These past few years have shown us how unfair investments have become.
With billion dollar Ponzi schemes and market manipulation plaguing our markets, it is becoming much harder to understand where the markets are heading. Goldman Sachs were just accused of securities fraud, adding more insult to injury (see SEC charges against Goldman Sachs).
This leads us to the next conspiracy theory that, if proven correct, could reap big rewards for those who are in the know.
But first a comment from Richard Russell:
Today an ounce of gold will buy 64 ounces of silver. The historical ratio has been around 16 to 1, so silver compared with gold is cheap. Nobody knows whether silver will climb back to that old ratio, but we do know that silver is cheap. I like silver here, and the easiest way to buy silver is through the ETF (SLV). The negative — central banks don’t collect silver.- Richard Russell Dow Theory Letters
For months we have been raving about precious metals such as gold and silver, with many past newslettersfocusing on gold. But this time around, we’re going to focus specifically on silver and why we are heavily favouring silver and silver miners right now.
Gold is great. But we think silver is better.
Silver historically trails gold in a precious metals bull market because everyone sees gold as an alternative to money. But a closer look will tell you that silver posts better percentage returns nearly every time there is a sustained gold rally.
If you like gold, you should love silver
For thousands of years, the gold/silver ratio price per ounce has remained relatively constant at 16 to 1-meaning one ounce of gold can buy 16 ounces of silver. Coincidently, that ratio remains relatively constant for the amount of silver versus gold in the world. For every ounce of gold in the ground, there is roughly 17.5 ounces of silver.
Right now, the gold and silver price spread is 60 to 1.
We think there is a good reason why. And this reason alone, if exposed, could send silver prices through the roof…
Even though there is far more silver on earth than gold, the silver market is much smaller than gold. This makes transactions much more visible and the market more susceptible to large fluctuations – and thus, manipulation. Silver is a less-active and lower-volume market than gold, which means that purchases even by individual investors can make an impact on silver prices.
That is exactly what the Commodity Futures Trading Commission (CFTC) is thinking.
The CFTC is currently investigating the manipulation of the silver market by the big banks, including J.P. Morgan. This isn’t the first time this has happened. The CFTC has done this many times before.
But this time, they had no choice.
The Consipracy Theory?
…..read more HERE