Thursday, December 13, 2012

Gold hoarders are market manipulators!

A few months ago I had some spare time up my sleeve and was giving thought to some of the ridiculous arguments made in the "silverogosphere" about cartels, raids and price manipulation. Screwtape Files is on the forefront of debunking many of the bogus claims, myths and memes, but I think it was this post from JdA which prompted me to kick off writing about price action and circumstances from another point of view... what if there aren't manipulators trying to push precious metals lower, but rather it was those holding precious metals who were the manipulators trying to push prices higher? What if there was a blogger out there calling them out on it & "Defending paper money from the rigorous attacks of precious metal advocates"? Paper Money Shield was the parody site I created as that blogger (click image or this text to visit):

Here are some quotes from the site:

"...we will keep you informed of the ongoing battle against government currencies by the seedy zealots of the underground precious metals movement. This site will look to expose the truth above these unscrupulous individuals and armies being assembled to attack the good name of Government backed Paper Money/Currencies."


"...The above from an article on Seeking Alpha shows that the price of gold has increased far more than the cost to mine it! I call the difference between the spot price and the production cost the "ponzi factor". Who is to stop these mining companies undercutting each other and selling gold cheaper when such a healthy margin is built in?

There is nothing to stop the price of gold retracing all the way back down to production cost at around $800, that's over half of the current spot asking price."


"...There are many individuals and institutions trying to imply that the US Dollar will simply keep falling until it is worth nothing. However, a good contrarian investor knows that all bear markets come to an end eventually!

Take for example this chart used in an article at Gold Price. It shows a US Dollar which has been in a bear market for some 100 odd years.

No bear market lasts forever and we can see sharp upticks in the value of the US Dollar several times over the last couple of hundred years, I suspect we will see similar as the public reaffirms their confidence in Government backed Paper Money over the next few years or maybe even decades. This chart shows the value of the Dollar is currently well below long term averages. As more people flock back to Paper Money including the US Dollar it's value will no doubt rise."


"...Attacks on reputable banks such as JP Morgan is a regular tactic of the precious metal cartel who are trying to push the price higher. They use such violent suggestions such as killing JP Morgan with a silver bullet. Unthinkable that such suggestions should be allowed on the internet. They should shut these precious metal terrorists down once and for good.

The price of silver has risen steeply over the last couple of months (from around $26 to $35). This is almost definitely the work of the army of small stackers who are trying to drive the price higher and flip the metal onto unsuspecting public at a higher price. With productions costs for silver much lower than today's spot price we can expect silver to continue falling in the long term until the "ponzi factor" is reduced significantly."


"...Look no further than the evidence provided in this chart from CPM Group (a reputable company, who are often painted differently by the precious metal cartel):

You will notice that in 2010 there was over 800 MILLION ounces of silver being hoarded in ETFs. This figure is probably much higher 2 years later.

The amount stored in ETFs is likely a drop in the ocean compared with the Shadow Silver Market (this is shadowy market used by the precious metal cartel, they keep their physical off the books and trade amongst themselves so that no one knows just how large their speculative silver hoards really are). Often these transactions will even take place face to face at "stacker meetups" where these Paper Money terrorizing cells  gather to talk about how they will "take down the system, 1 silver ounce at a time"."


"...Some Australian iron ore miners recently found out the hard way that commodities can fall further than any imagined "price floor" and with 170,000 tonnes of gold mined to date and above ground as ready supply their is no guarantee the cost to mine will provide a price floor. Indeed such an abundant supply of gold is likely to lead to people to cart wheelbarrows of gold to their local dealers in order to exchange it for Paper Money.

Accept no substitutes to real, Government backed, publicly trusted, Paper Money... avoid the gold bubble and backup your truck to load up on crisp, freshly printed notes."


The site got a few hits after being linked around a few forums and blogs, so thanks to those who shared it and hopefully you got a laugh out of it. I thought I would claim ownership and share it for those who missed it as it's unlikely I will find time to continue making posts on the site...

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