The Silver Market: Some Call It The Crimex

Dr. Russell McDougal

June 24, 2009

The silver market is showing signs of bullish strain and an incredible opportunity is being presented to you. I’m a staunch silver advocate and it’s time for an update right now. Silver stands to outperform gold as the long term precious metal bull market continues to unfold.The price of silver, along with gold, is kept under wraps by officials of the New York COMEX market, aka CRIMEX. The old boy network which runs CRIMEX have whipsawed the market in their desired direction for decades and profited accordingly. These actions are government sanctioned because precious metals are competition to un-backed fiat money. State mandated fiat is so weak and poorly designed that it cannot stand competitors.

I wrote a silver article 4½ years ago entitled Silver: Anatomy of A CRIME(X). In that article I compared activities at the COMEX market to prior incidents at Long Term Capital Management, Enron and Arthur Anderson. I screamed from the rooftops that fraud and abuse had gone “metastatic”.

Bingo. Since early 2005 you’ve seen the cancer spread via Fannie and Freddie, Bear Sterns, AIG, Lehman Brothers and others. Few people yet understand that the entire system is corrupt and failing. Band-Aids don’t fix train wrecks!

The present age of crooked markets really boil the blood!

You should expect CRIMEX to join the long list of failed and disgraced financial institutions. There are incredible strains on this market right now as month to month delivery battles transpire.

In the silver article from 2005 I stated … “I don’t believe that complaining, pleading, documenting, reasoning, letter writing or mounting campaigns with this particular institution will ever bring it back to what could legitimately be called an honest market. Sorry. They had every chance under the sun to do the right thing and clean up the mess.”

It will never be the SEC or the CFTC that cleans up CRIMEX. You can pen pal with these blokes forever and it will do little more good than scolding the mafia. The leopard doesn’t change its spots. There is a very realistic opportunity, however, to now end the decades of abuse by this market. It is happening as you read.

Large international players are now engaged in calling the bluff of this New York market. They have caught on to the scam and are totally peeved. COMEX silver is largely a “paper” exchange with only small amounts of physical metal being taken delivery of on an historic basis. That is now changing as more and more players insist on physical silver and gold instead of risky promises.

You have to be incredibly naïve or just plain dumb to trust these crony capitalists gone wild. It is just a matter of time until CRIMEX defaults or implodes. Gold and silver prices will soar when they are freed of the manipulation.

Why would anyone put money into a manipulated market? Good question. Manipulations against long term trends are pure folly. Take a look at how silver has performed over the last six years:

Silver was under containment in the $4 range early this decade but managed to hit a high over $20. Holding silver down near the current $14 area will be just as fruitless over time. Silver will either continue to grind higher or it will explode higher when the official suppression ends.

More and more people are using my CRIMEX moniker all the time. Make sure you have plenty of physical metal before this scathing term is in the national news

Sure, I’m irate over the ongoing silver manipulation but I’m also licking my chops for the inevitable profits coming our way because of the manipulation.

ETFs are only trading vehicles not a substitute for physical silver. Precious metal certificates are suspect at best. Get the real stuff and make sure you’re in position before CRIMEX cracks.

Invest Resourcefully,

Rusty