"THETIMELINENEWS"

 

The question that silver and gold dealers get more often than any other question is, "Why is there so much difference in the price of gold and silver prices from one place to another, compared to the advertised price I see on television or listed in the newspaper?"

 

This article is going to make an effort to answer that question, and I can tell you, the answer is going to "shock" you. But, if you do not learn this now, you very well many get ripped off, if you have not already been taken, as "The Time Line News" will now attempt to reveal the overall workings of the gold, silver, and commodities markets, and how they work. In the end, this article is written with the intention of helping the reader become knowledgeable enough that you can walk through the land mines of investing in silver and gold without harm or disappointments, and will likely be incomplete, but will inform you adequately enough that you will be able to invest safely in silver and gold.

 

The subject is so very vast and large, that to keep it simple, and yet informative, I will try to keep the explanations short, and to the point, and simply offer a few ideas that will give supportive background on the revelations that are about to be revealed to you. Here are a few quick facts:

 

1.  Silver and gold are commodities, as are oil, gas, heating oil, cotton, grains (crops), orange juice, etc.

2. The majority of these commodities are traded mostly in two ways..."direct markets" & "futures markets".

3. "Direct Markets" prices establish themselves based on supply and demand of the commodity at the moment, or the immediate period of time.

4. "Futures" prices are established by what the "expected, likely, possible, or hoped-for" future demand of a commodity, and that price is always established as "best guess" based on factors known at the time.

5. Because futures prices are not based on REAL known supply and demand, the price is arbitrarily set by a select panel made up of, and regulated by the government, the most familiar being the Chicago Board of Trade (CBOE), where you can literally see the "futures" prices changing second by second.

6. "Direct Market" prices are MORE stable and consistant, while "Futures Market" prices are unstable, inconsistent, and over the decades of it's establishment, has become very corrupt in pricing, market manipulation, and consumer deception.

7. The advertised "spot price" in the news or at the CBOE is established by the CBOE and the futures markets, and which is corrupt, manipulated, and deceptive.

8. Direct Market prices are fairly established by the public, based on available supply and demand, and because of that, there is no advertised available way of posting what the market price is. Its always going to be based on the best buy one can get from one silver and gold dealer to another. But the market prices ARE NEVER the same as the futures spot price advertised, and usually significantly different and apart quite a bit.

 

Now, your first question to that has got to be, "If futures market pricing is regulated and established by the government, how could it's pricing be corrupt, manipulated, and deceptive?" Well, its tempting to give you the obvious short answer...that most everything the government touches and oversees becomes corrupt, manipulated, and deceptive. But that would not reveal to you the reader what you need to know. So, let me try to give you a clearer idea how things really are. First, some general background.

 

Futures markets and pricing was established back in the early days, as the physically carrying around of all these commodities, and trading in differtent geographic markets became limiting and labor intensive. Imagine if a farmer wanted to take a thousand bushels of wheat, load it up and go try to negotiate his best price with say Russia. First, to get it there would be a task, but then he would be at a disadvantage. Russia would realize that the farmer would not want to have to haul his wheat back home, so they know they can cause him to take the lowest price, putting the squeeze on the farmer unfairly.

 

Thats just a small example, but futures were established with the intent of establishing order and ease in the trading of commodities in the markets. And to some extent it did, but along the way the windows of opportunity to defraud over the years have been taken advantage of. And now, in the 21st century, corruption, manipulation, and deception are widespread, well known, out of control, broken the system, and about to fall to pieces.

 

"All, come on now...wouldn't the government do something about that? It was the government that established the problem, or certainly is responsible for it. And now the problem is so great, their is no correcting it without causing a wide spread collapse of the trillion dollar commodity market.

 

Let me give you a snapshot of what caused this. And lets use silver as an example. Lets say a miner mined out  10,000 ounces (over 600 pounds) of silver that he needs to take to the market so he can pay his bills, labor cost, etc. In early days, he would have had to have packed it on a mule, or in his truck, and to save costs, drive to the nearest place he could liquidate it, usually settling for less money than the silver was actually worth.

 

In modern days of futures, he can trade his silver for a "contract" that he can liquidate for cash, or hold till a "future time" that he may feel the the market demand for silver may be higher, and can be liquidated for a higher price. He can carry it anywhere, and with ease he can negotiate from one source to another by telephone or even the internet.

 

Now, the government needed reliable order, so they established and regulated these "contracts" being issued by establishing the Chicago Board of Trade (CBOE). If this miner is issued this contract for 10,000 ounces, it needs to be a safe and assured document to establish trust in it, especially if he is going to expect anyone to take it off his hands later. So, the CBOE acts as an in between person, making sure there is safety for all parties involved, and it establishes what would be the on the "spot price" is for this silver based on an intricate list of details about supplies and demands of the future (relative mostly to political and military causes and effects)...futures than can be based over a month to years out. Now, I am leaving out a whole lot of details, but this gives you a basic idea of the structure and how the "spot price" was established.

 

One of things that was established and regulated by the CBOE was that if that contract for 10,000 ounces of silver is to be issued, that whom ever issued the contract must have proof of possession of 10,000 ounces of silver. Up until Bill Clinton becoming president, regulations had refined and advanced to where (for the benefit of creating and expanding the commodities markets worldwide) banks, investment bankers, financial institutions and like-kind entities could issue these contracts (for broker fees) under strict government supervision. If JP Morgan wanted to issue this contract for 10k of silver, they had to be willing to be subjected to oversite by the regulators. Again, leaving out a lot of details, lets say JP Morgan issued that 10k of silver today, at the end of the day a regulator would come by to inventory the safe to vertify there was 10k of silver in the safe to back the issue of the contract. Like I said, that is an over-simplification...but you get the idea.

 

When Clinton got elected the first term, he spent most of that term setting the foundation to get himself elected the second term. The Time LIne News and its Insider Resources will be revealing over the next few weeks the facts behind many of the things Clinton did to corrupt the system, all very damaging to our future for the sake of his own selfish greed for money and power. But, sticking to the subject at hand, the effects on the "spot price of silver" changed as a result of the Clinton administration.

 

One of the things that got him elected the first term was his promise to balance the budget. Unheard of right? Well he did it. In future editorials, you will see what it costs us all, but lets stick to the subject. The first thing he did was start cutting cost in the government. Now that sounds good. But he started cutting costs on things that the government needed. Like slashing cost on military, education, oversight, and regulators over all of the different workings of the government, including the banking industry and  the commodities markets.

 

The public never knew, and its likely the government and both parties knew, but its still a question if both parties knew what the negative outcome would be. Whether the parties knew or not, the negative effect came out during the President George Bush administration. In 2007-2008, when AIG and the mortgage derivatives markets collapsed, that was a result of Clinton's deregulation back in his first term. Had regulators and oversites been kept in place, the resulting collapse would never have happened, but because of no regulations, the corruption ran amuck.

 

When it was obvious the absent oversite and regulations was what caused this horrific event, the Bush administration started examining what else might be in trouble from the lack of the Clinton deregulation fiasco. And that is when Bush found out how much trouble we WERE REALLY IN. In reality, we likely do not know how bad it was/is, but it is so big it makes the mortgage derivative fiasco look like a small overdraft fee. And, we now know what it did to the commodities markets not to have regulators or oversite. Lets digress.

 

When JP Morgan used to issue that 10k contract of silver at the going "spot price", he waited for the government regulator to come by and verify he had 10k ounces of silver in the safe. But lets say, for some reason, one day the regulator does not show up to inventory the silver in the safe. JP Morgan expects something has come up, but the next day he does not show up again to inventory the ounces of silver in the safe. And though the  regulated oversite had JP Morgan toeing the line, and adequate silver inventories were being kept in the safe, after a few days of no regulations, JP Morgan gets lax, and soon completely ignores the regulations. Now they issue those 10k ounces of silver contracts WITHOUT buying any silver to put in the safe. Now think what I just said.

 

It reminds me of my children. As long as they know the rules of my house, and that I will enforce them, the household is at peace and in order. If I ignored the rule of "no ice cream" before bedtime, and never enforced it, how often do you think they would eat ice cream before bedtime...and how much? Every night, and as many gallons as they could get their hands on...till they were "sick"!

 

And that is what has happened to the commodities markets. With no regulators or oversight, for decades ALL the parties involved have issued trillions of dollars of contracts, with no commodities in the safe to back them up, and that is relative to ALL commodities, and all of that greed and consumption now has us in a place where the commodity market is "sick", very sick.

 

But, lets stick to talking about silver. How many worthless contracts are out there. Its hard to give an accurate number, but our Insider Resources estimate that if you were able to locate all of the silver that has been mined above the earth worldwide, and piled it all up in one big pile, jewelry, silver coins, all of it, it still would not cover 1/2 of 1% of the silver contracts that have been issued worldwide. Why hasn't the government done anything about that?

 

Bush tried to. First he had to keep a lid on it. The country had just been devastated with the mortgage derivative meltdown, and almost collapsed us and the world. This is a far far bigger fiasco, and would have put an absolute nail in the coffin. Then, in their investigation they found that the biggest perpatrator taking advantage actually was JP Morgan, but there were many more, and very big players, and they had muscled their way into the "unregulated" CBOE to control it and its "spot pricing" as well.

 

And now, they could manipulate prices and markets at whim, greater profits, and greater power. For decades they did...and tragically, still do. Bush couldn't pull the plug on it...it would have wrecked our world. So instead, they started instituting controls in at least an effort that would at least prove that their administration was trying.

 

But it is too overwhelming. They put deadlines on the parties at large to begin the impossible process of "covering" all of those contracts of silver with physical silver in the safe. I say impossible, as proven earlier, there is not enough silver on earth do do that. And the players do not have the trillions of dollars of cash to buy back these contacts. So, each proposed deadline fails, is extended, and ignored at large.

 

In fact, the government was forced to even grant the manipulators even more power (for the sake of saving the world, of course), to expand their ability to manipulate the "spot price" of commodities. And to put some political and legal distance to it all, a commission was established in London, made up of a handful of representatives of the big banking cartels from a handful of nations. Its a limited number, but very powerful, and literally are in one office in which everyday they plot and plan the rise and fall of every price of every commodity. If you see the price go up on a commodity, they put it there to their advantage. As prices go up, more contracts are sold as investors are convinced to get on board. If you see the price go down, they put it there, and now investors sell back their contracts in fear of further loss. No real free market supply and demand. And though the power allowance of this was to diminish the amount of contracts out their at the cost of "Joe Unaware Public", intead the amount of paper issued has only increased, as corruption has now run further and deeper into the government, now all the way up to Obama, who is a full author of deceit, lies, and corruption. 

 

Its not his fault, he just  isn't going to make ANY effort to fix it, and has really given the green light to it all as our elected government leaders have become quite busy getting their own pockets lined. And the manipulators have taken a page from "The Wall Street Wolf" (or maybe they first wrote the page), as they set up boiler rooms of trained personel on phones, recruiting and calling the public, convincing them to buy these future contracts. And they have gotten really creative at orchestrating the ripoff. The trained boiler room will convince the unsuspecting mark to buy a "margin contract". When a broker is offering futures contracts on "margin", he already knows what the outcome is likely going to be...ripoff.

 

Let me explain what a margin contract is. Keep in mind, a futures contract can be for any size and quantity, all dependent on the amount of money one wants to risk for an investment. Inasmuch we were talking of silver, lets continue using it in this example. A broker calls you up, and says a want to sell you a futures contract that is for 10,000 ounces of silver. At today's prevailing "spot price", that's about $15 an ounce, multiplied times 10k ounces of silver, that contract cost $200,000. You say, I don't have that kind of money. He says, "No problem, you only have to put up a fraction (margin) of that...say 10% ($20,000), and they will cover the rest.

 

They are sketchy on the margin rules, that have many details, but the effects on this example are as follows: if the price of silver goes up $2 per ounce, that benefits you, and you controlled $10k ounces of silver, so you could sell your contract now for a $20,000 profit ($2 X 10k oz= $20k). But, lets say the price of silver goes down $2 per ounce instead. The rules of margin are you have to make that up to continue holding this contract, in obvious hopes the price will come up to a profit again. So, $2 X 10k ounces, your $200,000 contract of silver has lost $20,000 in value, and you broker is going call you (thus the term "margin call"), and require you to wire that $20,000 shortfall in immediately, or they have retained the right to liquidate your contract for cash, and any shortage therein, they would come and liquidate your assets for (its all in the small print of the contract).

 

Now there is a funny thing that happens when someone is losing money in the markets. Fears set in, and the overwhelming concern of losing more money takes over, and most sell out of the contracts to limit their losses. Only to find out a few days later the price of silver is back up, and they could/should have held on to their contract. But, as the movie said, "sheep get slaughtered".

 

And thanks to the 21st century technology, it gets easier and easier for the "spot price manipulators" in London to slaughter even more sheep. Because technology now allows them access right there on their computer screens to see how many contracts have been issued, and how big they are as well. And they keep raising the price, luring more and more sheep in. Now as the price is going up, some take profits and get out. But, the boiler room brokers keep most in with stories of "yet to come" profits, and greed sets in, and keeps most sheep in their contracts. And when London sees a slow down of interest, the price starts going the other way...down, down...and usually quickly, so that the sheep have not got time to think, react, or get out, as the boiler room broker continues to massage the sheep to hang in there, and sometimes convince them to buy more contracts.

 

And, when the "spot price" has been pushed down to where there is no more sellers at the lower price, and the sheep are well slaughtered, then London starts the process all over again. Oh, they will orchestrate many of the prices up or down with positive or negative news events if possible to try to fool "Joe Public", but in reality, as of late, they have ignored news events all together as they arrogantly know there are no consequences...no clear or present danger, so why not?

 

As an example, four weeks ago the China/Asian stock markets started deteriorating. Meanwhile, silver and gold "spot" prices plummeted. They should have skyrocketed on news like that, but instead went the other way. At the same time of this news, in "Direct Markets" gold and silver prices exploded up, just as they should. And, because of supply and demand of "real physical silver", inventorys were depleted so thinly, that even the U.S. Mint shut off availability for a couple of months on most products.

 

But the "futures markets" have unlimited contracts to print up, and prices continue to be manipulated and very distorted. Most credible dealers and approved Mints even post the distortion for the public to see. Right now, that distortion is about $9.45 per ounce difference. While "spot price" for worthless contracts is down around $14.70 per ounce at the time oft his writing, the mint price for physical silver is about  $24.15 per ounce. Now this distortion and pricing irregularity allows for even MORE corruption that has spilled over into the "Direct Markets" arena that has drawn its share of less than scrupless figures.

 

Credible dealers run into to it all of the time. They will get a call about wanting to buy some silver at the physical "direct market price". When they find what the price is, they say they can get it from another place for spot price, or a little over spot price. What this sheep does not know, he is dealing most likely with a less than credible company, many that are linked to the CBOE and the rest of the manipulators, none not likely approved by the mint. The biggest is the COMEX, a place where you are offered contracts or physcal silver, but the push by THEIR salespeople is to take the contracts. But, here is what they are REALLY going to do.

 

To sucker the guy into the door, they will soft sell to get him in, whether the investor wants futures contracts or physical silver. But, there will be a hitch if you buy physical silver. First, a salesman/broker will try to convince you that its a strain to have to take the physical silver, just to have to store and secure it, and so they try to convince you its safe with them in their safe, and easier for you to trade or liquidate. And they will have storage fees for that, but will usually waive them to get you to NOT take physical possession.

 

They further will discourage taking physical possession by charging just a little more than the "spot price", but just low enough below the credible dealers and mint prices as to not scare you off. But, if they are not able to get you to take spot price futures contracts, they will go ahead and cut the deal for your physical silver price, "even though it is way below the actual physical silver price. Why would the do that and be willing to take a loss? They are not going to lose. Typically, it goes like this. They will sell it to you, but you will not receive it for about two and a half weeks up to two months. Why?

 

Because he has your money up front. And he DOES know how the "spot futures" market works, and he knows how the manipulators work, and though he may not know exactly when the price will be manipulated up or down, he does have access to the same technology as they do, and can track when the sheep are buying or selling, and simply feigns their behavior. In that effort, he can compound your money double, maybe triple, or more, over that two and a half weeks or months, and using your money to make big profits that you receive no share of. And even during that time, his boiler room will call regularly to try to compel you to still revert to futures contracts, tapping the ultimate weakness in all of us...greed. And the temptation for controlling 10,000 ounces of silver with $20,000 instead of $200,000 is some serious temptation, so they usually are successful in the convincing process.

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If you are now holding a commodity contract, or a contract for storage for a commodity like silver or others, you should either cash it in immediately or take physical possession. I would highly advised cashing it in, then go to a Mint certified dealer to like E-TCB, INC, (417) 230-2298 in order to avoid any further abuse. It is reported widespread counterfeiting is often the result to the unsuspecting victim when requesting physical possession. The best remedy is to insist on cashing out, and buy directly through an approved certified Mint dealer.

 

Granted, you may eventually take physical possession of your silver, and you may even have saved some money on your investment, but at what cost of anxiety and constant communication, and high pressure boiler room tactics. Then, there is the reverse process when you want to liquidate your silver back to him. Because credible dealers certify their silver, liquidation is a breeze when liquidating back, while the less than credible sources, will make it difficult to liquidate back to them, to instead channel right back into futures contracts, or at least in part. On the contrary, a Mint certified dealer to like E-TCB, INC, (417) 230-2298 provides an easy and comfortable process that removes all worry.

 

But, when the dollar disappears in a few weeks, and the dollar goes to zero, so will the spot price and futures contracts market, as they are only backed by dollars, not physical silver. And when that happens, those less than credible dealers will all be shuttered and out of business, and that is just a few weeks away as the dollar is about to end. If you have not got possession of physical silver, but just a promise of it in a few weeks or months, you are out of luck, money and silver.

 

This corruption has now spread over into the "stock market" in the Equity Trade Fund (ETF) arena, and that is a subject that is beyond this writing, and so watch for a future editorial about it's corruption. The key warning, try to avoid the ETF markets for your own financial safety.

 

This editorial is incomplete, and a full an accurate report would take many more pages than what I intend to invest in at this time. But, as limited as it is, it should accurately and safely help you wade through the land mines set out there to help you avoid being a sheep at slaughter.

 

I encourage you to work with mint approved dealers, quoting mint prices. And, as another fraud warning, just because they use the word "mint" in the name of their company, that does not mean they are mint approved dealers, as that is prohibited by the mint. There are only a handful of authentic mint approved dealers, and the closest one in the heart of Missouri is at E-TCB, INC, (417) 230-2298 where you always get the best mint price and service.

 

Physical silver and gold are where you need to move at least 10% of your wealth if you are going to preserve your wealth in the coming demise of the dollar in the next few weeks. If you are having difficulty finding physical silver or gold, contact E-TCB, INC, (417) 230-2298 and get assistance while you can.

 

E