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Can We Leverage Silver Manipulation Revelations to Get the SEC’s Mary Shapiro to Investigate the Likely Fraudulent SLV and GLD ETFs?
The CFTC’s Bart Chilton’s recent allegations of silver manipulation
in the COMEX markets should now be leveraged to spur further
investigations of possible fraud in gold/silver markets by the bankers. I
have maintained for several years now that bankers invented the SLV and
GLD ETFs as part of their overall price suppression schemes enacted
against gold and silver.
Can Mr. Chilton’s bold statement now spur the SEC’s Mary Shapiro to
respond to any inquiries she may receive in regard to the legitimacy of the GLD and SLV and
thoroughly investigate these two ETFs for possible fraud? We should use this momentum to hit all the agencies now with requests to investigate the gold and silver markets while our requests may actually have a chance of shaming regulators into an investigation.
SEC Headquarters
Chairman Mary Shapiro
100 F Street, NE
Washington, DC 20549
(202) 942-8088
Enforcement Complaint Center
In July, 2009, I wrote an article called “The GLD and SLV: Legitimate Investment Vehicles or Not?”
that pointed out the most troubling aspects of these two ETFs that led
me to conclude that I would never hold either of these two ETFs. I’ve
extracted and reprinted some of the most prominent points from this
article below:
The appointed custodians of the SLV and the GLD, responsible for
safekeeping the silver and gold bars owned by the trusts, respectively
are JP Morgan and HSBC Bank USA. The GLD prospectus states, “Gold held
in the Trust’s unallocated gold account and any Authorized Participant’s
unallocated gold account will not be segregated from the Custodian’s
assets.” Only Authorized Participants, and no shareholders, have the
right to redeem shares for actual gold.
In my opinion, there are several potential huge problems with
this arrangement. Physical gold held by the GLD should be held in
allocated accounts specifically for the trust. The fact that physical
gold held for the GLD may be held in unallocated gold accounts where
gold is not segregated from the Custodian’s assets may mean that
multiple entities have claims on the same gold bars. In theory, the gold
held in the Custodian’s vaults may be used for delivery against shorts
they hold in the futures markets while if necessary even though GLD
shareholders have a claim on this gold.
The prospectus states that “the Custodian has agreed that it will
hold all of the Trust’s gold bars in its own London vault premises
except when the gold bars have been allocated in a vault other than the
Custodian’s London vault premises” (emphasis mine). The prospectus then
goes on to explain that other vaults allowed may reside at the Bank of
England, Brinks Ltd., Via Mat International, and LBMA (London Bullion
Market Association) market making members, and that in turn, these
subcustodians may appoint further subcustodians to hold the trust’s gold
if they so desire. In regard to ensuring that the gold actually
exists, the prospectus then states that “the Trustee may have no right
to visit the premises of any subcustodian for the purposes of examining
the Trust’s gold bars or any records maintained by the subcustodian, and
no subcustodian will be obligated to cooperate in any review the
Trustee may wish to conduct of the facilities, procedures, records or
creditworthiness of such subcustodian.”
In the SLV prospectus, the following claim is also made:
“Accordingly, the bulk of the trust’s silver holdings (emphasis mine) is
represented by physical silver.” If the bulk of the trust’s silver
holdings is represented by physical silver, what constitutes the
“remainder”? Clearly, the SLV prospectus states that there is a
“remainder”. If you read this statement carefully, the statement clearly
refers to the “trust’s silver holdings.” Thus, this statement implies
that some of the SLV’s funds are allocated to something else other than
physical silver. So what is the rest of the trust’s silver holdings?
Paper silver future contracts, air, or something else?
About the author: JS Kim is the Managing Director and Founder of SmartKnowledgeU,
a fiercely independent investment consulting and research firm that
devises investment strategies to protect Main Street from the fraud of
Wall Street.
»
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lol The only thing that matters to these thugs is power. They pay off the enablers to leave it all in place. Nothing ever seems to change. The enablers always seem to get paid off. That is the real problem!
MS Shapiro only investigates crimes that the WH does not profit from.
Short answer, no. Long answer, yes.
Who do you think pays Mary's hush money? They didn't give her that money and tell her to make her own decisions.
Although, it is possible at some point bureaucrats will start turning on their masters to attempt to save their own skin.
Instead of looking for a single triggering event - always obvious in hindsight but never beforehand - I think we should be celebrating the confluence so many potential triggering events and do whatever we can to help each of them evolve toward the goals that so many of us share - top bankers in jail, their evil empires collapsed, fiat money actually worthless, big government discredited, mafias and narco-syndicates smashed, police state disbanded, the odds against ordinary people unstacked, and the constitution restored. Good luck to us all on that agenda - but what else is there to do, really? Keep on keeping on.
Round up the usual suspects. Create an investigative czar position. Hire a investigator from GS. Establish select committees. Open an office of affairs. Hire people. Issue press releases until everyone is bored. Assess a few meaningless fines. Then it's business as usual.
"Oh, please strongman thug, investigate yourself and stop yourself from hurting us!"
The SEC will have to run out of porn to watch before anything gets done. Perhaps chemical castration is in order.
I hold SIVR
read "Gold Wars" by Ferdinand Lips
it is a war. gold and silver against ponzi fraudsters and their political stooges.
What an absurd notion. Everyone knows that a correct valuation of silver would destroy JPMC.
By what massive leap of logic would anyone in our government lift a finger to do anything that would jeopardize Chase?
Because it's what, morally right? Lolz.
Please forgive my ignorance, but why would a "correct" valuation of silver destroy JPMC?
Until recently, I paid very little attention to PM's (didn't even know gold/silver based ETF's existed until @ 2 yr ago).
I would appreciate a bit of enlightenment.
They own the single most concentrated short position in the history of commodities trading. If silver were valued at a "correct" valuation, which would be something along the lines of $50 (at the very least), those short positions would become multibillion dollar liabilities. They are short some 300 million ounces, IIRC. As such, every dollar that silver goes up, they lose 300 million dollars.
It's not fraud, it's liquidity. Anyone who says differently is obviously a member of al-Quida.
Let SLV and GLD alone; they're just trading vehicles.
Sure, a trading vehicle with no lug nuts.
Just don't turn!
Based on the Chilton comments and the lawsuit that has been filed, it won't be long before the Asians and the Arabs, both lovers of silver (and gold) start buying in real volume. The scheme will start to crack and should bring down the GSR to somewhere around 30 by the 2nd QTR 2011.
Not to give away any secrets, but I bought Silver BELOW paper price last night on ebay. A 10.48 toz. bar for $242......delivered.......$23.09/oz...to quote cramer----BUY BUY BUY!
May The Road to Roota......rise up to greet you......or something like that....
Regulators will not resolve this situation. Only by depriving the manipulators of physical metal to leverage their paper instruments off will they be forced to retreat.
Agree. Do you really think Mary Shapiro will do anything constructive. She's just another goverment/banksta shrill who along with the SEC will do absolutley nothing. Even if the case was a slam dunk the SEC would be incapable of proving it.
Two Words: Harry Markopolos.
Come on. Do you think the investigation into the silver manipulation will be fruitful? Absolutely not! Guess in the end, JPM and HSBC will pay a paltry fine and continue their manipulation.
nice avatar.
http://tracker.zaerc.com/torrents-details.php?id=15190
Hmm.. I wonder, I wonder. This one seems to have a little more teeth.
good luck with that. from this morning's news, i think we all know that the government has come out as a wholly owned subsidiary of the major banks.