Silver Manipulation: The Tip of the Iceberg

All Signs Point to a Roaring Silver Rebound

Written by Brittany Stepniak
Posted October 24, 2013

The time is nigh...

"We, as individuals, can live beyond our means by borrowing, but only for a limited period of time. Why then should we think that collectively, as a nation, we are not bound by that same limitation?"

— Ronald Reagan

In 2005, U.S. debt was $5.6 trillion.

In 2010, our debt reached $13.5 trillion.

Today it's up to $17,281,930,267,537.37.

In just over one year, we've added another trillion dollars to our debt.

To get a better grasp of how much a trillion dollars really is, I invite you to consider the following, courtesy of Michael Snyder at The Economic Collapse blog:

  • If you were alive when Jesus Christ was born, and you spent one million dollars every single day since that point... you still would not have spent one trillion dollars by now.
  • If right this moment, you went out and started spending one dollar every single second, it would take you more than 31,000 years to spend one trillion dollars.

And yet the United States, an averaged-sized country, owes 17 times that amount.

In playing the role of the "world's bank" for the past few decades, whimsically printing mounds of money that other people still accept, we've avoided catastrophic market punishment.

Yes, the Fed and their loyal QE-machine have allowed us to live well beyond our means.

But the rest of the world has caught on to this charade, and the jig is up.

Well, almost...

Don't Panic! Buy Gold! Can't Quite Afford It? Buy Silver!

A dramatic decline of the dollar is unfolding before our very eyes, its imminent collapse just a hasty Fed policy away.

You will have to diversify your portfolio accordingly if you don't want to lose everything.

Gold bullion investments are a must if you want to hedge inflation and survive the crash. Silver futures will help protect you, too. Platinum and uranium offer some peace of mind as well.

But don't let a blind eye be your guide...

 

We've got hard evidence to build a strong case for precious metals. In fact, this time last year, Wall Street Insiders quietly began moving billions out of equity funds and into hard assets. While most think that trend is easing in light of recently depressed gold and silver prices... it's not. They've just resorted to big-scale manipulation schemes to maintain that illusion.

According to billionaire investor Eric Sprott of Sprott Global Resources, "Demand statistics reported by the World Gold Council (WGC) consistently misrepresent reality, mostly with regard to demand from Asia."

Sprott recently wrote an open letter to the WGC, pleading for more transparency in order to benefit their own members:

The evidence presented here is clear, demand for physical gold is extremely strong and, in reality, without the massive outflows from ETFs (half of world mine supply), it is hard to imagine how this demand would have been met. Since ETFs have a finite size (about 1,900 tonnes left), these outflows cannot continue for much longer (see our article on the topic).

All these observations point to a considerable imbalance between supply and demand (unless Western Central Banks decide to fill this void with what is left of their reserves). If recycling was reduced by one half (China, India and Russia) and the temporary sales from ETFs were excluded, demand could be as high as 5,185 tonnes versus supply of 2,140 tonnes. The supply-demand imbalance is obvious to all.

EFTs

To conclude, I urge the leaders of the World Gold Council, for the benefit of their own members, to improve the quality of their data and find alternative sources than the GFMS, which paints a misleading picture of the real demand for gold.

This lack of quality information has certainly been one of the driving factors behind the lack of investors' confidence towards gold as an investment.

Gold has been one of the best performing asset classes since 2000, and the World Gold Council should be promoting it accordingly.

We've been banging the table on this for months.

Gold and silver are severely undervalued when you consider these manipulation schemes are just the tip of the iceberg.

No more free market for gold and silver?

Giving the illusion that they are complying with what we want — a thorough audit of the Federal Reserve, as championed by the Gold Anti-Trust Action Committee (GATA) and Ron Paul — the Federal Government has recently asserted they have been auditing the gold stored at the New York Fed.

They're drilling holes in the bars to make sure they're actual gold, and not fakes stored with tungsten inside, a common trend in recent gold-bullion scams.

The government has either purposefully or ignorantly ignored the whole point of the demand for a gold audit: Investors want these audits to ensure the gold hasn't been oversold or traded and swapped in other markets.

Has gold ownership been oversubscribed or overpledged?

GATA's Chris Powell and many other critics and experts think so.

In our modern age of unregulated markets for the exchange of "digital gold," it is not uncommon for investors to be tricked into a trade where they may not actually own physical gold bullion at all.

If you don't do your homework, you could fall victim to these scammers.

This was the primary issue behind the lawsuit filed in New York's federal court, accusing UBS Financial Services of misguiding silver investors. UBS charged investors storage fees for metals that were never officially purchased, let alone stored for them (at least not technically, if you read the fine print).

Sadly, you can't trust anyone these days.

Many investors who don't own physical gold or silver get a false sense of security with ETFs. If you want real security, you'll want real bullion as the foundation of your portfolio.

Could these crises be avoided if we return to a gold standard?

Absolutely. With currency that was redeemable in gold or silver, the purchasing power or value of a currency would have to be anchored by the hard assets backing it.

For now, we're faced with the challenge of living in a world where we are still trying (and failing) to keep our economies running on fiat currencies backed by nothing but ego.

As long as bankers continue to lie to us and feed us false confidence in fiat currency, despite the evils associated with it, they'll profit from market manipulation... but smart investors will be rushing to fill their portfolios with real gold and silver.

The good news is this can't go on forever.

This manipulation scheme is almost half a century old, and look what it has done to our economy so far...

More importantly, you should consider what 50 years of gold and silver market manipulation will do to the precious metals market once the world at large catches on to the scandal.

Banks like JPMorgan would end up bankrupt.

According to silver expert Jeff Nielson, "Companies which require silver to continue the existence of their businesses will be ready to bid-up the price of the commodity to multiples many times greater than an investor merely making a discretionary purchase."

A silver default is coming...

Are you prepared?

Farewell for now,

Brittany Stepniak Signature

Brittany Stepniak

Brittany Stepniak is the Project Manager and Editor for the Outsider Club. Her “big picture” insights have helped guide thousands of investors towards achieving and maintaining personal and financial liberties while pursuing their individual dreams in lieu of all the modern-day chaos.

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