dollar."
http://theintelhub.com/2011/07/26/the-rothschilds-and-the-hong-kong-mercantile-exchange/
written by paul925 , August 16, 2011
of course ,in the game above the game , the big players would not allow another exchange to open, unless they had a controlling interest.
Good cop bad cop.
This however does not invalidate the excellent thesis in this article.
Lets get physical !
written by newbie , August 16, 2011
Thanks for the reply, Brandon. Much appreciated.
What did you mean by "insure 100% of deposit"? Did you mean buy/sell prices are the same - ie. effective spot price? Would you care to elaborate which ones you know of (but may/may not recommend)? Would you write another article explaining in greater details the solutions you proposed - eg. how to choose depositories for US and foreign investors? Perhaps include your experiences or those you know of (if any)? Many of us are not savvy investors like yourself and feel helpless in fighting the system. Your credibility and experience would definitely help pave the way in "breaking the barrier".
One more thing...I've been reading about silver or gold price manipulation, but can't seem to understand exactly the need for the price suppression in the scheme of things.
Also, if enough people buying ETF's demand for physical, couldn't the manipulation be ended once and for all? They could demand just enough physical to crush COMEX, couldn't they? Surely if led by people like David Morgan, Mike Maloney, Max Keiser, Eric Sprott and James Turk, they would succeed considering the limited holdings COMEX has? Why is nobody leading the way considering that COMEX seems to be the source of the problem?
PS. Don't worry about semantics. I'm sure many can't tell Stocks from Equities even if our lives depend on it. ;)
written by Brandon Smith , August 16, 2011
@newbie
1. I never recommend specific investment companies, stocks, shares, etc. Detailed investment advice must be tailored to the individual investor, and that's not why I'm here. I'm here more to warn you about what NOT to buy.
2. By "insure" I mean that vault depositories should have an insurance policy which protects your metals holdings while in their custody.
3. In order to understand precious metals manipulation, you must first understand the history of fiat money, and central banking. Fiat money allows banks to centralize control of an economy. Because Gold and silver act as an alternative to fiat, it allows the average person to step away from the mainstream system. This is an unacceptable prospect for centralists, and so, they use their extensive means to artificially drive down the values of PM's in order to make them less appealing to those who might seek another option to to dollar.
The fist rule of centralization is to remove choices until the masses have only those left which you approve of.
4. I agree that people should demand silver delivery on their ETFs. However, most ETF providers have made it so difficult for anyone without an incredible accumulation of such equities to take physical delivery its nearly impossible to pursue change in that manner.
5. As long as people remember that all stocks are equities, but not all equities are stocks, everything should be fine.
written by Hnery , August 16, 2011
Buy gold if you can.
Buy silver if you can.
Quichurbichin' and nit-wit picking with the author.
Anyone with common sense can see what is happening in all of the world's economies, and this man is just trying to help you see that you can take advantage of those who are trying to take advantage of you thru their price manipulation.
written by Anti banking rogue , August 16, 2011
How do we get this stuff viral? I mean people are so placated and absorbed with the mundane, they don't even realize that they can mortally wound JP Morgan Chase (Fed Reserve) and send it back to the Tesla neutering hell hole it belongs by exposing its naked shorts on silver etc. Also possibly electing anti fed candidate Ron Paul could be a nice second blow (although he might just turtle like Obama, so don't quote me on the later).
Most of the info I post on facebook doesn't even elicit a response from the plague of mental malaise swirling on those sites.
Nice job kingin, i didn't know that about the devils banker. Just another shift toward the communist takedown of the west. How appropriate that Mr. Rothschild family funded Lenin and is still at it!
Controlled rage, you notice how nobody ever riots at the Rocky or Rothy's house? That would make too much bloody sense.
written by rpnyt , August 16, 2011
Thanks again, Brandon.
1. Coupled with high fees/premium for some, the lack of reliable information has kept people from using depositories. Try googling "gold depository review" you will get some misinformed people warning to use bank safety boxes instead. So I wouldn't blame people for gravitating towards ETF's.
2. Is it difficult to ensure 100% that these depositories indeed are 100% insured? By only reading claims on their websites or taking their words for it would probably not be wise. Again, the lack of reliable information sources keeps people away.
3. Thanks to E. Griffins and all our heroes out there, I do understand the history of fiat. People may think that by keeping the price low, they will keep people owning metals. The irony is, if the prices had been so high, only the minority can buy precious metals. I know I would be out of the equation.This is what baffles me. There is little valid reason to suppress the prices. If prices were high, people would naturally seek other alternatives...and fiat would look attractive to the masses.
4. Then why no one would lead in the demise of ETF's? People like Sprott and Turk could easily sum up their big clients to buy enough ETF's to demand physical, can't they? However difficult to demand physical delivery, it is not impossible, is it? The fact that no one not even consider nor suggest this option is curious. So far, we are only tackling the symptoms (buy physical), not the cause of the problem (COMEX/ETF's). Is it difficult to imagine that the more people buying physical might lead to even more people getting into ETF's?
5. Thanks for re-clarifying. They are both still abstract concepts to those not in the field and to borrow your words, "not necessarily pertinent to this particular article". :) I admire your passion, though.
written by Brandon Smith , August 16, 2011
@rpnyt
I have found several depositories which insure holdings to 100% through contract. I'm not going to name names, but there are plenty out there. I suggest that people do their research carefully, as they should with any other investment.
As far as high prices in metals are concerned, I remember back when gold was at $700 an ounce, and people used to say that if it ever went above $1000, no one would be interested in buying. We are now at $1800 an ounce, and people are buying more than ever. When people know they are making an investment with serious potential for growth, they will pay almost anything. This is why global banks manipulate metals DOWN, instead of up. A seemingly weak investment keeps people away. A skyrocketing investment attracts people in droves.
written by newbie , August 17, 2011
I agree with you that everyone should do his/her own careful research, Brandon. I guess however careful we are, depositories can be risky as well especially when we can't be 100% sure they are really insured. The best option is probably to keep the metals yourselves and have them insured?
Returning to the issue, I would hope to see someone propose better ways to deal with COMEX. I don't know the technicalities enough to know their Achilles heel, but to collectively demand physical deliveries of ETF's may be one? What do you think? Who would be in the position to get the movement going?
Yes, people are still buying gold at USD1800 because the price is still very reasonable. Who wouldn't buy a Lamborghini at the price of a Yamaha scooter? My point is, in reality, price suppression has made precious metals more attractive than fiat. So really, why the manipulation? If an ounce of gold could buy a house in Malibu, would you (or most people) prefer to have the house or the gold? I know that I'll add a pool with my choice.
written by Brandon Smith , August 17, 2011
@newbie
As stated before, issuers of ETFs rarely allow physical delivery on smaller holdings. You are welcome to check out the contracts on SLV or any other ETF scam and see for yourself. They purposely make it impossible for a group of people to cash out for physical all at once. If you want to try and start an ETF cash out campaign, be my guest. I guarantee it will hit a brick wall.
Also, gold was NOT an attractive investment to the masses until the mainstream economy began imploding and it started skyrocketing in price. Take a look back at the volume of trade in the gold market when it was only $400 or $500 an ounce. It pales in comparison to the amount of trade going on today. This is simple market psychology, and global banks understand it well. You have an interesting theory, but its not applicable to reality, which has shown time and again that people want investments with growth potential, not investments that seem stagnant.
To be clear, JP Morgan has been caught RED HANDED, suppressing the value of silver. That fact is not debatable. Price suppression overall worked quite well in keeping most Americans away from gold and silver for decades. This is undeniable market history. We might think the situation should be reverse, but bottom line; its not.
written by newbie , August 18, 2011
We should perhaps not view 'collectively' as 'individually together'. Let's say we have a 'Brandon Smith Destroy-COMEX Fund' (or whatever you may call it) where investors pool enough money specifically targetted at COMEX to demand physical. Would this help break the system and let the prices float to their natural level? I don't know. It's something out of my scope of expertise to investigate and comprehend.
Speaking of level, there is always a threshold price to everything. If the prices of PM's are allowed to reach their levels (where growth would plateau), naturally other investments would look more attractive. There is no longer a need for PM price suppression just to keep fiat alive, is there? After all, let's face it, paper moneys have their merits too - as a convenient way of exchange. Basically, I'm just curious if there are in fact, other intention(s) behind the manipulation.
Probably price suppression (alone) did not deter people from owning gold or silver. The mainstream media have been quite effective in distracting the masses. Now, with alternative media, we are witnessing that people are more aware of PM's value. Personally, I wouldn't have known or cared to find out about PM's as a form of savings until I decided to do away with television three years ago. Although a little late, I'm thankful. That is why I do appreciate efforts like yours, Turd Furgeson, Jim Willie, Gerald Celene, Bob Chapman, Dan Norcini, Harvey Organ, Max Keiser, Tyler Durden, and Youtube stars: SilverFuturist, The Weekly Telegram, BullBearReports, et al in helping the masses to "wake up". Personally, I'm only doing my small part in my immediate circle of friends and family. Keep up the excellent work, Brandon. I hope you will find other solutions to help us all create a fairer system.
written by blackjack , August 20, 2011
why dont people invest in gold mines
hell i invest in one in the Philippines that produces 1oz of gold for 200 bucks
thats 1600 bucks profit per oz
written by Johnny Dangereaux , August 20, 2011
I believe its "Pan ASIAN Gold Exchange" . Maxkeiser.com had a guy talk all about it a week ago
written by Brandon Smith , August 21, 2011
@Johnny
The HKMEX is an extension of the efforts put forward in the Pan Asian Gold Exchange, but HKMEX is a bit more comprehensive in its design and capabilities. I would look into the Hong Kong Mercantile Exchange to learn more about how commodities trade is progressing in China.
P.S. The guy you are referring to was Andrew Maguire.
written by Bannockburn , August 24, 2011
Today is August 24, 2011
The manipulators have struck again.
First, they invested enough to sucker the rubes in to chase gold up to over $1,900, then they started taking the sucker's money out until it's now bouncing around at the $1700 mark.
They will wait a few more days or even weeks, and once more throw in a few billion, and yet again the village idiots will take the bait and start the chase to nowhere all over again.
Fool them, if you can afford to wait, buy gold and silver when it starts to bounce around at a bottom they create, then sit on it.
The Dollar and the British Pound are worthless, so gold and silver will be the real money when the s--t hits the fan.
