Price manipulation on silver has been an ongoing problem for decades. Here is one such way markets have always been able to keep market prices surpressed. Also what is the safest way with the least amount of risk for you to invest in precious metals. Each bar of silver that backs paper traded funds such as EFT’s is most assuredly without question registered to more than one owner. The fact is many insiders claim there are many owners registered to each individual bar, that's being used to back all the paper traded securities being sold to investors. Here is one example of how market giants can manipulate prices. To get into this manipulation game actually requires ten contracts that allow you to become a market maker. Let’s just say I acquired fifty, 1000 ounce bars and they are actually mine and managed to get ten contracts which now will qualify me as a market maker. Now I will go ahead and lease my actual 50,000 ounces of silver to a friend of mine that I know in New Jersey who just happens to be a hedge fund manager. I have my silver all boxed up and make all the shipping arrangements then have my 50 one-thousand ounce bars shipped out to her. Next my friend will take physical possession of the entire 50,000 ounces that I leased to her. Here is where things get really interesting; next she swaps my silver with someone at the SLV. From here the SLV takes physical possession of my 50 bars. Next, the person from the SLV makes another swap with my 50 bars showing it as part of the deal on the exchange. From this point we have what is called a "lease and swap" arrangement. From here now you’re going to have two to three claims on my original 50,000 ounces. This type of insider silver price manipulation goes on all the time. And there is no limit, law or regulation as to how many leases and swaps can be made on the original 50 bars I loaned out to begin with. Therefore it is in your best interest to stay completely away from paper investments. There will come a time when you the investor will want to cash out of your paper traded funds or other paper instruments. The sad reality that you need to understand here is that in all likelihood you’re going to come up empty handed. Especially if you’re selling your paper assets at the same time that everyone else is. Because the chances are very high that the actual metal that was used to back your specific securities is already gone, therefore there is nothing left to pay you. The best way for protecting yourself from this type of investment situation is to always purchase only physical precious metals. If you own physical silver or gold you will be able to sell it at any time no matter the economic conditions for its true value and be assured to get paid in full. Tom Genot - About The Author: For information, news, articles and videos to invest in gold and silver and where the best places are to buy it. You will also find information for preparing and protecting you, your family and your assets from the pending economic crises and destruction of the US. Dollar. Author Tom Genot provides information and resources helpful to everyone. Insure your prepared beforehand, check us out at www.coinbullion.net.
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