The silver market is showing signs of bullish strain and an incredible opportunity is being presented to you. I’m a staunch silver advocate and it’s time for an update right now. Silver stands to outperform gold as the long term precious metal bull market continues to unfold.The price of silver, along with gold, is kept under wraps by officials of the New York COMEX market, aka CRIMEX. The old boy network which runs CRIMEX have whipsawed the market in their desired direction for decades and profited accordingly. These actions are government sanctioned because precious metals are competition to un-backed fiat money. State mandated fiat is so weak and poorly designed that it cannot stand competitors.
I wrote a silver article 4½ years ago entitled Silver: Anatomy of A CRIME(X). In that article I compared activities at the COMEX market to prior incidents at Long Term Capital Management, Enron and Arthur Anderson. I screamed from the rooftops that fraud and abuse had gone “metastatic”.
Bingo. Since early 2005 you’ve seen the cancer spread via Fannie and Freddie, Bear Sterns, AIG, Lehman Brothers and others. Few people yet understand that the entire system is corrupt and failing. Band-Aids don’t fix train wrecks!
The present age of crooked markets really boil the blood!
You should expect CRIMEX to join the long list of failed and disgraced financial institutions. There are incredible strains on this market right now as month to month delivery battles transpire.
In the silver article from 2005 I stated … “I don’t believe that complaining, pleading, documenting, reasoning, letter writing or mounting campaigns with this particular institution will ever bring it back to what could legitimately be called an honest market. Sorry. They had every chance under the sun to do the right thing and clean up the mess.”
It will never be the SEC or the CFTC that cleans up CRIMEX. You can pen pal with these blokes forever and it will do little more good than scolding the mafia. The leopard doesn’t change its spots. There is a very realistic opportunity, however, to now end the decades of abuse by this market. It is happening as you read.
Large international players are now engaged in calling the bluff of this New York market. They have caught on to the scam and are totally peeved. COMEX silver is largely a “paper” exchange with only small amounts of physical metal being taken delivery of on an historic basis. That is now changing as more and more players insist on physical silver and gold instead of risky promises.
You have to be incredibly naïve or just plain dumb to trust these crony capitalists gone wild. It is just a matter of time until CRIMEX defaults or implodes. Gold and silver prices will soar when they are freed of the manipulation.
Why would anyone put money into a manipulated market? Good question. Manipulations against long term trends are pure folly. Take a look at how silver has performed over the last six years:
Silver was under containment in the $4 range early this decade but managed to hit a high over $20. Holding silver down near the current $14 area will be just as fruitless over time. Silver will either continue to grind higher or it will explode higher when the official suppression ends.
More and more people are using my CRIMEX moniker all the time. Make sure you have plenty of physical metal before this scathing term is in the national news
Sure, I’m irate over the ongoing silver manipulation but I’m also licking my chops for the inevitable profits coming our way because of the manipulation.
ETFs are only trading vehicles not a substitute for physical silver. Precious metal certificates are suspect at best. Get the real stuff and make sure you’re in position before CRIMEX cracks.
Invest Resourcefully,
Rusty
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So what about holding actual futures contracts when the manipulation is blown and silver explodes? I’ve heard talk of the Comex “defaulting”, what happens if you’re long silver futures when this happens? Would those contract still be valid, and you get to participate in the huge gains? If not, what would happen to those who are long silver futures?
I believe you are screwed if you hold anything but the real thing. Therefore, isn’t this revelation potentially driving investors away from the market (paper) and thus playing into the hands of the shorts?
Please Sir, i have some questions. If you could answer any or all, i would be most grateful.
What happens if you are long silver futures when a default happens?
What if you are long gold futures on the COMEX when the silver futures default? Will we lose that days profit? Or will our trades be nullified from their open? Or will the amrket still trade? or go limit up?
What about dirivitives of COMEX futures? I like the LSIL.L double silver ETF, which holds silver futures? Will my ETF be delteded? Will the whole thing disappear?
I would be grateful for your thoughts.
If comex defaults my guess is that holders of paper will be compensated in cash through another bailout. If I recall correctly the ETF contracts were changed to reflect that last year. You’re essentially ripping yourself off by investing in paper metals because it keeps the value down, but you’ll also never see your metal if/when you actually need it. You’ll also be covering the losses of any related financial industries when the Govt. bails them out. You’re helping them screw you when investing in ETF’s instead of buying actual metals.
The paper metals market is similar to bank receipts representing Gold that were traded out of convenience, and eventually the receipts evolved into currencies. ETF’s are backed by a percentage of what is sold and the metals are held by the sellers of weak paper promises.
Now - like fiat currencies - they’re no longer truly backed by gold/silver because they can choose whether or not to give you your metals. That we’d be called upon to bail out any default in order to give cash equivalents to those demanding delivery is an insult to everybody’s intelligence.
It’s yet another form of usury in my opinion.
Thanks for giving your opinion on a default. Don’t forget to look around now and then. Gold represents truth and reality, but i still have to eat, and last time i checked, my local food store took dollars. So, whilst i have 50% of my money in krugerrands and gold stocks, the other half is what i intend to trade in and live off of for the next couple of years. So i’m playing the paper game with the other half of my money. I hold the LSIL.L double ETF because it kicks ass on rallys. It went from 10 to 20 in about two weeks last month. And I buy a couple of futures on extreme weakness and hold for a couple of months if i can. I know how worthless the paper is, but so what. You have to play your enemy’s game sometimes to get ahead in this world. I am not just interested in protecting my waelth, but increasing it. Is that so bad? I’m not a rich guy, but i have come from literally nothing to 250K by trading over the last five years, and i have lived ann ok standard of living too. I intend to keep grinding away, but am worried about getting beaten up in the paper game in the event of a default. Hence that is what i was asking about. Thank you for your opinions in that regard. I would also be grateful for the authors and others opinions.
I was about to purchase real silver from the Royal bank Of Canada today who advised me they would buy it back but at only 75% of its value. Who actually purchases silver bars at their true value.
Pls forgive this novice, but I sold my gold jewelry and my one gold coin last winter for survival purposes (unfortunately) - it appeared to me there is a retail and wholesale market for these ‘precious’ metals. The gold coin sold for around $100, equal to what I paid for it about 8 years ago. So - I believe I can ‘buy’ at retail prices, but when it is time for me to sell, I can only get ‘wholesale’ prices. Where am I wrong in my thinking here? If I am correct, the gain in these metal values must be huge, to offset the gap we experience.
Thanks for any input, educating me…
Ahoy silver! Bullish, yes. Aware of fraud at Comex, yes, thanks to Rusty and Ted Butler. Holding silver, yes, at Everbank. Fungible but allocated. Also holding Silver Wheaton shares. Prefer shares to certificates. No advice, just sharing my preferences.