Melt The Wicked Witch: Sell Your Gold Now!

Now Bix Weir is my favorite writer on Gold and Silver and I follow his advice religiously. Yes, I drink his Koolaid. My only regret is I can't mortgage my house to buy more Silver, probably due to the fact that I do not own a home.

Bix Weir- Road to Roota
Attention GOLD Investors:

What would you do to take down the Gold market riggers? What would you sacrifice? How hard would you work if you KNEW that the culmination of your effort would end the long term manipulation of gold? As for me, I am very tired of fighting the Gold Cabal, but I am also tired of watching all that I love about my country get washed out to sea by the Manmade Monsoon of Market Manipulation that is currently sloshing over the United States of America.

Let's Finish This Thing!
Apmex- Reliable and inexpensive Silver retailer.
I'm going to say it flat out...SELL ALL YOUR GOLD INVESTMENTS NOW AND BUY PHYSICAL SILVER! This is not a joke and don't get me wrong, I am the biggest "gold bug" you've ever meet, but it is time we ended their evil game. The Cabal has shown their Achilles Heel over the past few years and it is not gold but the depletion of physical Silver available for delivery that will ultimately lead to their demise. Many of us figured out long ago that physical Silver will likely run out before physical gold simply due to the tiny size of the Silver market compared to Gold, but most of us have not ACTED on this knowledge to accelerate the demise of the Gold Cabal due to our affinity for Gold and all that Gold represents... sound/honest money, freedom, liberty and justice for all!

Recently, I have been thinking a lot about Gold as money and why I personally believe that Gold is the best form of hard money. Why not Silver or platinum or copper or zinc? I must admit that most of my knowledge on this subject comes from the writings of other people. I have read hundreds of books and articles by brilliant economists, sound money advocates and other monetary philosophers who have dedicated their lives to the study of monetary theory. I am truly amazed at the vast amount of intellectual capital that has gone into the analysis of Gold as money with each monetary thinker building upon the knowledge passed down by others through the ages.

But What do I Think?

If I had no idea about monetary theory and history, what would my conclusions be? How have these writings influenced my affinity towards gold as opposed to other hard metals? Is it possible to NOT be influenced by information passed down over the years and clear my mind enough to use my own cognitive reasoning on this subject?

This is what I have been pondering over the past few years and my conclusions have shaken me to my Gold Bug foundations! Although the facts and fundamentals of gold as the best form of hard money may have been true 50 years ago, the world of Gold and Silver has changed dramatically since then such that now SILVER is hands down the best hard money investment compared to all other metals....even GOLD!

The Facts
Apmex Silver retailer
The following is a list of facts and reasons to switch all your Gold investments into Physical Silver:

1) Due to the tiny size of the Silver market and the lack of physical Silver available to the manipulators, the Silver battle is much easier to win than Gold. Ted Butler's discovery of massive Silver market manipulation should highlight the size, scope and importance of Silver to the current financial crisis.



2) Central banks have NO physical Silver to assist in the manipulation of the Silver market but they still have a lot of physical Gold (although much less than they claim).

3) The majority of Silver mined every year is consumed as an industrial metal in very small amounts and will never return to the market whereas the amount of above ground Gold grows year after year.

4) Silver has developed, due to its low price and superior physical properties, into a vital and necessary industrial commodity that makes it mandatory for modern life. If we woke up tomorrow and gold vanished from the face of the earth, life would continue pretty much as it was the day before. Without silver, modern life would change.

5) Due to the relative very low price of silver and very high price of gold, the man in the street, around the world, is in a position to buy silver in much greater quantities than gold.

6) In various forms there is an estimated 5B oz of above ground Gold and 5B oz of above ground Silver but Gold trades at $1300/oz and Silver trades for only $21/oz. Both metal prices are obviously manipulated but Silver appears to be manipulated more. As for Silver bullion that is "in play" for the manipulators, I estimate that less than 500M oz remain with a current market value less than $11B.

7) Silver has been in a supply deficit for over 50 years! Governments held approximately 10B oz of silver in 1950 and have been supplying that physical stock steadily into the market. Today there is no more of that surplus silver left to sell.

8) At current Silver consumption rates there are only 16 years of known Silver reserves remaining in the world. AFTER THAT SILVER WILL BE GONE FOREVER! Think about it.



9) Demand for Silver is "inelastic" in its industrial applications because it is used in such small quantities per application. An increase in price does not translate into a decrease in consumption.

10) The COMEX Silver short position is the largest concentrated short position of any commodity, on any exchange in the history of financial markets.

11) Throughout human monetary history the Silver to Gold ratio hovered in the 10-1 range until the invention of futures and options trading in metals. After the massive manipulation maneuvers by the Banking Cabal the silver-gold ratio now stands at over 62-1.

12) The US Dollar as defined in the Coinage Act of 1792 is Silver, not Gold, and contains "three hundred and seventy-one grains and four sixteenth parts of a grain of pure, or four hundred and sixteen grains of standard silver."



13) Silver is massively under reported in the media vs. Gold. Even Jim Rogers, the commodity guru, purposefully ignores Silver entirely in his best selling book "Hot Commodities" even though Silver exceeds all other commodities using his metrics on what makes a strong commodity.

14) Very few investors have physical Silver in their possession. Reasoning: because they claim it is "too hard to store". Does that mean when Silver trades at over $1,000 oz people will be more willing to buy and store physical Silver? It is difficult to make up a more bullish argument to take delivery and store physical Silver TODAY...when the Cabal price rigging scam finally fails you can always buy your own Fort Knox to store all that pesky Silver you bought!

15) Gold's strong fundamentals are only exceeded by Silver's so when the gold manipulation stops and the Gold price takes off investors will be looking for the next under-priced investment with similar characteristics.

16) 470M oz of Silver owned by the US Treasury and used in the Manhattan Project for the construction of the atom bomb have all been melted down and sold into the physical market to support the "Strong Dollar Policy"

The Great Silver Mystery...REVEALED!



17) Silver mineral deposits, as opposed to Gold, are usually very shallow in the earth's crust due to the nature of the geology so most of the large deposits of Silver have probably already been found and/or already mined limiting future discoveries.

18) There is a significant problem with counterfeit Gold coins and bars because of its high price. Silver coins and small bars have not, to date, had as much of a counterfeiting issue because its price did not justify the effort. (although there is a problem with counterfeit Silver jewelry which may significantly suppress Silver scrap recovery in the future...oddly bullish by-product of counterfeiting Silver!)

19) The total dollar value of the Silver market is a fraction of the total dollar value of the Gold market.

20) Most flat screen televisions use Silver in their internal electronics/screens and the US transfer from analog to digital signals has increased the demand for flat screen TV's.

21) Retail physical shortages of Silver are already beginning to appear around the world. The list of announced delays/curtailment by Government owned Mints now includes EVERY MAJOR SILVER COIN PRODUCING COUNTRY IN THE WORLD!

22) Hedge funds are bleeding from the credit crunch and they are looking for ways to save themselves. A single hedge fund can scoop up the remaining physical Silver and blow the price sky high.

23) In the US, Gold confiscation laws are still on the books but there are currently no silver confiscation laws.

24) As of late 2010 the Gold price gold is hovering around $1,300 or 150% of its historical high. Silver, on the other hand, is hovering around $21 or 42% of it's historical high suggesting that Silver has a long way still to go.

25) Un-backed paper Silver programs such as silver certificates and unallocated pooled accounts are the "industry standard" these days and will be scrambling for metal when redemptions are called in by the investors. The most egregious example of fractional reserve silver is the iShares Silver ETF (SLV).

26) In the past few years the massive global money creation by central banks around the world has created huge reservoirs of cash sloshing around the asset markets looking for a safe haven. Although most mainstream press have discussed Gold as being a likely bucket to fill with this monetary firehouse, SILVER has all the same monetary metal properties as Gold except the Silver market is SO small it would be like FILLING A DIXIE CUP WITH THE FIREHOUSE!

27) The CFTC still has an open investigation into the manipulation of the SILVER market that is being conducted not by their investigative division but by the CFTC "Enforcement Division". Although the final conclusions have been purposefully delayed by the CFTC, the final outcome may finally be the END OF THE 50 YEAR MANIPULATION OF THE SILVER MARKET!

28) During the CFTC hearing on metal position limits, GATA announced that a whistleblower has come forward with specific proof that JP Morgan was rigging the silver market. The next day he and his wife were rammed in their car in an attempted murder. The suspect was caught but the police are not giving out any information about the suspect or others that were involved.



29) The growth of emerging economies in Asia will require more and more industrial silver to build out their electric infrastructure and provide a higher standard of living for their middle class. In a global market that has been in a silver supply deficit for years a silver bidding war will result in order to obtain the significant amounts of silver needed.

30) The truth about gold and silver price manipulation is spreading like wildfire throughout the world with the help of the internet such that the Banksters "shabby secret" is no longer a secret.

31) The US Dollar has run it's course as the world's reserve currency. The entire global financial markets know this and are positioning themselves accordingly. The "Dollar End Game" for the United States has never been to transfer economic power to Eastern countries as the dollar dies but rather crash the global markets and start fresh with a new domestically centered economic model. That transition is upon us:



Well, now do you think SILVER is both more important and a better investment than your gold?
Hopefully, that's enough pro-Silver data to convince you to make the switch.

What About Gold?

There are some pro-Gold items which, in fairness, should be weighed against all the pro-Silver arguments:

1) Gold does not tarnish. (That's nice but hardly a reason not to make the switch)

2) Gold is promoted and perceived by the world as the "Greatest Monetary Metal"....at least for now!

Not to be "anti-gold" but from my calculations there is 10x the amount of physical gold in the world regardless of what the "mainstream gold media" claims...meaning there is OVER 1 MILLION TONS OF PHYSICAL GOLD!

Golden Secrets



Also, my calculations on silver estimate that there is 10x LESS silver in the world because of all the potentially phony physical silver ETF bars out there...

Silver "Moly-Bars"



Don't worry about Gold....really. Gold, like Silver, will find its rightful place in a freely traded market. It should take less than a few $Billion of physical Silver purchases to buy up all of the available Silver bullion, and that would only mean switching out of about 200 tons of Gold on a physical basis. 200 tons would not significantly damage the price of gold. Now $10B removed from GLD/SLV, Gold/Silver Pooled Accounts, Gold/Silver mining stocks, etc. would be much better for the price of Gold and should not cause any permanent damage to the gold investment community. As a matter of fact, can you think of anything more positive for the price of gold and gold investments than the destruction of the Banking Cabal?!

So what should be the true price of Silver today?

I don't know but I do know that the price quoted on the COMEX and LME are not even close to silver's "Fair Market Value". It makes more sense to me to estimate the true price of Silver in relation to another "Monetary Commodity" such as Gold since gold is currently "perceived" as the best monetary metal.

* Based on my estimates of total above and below ground Silver (17Boz) and Gold (8Boz) the Silver/Gold Ratio should be 2.1-1. With Gold trading at $1,300/oz Silver should be trading at $619/oz or is 29X UNDERVALUED!

* Based on my estimates of total above ground Silver (5Boz) and Gold (5Boz) the Silver/Gold Ratio should be 1-1. With Gold trading at $1,300/oz Silver should be trading at $1,300/oz or is 62X UNDERVALUED!

* Based on my estimates of total monetary bullion above ground Silver (1Boz) and Gold (3Boz) the Silver/Gold Ratio should be 1-3. With Gold trading at $1,300/oz Silver should be trading at $3,900/oz or is 186X UNDERVALUED!

Of course all this is predicated on the assumption that gold is fairly valued at $1,300oz today which almost everyone agrees is a joke. Since the USA holds a little over 8,100 tons of gold in reserve (supposedly) it is logical to assume that Gold will back the US dollar when the fiat money system fails (not hard to imagine the failure of the US dollar). With the US M3 money supply currently estimated to be in the $14 Trillion dollar range, the price of a redeemable gold backed US dollar would be about $54,000/oz IF the US stopped printing dollars today.

The $54,000/oz Monetary Gold price would put the value of monetary above ground Silver bullion, as analyzed in the last bullet point above, at....

.... $162,000 per oz!
Sovereign Flag of America!
Crazy, I know, but it really doesn't end there!

Based on the FACT that Silver is being consumed 120% faster than it is currently being mined/produced and the Gold above ground supplies are growing at 2% per annum the Silver/Gold Ratio Formula should be [(Above Ground Silver)(80%) to (Above Ground Gold)(102%)]. With Gold trading at a massively manipulated low price of $1,300oz, Silver should be approaching INFINITY AND IS INFINITY(X) UNDERVALUED!

Wow....chilling conclusions...have you traded your Gold for Silver yet?

The Silver SlingShot Bix Weir

We are on the verge of the greatest bull run in any commodity ever. Silver could be set to run 10X current price. Apmex is the most cost-effective supplier on the web.

The amount of information on silver as an investment being analyzed and discussed lately has been astonishing. I remember only a few years ago that it was only the likes of Ted Butler, David Morgan and Jason Hommel that ever promoted the amazing investment opportunity that silver represented. Now there are literally hundreds of "pro-silver analysts" out there talking about the supply/demand deficit, COMEX Commitment of Traders Report, fraudulent Silver ETFs and the dual role of silver as both an industrial metal and monetary metal. I LOVE IT!

Of course having so many eyes on the silver market you would expect that all the bullish silver angles have been addressed, investigated and exposed but I have found over the years that there are always some bullish factors hidden in the mysterious world of silver investing that explode into the consciousness of the market at the oddest time compounding the reason for silver to rapidly rise in price. Ted Butler has exposed the most of the bullish silver discoveries in his studies of silver spanning many decades, but that does not preclude the little guys out there from exposing a new idea/discovery that further promotes the silver cause.

Today we are on the threshold of something so large in the silver world that it will astound every man, woman and child on the planet…even the silver bugs! In my second Road to Roota article Greenspan's Golden Secret I discussed the plan by Alan Greenspan and friends to destroy the entire monetary system in a one time Creative Destruction Event. Read this article to understand what that means.
Greenspan's Golden Secret
If you open your eyes long enough to see past the monetary smoke and mirrors these days you can tell it is happening as we speak. We are down to the end days for the fiat monetary system with the implosion being dragged on since September of 2008 and very soon to come to a climax.

So what will happen to silver? Glad you asked!

There are many silver enthusiasts out there today with vast amounts of money sloshing around in "silver related" investments such as silver derivatives ($111B as per the BIS), silver ETF's ($5B+ most in SLV), silver mining companies (est $8B by JH), silver certificates ($10B… my own estimate), silver futures and options (unknown billions) etc., etc.

This is about $150B+ worth of silver investments that really have NOT positively affected the price of physical silver since no silver was actually purchased. At least half of this money has negatively suppressed the price of silver by selling silver derivatives with no physical backing at all. Even mining share investments. Think about it. Your silver mining company investment helps capitalizes mining companies to create more physical silver adding to the supply where that money could have gone directly into physical silver decreasing the supply!

I see these people as "knowledgeable silver investors" who know the story but chose to believe that the system will stay in tact such that they will have time to obtain the reward for their investment when silver rises in price….that will be their big mistake when the final hammer falls.

This is where I see a NEW Silver Slingshot effect for silver.

Although greed is a great psychological force that can drive markets up, fear is by far the ultimate motivator in any investment mania. Trying to "stop the bleeding" on investment losses is like trying to catch a Samurai Sword dropped from the top Empire State Building! When we have the Creative Destruction event I doubt the $150B in "silver related" investments will ever pay off because of all the risk/credit layers between you and your silver. Imagine the chaos when we have total banking failure, total brokerage house failure, total exchange failure, total 401k failure, etc. How will those "investments" ever pay off with all those levels of credit risk and defaulted entities between the investor and his silver rewards? Will mining company stocks still be traded without the DTCC or the NYSE or the CFTC?

And what about those silver mining stock certificates that you have in your safe deposit box? Will they be worth anything? First ask yourself…with a fiat money crash what will be the new currency? You can bet it will have to be backed by something (most likely gold and silver) but what will the citizens of the world say about private ownership of the mines that control their money? With 99.99% of the population NOT holding any real gold or silver do you think they would allow the .01% to control all the wealth of the nation or the world? I doubt it.

Well "Silver Related" Investment Gurus…whatcha gonna do now? The worst thing I can imagine is fighting the silver battle for all these years and not getting the payoff when all your predictions come true.

So here's the SLINGSHOT moment.

When silver investors realize the scope of the coming Creative Destruction Event the flood of cash from $150B of "silver related" investments into the tiny physical silver market will destroy "silver related" investments and SLINGSHOT the price of physical silver to unimaginable heights…are you really ready?

NOW IS THE TIME TO SWITCH TO 100% PHYSICAL SILVER!

Don't delay because as this reality begins to show over the next few months I doubt you will be able to get that physical position you've been putting off for those increased silver returns from your mining stocks, options and derivatives.

It's game time for silver so don't get caught sitting on the bench!

Silver Top Ten Reasons Hommel

Ten Topics on Silver
(Each in exactly 101 Words!)
Silver Stock Report
by Jason Hommel, May 24th, 2010

Usury.

Lending at interest (usury) is the bane of our era, the highest crime of the ages, condemned by prophets, regulated by God, and ignored by modern man. God said no usury, unless you loan to other nations, but every seventh year is supposed to be a time of debt forgiveness, thus, it's a plan to teach the nations about God, yet abused instead to enslave people into perpetual bondage. Usurers want the whole earth, plus 6%! Lending is not so much a problem as is the interest! When gold is money, gold grows more valuable over time, so "increase" is built in!

The Big Picture for Silver.

No nation on earth uses silver or gold as a circulating medium of exchange, or common currency. This trend to not use silver started over 150 years ago, and has come to an end. If monetary demand for silver changes, it can only go up. Money is also a store of value, and people are recognizing that more and more. About 65 years ago, at the end of WWII, the world entered the age of electronics, and the demand for silver in electrical contacts soared tenfold. This has consumed more than half of all the silver ever mined since the beginning of time.

Supply and Demand for Silver.

The world annual mine output for silver is about 600 million oz., with about another 200 million oz. from recycling, and another 100 million oz. from selling from other sources. Industrial consumption is about 45%, jewelry consumes about 25%, photography is down to about 15%, leaving about 15% for investor demand. Investors buy about 100 to 150 million oz. of silver per year, which is barely $2 billion. Yet the BIS estimates that most all of the worlds' banks have $200 billion in "other precious metal" (or silver) notional value worth of derivatives on the books, indicating that all paper silver is all fraud. Paper money, unbacked by silver, is fraud, too.

Eternal Properties of Silver.

Silver is rare, dense, fungible, divisible, transportable, non perishable. These qualities unique to both silver and gold make them both an excellent store of value, unit of account, and medium of exchange. Silver is the best reflector, and the best electrical conductor in the world, and is a great germ killer, too. These qualities make silver valuable in tiny quantities to industry. Gold conducts less well than silver, does not kill germs, is too expensive to consume, and is not a viable alternative. Neither is paper. Gold coins smaller than 1/10 of an oz. are not practical, making silver essential as money.

Exchange Traded Silver Funds.

JP Morgan is the custodian of the silver for the silver ETF, SLV. JP Morgan is also the largest trader of derivatives on the earth, and the holder of the large excessive and concentrated short position in silver on the COMEX, and is being investigated by both the CFTC and the US Justice Department. The proof is not on me to prove they don't have the silver. Proof should be on them to prove that they are an honest custodian. SLV's silver is not able to be audited, and you can't take delivery. Silver is payment in full, not a promise.

Futures Contracts.

Many people are deceived by greed, thinking they can earn more money if they buy silver on leverage, putting only part of the money down as payment, to enable them to "control" more silver. But if they don't take delivery of silver, then they are not buying silver, and not controlling any silver, but only get a phantom promise of silver from entities who could not possibly have enough silver to make full delivery. It's like the fraud of fractional reserve banking, but business as usual today. I believe it is a moral failure to be deceived by these con games.

Silver Certificates.

Certificates and storage programs are a worse con. Pay full price to be conned with storage of silver that does not exist! Canadian banks and Morgan Stanley have both been caught selling non existent silver to clients in the past ten years, and their defense is that it is business as usual; that everybody does it. Sending brokerage statements showing silver amounts, when no silver exists, should be one count of mail fraud for every customer! It amazes me that many people do not have the courage and responsibility that is required to guard their silver. No work equals no results.

Collector Coins.

Many investors are lured into the precious metals market by dealers such as Goldline who is advertised on Glenn Beck. They mark up "collector" coins anywhere up to 30-100% over spot. There is no crime in charging a high price, but the scheme is borderline criminal. By selling older coins as "non-confiscable," they confiscate nearly half of an investor's money right off the top! By selling those same coins through a leverage program, they don't even have to deliver if the customer does not come up with all the money, and thus, may be selling collector coins that do not exist.

Silver Stocks.

I was guilty of talking up silver stocks, as a way to gain leverage to the rising price of silver. What the market gave, it took away. Even my extremely profitable newsletter that showed a look at my portfolio is now in the dustbin, a relic of internet history. But new internet investors have popped up, claiming great gains as they bought on the dip in 2008. Too late to chase such gains now. Stocks are subject to capital gains, nationalization risk, mismanagement risk, debt risk, funding risk, futures market hedging risk, mine collapse risk, strike risk, tax risk. Why risk it?

Bullion Items

When you buy physical silver, it comes in the form of actual shapes, which we call products. Popular forms of 99.9% pure silver are 100 oz. bars, 10 oz. bars, 1 oz. rounds, 1 troy oz. silver Eagles. There is also 90% silver coinage dated from 1964 and earlier. Occasionally, we get odd weight silver bars, 5 oz. silver bars, 1 oz. silver bars or other odd shaped silver pieces. And there are also the 1000 oz. COMEX bars, each one varies by weight up to 10%, with the exact weight stamped on the bar. Ten oz. bars are popular; they used to be the most expensive form, but now, the cheapest.

JH MINT & Coin Shop, Grass Valley, CA
(530) 273-8175
http://www.jhmint.com/


Monex- The lowest cost Gold and Silver retailer. Paul Bea account rep.
800-949-4653 x2172 Use Kevin from UScivilflags.org as referral to support this site.

Why People are Buying Silver and Gold

Many people today are cashing out their CD's to buy silver and gold. Why?

The obvious.

The CD's pay next to zero interest, and gold and silver continue to head up by 20-30% per year.

Most of our gold and silver buying customers have completely lost faith in the government's ability to "run" the economy, but more than that, there is a real fear of the government today, that it will turn dramatically totalitarian and that we will lose nearly all of our freedom.

The best time to own gold is when the government starts taking more of your money. Silver and gold ownership prevents government from confiscating your wealth through inflation, and more and more people see the inflationary threat of massive $2+ trillion deficits, which are being met by printing more money.

A typical first time customer comes into our coin shop at the JH MINT, and says, "Hey this place looks really nice!" We designed it to look a bit upscale, with plenty of room to hang out, with nice couches to be able to sit down to talk.

They typically say, I've been doing a bit of research online about silver and gold, but I really know nothing about silver and gold, so what can you tell me?

To answer in person, I must get to the point quickly, as other customers will soon come in next.

So I like to show them, and let them hold a gold coin, and let them compare the heft and weight compared with a silver coin. Gold is twice as dense as silver, and the difference is easily discerned when you hold them. A 1 oz. gold coin is just a tad thicker than a half ounce silver coin, which is a bit thinner, and much, much lighter. Since silver is 1/2 the weight, a similar sized silver coin, gold plated, would be about 1/4 of the weight of a gold coin!

Thus, the brass or copper core, gold plated, "authentic replicas" as old on TV make a beautiful comparison to show how difficult it is to counterfeit gold.

So when they hold gold, they know it's something real, and real special.

People continue to ask, "Which is better, silver, or gold?"

I tell people, we like silver best, because it's a much smaller market.

World annual silver mining is about $10 billion, but world annual gold mining is about $80 billion.

But most of the silver market is consumed by industry, as silver is used in all sorts of electrical contacts and devices. In fact, industry consumes more silver than world annual mine supply, and the gap is being met by recycling.

So the amount of silver left over for investors is shockingly small, perhaps only $2 billion.

The silver story is surprisingly simple. The entire world once used silver as money, but today, no nation on earth has silver circulating as currency. This reduced monetary demand has created a very low price.

But silver remains a better store of wealth than ever, due to the increased scarcity, and the growing awareness of silver ownership as a way to make money.

Money is more than a currency or medium of exchange, it's also a store of value. As demand for silver, as a store of value, increases, so will the price, and this demand will continue as a positive feedback loop that will eventually destroy paper money.

But the real shocking fact of the silver market is that 99% of silver investors are getting scammed by paper silver, that is basically all fraud.

The proof of this is the BIS report, from the Bank of International Settlements, here:
http://www.bis.org/statistics/otcder/dt21c22a.pdf

The proof is in the numbers. The BIS keeps track of the derivatives of the banks worldwide. It shows that the notional value of "other precious metals" over the counter derivatives, which are mostly all silver, increased from $100 billion to over $200 billion in six months.

When the entire annual physical silver investment market is only $2 billion, and when the paper silver investment market increased by $100 billion in six months, there is only one way that can happen. The paper must be all fraud.
Goldmoneybill.org- Spreading the word about Sound money.
=====

I asked several bullion dealing managers why people are buying precious metals:

Matt, at rocklincoinshop.com, says:

Now more than ever, it seems that people are becoming increasingly aware of the growing instability of the dollar. With the national debt climbing, and the future of our nation’s currency looking less bright every day, people are looking for ways to protect their wealth against inflation and the ever-crumbling banking system. After doing some research, most of them come to realize that purchasing precious metals like silver and gold is the most reliable method for storing their wealth in a way that will ensure that their hard-earned capital will retain its spending power and viability despite an economy with a future that is shoddy, at best.
Cont'@ Source


Monex is the low-cost gold and Silver retailer. Paul Bea @ monex 800-949-4653 x2172
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Real Money- Silver Protects from Pirates and Bankers

by Jason Hommel, October 19th, 2008
SilverStockReport.com

When I first discovered the fundamentals of the silver market ten years ago, I was as giddy as a schoolgirl, and I knew I had to get as much as possible, as soon as possible. But I had little money. But my dad had money, and he wanted to invest in something, but not silver. Fortunately for my readers, my father was a skeptic, and offered every counter argument in the book, for several years, until he finally decided it was time to buy silver in bulk. This is how I first learned to argue about silver. Dealing with my dad. He was a skeptic, because he ran an advertising agency. See, he exaggerated for a living, and his cosmic punishment seemed to be that he was never able to trust anyone. Eventually, he was convinced to buy silver. After all, he finally reasoned that I had no reason to lie to him, and he was right. For the first few years after he bought, he kept thinking about all that money he spent and "wasted" on silver at $5/oz. Since he started buying in 1999, it was emotionally painful by 2003, 5 years later, to see silver down 25% to bottom out at $4.15 by that spring. It actually took him a few years after we bought silver, by the time silver hit about $6-7/oz., and after the Enron and Worldcom bankruptcies hit, for him to later remark offhand, "I'm so glad I have so much of my money safely locked up in our safe." When he said it, I was flabergasted at the change in his perspective. I was so proud of my father, because I knew he finally understood.

The fundamentals of silver sound just too good to be true. The few million ounces that remain are staggering when you consider the historical implications and comparisons of prices.

A silver dollar was the daily wages of a miner in my hometown in the early 1900's. A silver ounce per day, or less, was also the daily wages for people in 1980, but they didn't earn silver. In 1980, with silver at $50/oz., and minimum wage at $3.10/hour, you'd have to work 16 hours for an ounce.
http://usgovinfo.about.com/library/blminwage.htm

More silver than is mined each year is consumed by industry, and as late as 2007, less than 10% was demanded by investors. The silver market spiked up starting in 2003, not so much from investor buying, but because investor selling began to slow down just a bit.

This year has been a amazingly good year for silver; tremendously exciting things have happened. When silver hit $20, investors turned buyers bigtime, and nearly stopped selling, and this sea change in the market cleaned out most of the major silver dealers in North America, by March.

Silver Shortage: 19 dealers reported "Sold Out" March 19, 2008

Since then, the shortages have only gotten worse, as I predicted.

What was stunning, and what I was not prepared for, was the extent of the manipulation to the downside to try to shake off and reduce investor demand. Two major banks sold, over the span of a month, contracts of promises to deliver 130 milion ounces of silver, to gamblers who never had any intention of taking delivery of silver, which broke the back of the paper market, and caused a panic sell off in paper silver. This caused further gamblers to have to sell their paper long positions of silver, which further depressed prices, and which also did not bring any new silver to market.
First, the biggest fraud is the COMEX. 90% to 99% of contracts don't result in delivery, but this market dominates the price.

http://www.cftc.gov/dea/options/deacmxsof.htm

With 142,578 contracts outstanding, for 5000 oz. each, that's 712 million ounces, which is more than all the world's silver mines produce each year, which is about 550 million ounces according to the CPM group.

The COMEX warehouses only store 133 million ounces, and not all of that is registered for delivery against a contract, therefore, there is paper contract fraud selling going on, which manipulates the price down.

I understand that paper contracts can also allow the silver price to be manipulated higher than normal. For example, if 85% of the positions of paper longs were concentrated and held by 2 traders who were short term gamblers who did not intend to take delivery, and if all of the sellers were only the mines who had every intention of delivering silver, prices would be manipulated higher as the paper long positions were purchased.

Likewise, if paper futures are sold, by entities such as banks who have no silver, and don't sell any silver, and don't have any intention of delivering any silver, then that would manipulate prices to the downside.

Many people continue to write to the CFTC to investigate and end the fraud. I don't think they will, since it's the nature of futures contracts themselves that is the essence of the fraud.

The second biggest fraud in the silver market is the LBMA London Bullion Market Association. These are a collective of banks who have 75 million ounces of silver, but trade 30 billion ounces of silver per year, according to statistics compiled by the CPM Group. Clearly, there is fraud there, and they admit it at their website, regarding "bullion accounts":

http://www.lbma.org.uk/london/accounts

Unallocated Accounts

This is an account where specific bars are not set aside and the customer has a general entitlement to the metal. It is the most convenient, cheapest and most commonly used method of holding metal.

The units of these accounts are one fine ounce of gold and one ounce of silver based upon a 995 LGD (London Good Delivery) gold bar and a 999 fine LGD silver bar respectively. Transactions may be settled by credits or debits to the account while the balance represents the indebtedness between the two parties.

Credit balances on the account do not entitle the creditor to specific bars of gold or silver, but are backed by the general stock of the bullion dealer with whom the account is held. The client is an unsecured creditor.

Should the client wish to receive actual metal, this is done by ‘allocating’ specific bars or equivalent bullion product, the fine gold content of which is then debited from the allocated account.

By their own words, they admit that their standard "bullion accounts" do not have silver, are not backed by silver, but are only a debt or liability of the bank, and the owner of a bullion account is only an unsecured creditor.

Those idiot commentators who write to say that "gold is nobody's liability" ought to wake up. Of course many banks have liabilities of gold, in gold, they owe gold. Those unbacked gold and silver liabilities are part of what is going to drive the gold and silver prices much, much, much higher!

Gold is a liability for all men who practice financial fraud. God is an asset only for honest men. Since the world is so full of fraud, gold is a liability for most men!

You ought to check to see if your bank is listed among the LBMA members; most major banks are members, and for them, silver and gold are a major liability.

There are several long lists of bank names, market making members, ordinary members, and associates.

http://www.lbma.org.uk/assocn/mktmembs

They, too, like COMEX, are safe as long as their clients don't demand real silver, and for the most part, they don't. Or if they do, they discourage them, and talk them out of it, or claim they only have 1000 oz. bars available, and they will lie about mysteriously costly "assay" fees, which are actually free, and "expensive" shipping, which should cost no more than 2% of the value of the silver. Or they will flatly say they are 'sold out', or that there are high commissions, or that "nobody asks for silver" or that they are unfamiliar with how to proceed, or that if you need real silver and don't trust them, then "we" are all doomed. No, it's they who are doomed, not we.

The third biggest silver fraud is probably the SLV ishares silver trust. It's like the roach motel, you can check in, but you can't check out. Easy to buy, but impossible to take delivery of the silver. You have to be an LBMA member bank to get delivery. How cozy and convenient.

A lot of us don't trust the SLV ETF. Supposedly, it has 6901 tonnes, or about 221 million oz. of silver, worth about $2.2 billion.

There are at least 6 brokers between you and your money, and they all need to get paid when you buy or sell shares in the SLV.

1. The sponsor, Barclays.
2. The custodian, JP Morgan, who is supposed to hold the silver.
3. The sub custoidans, which can have further
4. More sub custodians
5. The market making brokers who buy and sell the actual metal, futures, and/or shares in lots.
6. Your own brokerage account that holds your SLF shares for you.

SLV is not silver. It is promises and sub-promises of unauditable brokerage houses, and JP Morgan is an LBMA member, and is the bank with the largest portfolio of derivatives in the world, over $80 trillion. How can the SLV pay up to 6 middlemen or more, and give you a good spread? Think.

The entire reason behind owning silver is thwarted with the SLV.

Silver cannot default. SLV can.

You own silver to protect against bank failure and brokerage failure.

SLV cannot protect you in case of brokerage failure or custodian failure or sub custodian failure or Barclays failure, or short selling failure to deliver, or your own brokerage failure. Six brokers means 6 chances of failure.

For the SLV, consider Taxes: Physical silver purchases, for the most part, are non reportable. SLV sales are reportable.

For the SLV, consider Confiscation: If the Government changes a law, to confiscate silver, which silver is more vulnerable? Silver in your safe that that they cannot find and don't know about? Or silver in the SLV, which would have to be turned in or converted to "paper"?

The fourth biggest fraud in the silver market is probably the Perth Mint Certificate program.

Where's the Abundance of Perth Mint Rounds?! September 6, 2008

The Perth Mint now has a $1.5 billion precious metals liability to Certificate holders.

http://www.bloomberg.com/apps/news?pid=20601012&refer=commodities&sid=asmvRlbfitV8

To get out of holding the certificates used to cost about 15% in fees just to get your cash, and then another 15% hit to buy real silver. Today, the spreads are much worse.

I've explained and warned numerous times about the Perth Mint's metals debt. It is a legacy fraud, from a legacy debt, probably going back decades. They transfered a bullion debt that they owed to the banks, to the public, though a wonderful public relations campaign, and many bought it hook, line, and sinker, because the people wanted the securty of promises, rather than silver.

The many contradictory statements coming out of the Perth Mint are enough to make your head spin. They say they only buy 20 tonnes of silver at a time, yet they buy every ounce of silver at every time anyone buys a silver certificate. Well, it can only be one, and so it's probably neither. 20 tonnes is barely enough to back 1/2 of 1% of their certificates, and is probably what they need to stay solvent from redemptions that started since I began telling people to get their physical out of there!

The fifth biggest silver market fraud is probably monex.com. A few years ago, I did a video interview with them for a CD promotion that I regret now doing. See monexfraud.com. It's bad enough that they offer silver on "leverage" terms in their atlas account. But what is worse is that the IRS is suing them for back taxes for about $400 million. If they even have that much silver on account for their investors, I sincerely doubt that it's there. Going short in the silver market was a wonderful "business" strategy when silver prices went down for 20 years, but will eventually bankrupt anyone in a rising market. But for the very old man who owns monex, in the short run, he'll be dead from old age, so what does he care?

I probably have had over 100 people complaining to me about the nature of the fraud inherant in the leveraged monex atlas account over the years, over three times as many as have contacted the Better Business Bureau. According to monexfraud.com, monex has an F rating with the BBB, which is very hard to accomplish. It's like you'd have to be actively seeking to defraud people for that to happen.

The sixth biggest fraud in the silver market is relatively tiny by comparison, so tiny, it's almost not worth mentioning, but so many complain to me about them, I should mention it.

NorthWest Territorial Mint Says they Have Silver March 25, 2008
Silver Market Structure: Shortages And Sources March 25, 2008

I just don't like the NorthWest Territorial Mint's policy of a wait time of 3-4 months to get your silver. They were sued by the Washington State's attorney general, and they recently paid a fine and settled, perhaps because the State's attorney general didn't understand the silver market enough to understand how to prosecute. A 3-4 month wait time means the company is likely floating on customer money. I can't prove that, and as a private company, their books are private, but it smells like that to me. Longer and longer wait times, which have been taking place, ought to be alarming.

My calculations, based on their admitted business volumes, show this might be about a 1 million ounce blow up when, or if, it happens. But who knows? In this market, they could earn enough money to be ok in the long run. Interestingly, companies can operate "on the edge" like this for years before a bankruptcy. Lower silver prices, and higher premiums for real product, should be the key to unlock their danger of bankruptcy, and should have shortened their wait times, but it didn't, which is telling. Perhaps they are afraid that if they raise prices, they will lose new orders? Instead, their wait times have gotten longer. Further, they have more and more creative deal incentives for people who are willing to wait. As long as I continue to hammer home to people to not trust long wait times, they should lose new customers, and if they depend on that for a float, then wait times will continue to increase. I get many, many complaints about NWT Mint, but not as many as I used to get, now that they are more upfront with how long the wait will be. I only got one complaint about them today.

If you have bought from them, you ought to be alarmed. What would I suggest you do? Don't order any more! Wait it out, or complain to the Washington State Attorney General. But you likely don't have a complaint, since the company likely told you how long you would have to wait, and you likely already agreed, and the company's delivery deadline is probably not been hit, so tough deal for you, you just agreed to buy a futures contract for delivery, and paid full price, and now you have to worry about counterparty risk.

The seventh biggest fraud in the silver market is likely Kitco. They have been saying for over a month now, that delivery of silver is indefinite, and if you want to cancel, you have to pay a fee. Outrageous. They operate a pool account. Sounds like a precious metals liability. How telling.

Nadler, Kitco, Perth, Matthey; Sold Out! September 3, 2008

All these people telling you that you have to wait, is bullshit.

Even the radio host, Alex Jones, is touting a metal dealer who offers silver for 4-6 weeks for delivery.
http://www.midasresources.com/index.html

Here's a bit of silver industry info. Penoles will deliver 300 of the 1000 oz. comex bars in 2 weeks at 16 cents over spot. Unfortunately, you need to order 300,000 ounces at a time. Too rich for my blood, but maybe that bit of knowledge will be helpful for some of the "big players" listed above who might be having trouble finding silver. It should shorten wait times. But if they cannot afford that silver, because they are teetering on bankruptcy, it won't help them.

Contact info:
http://www.penoles.com.mx/penoles/ingles/productos/metales/silver.php

Meanwhile, since I found out where I can get real silver, through other honest dealers, almost immediately, I can offer silver for immediate delivery.

How can we do this when everyone else is backordered for months? Simple. We follow a long forgotten and neglected Biblical principle. We don't sell what we don't have. We only sell what we have.

There is so much fraud out there, and real silver is so scarce, you ought to get silver immediately.

I have two major auctions running at seekbullion.com, one ending tomorrow, Monday morning, the other Wednesday at noon, Pacific time.

Details:
http://silverstockreport.com/2008/auction-5.html

I'll ship the SAME DAY that wires come in, and all winning bidders must wire within 24 hours. I can ship, "same day" because I'll have all the silver pre-packaged, because I know what I'm selling, and when. I just don't know at what price. You decide what real silver is worth. You tell me, as you place your bids.

http://www.seekbullion.com/

You have nothing to lose. You will likely either pay less than you bid, due to the nature of the very small automatic proxy bid increment of $1.01 automatic bid increases, or you will simply not win, and owe nothing.

If you cannot afford a $9000 bag of silver, or a $1200 bar of silver, see my mom's ebay store, here:
http://shop.ebay.com/merchant/jkesilver

Oh yes, more fraud. Since my mom is a new "ebay-er", they put a hold on over $8000 of cash that they now cannot access, and so, they cannot repurchase silver; they are locked out, for an unknown time frame. What fraud! They are so worred about fraud protection for buyers, they fraudulently withhold money and practice fraud themselves. The solution to end fraud is simple. It's a real silver bullet! It's simply silver. If you can understand it. My father finally got it. Do you?


Monex is the low-cost gold and Silver retailer. Paul Bea @ monex 800-949-4653 x2172
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