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Thread: $6,000 silver

   
   
       
  1. #1
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    $6,000 silver

    $6,000 Silver and ONE BANK
    Bix Weir

    The silver markets are rigged. Every day. Every trade. Every option. Every derivative. The silver markets have been rigged since the early 1970's when Alan Greenspan introduced computer market trading systems to the world beginning the long term commodity market rigging operation.

    http://www.roadtoroota.com/public/101.cfm

    Since that time there has not been a day when the silver markets have been "freely traded". Nobody, and I mean NOBODY, knows the true "Fair Market Value" of silver!

    But like all price suppression schemes, the silver manipulation must come to an end and we are on the brink of that moment. The only remaining question should be "What is the true value of silver in terms of money?"

    First a little background to set the stage.

    Computer Commodity Trading

    Beginning in the early 1970's, computers were introduced to control the order flow in financial markets. Order processing was drastically changed with the New York Stock Exchange's "designated order turnaround" system (DOT, and later SuperDOT) which routed orders electronically to the proper trading post to be executed manually, and the "opening automated reporting system" (OARS) which aided the specialist in determining the market clearing opening price (SOR; Smart Order Routing).

    Today we have algorithmic trading, auto trading, algo trading, black-box trading, robo trading…and the list goes on. Algorithmic Trading is widely used by pension funds, mutual funds, and other buy side institutional traders, to divide large trades into several smaller trades in order to manage market impact, and risk. Sell side traders, such as market makers and hedge funds, claim to provide "liquidity to the market", generating and executing orders automatically. In "high frequency trading" (HFT) computers make the decision to initiate orders based on information that is received electronically, before human traders are even aware of the information.

    Over the years computers have played an increasingly important role in everything related to our "free and open market system" such that today's financial markets CANNOT function without computers. The Federal Reserve, US Treasury, Wall Street insiders and the Exchanges were all instrumental in the integration of computers but they also gained access to secret trading information before the order hit the open market. This information coupled with the fastest computers on earth made market manipulation easy.

    This power, the power to control markets, was too much for anyone to resist. Over time those who were given the official key to the back office operations have used and abused their position to its manipulative fullest. Although some of the time they used this power in an official capacity (for the good of the country), more often than not it was used in an unofficial capacity… for the good of themselves.

    Bernie Madoff, the ex-head of the NASAQ, was a great example of this public to private transition as his private trading firm was all computer algorithm based market rigging operations. There are many other ex-Exchange/Wall Street officers that went on to open computer trading operations. Many continue to thrive such as EWT, LLC which became a dominant trading/market making firm using "state-of-the-art technology and algorithmic models". EWT was founded by Vincent Viola (ex NYMEX Chairman) and David Salomon (reported to Robert Ruben at Goldman Sachs) and are also an "Authorized Participant" in the iShares Silver ETF (SLV).

    Are you beginning to see the problem? He who has the biggest, fastest and smartest computers (or programmers) can set the price and will ALWAYS WIN! No longer is there any kind of true supply/demand factors related to commodity exchanges or prices. Computer trading should be outlawed…the convenience and efficiency it provides does not offset the detrimental effects and potential for total and complete market manipulation.

    CFTC Created to Cover Up the Manipulation

    When the computer rigging programs were implemented there needed to be some kind of cover to ensure secrecy and maintain a false confidence in free markets. In 1974 Congress passed the Commodity Futures Trading Commission Act that overhauled the Commodity Exchange Act and created the CFTC as an independent agency with powers greater than those of its predecessor agency, the Commodity Exchange Authority.

    From that moment the CFTC has been run by board appointees that showcased a revolving door of Wall Street insiders ensuring that the computer market rigging operations were not interfered with. The only notable exception is Brooksley Born who was fired by President Clinton when she found out the truth about our supposed "free markets" and tried to warn everyone. (see The Warning)

    http://www.pbs.org/wgbh/pages/frontline/warning/view/

    Listen to Brooksley Born explain the problems in her own words when she accepted her JFK Profiles in Courage Award in August 2009.

    http://www.youtube.com/watch?v=0dVci...eature=channel

    A while back I gave up my fight against the CFTC as I determined that they were NOT protecting the best interest of the investor but rather they were protecting the computer market rigging operations and the people involved. Here is one of my last articles on the subject:

    Road to Roota III -- Who's the little man behind the curtain?

    http://www.roadtoroota.com/public/133.cfm

    Now that you have some background let's get back to $6,000 Silver!

    Historically, when any price rigging operation stops the violence of the ensuing price changes are determined by the length and scale of the manipulation as well as the underlying fundamentals of the item being rigged. Take for example the famous 1980's case of the Hunt brothers trying to corner the silver market. From early 1974 the Hunt brothers started accumulating silver which ultimately drove the price from $6/oz to $50/oz until January 21, 1980 when the CFTC finally pulled the plug on their operation. Within 2 months the price of silver plummeted from $50/oz to $10/oz and the silver price was back under control of the US Government and Banking Cabal. An excellent account of what transpired can be found here:

    http://www.gold-eagle.com/editorials...rde012704.html

    This account shows what can happen to the price of a manipulated commodity when the price manipulation is ended. In the case of the Hunt Brothers the manipulation lasted 6 years and involved approximately 130M oz of physical silver and 90M oz of COMEX silver contracts. This was an attempt at a Long Silver price manipulation but it was going on while the Short Silver Official manipulation was going on trying to keep the price down. The only way the Hunt's accumulated so much silver without the price heading into the many thousands of dollars was the official computer price suppression operation.

    The manipulation was ended when the CFTC stopped all COMEX Silver purchases and allowed only silver liquidation sales instantly driving the price down. In 1980 the US Government held 3B oz of silver and in order to maintain the lower silver price levels they sold the entire stock of silver into the market over the next 25 years. That excess supply combined with other governments divesting their silver was enough to continue the price suppression scheme for almost 40 years. That supply is now gone.

    One Bank has the Hot Potato

    So here we are 40 years after the official manipulation of silver began and the world is finally awakening to the situation. The CFTC, having investigated silver manipulation allegations twice previously, has had an open investigation into silver market manipulation for almost 2 years. They have even stated that the investigation was moved to the "Enforcement Division" within the CFTC which pretty much tells you what the conclusion of the investigation revealed. The FBI has separately stated that they are investigating JP Morgan for silver market manipulation. These two facts and the absolute SILENCE from JP Morgan are strong indicators that the long term manipulation of silver is about to end.

    Ted Butler of Butler Research has been exposing the official manipulation of Silver for the past 25 years. His research was instrumental in exposing the gold/silver leasing operations and the massive concentrated short positions in both gold and silver. On September 3, 2008 Butler published a report entitled Fact Versus Speculation where he showed how one bank, JP Morgan Chase, took over the Bear Stearns Silver COMEX Short position of 30,000 contracts or 150M oz.

    http://www.investmentrarities.com/te...09-02-08.shtml

    Since this report was published JP Morgan has continued its silver market rigging antics in an effort to get out of this precarious short position. After Butler exposed JPM as the culprit there have been wild orchestrated swings in the price of silver as JPM attempts to cover their massive COMEX short position. The price of silver has risen from $13 to currently over $20 in this time frame and the size of the short position held by JP Morgan has gyrated wildly between 30k and 40k contracts as they desperately try to shake the longs to cover their shorts. But even with this rise in price the short position is STILL above 30k contracts according to the CFTC's latest Bank Participation Report.

    http://www.cftc.gov/dea/bank/deaSep10f.htm

    Add to this various silver market manipulation tools such as naked shorting silver ETF's, falsifying COMEX warehouse data, unallocated silver, leasing and swapping metal and you have a situation that dwarfs the Hunt brothers case.

    Of course, JP Morgan is no ordinary bank because they are also the LARGEST derivative holder in the WORLD at $75.3 TRILLION! Do remember Warren Buffett calling derivatives "Weapons of Mass Financial Destruction"? Well, JP Morgan holds the mother load when it comes to silver too with $8.4 BILLION of Silver derivative contracts!

    http://www.occ.treas.gov/ftp/release/2010-113a.pdf

    (OCC Report table 9: Classified as "PREC METALS"… might be a little platinum but not much).

    This report was for the quarter ending June 2010 when the price of silver was $18.50. That translates into over 450 MILLION OUNCES of notional silver derivative contracts that remain open!

    COME ON PEOPLE! I'm starting to think my $6,000/oz silver call is too conservative!

    What's going to happen when JP Morgan's derivative monument comes crashing down…which it almost did in September 2008?

    So here's where I get to $6,000 per oz for silver.

    1) I know silver has not been freely traded in 40 years so today's price if irrelevant.

    2) I, like many, estimate there is only about 1B ounces in above ground physical silver for investment purposes.

    3) I, like many, estimate there is only 5B ounces of above ground physical gold for investment purposes.

    4) If the price of gold is not manipulated, like the banks claim, then
    the price of silver should be 5x the price of gold due to its supply/demand fundamentals.
    CONCLUSION: The price of gold is around $1,300/oz so the true Fair Market Value of Silver should be over $6,000/oz in a FREE market!

    It's simple, if you remove ONE BANK from the supply side of the equation the price of silver will SKYROCKET overnight.

    ONE BANK controls the price of silver.

    ONE BANK controls the fate of our monetary system.

    ONE BANK is behind the curtain pulling the silver manipulation levers.

    ONE BANK has control over a nation that was founded by "We the People".

    ONE BANK MUST GO AWAY TO SAVE OUR LIBERTY!
    May the Road you choose be the Right Road.

    Bix Weir www.RoadtoRoota.com roota.
    py

  2. #2
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    Re: $6,000 silver


  3. #3
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    Everybody loves silver!

    Bix Weir

    There has been a lot of negative press about the big banks rigging the silver market, fake silver inventories in large ETFs and regulators at the CFTC not doing their job by enforcing commodity laws in the COMEX Silver markets.

    Well, I'm here to tell you to BLOCK OUT all that negativity and sink your teeth into everything GOOD and HONEST about silver! And there is a lot to sink your teeth into because...

    EVERYBODY LOVES SILVER!

    Silver is the "FEEL GOOD METAL". Unlike gold, the world doesn't need to fall apart for silver to be in high demand. When the economies of the world are ROCKIN' demand for industrial silver explodes as goods made with silver are flying off the shelves. One of the biggest problems in Western economies is the burning demand for clean energy that doesn't rely on Middle Eastern oil. Due to Silver's excellent conductive properties, Silver plays a significant and increasing role in the new solar power infrastructure. Silver can be found in everything from flat screen TV's to washing machines. We ALL use Silver EVERYDAY as it is the most versatile metal in the world.

    Silver also plays a very significant role in bad times...in times of trouble. This is because silver has a very established history of being a valuable monetary metal. Silver has been used as money for more than 6,000 years. When all is said and done there are only two real monetary metals...Gold and Silver. Over the last 3,000 years Gold has been the money of bankers and Silver has been the money of THE PEOPLE. As the banker population represents less than 0.01% of the global population, 99.9% of the human population LOVES Silver more than Gold!

    Let me show YOU just how much EVERYBODY loves Silver:


    THE US FOUNDING FATHERS LOVED SILVER

    In 1776 the US Continental Congress unanimously authorized plans to create a Silver coin due to the rapidly depreciating "Continental" (America's first failed attempt at fiat money) but it wasn't until the Coinage Act of 1792 that the first official US Silver Dollars were coined. The weight and size of the first US Silver Dollar was based off the widely accepted Spanish "Peaces of Eight" coin. It was Thomas Jefferson that was the driving force behind the decision to use Silver as our money. This should not be surprising as it was Jefferson who famously stated...

    "If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered."

    Unfortunately, this statement spoken over 200 years ago is looking more and more like a genuine PROPHESY.

    Yes, the Founding Fathers LOVED SILVER!


    THE CHINESE LOVE SILVER

    The Chinese have used Silver as money going all the way back to the early 1400's although it was not always a government sanctioned currency. It wasn't until 1793, in the Qing Dynasty, that Silver coinage really began to take hold. A trade dispute with the British sparked the Chinese to only accept Silver in trade with the British Monarchy. Thus began the British banking establishments long running war against monetary Silver as they have tried to "demonetize" it as a form of currency for over 200 years. In 1935 the Chinese could no longer withstand the British monetary attacks and declared it illegal for Chinese citizens to own silver.

    Recently, the Chinese Government has removed almost all of the restrictions on private ownership of gold and silver and have been actively promoting the purchase of precious metals to it's people. This is clearly a strategy to put pressure on the Western Governments who continue to steer their populations away from precious metals in support of their fiat currencies.

    Today, almost ALL freshly mined silver concentrate passes through China in some form or another as China has a virtual monopoly on the smelting and fabrication of raw Silver. For years the Chinese smelting operations have offered much better terms (upfront cash, higher prices for ore) than other smelting operations around the world which has consequently closed smelting operations around the world leaving China the only game in town for silver miners. With the majority of electronics manufacturing located in China it is very convenient to have such easy access to newly mined silver. Yes, the Chinese LOVE SILVER!


    MANUFACTURERS LOVE SILVER

    Although Silver has been a monetary metal for thousands of years, since the end of WWII silver has developed into a VERY important industrial metal. The cause of this has been decades of LOW SILVER PRICES due to the demonetization of 50 Billion oz of physical silver that were once used as coinage around the world. Thousands of new electronic devices were made possible by the extraordinary conductive properties of silver and the world has greatly benefited from these inventions. Silver is so important to our future technologies that it is the metal most cited in all new US patent applications.

    As such, the list of industrial uses for silver is getting VERY LONG including cell phones, flat screen TV's, computers, solar technology, smart bombs, batteries, catalysts, medical applications, water purification, jet engines and the list goes on and on. The kicker is that all these applications use silver in very small amounts which means a large increase in price would not necessarily slow down Silver demand and consumption. It also means that any large scale recycling operations (other than photography) is not likely at any price. That silver is GONE and industrial users must continue to source Silver from new metal coming out of the ground.

    Yes, manufacturers LOVE SILVER!


    ENVIRONMENTALIST LOVE SILVER

    The burning of "fossil fuels" continues to be one of the most hated ways to produce energy. Whether or not you believe in global warming, the byproducts produced from the burning of oil and gas are very dangerous to all living things on the planet. Be it air pollution, water pollution, global warming, geopolitical conflict or any of the other bad consequences it is time for a change. Environmentalists are jumping up and down these days about clean solar energy and they have a lot of pull with grassroots activists in our society.

    Solar energy is coming into it's own as a solution to the fossil fuel dilemma and Silver continues to play an increasingly important role. Not only are solar energy manufacturers incorporating more and more silver into their technologies, due to the unmatchable conductive properties of Silver they are also incorporating silver into transmission lines, power conversion stations and control mechanisms. Silver will play an ever increasing part of the solution to fossil fuel issues.

    Yes, environmentalists LOVE SILVER!


    THE MILITARY LOVES SILVER

    One of the closest held secrets in the Silver market is exactly how much physical Silver is used by the military every year. Estimates have been made in the range of 10M oz to 400M oz but nobody has any reliable data to base these assumptions on...until now! May I present to you a report by the Comptroller General of the United States of America written in January of 1982 that shows just how important and in what quantities Silver has been used by the US Military:

    National Defense-Related Silver Needs Should Be Reevaluated And Alternative Disposal Methods Explored

    http://archive.gao.gov/d41t14/117336.pdf

    Although this report was originally classified it has since been released on the GAO website. This report has a treasure trove of information previously thought to have been considered "conspiratorial" to the mainstream Silver markets. Basic facts outlined in this report include:

    - Physical Silver is vital part of the US National Defense policy, and the US is highly dependent upon foreign supplies of silver for military purposes.

    - FEMA is the organization within the US Government which in charge of the official Silver programs and has long desired the dumping of all strategic stockpiles of silver(which was supposedly accomplished in 2002).

    - In 1982 FEMA estimated 51M oz of silver per year would be necessary in wartime but the GAO claimed that figure was grossly underestimated.

    - In wartime strategy Silver was considered as a potential "medium of payment to foreign troops and workers in areas of the world where there may be little confidence in paper currency".

    - "The US provided almost 441 Million troy ounces of Silver to allied and friendly countries during World War II under the lend-lease program."

    There is much more in this report but think of the implications of what is discussed. In 1982, even prior to the mass introduction of electronics in warfare, the United States estimated it would use 51M oz of silver in military applications per year in times of war. Today with smart bombs, electronic guidance systems, high tech infantry equipment and hundreds of new applications it seems obvious that silver utilization in military applications have increase in multiples of the 1982 estimate of 51M oz.

    Considering the US Defense Budget has grown from around $200B in 1982 to an estimate $1T in 2010 you can bet there has been a sizable increase in Military Silver consumption. Possibly 500% considering all the new electronic military applications. Understanding that the US Defense Spending represents only 40% of the global defense spending you can multiply this silver consumption by another 250%. Call me crazy but this quantity of Silver used in military applications seems to be pointing to the HIGH END of the estimated range if you ask me.

    Yes, the military LOVES SILVER!


    HONEST GOVERNMENTS LOVE SILVER

    Let's face it...fiat money is a failed concept. It has failed thousands of times over the course of history and it will fail on a GLOBAL LEVEL this time as the entire world has bought into the fiat monetary basis.

    History is replete with examples of great societies that have flourished due to a SOUND monetary system and were then destroyed by monetary abuse. The Roman empire is a great example. As the longest surviving of all civilized societies, the Roman Empire reigned for thousands of years by using pure gold, silver and bronze coins as money. It wasn't until they began serious "coin clipping" (diluting the purity of coins) to artificially increase the money supply that the empire was destroyed.

    The United States will be the next great example of this phenomenon. From the very beginning of our great nation until the establishment of the Federal Reserve there was virtually no inflation or deflation as Gold and Silver were used as our money. Since the establishment of the Fed in 1913 and the virtual abandonment of metal used as our currency the purchasing power of the US Dollar has dropped 98% and we now stand at the edge of total monetary destruction.

    When the final monetary blows come down and all fiat and electronic wealth are swept out to sea the People of the United States will DEMAND a return to our Constitutional Gold and Silver money. It is the basis of our Republic and there are plans to return us to our Constitutional monetary system already in the works.(see: Hidden Meanings In The New $100 Bill http://www.roadtoroota.com/public/261.cfm)

    Yes, honest governments LOVE SILVER!


    WOMEN LOVE SILVER

    There is something special about gold and silver. When you give a gift of gold or silver jewelry to a woman you can see it in her eyes that she understands that it represents more than just metal. Jewelry can represent love and trust and caring and beauty. In India, the largest buyer of gold and silver jewelry, it represents much more. It is a gift of wealth. A dowry to a new bride, a gift of luck during religious celebrations and even used to ward off evil spirits.

    Interestingly, the recent high price of gold has turned many buyers away from gold jewelry and towards the next best thing...SILVER! A prospective buyer who struggles to buy a single gold necklace can easily afford a much larger and heavier Silver necklace. High prices in gold have and will continue to drive silver jewelry demand much higher.

    Yes, women LOVE SILVER!


    MINERS LOVE SILVER

    It seems like it would be an obvious statement that miners of a certain metal would look upon their products very favorably but over the years executives at mining companies have been very hesitant to fight for free markets in Silver. Since the introduction of gold and silver leasing in the late 1980's many of the large mining companies have actually bet AGAINST their own product by using Bullion Bank hedging strategies. Barrick is the best example as they were the largest hedger of both gold and silver throughout the 1990's making huge money off the strategy. Sadly, once the gold and silver bear markets turned into RAGING BULL MARKETS companies like Barrick lost BILLIONS trying desperately to close out their underwater hedge books.

    But today is much different. Although it was a painful process almost all miners now have a clean hedge book and the future is looking very, very bright. Mining a commodity is a great business in the boom times. As your costs are relatively fixed, every dollar your commodity rises above your extraction costs is PURE PROFIT. In the good times gold and silver mining companies are more like MONEY PRINTING MACHINES.

    Yes, miners LOVER SILVER!


    INVESTORS LOVE SILVER

    There is an old adage in gold investing that goes something like this..."Don't wait to buy Gold, buy Gold and wait!" This saying rings just as true for Silver if not more. The Silver bull market began in to get serious in January 2004 when Silver finally broke free of the $5 price collar that had been strangling investment interest for years.

    Since 2004 Silver investors have been on a VERY wild ride with swings up to $21 then slams down below $10. Rapid jumps and rapid crashes are the name of the game in Silver (which one may find interesting considering the official supply/demand dynamics are one of the most stable in the commodity sector.) For years people have told me Silver was "In a Bubble" and every time the rug was pulled out from under the price I heard cries of "I told you so!" This has been true at $10, $15, $20 and $25. I have no doubt I will hear the same thing at $30, $50, $100 on past $500 in the coming months/years.

    But those who have invested in Silver have had the last laugh and will continue to laugh as the price continues to rise. Over the past 10 years the bullish reasons for investing in silver have only INCREASED and will continue to increase until every one of those people who say that Silver is "In a Bubble" turn into reckless buyers. Then, and only then, will I consider trading my Silver for something else that has also has been neglected, denigrated and is massively undervalued. Smart Silver investors will continue to ride Santa's Silver Sleigh..."LAUGHING ALL THE WAY!"

    Yes, investors LOVE SILVER!


    INVENTORS & SCIENTISTS LOVE SILVER

    A little known but very interesting fact is that Silver is mentioned in more new US Patents than any other metal. Of course this is due to all the wonderful physical properties that silver has but it also may be due to the fact that it is incredibly cheap considering it's physical properties and global scarcity. Inventors around the world are using Silver in electronics, power generation, medical, antibiotics, clothing and even bioengineering. Everyday we are discovering new and amazing uses for Silver...it's truly a "Wonder Metal".

    Although it is no longer a secret, the biggest and most important scientific discovery in the history of mankind was made possible due to a 470M oz transfer of Silver out of the US Treasury and molded into the Silver magnets used in the Manhattan Project. During WWII, in order for the scientists to enrich enough Uranium for the A-bomb they had to make the largest electro magnet ever built called a Calutron. The story goes that since copper was in short supply they had to secretly borrow the Silver from the US Treasury. Considering Silver is a much better conductor of electricity, it is likely the copper angle was just a cover story. That Silver likely stayed in production of enriched Uranium until the Calutrons were finally shut down in the early 1990s. So it turned out that Silver was a key part in the production of the very first atomic bomb...and played a key role, for better or worse, in changing our world forever.

    Yes, inventors and scientists LOVE SILVER!


    PRESIDENT JOHN F. KENNEDY LOVED SILVER

    On June 4, 1963 U.S. President John F. Kennedy issued Executive Order 11110 which delegated to the Secretary of the Treasury the president's authority to issue silver certificates under the Thomas Amendment of the Agricultural Adjustment Act. The wording of this Order was: "issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury not then held for redemption of an outstanding silver certificates, to prescribe the denominations of such silver certificates, and to coin standard silver dollars and subsidiary silver currency for their redemption"

    In essence Kennedy was trying to circumvent the Federal Reserve monopoly on printing our money and tried to reinstate a truly debt free currency that would directly compete with the debt based fiat money.

    On November 22, 1963, barely 6 months after signing this Presidential Order, President John F. Kennedy was assassinated in Dallas, TX and Vice President Lyndon B. Johnson never followed through with Kennedy's Presidential Order. In 1965 then President Johnson signed a bill to end all Silver coinage in the United States and thus JFK's dream of an open and honest US currency died with him.

    Yes, President John F. Kennedy LOVED SILVER!


    JP MORGAN REALLY LOVES SILVER

    I know all about the rumors of JP Morgan's involvement in Silver manipulation. Most Silver investors can see everyday that the silver price is, at a minimum, controlled by a trader or group of traders but I'd like to point out that JP Morgan is in "the game" to win and not to lose.

    Let's look at all the ways that JP Morgan can "win" with their Silver involvement. First, there is the estimated 150M oz COMEX short position. What I hear from Bart Chilton is that JP Morgan claims this position is merely a hedge of other long positions they control. This may be a fact but owning and trading on that gigantic position is like letting a bull loose in a China shop. They have the power to swing the price of silver any way that profits them. According to the US Office of Comptroller of Currencies, JP Morgan has Notional Derivative Contracts valued at $8.4B of "other precious metals" (mostly silver) I'd say their 150Moz COMEX Silver short position, worth only $4.2B today, isn't where their biggest Silver bets are held. As I said before...JP Morgan is in the Silver game to WIN.

    Having said that their involvement as "Custodian" in the iShares Silver Trust leaves me scratching my head. Why would a bank who is in the Silver game to win be fool enough to GUARANTEE up to 500M ounces of physical silver when they are only getting paid a relatively tiny sum for taking on such a gigantic responsibility? The Sponsor of the Trust, BlackRock, makes less than $20M in annual fees from iShares Silver and JP Morgan's fees are paid by the Sponsor. Let's just say that JP Morgan gets 1/2 of these fees. JP Morgan would only get $10M per year for a $9B+ responsibility/liability. That sure doesn't sound like a good deal to me...unless there is more to this arrangement than is told to SLV Investors...(wink, wink)

    Let's face it. The purpose of a publicly traded bank is first and foremost to MAKE MONEY. I don't believe for one second that JP Morgan agreed to be the Custodian of over 300M oz of physical Silver for a mere $10M/year or that they hold their over sized Silver short position to lose money. Common sense tells us that the large concentrated COMEX short position continues to suppress the price of COMEX Silver but it may also serve a more vital purpose to JP Morgan and that is to protect the entire fiat monetary system.

    Let's face it, JP Morgan gains much more value by using (or abusing)the fiat monetary system than they can ever gain from their Silver strategy. You see Silver, as a monetary metal, is the DESTROYER of fiat money...the money of Bankers. Silver is in the process of reclaiming it's rightful position as a MONETARY METAL and JP Morgan (and friends) are trying to stop this from happening. A few Billion dollar loss in silver trades is NOTHING compared to their 100's of TRILLIONS that would be lost if Silver were to trade at it's true fair market monetary value...whatever that may be. Unfortunately, the control of the prices of both Gold AND SILVER is essential in any paper/electronic fiat monetary system.

    Yes, JP Morgan LOVES SILVER!


    I LOVE SILVER TOO

    I admit it freely...I AM A SILVER BUG! Like most Silver Bugs, I started out as a Gold Bug, gained a full understanding of why gold is valuable and then applied that understanding to Silver and discovered there are VAST difference between the two metals. Don't get me wrong, Gold is a great investment but Silver has all the exact same supporting attributes as Gold BUT ALSO has vastly more bullish drivers than gold ever will. I've written many, many articles on the reasons to buy as much physical Silver as you can carry home. Here are only a couple of them for you to sink your teeth into:

    Melt The Witch http://www.roadtoroota.com/public/136.cfm

    $6,000 Silver and ONE BANK http://www.roadtoroota.com/public/94.cfm

    Silver Manipulation Quiz http://www.roadtoroota.com/public/291.cfm

    For those of you new to the Silver Story I highly recommend you HURRY UP and do the necessary research to understand what is driving the price of Silver higher and higher because there is very little time left to take a REAL position in investment silver before the SILVER ROCKETS take off. Understanding and acting upon the Silver investment story has the ability to CHANGE YOUR FUTURE. Waste no time because time is NOW.

    Yes, I LOVE SILVER TOO!


    Hopefully, the above examples of people who LOVE SILVER will help you LOVE SILVER TOO. Truthfully, it has been fairly difficult for me to write this article because in the past I have tended to focus on all the "conspiratorial" reasons to buy silver and left all the mainstream analysis to the myriad of other Silver analysts. As I explored each of the topics above I had to hold myself back from "going down the rabbit hole" of Silver Conspiracy Theories like I usually do in my analysis.

    For those of you who, like myself, enjoy a good conspiracy story with ample supporting arguments I invite you to check out my website and sign up for free updates to the Road to Roota Letters (www.RoadtoRoota.com)

    For those of you who wish to stick with the mainstream Silver analysis I think there is enough "non conspiratorial" facts for you to begin to LOVE SILVER TOO!

    May the Road you choose be the Right Road!

    Bix Weir www.RoadtoRoota.com roadtoroota.
    py

  4. #4
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    Quote Originally Posted by nickl62 View Post
    nickl62, good links. Thanks.
    py

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    Roota: 2011 Will Be "The Year of Silver"!

    2011 Will Be "The Year of Silver"!

    For those of you who have been following the Road to Roota for a while it's no surprise that silver is vastly out performing gold. This will increase exponentially over the course of the new year.

    Recently I've been seeing many BRAND NEW releases from all the "Silver Bugs" out there. I think the Max Keiser's push to buy silver may have helped our cause more than we know. Once new people hear about the silver story....THERE IS NO GOING BACK! It's just a matter of HOW DEEP will they get in and HOW FAST.

    Let me give all you "Newbies" a hint...by the time you finish researching and comparing silver to all the other investments out there you will go ALL IN!

    When I say "All In" I mean swapping EVERY other investment alternative for PHYSICAL silver in your pocket. Stocks, bonds, pension plans...everything. This means gold too. This means other silver investments also...ETF's, silver mining stocks, silver certificates... everything.

    Once you understand the ENTIRE story including the decades of massive manipulation there is no other logical choice.

    Here's another great video about silver...pass it on!

    http://www.youtube.com/watch?v=-IiarVvZguY

    2011 will be the YEAR OF SILVER Are you positioned for it?

    Bix Weir
    www.RoadtoRoota.com
    py

  6. #6
    Join Date
    Oct 2008
    Posts
    13,391

    Roadtoroota: The Silver Bullet is coming

    SILVER: What Happens When...
    Bix Weir



    Whether or not you believe in the silver conspiracy stories there is one fact that all silver investors are in agreement with...SILVER is an amazing investment opportunity from any angle you choose to analyze it. From the industrial angle silver is as indispensable to manufacturing as oxygen is to humans with new uses gobbling up silver faster than Mrs. Packman gobbles up those little yellow dots. From the monetary angle silver is visibility reasserting itself in its rightful roll as #2 on the hard money honor roll (just behind gold) in a world where the electronic printing presses have become "self aware" and now seem to create money without any human input at all.

    From the supply angle the world's silver mines still chug along at the same rate of growth as they have for the past 100 years with historical output increasing at a slovenly growth pace never more than 6% per year. Hardly able to support the ever increasing industrial applications or consumption and nowhere close to the exponential growth in investment demand.

    http://www.silverinstitute.org/supply_demand.php#supply

    In the mid 1950's the official holdings of silver in a monetary form was estimated to be around 50B ounces which was mostly used as coinage and as Government reserves around the world. Since that time silver has been "demonetized" by the banking powers of the world and gobbled up to support the electronic industrialization boom for our high tech, disposable economy. All this silver was gobbled up and digested in little tiny bits in the form of cell phones, flat screen TV's and micro processors NEVER to return in the form of scrap silver. There are now NO COUNTRIES that hold any substantial silver stockpiles.

    But most of this information is "common knowledge" to a serious silver investor.

    So let's talk about what happens when all the physical silver runs out and the very next silver investor wants to get their hands on a few ounces of the shiny white metal.

    The first thing that we will notice is that delivery time frames on the COMEX will start to increase as the paper silver market riggers scramble to either fill orders or payoff in premiums to forgo deliveries. This is currently taking place as revealed by Sprott Asset Management in an update to share holders in the Sprott Physical Silver Trust.

    http://finance.yahoo.com/news/Sprott...872357399.html

    "Frankly, we are concerned about the illiquidity in the physical silver market," said Eric Sprott, Chief Investment Officer of Sprott Asset Management. "We believe the delays involved in the delivery of physical silver to the Trust highlight the disconnect that exists between the paper and physical markets for silver."

    We are also hearing that the Perth Mint is having problems supplying gold to customers because of the high demand. I'm sure that this problem is even doubled with their silver supply as the Perth Mint runs quite a large paper gold and silver operation with their unallocated pooled accounts and metal leasing operations.

    Here's the latest from the Perth Mint:

    http://news.tradingcharts.com/future...151401791.html

    "At the moment demand is such that we cannot meet all the enquiries that we are getting," said Nigel Moffatt, Treasurer of the Perth Mint, one of the world's largest gold refiners and distributors.

    Ted Butler has written extensively about the risk of "pooled accounts" in both the allocated and unallocated forms and I agree 100% with his conclusions. The business model is massively flawed because the offering entity doesn't even charge enough to cover obvious expenses like insuring metal, storing physical metal, tracking, collecting, administration, etc. The Perth Mint justifies this by stating:

    "The Mint realized that if it took deposits directly from investors, it could cut out the intermediary and create a win-win situation: the Mint wins by obtaining free funding for its inventory and investors win by getting free 100% backed storage."

    http://www.perthmint.com.au/investme...e_options.aspx

    The Perth Mint goes on to claim:

    Clients worried about potential delays in collecting metal in extreme circumstances, but with concerns about the cost of allocated storage, usually take a staged approach:

    1. While the world environment is benign, they hold unallocated. They do not incur ongoing storage costs and fabrication charges.

    2. When the environment becomes uncertain and risky, they convert to allocated.

    3. When the world is at a crisis point, they take delivery of their physical metal.


    BUT WAIT! Now Nigel Moffatt, Treasurer of the Perth Mint, is saying "At the moment demand is such that we cannot meet all the enquiries that we are getting,"

    WHAT ABOUT THAT INVENTORY THAT IS PLEDGED TO THE UNALLOCATED POOLED ACCOUNTS?! We might be at #2 above but their customers CANNOT CONVERT according to Mr. Moffett. And what about #3 which is an absolutely ridiculous statement considering they can't even live up to #2!

    THE END RESULT: According to the Treasurer of the Perth Mint both #2 and #3 cannot be fulfilled for unallocated account holders! Cash settlement may be the only option. Is there any greater reason to get out of Pooled Accounts?!

    The next thing we should see is extreme volatility in the price of silver as the market riggers try to wiggle out of their large concentrated short position while at the same time delivering physical...most likely leased from the large iShares Silver ETF(SLV). Whether it is leased or withdrawn the physical silver will still have to be delivered into the market to fulfill the demand from industrial users and silver investors who are getting smarter and smarter by the day about the difference between paper silver and the real thing.

    What follows will be what silver investors have been patiently waiting for since the early 1980s...the official DEFAULT on the paper silver contracts and the physical silver price moonshot.

    BUT this is not the first time that silver market riggers been perched on the cliff staring into the abyss.

    At least twice in the last 20 years the paper market riggers have been able to keep the silver wolves at bay by using secret stashes of silver that were kept on the down-low. The first being the Manhattan Project silver (470M oz) in the early 1990's...

    http://www.roadtoroota.com/public/135.cfm

    http://www.roadtoroota.com/public/151.cfm

    And recently, there have been more accusations of silver market shenanigans with a silver insider alleging that Clinton and his gang of market riggers got a hold of 300M oz of physical silver from China around the same time that the Silver ETF(SLV) came into existence...

    http://www.youtube.com/watch?v=AId_UiPtPpQ

    I believe this to be true considering that the Clinton Administration is accused of many market rigging operations including coating tungsten bars with gold, instituting the "strong dollar policy" which many, like GATA, believe was implemented by rigging the gold price lower and dismantling one of the greatest national security facilities (Y12) ever built for its physical silver content.

    So here we are again with the silver market riggers feet dangling off the cliff staring into the abyss. Will "THEY" come up with another scam to avoid the silver price explosion or will we finally witness the a silver moonshot? And what about that "SLING SHOT" effect I talked about a while back:

    http://www.roadtoroota.com/public/366.cfm

    Could "the system" stay in place long enough for people to get wise to the REAL silver manipulation story and try to move all their worthless paper silver into the REAL thing?

    Truthfully, I don't think there is enough time as THE ENTIRE GLOBAL FINANCIAL SYSTEM sits right next to the silver riggers on the brink of the ABYSS!

    Have you ever heard the term "PRICE IS NO OBJECT"?

    SOON YOU WILL HEAR THAT ABOUT A MERE OUNCE OF SILVER!

    May the Road you choose be the Right Road.

    Bix Weir

    Sign up for updates at www.RoadtoRoota.com

    roadtoroota.
    py

  7. #7
    Join Date
    Oct 2008
    Posts
    13,391

    Silver: Bix Weir - JP Morgan desperately covering their shorts

    What's the bottom line?

    BUY SILVER!


    Well the new CFTC Bank Participation Report is out for the month of January 2011...you remember January don't you? The price of silver was deliberately slammed by the banking cabal and all the "Professional Analysts" were yelling that silver was a huge bubble about to pop...right?

    Well, if this is true then why did....

    THE LARGEST COMEX SHORT AND CONTROLLER OF THE SLV SILVER INVENTORIES BUY BACK 15M OUNCES OF THEIR SHORT POSITION IN JANUARY?!!!

    The data is all here:

    http://www.cftc.gov/MarketReports/Ba...orts/index.htm

    This is further evidence "THAT BIG BANK" is purposefully whipsawing the silver markets in order to try and close out their COMEX short positions in silver. Obviously they got inside information back in December 2010 that the CFTC will be implementing position limits by March 2011 so the mad rush is on.

    Just look at what they've been able to cover in the last 3 months. This data comes directly from the CFTC Bank Participation Report under US Banks:


    11/2/10 = 30,760
    12/7/10 = 26,332
    1/4/11 = 22,658
    2/1/1 = 19,706
    That's a total of 11,054 short contracts (5000 oz/short contract) or over 55M oz of SILVER bought in 3 months!

    To put this all in perspective...that's 1/2 of what the Hunt Brothers bought in over 5 years of trying to "corner" the silver market back in the 1970's!

    The thing is...the clock is ticking fast. They only only have until March 28th to cover another 12,000+ or over TWICE AS MANY CONTRACTS IN 1/2 THE AMOUNT OF TIME in order to come in below the proposed position limits rule.

    Expect them to try to "pick up the pace" in covering which means massive silver volatility and the possible SILVER MOONSHOT if they can't seem to get there... and they panic!

    Read this article to see what might happen...

    $6,000 Silver & ONE BANK!
    http://www.roadtoroota.com/public/94.cfm (Admin: just scroll up this thread.)

    BUCKLE UP...WE ARE IN FOR THE RIDE OF OUR LIVES!

    Bix Weir
    www.RoadtoRoota.com
    py

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