Post by jeffolie on Dec 24, 2009 10:47:20 GMT -6
The author advocates holding physical silver. I hold physical silver so he is singing to the choir.
The author's argument ignores how derivatives function worldwide in that the assets for which the derivative is indexed to are never called resulting in there is never a short squeeze nor demand for physical delivery. Is this fraud? Courts do not call the use of derivatives fraud so the answer is for all practical purposes that silver derivatives are not fraud. Silver derivatives in theory do not impact the buying and selling of physical silver the way that short selling sliver does depress silver's price. No serious investor can take the position that short selling is illegal, so the author's complaints will get no traction and the author should not be focusing on that the silver market ignores the BIS reporting on the amount of silver derivatives.
The author's mere assertion that Bank's claiming to hold physical silver are lying and committing fraud is not proven by his merely claiming it is so. Naked short selling of stocks is illegal, but perhaps the naked short selling of silver is not. If the banks participated in short selling of more physical silver than the banks actually hold, then the author's argument gains creditibility and traction. These are factual issues that will unlikely be revealed and leaves the author's rant in the category of being ignored except by those silver advocates and salesmen.
So why do I physically hold silver. Because I expect a Dollar crisis that will end the financial world as we know it. Silver coins should be more easily sold than the higher priced gold coins and thus more effective in getting through the crisis. Good arguments exist why silver will outperform gold but those arguments are best left unexamined for purposes of this thread.
==============================================================
"Simple question: How can the banks of the world, owe $107 billion more in brand new "mostly silver" derivatives positions over a 6 month time frame, given that world annual production stands at a mere $10 billion, without that silver being mostly all fraud?"
--------------------------------
Silver Stock Report
by Jason Hommel, December 21st, 2009
Once again, the BIS data on derivatives is totally ignored by all gold and silver market participants and commentators. Nobody mentioned this new BIS data update from my last newsletter.
The BIS data proves the huge extent of the fraud in the banking system, particularly in all forms of paper silver accounts.
The "other precious metals" derivatives notional value, which are mostly all silver, (but also tiny amounts of platinum and palladium) grew, over the last 6 months, from $96 billion to $203 billion, for an increase of $107 billion.
But the size of the silver market cannot be significantly larger than annual production, which stands at about 600 million ounces, x $17/oz. = $10 billion.
Simple question: How can the banks of the world, owe $107 billion more in brand new "mostly silver" derivatives positions over a 6 month time frame, given that world annual production stands at a mere $10 billion, without that silver being mostly all fraud?
www.bis.org/statistics/otcder/dt21c22a.pdf
This "paper silver selling" is fraud, it is inflation, it is hyperinflation, it diverts investment demand away from real physical silver.
This paper silver selling suppresses real silver prices.
If you own such paper silver, you are acting to help suppress silver prices, and you are actively working against your own best interests, as you are directly lending to the very people who are short selling silver.
Many people ask me, "When will the short selling of silver end?" It will end when you, the collective "you" in the marketplace, stop giving them the silver to short sell!
I have had many conversations with people who own this kind of paper silver. They think their bank will not default on them. They have already defaulted. They just released the numbers which prove they cannot possibly have the silver.
If any commercial bank or brokerage house is storing your silver for you, it is likely NOT THERE, and is likely ALL FRAUD.
Furthermore, if you are letting any 3rd party hold your silver for you, it is likely the least safe place to store silver, as all silver held by other people is likely to be the first form of silver to be confiscated in any sort of national emergency.
They cannot confiscate what they cannot find, which is why you must put your silver into your own vault in your own property. Bolt down the vault from the inside, and consider building a cabinet of some sort around it, or carpet over it, or put up a wall over it.
campaign.constantcontact.com/render?v=001GqPuXdeqXXAi4wIHoj9h4pKQqEDj62uZ_giCbkHC7VM1DKxaebXnwukvy71KdAtxYzBNXIbkLsRvf8bJ3l8kDfGbmM5zzDIVFhDOCvWfOQksGZLHvRNW-w%3D%3D
The author's argument ignores how derivatives function worldwide in that the assets for which the derivative is indexed to are never called resulting in there is never a short squeeze nor demand for physical delivery. Is this fraud? Courts do not call the use of derivatives fraud so the answer is for all practical purposes that silver derivatives are not fraud. Silver derivatives in theory do not impact the buying and selling of physical silver the way that short selling sliver does depress silver's price. No serious investor can take the position that short selling is illegal, so the author's complaints will get no traction and the author should not be focusing on that the silver market ignores the BIS reporting on the amount of silver derivatives.
The author's mere assertion that Bank's claiming to hold physical silver are lying and committing fraud is not proven by his merely claiming it is so. Naked short selling of stocks is illegal, but perhaps the naked short selling of silver is not. If the banks participated in short selling of more physical silver than the banks actually hold, then the author's argument gains creditibility and traction. These are factual issues that will unlikely be revealed and leaves the author's rant in the category of being ignored except by those silver advocates and salesmen.
So why do I physically hold silver. Because I expect a Dollar crisis that will end the financial world as we know it. Silver coins should be more easily sold than the higher priced gold coins and thus more effective in getting through the crisis. Good arguments exist why silver will outperform gold but those arguments are best left unexamined for purposes of this thread.
==============================================================
"Simple question: How can the banks of the world, owe $107 billion more in brand new "mostly silver" derivatives positions over a 6 month time frame, given that world annual production stands at a mere $10 billion, without that silver being mostly all fraud?"
--------------------------------
Silver Stock Report
by Jason Hommel, December 21st, 2009
Once again, the BIS data on derivatives is totally ignored by all gold and silver market participants and commentators. Nobody mentioned this new BIS data update from my last newsletter.
The BIS data proves the huge extent of the fraud in the banking system, particularly in all forms of paper silver accounts.
The "other precious metals" derivatives notional value, which are mostly all silver, (but also tiny amounts of platinum and palladium) grew, over the last 6 months, from $96 billion to $203 billion, for an increase of $107 billion.
But the size of the silver market cannot be significantly larger than annual production, which stands at about 600 million ounces, x $17/oz. = $10 billion.
Simple question: How can the banks of the world, owe $107 billion more in brand new "mostly silver" derivatives positions over a 6 month time frame, given that world annual production stands at a mere $10 billion, without that silver being mostly all fraud?
www.bis.org/statistics/otcder/dt21c22a.pdf
This "paper silver selling" is fraud, it is inflation, it is hyperinflation, it diverts investment demand away from real physical silver.
This paper silver selling suppresses real silver prices.
If you own such paper silver, you are acting to help suppress silver prices, and you are actively working against your own best interests, as you are directly lending to the very people who are short selling silver.
Many people ask me, "When will the short selling of silver end?" It will end when you, the collective "you" in the marketplace, stop giving them the silver to short sell!
I have had many conversations with people who own this kind of paper silver. They think their bank will not default on them. They have already defaulted. They just released the numbers which prove they cannot possibly have the silver.
If any commercial bank or brokerage house is storing your silver for you, it is likely NOT THERE, and is likely ALL FRAUD.
Furthermore, if you are letting any 3rd party hold your silver for you, it is likely the least safe place to store silver, as all silver held by other people is likely to be the first form of silver to be confiscated in any sort of national emergency.
They cannot confiscate what they cannot find, which is why you must put your silver into your own vault in your own property. Bolt down the vault from the inside, and consider building a cabinet of some sort around it, or carpet over it, or put up a wall over it.
campaign.constantcontact.com/render?v=001GqPuXdeqXXAi4wIHoj9h4pKQqEDj62uZ_giCbkHC7VM1DKxaebXnwukvy71KdAtxYzBNXIbkLsRvf8bJ3l8kDfGbmM5zzDIVFhDOCvWfOQksGZLHvRNW-w%3D%3D