Precious Metal News at OmenCity

"Ask yourself this, why is selling something you don%u2019t own fraudulent in every walk of life, except in stocks? Why isn%u2019t it considered a fraud in stocks? The answer is because it has been going on for so long, that no one thinks any longer about why we allowed it to exist in the first place."

"Falling empires and their currencies: Rome, France, England and the USA by Rolf Nef When empires fall, their currencies fall first. Even clearer is the rising debt of empires in decline, because in most cases their physical expansion is financed with debt. In each case presented we have some useful statistical data to show the drama. Every case is different, but the common thing is that the currencies of each and every one of these falling empires lost dramatically in value. Let me go through every case starting with the Romans:"

"A series of articles on the crisis gripping the world economy and global markets starts where it all began%u2014with America%u2019s deeply flawed system of housing finance"

"(Here are a few handy bar charts)
Silver Stock Report


It's good to review the basics. This time, I made some charts, which can be useful to see the comparison of size. The concept of relative size is often lost when we discuss millions, billions and trillions, but the concepts of relative size is extremely important when considering growing your money.

Smaller Things Grow Faster June 19, 2006

The charts speak for themselves."

"However expensive Indians may perceive gold to be right now, it would be wise for them to put whatever disposable income, cash (and stock) assets they have back into gold. The rupee's fall makes holding cash unattractive. Equities are falling and so are Indian treasuries due to high inflation expectations.

Gold and silver will be some of the few things worth sinking money into - regardless of price - because the price of leaving their money in falling assets is obviously even higher. It only gets more and more expensive as time moves on.

Gold is rising even without India's traditional buying levels of approximately three times what they are now. The Indian gold train is moving and pulling out of the station. The more speed it gathers, the harder it will be to jump back on. "

"I%u2019ve taken data from the latest Office of the Comptroller of the Currency %u2013 Quarterly Derivatives Report [Q1/08 just released a week ago]. I%u2019ve done some comparisons of the same selected data Q4/07 vs. Q1/08. There are/were some interesting developments. Look at the signs of systemic stresses manifesting themselves [particularly at Citibank] in the precious metals arena. For Citibank to be %u201Cwithdrawing%u201D from the metals derivatives trading / rigging game %u2013 it obviously and logically is not profitable and is evidence that capital is too scarce within the institution for them to continue playing the game. Why else would Citibank be dramatically scaling back [as reported below] in a market enjoying record growth as reported by the NYMEX [reported above]? HSBC has clearly had to step into the breach to take Citibank%u2019s place. And it also appears that %u201Creal heat%u201D is being applied to the silver sector with the %u201Cballooning%u201D of Morgan%u2019s derivatives in Prec. Metals [other than gold] %u2013 which is undoubtedly all silver exposure. Makes me wonder if Citibank might have experienced a %u2018near death experience%u2019 %u2013 soon to be followed by the real thing?"

"What you are about to read is the single most important commentary I%u2019ve written since I first began publishing The Grandich Letter in 1984. Every American should read it, and those who do will likely wish they hadn%u2019t. What I%u2019m about to speak of is the hardest thing I ever had to do in my life. What I speak about is not only IMHO going to profoundly impact hundreds of millions of Americans but will also directly hit me and my family. Never have I wished anything I did could be as wrong as this, but I know in my heart it is right. Last October, I wrote a newsletter entitled %u201CMan Your Battle Stations.%u201D www.grandich.com/docs/financial.post_10-15-07.pdf. Soon after I wrote it, Canada%u2019s BNN -- Business News Network -- had me live on the phone www.grandich.com/audio/BNN-10.22.07.TBN.wma. At that time, I was confident of my forecast but had not even begun to imagine how many people in the world would be severely impacted if I was right. Unlike a prediction about something turning out good where the masses profit, being right about really bad news is not a way to make friends and influence people. Knowing that it won%u2019t sit well with most, I%u2019m going to tell what I think is the blunt truth. Trust me, it doesn%u2019t do me any good, either, except maybe to give the masses a realistic and what I believe to be accurate and down-to-earth assessment of what is to come and the reality of what is currently taking place. To do so, I have to go back in time and explain an event that lays the groundwork for where we are today as a nation."

"While I believe the large concentrated short sellers on the COMEX and in SLV shares are largely one and the same, there is a critical and important distinction in the motives behind the short selling on the two venues. Sure, the short selling in both markets share a price capping or manipulation motive, but the selling in SLV shares goes beyond price control. I am convinced the prime motive in the unreported short selling in SLV is incredibly simple and straight-forward - the physical silver needed to be purchased to back up new share issuance is just not available. It%u2019s not there without immediately forcing the price of silver sharply higher. Since the real silver isn%u2019t available for purchase at near current prices, the Authorized Participants (AP%u2019s), who are the market makers in the SLV have no choice but to sell short the new shares being purchased by investors without depositing the required new silver."

"I recently read an %u201Cadvotorial%u201D suggesting silver to be a fantastic investment, and I could not agree more. However, the author was stating that all short positions have to eventually be covered with physical silver and that when this took place there would be a price explosion. It is a fallacy that all short positions have to be covered and the shorts will have to buy silver to cover. First, to state that all positions have to be covered is misleading; a position can remain open for a very long time, because as the contract becomes due, it can be rolled over. Technically, it is not the same position, because when it is %u201Crolled forward,%u201D it is a different month and involves a different contract, but basically the contract is moved out to a later date. This rolling takes place all the time in the futures markets. The second fallacy is more important because almost all the shorts in the silver market can close their positions with cash, no silver required. Let%u2019s say silver moves UP fifty cents in one day and you are short the market. You just had what is known as a bad day. You will get a phone call from your broker asking you for more money to be placed into your account. You can instruct your futures broker to close out your short positions and all you would be responsible for is a check, not silver. This does not mean that a price explosion to the upside cannot take place. However, it is important to recognize that if physical silver were required to cover the short position the price movement could be far greater!"

"Honest Money Gold & Silver Report The Federal Reserve & Central Bank Gold Sales %u201CThe more there is of mine, the less there is of yours.%u201D Abstract The long awaited meeting of the Federal Reserve is now history, another page in the annals of monetary debasement is etched into the record, a most hideous and shameful tale, one of wanton destruction to the purchasing power of the U.S. currency or dollar bill, a.k.a. Federal Reserve Note. Since 1913, the U.S. dollar bill has lost 95% of its purchasing power due to excessive money and credit creation by the Federal Reserve. This loss of purchasing power is a loss of wealth; it is the reason why the U.S. has gone from being the largest creditor nation on earth to the largest debtor nation on earth. This is the reason why it now takes two working incomes to support most families %u2013 one is no longer enough. This is why the U.S. savings rate is at historical lows. This is why health care, insurance, and college tuition bills have gone through the roof. This is why the price of oil is so high. And on and on the list continues %u2013 like a recurring nightmare. An economy, financial system, or monetary policy is only as strong as the underlying monetary unit that is the basis of all markets. If the foundation is rotten, the edifice built upon it is rotten. It is merely physics on an economical level."