BIS - $190 BIL SILVER FRAUD?

Apparently the BIS is holding silver contracts worth $190 bil, but probably has little physical silver - in fact this amount of silver would represent 40 times the annual consumption of silver worldwide. This means the price of silver is massively undervalued. The same thing has been happening for gold.

People have pieces of paper that say they are owed physical gold or silver by such institutions as COMEX and banks, however these guys DON'T HAVE THE METALS.

When people start asking for their metal - the prices are going to go to the stratosphere.

If you hold paper - cash it in asap - because the place where you bought it might be insolvent, and you won't get your metal for love or money.

If you want to make a crap load of money now - buy physical metal - hold it, and wait for it to skyrocket.

Oh - I guess I should point out - this is going to be a very very bad thing for anyone who doesn't have either metal, real estate or some other tangible asset - this impacts directly on the value of every fiat currency in the world - I think this will be like a whole new wave of destruction - like the MBS's.


The following link has full details - read and appreciate that these guys know what they are talking about.

goldismoney.info...



[edit on 14-4-2009 by Amagnon]

Maybe - but i've been hearing talk like this for years. If you believe this i think one of the safest and simplest plays is to buy GDX - that's the etf for precious metals mining companies. Buying actual bullion is OK but lots of hassles with it.

a cpl months ago , I got a notice that gold was going to tank,

and that's what it's been doing.

I'm not saying it can't go back up but for now, it's been ratcheting downward.

Most folks are not in a position to do a whole lot of anything, except hang on.

Yeah, we all pretty much know the leverage rate was 10/1 a few years ago. 10 ounces on paper sold for each 1 ounce on hand.... Rumor has it that it is about 100 to 1 ratio now.

There is many times more "paper silver" than "real silver"

I cannot find the "real statistics" and who knows? Anyone know what the "leverage" of certificates to bullion is with each company like Monex?

Below describes the situation:

silverstockreport.com...

Since the 1950's, silver use and consumption, has made silver more rare than gold, in above ground, refined and deliverable forms. Estimates suggest there are 200-300 million ounces of refined, above ground silver available to the market at the present time. There are about 125 million ounces of silver at the NYMEX, the big commodity exchange in New York. The ETF SLV has about 180 million ounces.

Each silver contract at the NYMEX is a promise. There are too many contracts, too many promises to deliver silver that may not exist. Each contract is for 5000 ounces. There are often over 200,000 contracts for 5000 ounces, that's a total of 1000 million ounces of silver promised to be delivered. With recent market trends of defaults and bankruptcies, these contracts are at risk of default. Yet the exchange has only about a third of that in real silver. How can they promise to deliver more silver than exists? If they fail to deliver silver, then confidence in the world's entire financial system may collapse. Industrial users of silver may have to shut down their factories. To prevent this, users will bid silver prices much higher.

Due to the risk of default in silver futures contracts, I suggest that you avoid buying futures contracts, avoid options, and avoid storing your silver with anyone else! Take delivery of your silver, and put your silver in your own safe!

reply to post by Make Speed Limit 45


Not sure what the hassel is in buying? You call the 800 number, confirm your order at spot, you mail, fed-ex, wire your money, they ship ASAP........Ummmm, or if you are lazy in buying at spot, go on ebay and buy silver and gold at about 10-20% over what you could buy from a mint or broker.......

I think I would rather buy and have in hand....just my thoughts

You're absolutely right it is essential to own the physical product. Yes it has been said for years that you need to own bullion but we have never been in a situation such as the one we are in now.

If you would have taken that advise in say, 2000 you would be up a few hundred percent on your money today. Once the "Obama Bounce" has taken its course and the stock market starts to drop again look for Gold to crack 1000 pretty quickly and silver to push past $20.00 this year.

Originally posted by Amagnon
...When people start asking for their metal - the prices are going to go to the stratosphere. ...

This is exactly why the Hunt Brothers were "convicted" of attempting to "corner the market" on silver in the 70s.

They realized that all the "paper" silver was vastly undervalued. So they bought something like $100 million in "paper" silver, but they didn't resale it. They demanded DELIVERY OF THE SILVER.

So, they were prosecuted for basically asking the terms of their agreement be honored.

reply to post by sir_chancealot


Ya - correct. It makes you wonder what kind of possible justice anyone can expect in the world when that kind of crap happens.

If a million people hold silver paper and demand delivery - I doubt they can send them all to jail. Its impossible to even imagine how such a travesty of justice occurred. What will happen when they come up empty this time?

I recently read that the US government is quite aware that COMEX is trading naked shorts in silver and gold - completely against the law - but they are with holding regulators whose duty it is to prosecute those responsible for that kind of casino play. The governments justification is 'its good for the currency'.

Well - screw them - how about whats good for the people. Get rid of all casino's that call themselves banks and financial institutions - implement real money and get rid of the fiat disgrace.

These are the kinds of stories that should be on the news - with all the execs being handcuffed and sent to jail - along with those govt officials that were complicit. There must be something people can do to demand justice - this is another financial bomb that is likely to go off in a few short months.

I recently read that the US government is quite aware that COMEX is trading naked shorts in silver and gold - completely against the law - but they are with holding regulators whose duty it is to prosecute those responsible for that kind of casino play. The governments justification is 'its good for the currency'.

A lot of the gold futures trading is done with gold that the traders do not own.

If you have paper gold the people/companies that issued your paper gold can and do trade with that gold because they have the metal in there vault.

This means they can trade shorts and make money using YOUR gold and YOU will lose money as the value goes down.

This is why the big investors/companies seldom lose money and small investors are ripped off.

The markets are fixed and the small person has little chance unless the understand how the system works.