Written by: Grant Cagann
A quick disclaimer: It is my view that if you cannot physically hold your metals in your hand, you do NOT own them. Please do not discount this statement, since the breakdown of paper markets over the next few years will prove just how all-encompassing the fiat-fraud has become. This applies to stocks, bonds, mutual funds/IRA’s, paper metal (HA!), and in the end…all electronic accounts as well (checking/savings/investment/etc.)
Have you heard even ONE of the headlines about nations and central banks becoming net buyers of gold recently? If not, google it…they are everywhere!
Remember that the gold and silver prices you see and hear about are based on PAPER purchases, meaning that “paper futures” speculation essentially sets the price on precious metals. When YOU OR I buy 1, 500, or 50,000 American Silver Eagles from a coin shop or dealer to store in the safe, this transaction IS NOT FACTORED INTO THE MARKET PRICE unless that dealer (or his/her source somewhere up the chain) has a hedge placed against your purchased quantity. As such, when a nation or central bank purchases gold, it’s usually by the METRIC TON, and purchased from the source (or through a physical broker system, not through wall street in the form of speculative paper). Again…not factored into the price.
So on one side you have the paper market…where each month MANY TIMES THE AMOUNT OF ACTUAL PHYSICAL METAL ON THE PLANET TODAY is converted into pieces of paper and traded back and forth between banks for commission checks. And on the other side you have nations, central banks, and ordinary people purchasing ACTUAL physical metals (outside of the paper and banking systems), which IS in fact drawing upon the real inventory of physical metals available planet-wide. And of course these transactions (the only ones that ARE real) are not considered as part of the equation when the “market” price of the metals are advertised.
Talk about a recipe for never-ending fraud, market manipulation, and opportunity!
The market is so skewed in fact, that even “honest” funds, who are playing the paper game, offering full transparency, have hundreds of millions in liquidity, and are executing standing orders for YEARS worth of actual physical production (wrap your mind around this) are STILL not moving the market. The most blatant stateside example of this is Sprott Asset Management (which I’ve written extensively about). Another would be China’s Pan Asian Gold Exchange (more on this in the video below).
Sprott is a great example, but consider for a moment that there are many other, more liquid groups planet-wide, and that a few billion dollars could corner (or cripple) the global silver market. This is a metal that is both defined as actual money by our constitution, and is essential for life as we know it (through technological applications). There would be no iphones/ipads, desktop or laptop computers, flat screen televisions, x-ray machines or any other high-tech digital devices without silver….and this is just one slice of the silver market.
Below is a “wake the f*%$ up” message from my friend Sean of SGT Report. Please keep this all in perspective as he explains how even an honest PAPER fund (which doesn’t actually deliver the metal to you for physical ownership) can spook the system to the point of panic. My only question is this…why do we need ANY funds (paper or not) to assist us in trading and owning metals?
Do yourself and your family a favor…find a trustworthy coin shop (or highly rated ebay seller), convert your worthless digital blips or federal reserve notes into something of real, intrinsic value, and watch as the ponzi scheme collapses around you.
Final Note: Don’t believe any of this “bubble” nonsense being spewed by the media or purveyors of paper. Has your hair stylist brandished a gold or silver eagle during your monthly trim? Has your cab driver tried to sell you a silver bar? In 2005, these same individuals were bragging all about their investment condos and 2nd homes. If the masses haven’t started buying, then the we are NOT in a bubble.