The Silver Market Manipulation FAQs , courtesy of The Silver Circle
Showing posts with label silver investment. Show all posts
Showing posts with label silver investment. Show all posts
August 19, 2012
September 26, 2011
SELL ALL YOUR GOLD INVESTMENTS NOW AND BUY PHYSICAL SILVER!
Source: Bix Weir
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 around $1600/oz and Silver trades for about $40/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 200M oz remain with a current market value less than $8B.
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 14 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 40-1.
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"
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 mid 2011 the Gold price is hovering around $1,600 or 188% of its historical high. Silver, on the other hand, is hovering around $40 or 80% 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) There are currently multiple class action lawsuits that have been filed against JP Morgan for blatantly rigging the silver market. Given that JP Morgan has previously claimed immunity from legal prosecution because they are an agent of the US Government I doubt the suits will ever be brought to trial...BUT the publicity of them "claiming immunity" AGAIN will be the "silver shot heard around the world".
32) 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:
March 5, 2011
Jason Hommel: silver going to US$500/oz
Here's an excerpt from Jason Hommel's newsletter, where he argues on why the metal is eventually going to hit US$500/oz...
"Recently, I've been hammering the point that there are two major reasons why silver is headed to $500/oz.
First, silver hit $50/oz. in 1980, and money creation has increased 10 times since then, so the true inflation adjusted price of silver will be $500.
Second, when 1% of money in US banks buys silver, it will be 1% of about $18 trillion, which is $180 billion. If you divide that by 700 million, you'd get $257/oz., which would leave no silver for industry or the rest of the world, which implies a silver price of at least about $500.
So, here then is the problem.
How will they prevent silver from going to $500/oz.? They can't. They can only slow down the rise, or let it rise fast. (while increasing volatility, and creating temporary price dips) And how will they prevent the implications of such a massive rise to $500?
See, the problem is twofold.
If they let silver run fast to $500, say over 6 months, the dollar will be perceived as collapsing, and could continue to collapse to zero.
But if they let silver continue to go up "slowly" at only 30% per year, for the next ten years to take us to $500, this would create a worse problem. See, after nearly 20 years of precious metals only going up, people will begin to notice -- more than notice. They will begin to say, "precious metals only go up, they never go down". And that's how price bubbles begin to form, making silver go from fair value to over valued.
And if silver were to become over valued, that would drive the price from $500 to $5000, and could continue and ultimately collapse the dollar to zero value.
So that is quite the problem for the people who are trying to prevent the silver price from rising.
The silver storm is coming. Prepare.
People ask some interesting questions when I point out that silver is headed to $500. They ask, "Gee, who will buy it when it's that expensive?" Did they not comprehend the argument? Only 1% of people will be buying silver when silver is $500/oz., (a hundred times more than today, when only 1% of 1% of people are buying silver) but yet, 99% of people won't have bought any silver in the recent year, at $500/oz.
Some analysts today say that silver is going to go down, because "everybody loves silver". Such analysts don't know anything about the fundamentals, which trump any kind of other analysis! Silver might hit the news due to new highs, but the facts are clear. Only about 1% of 1% of money is buying silver each year. That's one dollar out of 10,000!
Silver's not a popular investment. Not yet. But it will be. IT WILL BE! Prepare for it. Get it now. Anywhere below $50 to $100/oz is cheap..."
For more from Jason Hommel on silver you can visit his web site "Silver Stock report" and subscribe to the newsletter.
August 21, 2008
Jason Hommel: Silver has Run Out, Now!
Silver has Run Out, Now!
(Just try to find some!)
Silver Stock Report
by Jason Hommel, August 20th, 2008
For a long time, people have been asking me, "When will silver run out?". They know that the world uses up more silver each year (about 850 million ounces) than the world mines (about 600 million ounces), and that existing demand can only be met by selling existing inventory (such as recycling 200 million ounces, or goverments selling 50 million ounces), so it's a natural question to ask. The question is not implying that mankind will be unable to mine any more. Rumor is that there remains at least about 14-16 years of silver in the ground at "current" prices; while at much higher prices, silver mining becomes more economic, and more deposits can be added to that "in ground" reserve number.
So, the question is really just asking, "When will we run out of "excess" above ground silver that can meet the supply/demand gap, so that the price will begin to really take off upwards?" Clearly, the world has silver in supplies above ground, and such silver supplies are dwindling in order to meet the supply/demand gap. About two years ago, the world started adding to above ground silver supplies as silver investors started buying, (and the silver surveys label investor buying as a "surplus". However, silver recycling was still greater than new stockpiling, which continued to deplete overall silver supplies.
Such a question as "When will silver run out?" cannot really be answered in advance, since nobody really knows how much silver there is, and who owns it, and at what price they are willing to sell it. Again, that brings us back to the nature of silver; it's inherantly private wealth, held anonymously. Estimates on "above ground" silver, in refined, deliverable form have ranged from 300 million ounces to 1 billion ounces, to about a high of 4 billion ounces if you include jewelry and flatware, up to 20 billion ounces if you include all forms of silver that have not ended up in landfills, out of the total of 43 billion ounces of silver estimated to have been mined in all of human history. Furthermore, nobody is arguing that the last bit of silver that exists needs to be consumed before the price rises substantially. The question is really about when will all the unwanted silver, in so-called "weak" hands of holders who don't really want it, be sold, to allow the price to rise to meet the majority of the expectations of the remaining wise investors who have planned in advance to actually store up some of the rare stuff.
But finally, I think the answer has arrived. The answer is "NOW!" Silver has run out, now! Or, in other words, most of the cheap silver has run out.
There are two excellent articles on the shortage of Silver that I'd like to bring to your attention if you have not already seen them:
This one is by "seekingalpha", and is very excellent, and very comprehensive.
The Disconnect Between Supply and Demand in Gold & Silver Markets
(August 18th)
http://seekingalpha.com/article/91357-the-disconnect-between-supply-and-demand-in-gold-silver-markets
The article goes over how the silver shortage is also affecting India.
He also covers the paper silver fraud that is commonplace and "standard business practice" in Wall Street brokerage houses.
This next article is short and powerful, and written by a coin dealer:
The Disconnect Between The Physical Gold and 'Paper Contract' Markets
(August 19th)
http://www.numismaster.com/ta/numis/Article.jsp?ad=article&ArticleId=5093
What's amazing is that last year, net physical silver investment demand was estimated to be about 30-60 million ounces, or about $1 billion worth.
Today, with 90% of the people in the U.S. being concerned about inflation, and a growing awareness of the danger of banks going bankrupt, there ought to be about 90% of the $14,000 billion of money in the banks that should be seeking to buy either some silver, or gold.
So, where do you think silver prices are headed? How can most of $14,000 billion enter a market of $1 billion that is already suffering a shortage, and prices not go up, a lot?
And oh yes, what about that current low price?
There's a short story that goes something like this. A lady wants to buy sausage. There are two butcher shops next to each other, one advertises $1.99/lb., the other advertises $2.99/lb. She goes to the $1.99/lb. shop first. But there's no sausage, they are out. So, she goes across the street, and sees sausage for $2.99/lb., and promptely complains about the price. "Why don't you sell it for $1.99/lb like the other guy?" Butcher answers, "Lady, when I'm out, mine is $1.99/lb, too!"
Price means nothing if you can't get the product. Many people are still sending money to dealers who will take your money, but have no silver, and no idea when they can get it.
Be very, very careful about ordering silver right now. Demand to know exactly when they can deliver. If they can't guarantee delivery within a week or your full money back, then consider that they probably don't have it!
Here's what I suggest. FIND YOUR LOCAL COIN SHOP and go there, in person. Or visit the dealers who are recommended at:
www.find-your-local-coin-shop.com
In fact, now might be a good time to meet up other Silver Stock Report readers.
I suggest that everyone visit their favorite local coin shop on September 1, at 1PM. That's a Monday.
Sincerely,
Jason Hommel
July 30, 2008
Mineweb: While silver ETFs outperform relative to gold, miners continue to suffer
While silver ETFs outperform relative to gold, miners continue to suffer
Silver ETFs have decoupled from the depressing price movements of increasingly hammered listed silver stocks.
Author: Barry Sergeant
Posted: Tuesday , 29 Jul 2008
JOHANNESBURG -
Amid the hammering of listed resources stocks over the past two months, and the more recent heavy sell off of commodities, silver exchange traded funds (ETFs), represented mainly by the US-listed iShares Silver Trust, stand out as one of the most resistant commodity-linked securities. An investment in the iShares Silver Trust, which currently holds USD 3.4bn in silver bullion, is an easily accessible proxy investment in silver bullion.
Where an investment in silver ETFs would have returned 33% over the past 12 months, a weighted investment in 43 listed silver stocks is now returning a highly dramatic negative -33% over the same period. Gold ETFs, represented mainly by the US-listed SPRD Gold Trust, have also performed well, with a return of 28%, ranking just behind silver ETFs.
Listed gold stocks, however, have far outperformed listed silver stocks, returning a composite 5% over the past 12 months. The disparities in the returns from listed stocks may at least be partially explained by the declines in spot prices: at USD 919 an ounce, gold bullion is currently 11% off its highs, while at USD 17.23 an ounce, silver bullion has fallen by 19%.
Both gold and silver bullion are favoured by certain specialist investors as high beta investments during times of crisis or trouble. The two metals traded at record highs during March this year, when Wall Street's Bear Stearns crisis peaked. While both gold and silver are ranked as precious metals, along with the platinum family, gold has a demonstrable monetary role, something arguably absent from the rest of the precious metals peer group.
Primary silver producers are far less easy to find than primary gold producers. The silver sub-sector is led by Fresnillo, Pan American Silver, Polymetal, Hochschild, Coeur d'Alene and Hecla, and the fast-rising Silver Wheaton. Most of the world's silver is produced as byproduct, typically by the larger mining names...
...to read the remaining article, please click HERE
July 13, 2008
Silver FAQs galore!
- What's so special about silver, anyway?
- Why will silver go up in price?
- Where can I buy silver?
- What is a good price for silver, how much should I pay?
- What kind of silver should I buy?
- How much money do I need to buy silver?
- How do you know that the silver you buy is real?
- What about confiscation?....
You can find the answers to these and many more frequently asked questions (one of the most complete lists on the web!) about Silver investing at Jason Hommell's Silver Stock Report by clicking HERE
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