Wednesday, June 18, 2008

Investors wake up, It's time to fight back

There are some important things happening recently that we investors in the metals market need to be either aware or a part off. First of all many junior companies are being brutalized in the market from immoral and illegal market manipulation. Many companies with growing resources, growing cash flow and profits like a few of my favourites have unnatural and uncalled for short positions against them. Many miners are suffering from the illegal shorting of their stock by the very banks they have engaged to run their financing share offers. People who know these markets have example after example of naked shorting which is essentially fraud and counterfeiting of stocks. These practices dilute a company’s float and devalue the value of the stocks you hold, these people are stealing from you.

As I mentioned in the last post I implore you to listen to the last 4 weeks excerpts from the Financial Sense Newshour titled Crime of the Century, to learn about various aspects of identifying and fighting market manipulation.

Jim Sinclair of Jim Sinclair's MineSet is not only calling for a Chamber of Mines to coordinate information to find and crush the organizations who are illegally shorting mining companies but he’s also offering a $50,000 gold reward for anyone who supply “information leading to the identification of the managers or managers of the Hedge Fund pool operators illegally shorting junior gold shares.” Hell I wish I knew someone, I’d roll on them in an instant. If anyone out there has this information please do the right thing and speak up.

Since Mine Set does not break up it articles to individual pages I’ll just cut and paste his message, which I’m sure he wants spread any way he can.

Dear CIGAs,

I respectfully request that each member of the JSMineset community send this missive to the management of their precious and base metals junior investment company. Please follow up on it to be sure it has been reviewed.

Strength In Numbers

The junior producer and exploration and development companies need to consider the formation of a Chamber of Mines for this section of the industry.

This Chamber should be free of any individual company agenda, free of fees and other interferences with the singular intention of protecting our shareholders from being attacked by those in the shadowy part of finance.

There are close to 2000 companies in this part of the industry, many of which are experiencing the same extreme nuisances.
The naked gold short seller is an entity engaged in a criminal act with a goal of doing serious injury for the purpose of profit and is therefore a major target in terms of civil liability. The short and naked short pool operations are exactly the same but more apt to be a conspiracy to injure slightly then become subject to RICO statutes.

The job of this working Chamber of Mines as a singular unit is to pull these criminals out of the shadows into the light of day.
No matter how well they feel they are hidden there is always a paper trail going back to the perpetrator in this financial world.
Certain financial areas of secrecy in many cases do not protect the spoils of criminal activities. This may be proven soon at UBS where an officer is under arrest in the USA and is due to go to court shortly.

It does not mean anything that neither regulators nor exchanges care about the naked short or short selling pools, regardless of whether they are naked or not. If the stockholders and the company who’s values have been injured initiate civil proceedings, discovery will be full of legal opportunity. You cannot erase the paper trail that exists to every transaction.

My request is simple:
Contact the management of every junior precious metals producer, exploration and developer, asking them to contact Editor Dan at so that the Chamber can take form.

There is no hidden agenda, no money to be collected, and no desire to stroke egos and no desire for private corporate information. I do not wish to be anything but a member. Let the organization elect its officers so we can act as one. We can speak as one. We can win as one, but we are weak when scattered as the industry is now. Organize and we are a legion. Expose the perpetrators and then it is all over. The data is there. It can be organized and it can be dissected, yielding the evidence trail of those who wish to hurt, sometime simply because they are mean, sometimes for illicit profits.

Add to that that sociopaths mistreat their associates and employees by nature. No looking may be required. It might just happen to come over the transom, even though we do not invite that.
You stockholders must push your management hard. Personally there is nothing that I will NOT do in order to protect both my and my investors’ interests.

I herewith dedicate my life, my fortune and all that I am to the identification of the perpetrators and their conduits used. Those sociopaths that take joy by inflicting severe injury for profit by conspiracy and the use of dirty tricks must be the hunted of nearly 2000 company’s determined managements and their more than 500,000 very angry stockholders.

There is only one way to defend stockholders, which is through the organization and strategy of a major offensive. Forget attorneys at this point. Regulators are of no help. A Chamber of Mines acting together can prevail.

I will even if I must go it alone.
Together we are legion. Alone and looking the other way you are a victim. I have never been a victim. No one depending on me will be a victim.

There is NOTHING I will not do to protect those that depend on me. I am livid. Enough is enough.

We will add risk to the bad guys. That proposition you and they can depend on.
Your friend,
Jim Sinclair

If you belong to you might want to join the Group Junior Mining Investors Robbed by Canadian Investment Banks. The Group appears to be taking the manipulation problem on by contacting various junior miners with Jim Sinclair's message and his offer to coordinate the creation of a group to route out these bastards. While the first couple of day was passive floundering they now appear to have a concerted effort to build a list of companies they've contacted and those showing interest in the project.

I would also advise you once again to read some excellent work by Ted Butler, this time he shares his discovery that the Barclays Silver EFT does not have the amount of silver to justify all the legitimate shares they have sold in contravention of the ETF’s prospectus. Added to this short fall is naked short selling of shares not representing any physical silver. Today’s short position is 2.5 million ounces of silver but the all time high was nearly 10 million ounces in March.

Now the question is much silver is represented by these shares sold by the naked shorts?

Butler believes it represents 25 to 50 million cumulative ounces of silver shorted since April, this is silver people have paid for in full yet the ETF has no backing for. This shortfall if expressed in physical silver would be enough demand to make a hell of dent in COMEX inventories and in my opinion put fear in the industrial users and panic the price well above $50.
This is stolen demand that should have been reflected in the price.
Shorting on the Silver ETF is robbing all silver investors of our profits as do silver many certificates that are totally unbacked, it’s time to physical only because when these supply issues do become critical, paper silver with just be paper.

I’m an activist at heart so I’m glad to see such moves to inform investors and fight back, and you can help too. If you have long term positions in junior miners call your broker and demand your stock certificates now, this will assure you your shares are real or make your broker buy real shares to fulfill delivery. If you know healthy juniors who are heavily shorted, take a new position and demand your shares, when the pressure builds from this anti corruption movement there will be a lot of broker buying to cover phantom shares and you will make money.

If you have silver certificates demand delivery, if you don’t have that right of delivery look to buy physical silver and sell off the paper as you take delivery. We need must send the message, we will not be sold things that do not exist!; neither will we allow the market to rob us!

If you have any information or complaints call the appropriate authorities or claim the $50k in Gold reward. Demand bull boards remove suspicious bashers and make it clear to the press through letters to the editors that these issues are important. Write or call your elected officials and complain that securities laws are not being enforced and penalties for illegal trading are far too lax.

While common place to the juniors miners these illegal activities do take place in the rest of the market so spread the word to your non commodity investing friends.

On a side note, my prediction from November of $140 oil this year was short by 11 cents on Monday, Not that I like 1.35 a litre gas but I do like being right so 11 cents was annoyingly close. Oh well, hurricane season will vindicate me.


Carter Apps, dabbler of stuff said...

I seem to have received many hits from a bulletin board in the Netherlands, Unfortunately Babel fish does a crappy job translating so I have no Idea how I'm being recieved.

If it makes a difference folks I have Dutch Blood back about 5 generations.

Anonymous said...

I am an ardent reader of your blog being a fellow Canadian also interested in Silver ( real money ) and world events.

I think we are entering a very dark time in the history of the world an in terms of economic wealth distribution. The stock market is starting to defy the laws of supply and demand with the speculation on oil and energy and it looks to be the beginning of a realization that the American dollar is becoming worthless through inflation/stagflation.

I would like to introduce you and your readers to my website that basically tries to shed some light on the stock market and the creation of money in general. The concept is very simple. Our fiat currently, banking institutions, and stock market combine to create the single biggest fraud in history which is designed to steal money from the average Joe.

We have given control of our money supply to the International Banking Cartels who are starting to manipulate the market so that certain people win and the rest loose. This is the lead up to the creation of a fascist state in America and a global stock market crash and a resulting World War culminating in a one world fascist government / dictatorship.

Please visit the website and let me know if you think this information is revealing.

Thank you,

Anonymous said...

Hi Lord of Wealth,

Because of price manipulation in silver investment market, do yo still think that silver price would explode?

Anonymous said...

ANNON, hell yes,

If a company can have its value distorted by just a 10% naked short position and destroyed if the number of shares is doubled the real float image what will happen is silver.

Physical silver is short by factors larger than this. Comex is what 4-5 times the amount of short contracts?, the ETF could be 20% short, all the silver certificates world wide that are hedged in paper or nothing rather than representing real physical stockpiles of silver.

A recent number thrown around was there are 100 oz of silver in paper for every real oz. Even if this is outlandishly high and it's only 20:1 the resulting price appreciation when the market is rationalized will be impossible to accurately predict.

If you are a silver investor you could easily make 10-50X your investment when things go boom. However things cannot go boom until people start demanding converstion or delivery of paper silver to real allocated accounts or big shiney lumps you can take home. Unfortunately it will be very hard for retail investors to ever suck the Comex dry and set off the chain reaction, most people cant afford 5000oz at one time, there are delivery maximums per month and should a big move to deliver ever occur they may well change the rules again to slow depletion.

Still, buying and taking delivery of physical silver is the answer and eventually big players will join us and buy directly from the mine or refiners and cut of the Comex from enough new supply to keep their stocks high.

The miners themselves could set things off if they'd just stop taking just any price for silver by-product and store or hoarde for better prices.

In the end you cannot keep selling things that don't exist, eventually people will demand a delivery enough paper then We will have our deserved rewards.

Anonymous said...

Lord of Wealth, just out of curiosity, when did you start investing in silver and where did you learn about this investment opportunity?

As for myself, I first learned it from Robert Kiyosaki, the author of Rich Dad Poor Dad, in his site.

Carter Apps, dabbler of stuff said...

I knew things were going to the shitter for some time but I was more concerned about environmental issues and peak oil. It was not until I had discussed it with another bumbed out friend and read some books like Empire of debt that I realized that there was a financial crisis also in our midst.

It also became apparent that with the collapse of our fiscal system the means to solve our environmental problems would be destroyed.

this pushed me from group oriented green, to save my own ass environmental silver bug. I think the choice to go silver instead of gold or guns was probably a combination of Ted Butler and David Morgan discussions on silver deficit and industrial destruction and my own strong belief in peaking natural resources, it just made sense that something in high demand with inadequate supply and a growing unbalance in realtion to the value of gold had to be a good investment.

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