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National Inflation Association Predicts ‘Silver Short Squeeze’

April 15, 2010 by  

National Inflation Association predicts 'silver short squeeze' After several weeks’ analysis, the National Inflation Association (NIA) has concluded that the precious metals markets are currently being artificially suppressed by paper gold and silver that doesn’t physically exist, risking a major crunch when investors want to convert their paper into gold or silver.

The organization points out that at last week’s Commodity Futures Trading Commission (CFTC) hearings, Jeffrey Christian of the consultancy CPM Group admitted that banks have leveraged their physical bullion by 100 to 1, meaning that for every 100 ounces of paper gold or silver that trade, there could be as little as 1 ounce of physical metals in the vaults backing it.

However, because Christian appeared to brush off any concerns about this situation, saying that "it has been persistently that way for decades," NIA representatives spoke out suggesting that most investors around the world holding paper gold or silver believe they own physical commodities. That is why the organization fears that when these investors decide they want the physical precious metals, it will result in the biggest short squeeze in the history of commodities trading.

Pointing out that the physical silver market is more tight than ever before —in the first quarter of 2010, the U.S. mint sold 9,023,500 American Silver Eagles—up from 8,299,000 sold in the fourth quarter of 2009—NIA has called on its members to spread the word and help expose what could be "the largest fraud in the history of the world."ADNFCR-1961-ID-19719052-ADNFCR

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  • tim J

    Frankly, I believe both gold and silver have peaked. Gold wouldn’t go over $1276.00 the american eagle.

  • Al Sieber

    Comex has been doing this for years. you can find sites on the internet where small companies sell discounted gold for $850 a ounce but you have to wait a year for delivery.I’m a small time gold miner and recently I was approached by such people who wanted to sell gold on the internet, on paper, I told them to take a hike, I didn’t want to end up like Bernie Madoff. there is a physical gold and silver shortage due to low mine production, and other reasons. always buy physical gold and silver from people you trust and make sure you take delivery right away. would you rather have a can of beans or a picture of one?

  • Al Sieber

    Didn’t you read the article? theres a shortage of precious metals. 1 ounce physical gold, to 100- on paper. when theres a shortage prices rise and they just print more paper money.

  • tim J

    Al, I’m an investor of precious metals for years. I’ve been selling since thanksgiving day. The Comex is manipulated just like the stock market, time to go contranian. Oh yes, the last big hit on the Dow will be down to 4800-5200, call it the final big take back by corporate America, then and only then will true growth start.

  • Tazio2013

    THE GOLDEN RONIN; proprietary algorithmic [intelligent (strong AI), complex, evolutionary or ICE algorithms] gold trading model predicts gold bullion will be valued at more than $2150 +/- $150 per ounce by 01/20/13 and more than $5000 per ounce by 01/20/17 when POTUS #45 begins his first term.
    By that date at the very latest the rapidly accelerating re-cognition / re-establishment of a global De Facto Private Gold Bullion Standard will be firmly implanted into the minds of enlightened, rational, pragmatic, freedom-loving 2%ers around the world!

  • xman

    From what I read from different sources, the banks will just do a default meaning they will just pay their customers with cash if there are no gold and silver available.

  • Winchester Steele

    PLEASE, someone do some research and tell me if Kitco gold and silver pools actually have the metals that their pool accounts represent.

  • chuck b

    does anyone out there have any idea what this administration is up to. the silver eagles minted the last two years do not have mint marks and i have been told by five different people at the u.s. mint that they did not mint these coins only supplied the blanks. there are no proof coins the last two years, dealers either don’t know or don’t want to talk about it in fear it might effect the value. these coins are being marketed by dealers as graded coins in some cases and i can see this could only be fraud given what the mint told me is true. these coins have no monetary value other than silver content. do you have an answer?

  • Joel Kruskie

    Too many crooks to tract, I just buy my ten every month!

  • Al Sieber

    Tim J., I’ve been mining gold, silver,copper etc. since 1976. but, after giving it some thought. I have to agree with you. do you think we’re headed for hyperinflation? if so when?

  • Al Sieber

    I believe gold is way under valued, and you’re right. just try sharing these views with other people.

  • Raggs

    Yet another SCARE tatic?…
    Infiltrate fear upon the people to gain power over them… obama tatics courtesy of marx.

  • Kerry Mercer

    I have been buying silver and gold eagles for years from the mint and on line precious metal dealers the reverse states the silver content and a $1.00 face value. Am I to believe that I have been duped? Should
    I sell these for their silver and gold content and invest the money into
    pre 1964 junk silver coins and pre 1933 gold coins?

    Any advice would be appreciated.

  • chuck b


    typing correction, “my order was not filled.”

  • Richard Pawley

    Al, you may have heard the term “peak oil” but it applies equally well to “peak gold”. Each year less oil and less gold is taken from the earth. We are never going to run out of either but it will get rarer. Right now there is less than one ounce of gold for every citizen on planet earth but remember you can’t eat it. And if you took all the gold that has ever been mined since the days of the Romans, it would still not be enough to pay off all our debts. I have no doubt that gold will go up another five hundred dollars but it may get really hectic before it does. I’m afraid those who think they have gold in ETF’s may be shocked if they ever want to actually take delivery. EFT’s aren’t meant for that. Some who have been buying on the futures market hoping to take delivery have instead gotten an EFT receipt (or so I have been told). Paper gold is still paper. When the governments of the world decide it time to confiscate gold it will be much easier to go to the ETF’s than to find all the grandma’s who have gold chains or coin collectors who have a coin or two (more than 98% of Americans have never even held a gold coin in their hands). Most have never seen a silver dollar. I have had teenagers ask “what kind of giant coin is that?” when I pull out my change to buy a coffee and they see a copper-nickel “Eisenhower” dollar. As for hyperinflation, I don’t think so but it will seem like it when food and fuel triple in price. Just remember we might be able to slow all this down IF we all get out and vote out the Marxists and Socialists in Congress who don’t care a fig what the Constitution says and want to replace it altogether. As has been said, your vote this November might be the most important thing you will do this year. May God Bless the USA because no one else is going to do so.

  • chuck b

    kerry mercer

    the silver eagle dollars are good up to 2008, the gold eagles are good every year. when i ordered silver eagles in 2009 they advised me the mint was not producing the eagles for 09 and my order was filled. i noticed the coins on the market later in the year and i called the mint they again told me they did not produce these coins, they furnished the blanks to private minting companies and these coins had no mint mark and no monetary value, only for the silver content. the same was implied for the 2010, i was told this five times by five different people at the us mint. i talked to dealers and most lied about it. one large company admitted it was true. so you tell me whats going on. with this wh anything could happen

  • LostTraveler

    Pre 1964 ” Junk Silver ” is more recognizable by the masses and thus easier to actually use if ever it needed to be used ( for barter ). I prefer the U. S. silver coins from 1958 to 1964. When the silver series coins ended all silver coins were ” plucked ” from circulation. So these years have very little wear on them as opposed to older issue silver coins.A lot of older coins were heavily used , worn , meaning that they actually have less weight .

  • LostTraveler

    If we are are headed for hyperinflation ; the talking heads are certainly not going to tell anyone it is coming. __ If the increase in inflation is gradual most people will not realize what is happening.

  • Peter

    The crux of the matter doesn’t revolve around a leverage of 100:1 or 1,000:1 or any other ratio… until there’s an actual shortage of the physical bullion. That’s where the problem begins to arise, because taking out a 10 million ounces that’s been leveraged 100:1 reduces liquidity by 1 billion ounces — around 24 months’ mine supply.

    Right now the world has a silver shortfall of 40 million ounces a year. Given above ground reserves are about 500 million ounces, reserves are going to plummet rapidly over the next three years and send silver prices towards $50.

    See also:

  • Harry B

    I buy silver producing companies that are increasing their silver production by green technology,for example see itronics -itro- and see how companies are planning for any such shortages in silver.

  • Tony

    If the inflation is gradual then it is not hyperinflation. You can have average normal inflation of 1-3% per year, you can have big jumps in inflation like we saw in the 70′s where it was around 18% or you can have hyperinflation.

    Hyperinflation is measured in months, days or even hours. The cost of goods and services doubles every x number of hours, days or months. I believe we are going to see double digit inflation in the next 1-2 years then possible hyperinflation after that. Any time a government debases the currency, like has been done in the U.S., there is always hyperinflation.


  • Johnny

    I have some 1oz maple leaf coins (9999) hang on to them or sale do to the rise in Gold

  • http://libertydigest Shawn

    I live in the Middle East, people are buying gold for $1395-$1425 per oz….They receive the coin or bullion immediately without paperwork regulation/customs or CFTC authorizing paper at brokerage or paper at banks. So $1300 has been broken over here


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