Wisely Avoid Paper Silver Fraud

(if you didn't lift it, you don't own it.)

Silver Stock Report

by Jason Hommel, October 12th, 2009

Most silver investors are still deceived by "paper silver".  Over 99% of silver investments are paper silver, rather than real silver. 

For proof, see
The Tiny Silver Market, IV October 8th, 2009
The Tiny Silver Market, III October 6th, 2009
The Tiny Silver Market, II October 1st, 2009

If the dollar amounts were represented 1 to 1 by people, then,
very few silver investors (1%) have the discernment and wisdom to avoid the paper silver frauds.  But fortunately, the wise investors are probably a bit more numerous, since many individual people are not "sophisticated" or rich enough to get trapped by the offers of paper silver.

I've had quite a few discussions with people about this, so let me see if I can help.

Many people justify paper silver, saying, "it's cheaper".  Sure it is.  That's the point!  How else would they convince you to buy it?  They can't float on your money if they charge you higher than normal premiums!  Look, I can sell you all the silver you like at 5% UNDER SPOT or even 10% UNDER SPOT, if you promise to never take delivery, and never sell.  (NOT REALLY, because I'm honest!)  What will it take for people to realize that such offers are totally fraudulent?

Many people justify paper silver, saying, "I'm only using it to gain more money, to be able to buy more physical silver".  Of course.  That's the plan of many.  But to be able to get a mere 100% more silver, you'd have to expect that the paper silver market will double in size, from about $150 billion to $300 billion, (with no new paper silver investments pushing it up), while the $1 billion physical silver market stays the same, too.  Is that realistic?  I don't think so.

Many people justify paper silver, saying, "I don't have anywhere where I can take delivery, also, it's too heavy, or I'm in another nation, or I rent, etc."  Sure.  I fully understand.  I have one question, if I may.  If you refuse to take responsibility for providing for the security and safety of your own wealth, please tell me how you expect that your wealth will provide you with the safety and security that you expect from it? 

Well, here's the same question another way.  If you knowingly give your money to corporations who have declared openly in their annual reports that they are technically bankrupt and could not possibly have the silver that they claim, due to the problem of the relative sizes of the markets, then why in the world would you expect to be paid off by them, when unsecured creditors do not get paid off in a bankruptcy?  

You can't possibly be protected by silver that does not exist, "held" in the hands of institutions who are technically bankrupt.

You would be better protected if you gave your money to a bum on the street, because at least a bum who has nothing typically does not have a negative net worth, or a short position in silver.  Besides, if you give to a homeless man, you are at least lending to God.

[Proverbs 19:17] He that hath pity upon the poor lendeth unto the LORD; and that which he hath given will he pay him again.

But if you own paper silver, you are giving to the rich, who oppress the poor through usury, and whose lack of real silver and gold testifies against them.

[Proverbs 22:16] He that oppresseth the poor to increase his riches, and he that giveth to the rich, shall surely come to want.

James 5
Warning to Rich Oppressors
 1 Now listen, you rich people, weep and wail because of the misery that is coming upon you. 2 Your wealth has rotted, and moths have eaten your clothes. 3 Your gold and silver are corroded. Their corrosion will testify against you and eat your flesh like fire. You have hoarded wealth in the last days. 4 Look! The wages you failed to pay the workmen who mowed your fields are crying out against you. The cries of the harvesters have reached the ears of the Lord Almighty. 5 You have lived on earth in luxury and self-indulgence. You have fattened yourselves in the day of slaughter.  6 You have condemned and murdered innocent men, who were not opposing you.

The wealthy bankers who oppress through usury have "rotted" gold; they issue more claims than gold exists. 

Owning real gold and silver is not unwise, gold is a provision from God, and we are commanded to obtain the real stuff.

Rev 3:18 I counsel you to buy from me gold refined in the fire, so you can become rich; and white clothes to wear, so you can cover your shameful nakedness; and salve to put on your eyes, so you can see.

Here are my most important Bible based essays regarding the importance of obtaining real physical gold and silver money, and avoiding paper promises and usury:

  1. 666: Mark of the Beast 1998
  2. Gold and Silver in Bible Prophecy December, 2001
  3. The Great Harlot of Rev 17-18 is Jerusalem, & what that means.  October, 2002
  4. Usury Enslaves Jan 19, 2004
  5. Freedom from Usury Jan 23, 2004
  6. Bible Verses on how to Manage Money November, 2005
  7. The Use of Paper Money Violates All of the Ten Commandments July 2, 2006
  8. The Stumbling Block of their Iniquity April 9, 2008
  9. Biblical Political Positions February 7, 2009
  10. The Pre-Rapture Gold Gathering August 17th, 2009

I strongly advise you to get real gold and silver, at anywhere near today's prices, while you still can.