Welcome to illuminati Silver, we tell you
the truth about silver. Today is Monday 14th September 2015 and we
are highlighting, particularly for those new to the Gold and Silver Community, How to identify
a Gold and Silver ‘Pumper’. The web is rife with people out to cheat and
steal from you, and their methods become more sophisticated by the day.
Pump and dump scams rely on manipulating an Investors greed and lack of knowledge.
Traditionally, the term ‘pump and dump’ used to relate mainly to the acquisition of
shares. Generally, a thinly traded company or corporation with a limited track record
was acquired cheaply and then sold as ‘the next biggest thing’ by the pumpers who then
dump the shares on an unsuspecting public. Well the same has happened, and is happening,
with precious metals., but rather than just buying a company and selling its shares, this
practice is also conducted by: bullion dealers who have stocks to shift and profits to make,
by newsletter writers who have reports and subscription services to sell and ‘fanatical
believers’ who are obsessed with being proven right regardless of the existing evidence.
So how do we recognise these people? Well they tell you who they are with their own
words. Here are some of the phrases and expressions they use, which will now at least allow ‘alarm
bells’ to go off in your head when you hear them:
1. The world is running out of Gold and Silver. Really? Ask any geologist and they will laugh
at you. These elements cannot be destroyed, they will always exist. The geological experts
predict that we have (not allowing for recycling) many hundreds if not thousands of years of
supply left in the ground. Whether it’s all economic to mine, is another question
– but as always, that depends on price. 2. The Mints are running out of coins and
bars so buy now before you cannot get them again. Well that may be true for a time–
but do you really want to pay the high premiums charged when this happens, only to find that
prices and premiums fall again when the supply bottleneck is corrected a few weeks or months
down the road? 3. Gold and Silver prices are ‘going to
the moon’ to $100,000 an oz or $50,000 an oz or $20,000 an oz. Yes perhaps one day they
will, though possibly not in our lifetimes. Can you imagine though what a dollar could
actually buy you if an oz of gold or silver was $100,000 . When the average mining costs
for gold is around $1000 or less and for silver $14 or less, why should their prices be sustainable
at 10 times, or one hundred times or one thousand times their current values?
4. Currencies have no intrinsic value, only gold and silver have intrinsic value so convert
all of your currency to gold and silver. OK take your silver dollar to Walmart and see
if they will allow you to purchase products with it. Take your gold sovereigns to your
car dealership and purchase a new Ford Mondeo with it – let’s see how far you will get;
and do you know, if one of those bodies did actually conduct that transaction, which we
doubt, let’s see what conversion premium they charge you for doing so.
5. Buying a few months early is better than a day too late. Well this assumes that you
wake up one morning and all of the gold and silver prices have risen so much overnight
you cannot afford them, or worse still there is none available. So who bought all that
gold and silver overnight then? Further, is 5 years too early better than a day late,
or 10 years too early or 15 years too early? Yes there have been precious metal depressions
lasting as long as 15 or more years. We are already close to a 5 year bear market and
many Institutions are claiming this will continue for a few more years. If they are right, can
you hold on without having to cash in your gold and silver?
6. Gold and silver is in backwardation therefore you must buy now. Backwardation occurs when
the price of a spot or near-term contract is higher than the price for forward deliveries.
This suggests an immediate supply shortage, and it may be true, for that moment. Over
the past five years both gold and silver have been in backwardation a number of times, but
that did not stop its downward trend. 7. The US Dollar collapse or Economic collapse
is imminent so buy gold and silver now. Well we can quote those pumpers who stated this
back in 2011 and before, then again 2012, 2013, 2014, 2015, and they are now predicting
it for 2016. Our question is simple – what’s the definition of imminent?
8. There is no Gold left in the West it’s all gone to the East – you may not get any
soon. There is no doubt that gold and silver has moved to the East, while to a large degree
the West’s investment community has shunned them. However, we were being told by the pumpers
that there was no gold left in the US and UK vaults back in 2011, 2012, 2013, 2014,2015.
So all of this gold and silver we sold to the East – where did it come from?
9. The markets are manipulated the paper price is not the physical price – Really? Well
apart from premiums charged by the dealers our bullion dealer is selling his stock based
on the paper price. Also, this manipulation argument – whether true or not – has been
going on for decades. Why would anyone, who believes that prices are manipulated downwards,
buy the physical in the first place especially as the alleged manipulation may be continued
for a number of years yet? There are a number of other phrases, excuses
and panic driven messages out there being used day in and day out to force you to buy
now and as much as you can before ‘it’s too late’.
Now we are not saying for one moment, do not buy gold and silver. If you want to diversify
your existing portfolio or guard against currency devaluation or inflation that’s fine. If
you like collecting the stuff because it’s attractive and has held reasonable value over
the Centuries, that too is fine. If you feel that QE and the economic system is not sustainable
indefinitely and wish to protect your wealth, then that is fine also. However, we merely
suggest that you make your decisions in a sensible, thought out and rational way, and
not be frightened, coerced, or attracted to the ‘greed and fear’ messages being conveyed
by the pumpers who you can now easily recognise. We hope you have found this video useful and
informative. If so, please give it a thumb up, comment and if you haven’t already done
so, please subscribe. Also it would be helpful if you could share this on twitter and follow
us @illuminatisilv1. Disclaimer:
Silver Illuminati owners come from a background of Banking, International Wealth Management
and Economics. Having now retired from these worlds we are not qualified to give investment
advice. Therefore, this and other productions must not be deemed to be giving such advice
and merely represent the personal views of its owners.