|
CAVEAT EMPTOR: Latin for "Let the buyer
beware".
I wish I could tell you that I learned this phrase from my Harvard
days studying for my PhD in Latin or my Oxford days researching the early
beginnings of ancient commerce but, sadly, it was from an original episode of
"The Brady Bunch" where Greg Brady bought a new car that turned out
to be a lemon. "Caveat Emptor" his father declared was the lesson
to be learned and I took it to heart from that point on.
The very WORST thing I can imagine after 10 years studying the gold
and silver markets is getting the thesis right but the investment vehicle
wrong. That is where the Road to Roota Theory
differs from almost EVERY other gold and silver analyst...IT'S ALL ABOUT
THE END GAME!
You will hear people say the following:
1) Invest in mining stocks to get leverage to the price of the metal.
2) Although GLD and SLV are likely frauds, the little ETFs and metal
storage companies have honest management and are a good place to store your
metal.
3) Buy cheaper junk silver rounds and bars to get more silver for your
money.
4) At least my 401k silver and gold is safe.
5) My safe deposit box is the safest place to store my metal.
At one time I thought ALL OF THE ABOVE were true statements but after
digging deeper and deeper into the shadowy world of market manipulation,
monetary policy, natural resource reserves and the future of money I have
come to the conclusion that NONE OF THE ABOVE will survive the coming chaos
and here's why:
1) Mining Stocks - It's not that they aren't valuable...but that they
are MUCH TOO VALUABLE! When the monetary crash hits ALL mines will be
nationalized in order to restart the system for the good of the people of
that country. You didn't think that there would be a handful of gold/silver investors
who would become ULTRA RICH in the transition did you? Not a chance.
2) Other Metal Storage Companies - Yes, I believe
the likes of James Turk and Eric Sprott are running
very honest and very upstanding businesses BUT they are also underestimating
the significance of a global monetary crash. These entities will have
CONCENTRATED PHYSICAL GOLD AND SILVER WAREHOUSES and "We the
People" will DEMAND an equal redistribution of this wealth. Gold and
Silver may even be BLAMED for the crash which will ignite "angry
hoards" looking for their pound of flesh (or metal)!
3) Junk Silver - I must admit that in my early days of buying silver
I was all about getting as much silver for my dollar as possible. If I could
save a few dimes per ounce by buying silver rounds instead of silver coins I
was all for it. But that was when silver was trading at $5/oz and there was
very little incentive to fake silver bars and coins. Now, at over $30/oz, the
silver world is CHANGING and there are both REASONS to fake bars and coins as
well as "suspicious goings on" at various large warehouses of
silver. Ask yourself a question...if silver were $7,000/oz would you test the
silver bars and coins you purchase? You bet you would. My advise
now is to stick to Silver American Eagles and pre1965 coins as they will be
easier to sell at $7,000 silver (not that you would sell!)
4) 401k Gold and Silver - Although I never went down the
path of investing in silver in my 401k or any other type of retirement
accounts (I took an early withdrawal and swallowed the penalties to buy
physical) I think those who have are forgetting about ALL the intermediaries
between them and their metal. A global fiat monetary collapse will bring down
ALL financial institutions including your brokerage house, banks, trustees,
mutual funds...and especially the Depository Trust & Clearing Corporation
(DTCC) which owns and controls all the stock certificates. Many people,
including myself, believe the DTCC is a gigantic leveraged ponzi scheme that helps facilitate massive share leverage
through Failure To Delivers (FTD's) and phony ownership transfers. Imagine if
there were thousands of phony shares for every real one...who would retain
ownership if EVERYONE has a legitimate claim?! You
didn't think those High Frequency Traders actually worried about transferring
title to all those shares they trade every millisecond did you?!
5) Safe Deposit Boxes - Doesn't it seem a little counter
intuitive to invest in physical gold and silver to protect yourself from the
global banking system and then turn around and stick that protection in the
care of a bank?! There are many, many examples of banks confiscating the
contents of safe deposit boxes and that's even BEFORE the fiat monetary
system has crashed! Nope, there is NOTHING "SAFE" about a Safe
Deposit Box. Don't let THIS happen
to you!
One thing is for sure...the shortage of silver is
staring to bite HARD and the Bad Guys are very vulnerable to a price
explosion. There's reports from all over the world
that people are scrambling to buy physical so if you can find some SNATCH IT
UP QUICK!
Now take a look at this graph:
Based on the above graph of Silver Lease Rates it
looks like there is not only a high demand to lease silver but it looks like
a phase shift to a more permanent high demand structure for Silver Leasing.
What you need to understand about metal leasing is that for every leased
ounce there are AT LEAST 2 PARTIES THAT CLAIM PHYSICAL OWNERSHIP...the
Lessor and the Purchaser of the leased silver. High
lease rates could also be COMEX hedging strategies because of the Backwardization issues but one thing that it does
prove....PEOPLE WANT ANY FORM OF PHYSICAL SILVER ASAP!
You might ask yourself where this metal is coming from and where is it
going? Is this silver coming in and out of the the
Silver ETF's? If it's put in the iShares ETF then 3
parties claim ownership...the Lessor, the
Authorized Participant and the share holder of SLV. There is no way of
knowing but WHO in their right mind would be LEASING silver in this volatile
market UNLESS they are part of the Bad Guys trying to continue the
manipulation to the very last second.
As far as deciphering the COMEX, GLD and SLV data - I gave up years
ago. It's like trying to find meaning in a "virtual" paper shell
game. All the COMEX warehouse data is "massaged" by the owners of
the warehouses (banking cabal members) and the trading data released by the
CME and Stock Exchanges is fictional...at best.
The GLD is a complete joke with reports of tungsten bars, swapped
bars, leased bars, fictional bars and cooking the inventory books daily. Same
with SLV. Obviously, Black Rock is in on the scam as they did not remove JPM
as the custodian of SLV when they bought iShares
Silver off Barclays. Given that JPM is in the midst of silver related
lawsuits, FBI investigations, COMEX investigations and whisleblower
controversies JPM is the very WORST company to entrust silver inventories
with. The liability that Black Rock faces for not living up to their
fiduciary responsibility in safeguarding the SLV physical silver is
incalculable. That's how important the SLV shell game is to controlling the
price of silver.
GLD and SLV are also the perfect resting places for tungsten gold bars
and molybdenum silver bars because they never have to be melted down for any
other use. The metal "Custodians" are very careful about which bars
they release when an Authorized Participant requests a withdrawal and the
Authorized Participants are all part of the scam so
they will not request a withdrawal unless some clean metal has been sourced.
A BIG WARNING: Pretty soon the QUALITY and PURITY of ALL forms of
gold and silver will be called into question and this will turn the markets upside down overnight. Everyone will be afraid of
what they hold and will scramble to have their metal tested or sold. Those
who have tainted gold and silver will try to throw it back into the market
for any price and those who have the real stuff will hold on tighter than
ever before.
Here are some recent articles and videos about the quickly
deteriorating confidence in physical gold and silver.
Tungsten Outperforms Gold, Returns 70% In Last Year http://www.zerohedge.com/article/tungsten-outperforms-gold-returns-70-last-year
Sherie Questioning
All http://sherriequestioningall.blogspot.com/2011/02/tungsten-up-70-in-value-david-morgan.html
Magnet Test on a Real and Fake 100oz Silver Bar http://www.youtube.com/watch?v=NgSXg-WOEVY&NR=1
Silver Fake or Real? http://www.youtube.com/watch?v=e6mqbQtr9DM
All this sounds easily detectable but here we have Jason Hommel testing the "ring theory" on a 100oz
silver bar and the bar that was the suspected fake turned out to be real!
Silver Ring Test at the JH Mint http://www.youtube.com/watch?v=sl9xWtphiK8
If this isn't disturbing enough for you how about trying to detect
fake coins that pass the ping test but not the weight test and visa-versa...
Counterfeit Coin Detection http://www.youtube.com/watch?v=wnMZiUqi9ss&NR=1&feature=fvwp
All this makes owning physical gold and silver very complicated and
very risky. Many people think that there is not much counterfeiting in silver
because it trades for such a low price...DON'T BELIEVE THEM! Did you ever
think that all the fake silver out there may CAUSE THE LOW PRICES?!
Here's what I see happening when gold and silver finally get released
from the bonds of manipulation. For a brief period of time I see two markets
developing almost overnight. One that deals in "unverified" metal
(which crashes) and one that deals in "verified" metal (that
skyrockets). The big problem is who can you trust...
The frightening answer is NOBODY!
I'm going to reiterate what I have said many times...stick with 1 oz
Silver American Eagles to be safe. They should all look, feel and sound the
same. If you are nervous about your metal go get it assayed and
certified...or even exchange it for US Silver Eagles
or pre-1965 coins. Now is not the time to save a few pennies because you
bought junk silver or random rounds and bars. EVERYTHING will be called into
question very soon.
Stay safe and...
May the Road you choose be the Right Road!
Bix Weir *FREE UPDATES at www.RoadtoRoota.com
Bix Weir
Bix Weir is a freelance author and analyst dedicated to exposing the long
term manipulation of the gold and silver markets. He has worked closely with the
Gold Anti-Trust Action Committee helping to pull the curtain away from the
Cabal of International Bankers that have taken control of our free market
system.
|
