Why Paper Silver is not as good as Physical Silver
By: Jason Hommel, Silver Stock Report
Posted 12 August, 2008
http://news.silverseek.com/GoldIsMoney/1218557976.php
Paper silver is all forms of silver held by another, such as ETF's, 3rd party Vaults, futures contracts, options, certificates, brokers, or even bullion dealers orders in transit
Silver Stock Report
Yesterday, silver hit a low, and was down dramatically to as low as $14.08/oz. I'm sure the dip caused a lot of margin calls on people who owned silver futures contracts, who had to sell out. Perhaps this is a time to review a few more reasons why all forms of paper silver are not as good as owning physical silver.
(1) Default risk. (2) Bankruptcy risk. (3) Broker risk. (4) Exchange risk. (5) Confiscation risk. (6) Buying paper silver diverts demand away from physical. (7) Paper is a promise. Silver is payment. (8) Silver is limited. Paper promises can be created endlessly and have no limit. (9) The entire reason for buying silver is to avoid the failing paper promises of an entire industry. To trust another paper promise is just silly. (10) Fraud is admitted as "standard business practice" among brokers who hold paper silver (not futures contracts) for clients. (11) Storage fees are charged for silver that does not exist, as "standard business practice" in the broker industry. (12) Buying paper silver creates a lower price for silver. (13) Buying paper silver puts "cash" into the hands of the manipulators, and enriches the "enemies" of truth and true value. (14) Leverage risk. (15) Margin increases. (16) Time risk. (17) Gambling risk. (18) Moral risk. (19) Tax risk. (20) Market risk. (21) Real money does not grow on trees, nor is it printed on paper! Money is not only, and not merely, a "medium of exchange". Money is, and must also be, a store of wealth, a unit of account, and a means of final payment (not a promise to be paid!)
Internet Censorship Alert
Internet Censorship Alert: Alex Jones exposes agenda to 'blacklist' dissenting sites (March 14, 2010)
As I predicted, the Obama Administration is trying to shut down the Internet - at least the parts he doesn't like. Barack Obamas regulatory czar, Cass Sunstein has stated that he wants to ban conspiracy theories from the internet. Think about what this means - Every video, every website, every blog, every email, that exposes or just criticizes the government for any reason whatsoever could be labeled a "conspiracy" and taken down. Your home could be raided in the middle of the night, and you could be carted of to jail for criticizing the government. All they have to do is call it a "conspiracy theory".
http://www.youtube.com/watch?v=aqAWmBLFodE
Thursday, August 14, 2008
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