2nd-Bunker-Hunt-Silver-Crash

Last time this happened...

I made my first fortune. So did everyone who listened to me.

Now you can too, because it's happening all over again!

Dear Friends,

It all started in 1979.

You might remember. Silver took off, like a rocket to the moon. Within a year it crashed back to earth. All due to a vast manipulation, that cost many people their life savings.

Just like now, commodities prices were rising. The economy was in the sh--ter. People were scared. They didn't know what to do.

Everyone and their mother was telling them to buy silver. It would save their wealth. It would make them rich. The higher silver went, the more people believed the spin.

Ordinary people started putting their life savings into silver. They bought into the same b.s. you hear today:

* They were told silver demand was skyrocketing. (False. In 1979-80, the U.S. was in a deep recession. Demand was plunging. Just like now, as I'll prove to you in a moment.)

* They were told silver supplies were shrinking. (Total b.s. The soaring prices made old mines profitable again. Production was going up, not down. And scrap silver was coming out of the woodwork, as millions of people cashed in their silver flatware and jewelry. Again, just like what's happening now.)

* They were told the Fed was printing money. Inflation would soar. In fact, many experts warned that hyper-inflation was around the corner. Silver (and gold) were supposedly the only ways you could shelter your wealth against rising prices and the falling dollar.

Again, the same b.s. crap as today. B.S. because in the real world, inflation soon plunged to a few percent a year. The dollar didn't fall. It rose. You know what happened to silver.

In other words, every so-called “fact” about silver was either wrong or a flat-out lie. Just like today.

But thanks to the manipulation, silver took off on one of the biggest bubbles ever. It soared from $5 an ounce to just under $50.

One man was behind this. Bunker Hunt. You probably heard of him. He was the billionaire heir to a vast oil fortune.

Bunker teamed up with some Arab sheiks he knew from the oil industry. They manipulated silver the same way it's being manipulated now: by buying every spare ounce they could lay their hands on.

Silver was a thin market back then. (Still is.) So it was easy to corner. That is the sole reason silver went up 1000% in a year. Plain and simple, a few heavyweight hitters rigged the market.

Of course, the masses got sucked late into the game. Right near the highs. That's true in every bubble.

And when the public got whipped into a frenzy... when the precious metals experts were predicting $200 silver, telling everyone to jump in with both feet... the silver bubble burst. The market wiped out virtually overnight.

As you can see in all the charts, it was a h-ll of a ride. Silver went up so fast, so high, it convinced nearly everyone it would never come down again. Just like now.

Bunker Hunt had bought 125 million ounces of silver. I saw his stash with my own eyes, stored in vaults at Engelhard. He bought at an average of over $20 an ounce. He sold at an average of $5 an ounce. He lost nearly $3 billion. Every penny due at once.

Even Bunker did not have that kind of cash. He was forced to give Engelhard, the major silver refiner that was his creditor, his share of the Hunt Oil Company. One of the most valuable private oil concessions in the world.

Until then Bunker was one of the richest men in the world. Silver bankrupted him. It turned him into a broken man. His only income came from a trust fund, that his brothers and sisters set up as charity for him.

Everyone who bought into the silver lie faced a similar fate.

How the Bunker Hunt silver bubble

made me my first fortune

I knew the silver bubble was total bull. A manipulation. I knew real demand for silver was getting WEAKER. Supplies were getting stronger.

Most important, I knew silver was soaring for only one reason. It was getting rigged. Market manipulators were buying the h-ll out of the stuff. They were driving prices up on b.s. spin and more b.s. spin. Just like today.

I also knew Bunker and his merry gang of manipulators had a serious problem. The same fatal flaw every market manipulator faces.

At some point, the buying stops. They run out of money and new suckers to scam. No buying means no rally. No rally means market forces exert themselves. It's like sticking a pin in a balloon. The market bursts. That has happened to every bubble in history.

So when silver got over $35, I knew Bunker was running out of time, friends and capital. I started shorting, with every penny I could beg, borrow or steal.

It didn't take long. The silver bubble burst overnight. One day silver was trading at nearly $50 an ounce. The next day, it was in the $30s.

Within a few months, silver plunged to $15 an ounce. Within a year, it fell to under $5. In one four-day panic, it fell 50%!

Lots of people lost lots of money. Lots of dreams went up in smoke.

For me it was the exact opposite. I cashed in over and over. So did everyone who listened to me.

Like every crashing market, silver didn't go straight down. To my astonishment, misguided precious metals gurus kept urging people to buy more! Every drop was called a “buying opportunity.” Sound familiar?

Each time, I traded the opposite side. We made spectacular profits.

It was hard. Darn hard. We had to use futures. The market swings, margin calls, and contract expiration dates played h-ll with us.

Still, many people who followed our recos made a killing. Again, simply because I knew silver was a bubble... the bubble had to burst... and we were positioned to make a fortune when it did.

I've got to pinch myself. I must be dreaming. It's happening all over again.

A whole new group of market manipulators are back. Their b.s. spin has lured in a whole new group of suckers. They have created another vast silver bubble.

Like in 1980, this silver bubble is built entirely on lies and spin. Like in 1980, it's about to crash.

But unlike in 1980, we have a much better way to get at them than with futures. If you ever kicked yourself over what happened in 1980... if you would like to make a killing when silver crashes this time (as I believe is a 100% coming event)... let me tell you how to do it.

Supplies have soared. Demand has plunged.

Yet silver just went from $5 an ounce to over $30??

Insert>: (update: at this posting, Aug 2011 -- it is at the $40 level)

Please look at the table below. It shows you demand and supply figures for silver over the last 11 years. You will see a remarkable fact:

Supplies are greater than ever... demand has plunged... yet silver has gone from $5 an ounce to over $30!

First let's look at supply. Despite the b.s. spin, mine production is up. Scrap silver (people selling their flatware, jewelry, etc.) is coming in from every orifice. Total supply is soaring, from 919 million ounces in year 2000 to 1,292 million ounces in 2010.

World Silver Supply and Demand

(in millions of ounces)

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Supply

Mine Production 591.0 606.2 593.9 596.6 613.0 636.8 640.9 664.4 684.7 709.6 783.0

Net Government Sales 60.3 63.0 59.2 88.7 61.9 65.9 78.2 42.5 27.6 13.7 12.0

Old Silver Scrap 180.7 182.7 187.5 183.9 183.7 186.0 188.0 181.8 176.0 165.7 497.0

Total Supply 919.1 870.9 853.1 869.3 868.2 916.3 907.2 888.7 888.3 889.0 1292.0

Demand

Industrial Applications 374.2 335.6 340.1 350.8 367.6 407.0 427.0 456.1 443.4 352.2

Photography 218.3 213.1 204.3 192.9 178.8 160.3 142.4 124.8 104.9 82.9

Jewelry 170.6 174.3 168.9 179.2 174.8 173.8 166.3 163.5 158.3 156.6

Silverware 96.4 106.1 83.5 83.9 67.2 67.5 61.0 58.4 56.9 59.5

Coins & Medals 32.1 30.5 31.6 35.7 42.4 40.0 39.8 39.7 65.2 78.7

Total 891.7 859.4 828.3 842.4 830.8 848.7 836.4 842.5 828.6 729.8 734.0

Price ( $/oz) 4.95 4.37 4.60 4.88 6.56 7.51 11.55 13.38 14.99 14.74 30.91

What about demand? It's dropping like a rock. In year 2000, silver demand was around 890 million ounces. In 2010, it was around 734 million ounces.

Do you see? Supply is UP 40%. Demand has dropped over 17%. Prices should have collapsed.

Instead, silver skyrocketed from $4.95 an ounce to over $30!

How does this happen? Could “inflation” be the answer?

No. We have no inflation. In fact, we are in the early stages of a long-term deflation. Other than this put-up commodities rally, prices are falling across the board. As you see in the graph below, inflation is the lowest in more than 40 years. By far.

So if silver is not going up on inflation... or supply/demand fundamentals... why is it going up?

Silver has soared because it's being manipulated. Just like in the Bunker Hunt manipulation of 1979-80.

This time, the sleazy banker a$-hol-s and hedge funds are behind the price fix. The U.S. government is doing its part, too, by giving them trillions of your tax dollars. They are using that money to manipulate silver, gold, oil, stocks and a whole host of other markets. Here's how.

When the Fed saw how serious the recession was, it panicked. It knew the world financial system could collapse. So it started pumping vast amounts of money into the nation's banks. You can see exactly how much in the chart below:

(chart available upon request... DMH)

This chart should make your jaw drop. It shows you net loans to the nation's banks, from the Fed. You can see that for 50 years, the Fed had given the banks basically nothing, on a net basis. Sure, it loaned them small amounts. But they quickly paid those loans back. That was true, right up to 2009.

Over the past two years, the Fed has given U.S. bankers more than a trillion dollars. See how the blue line on the graph goes straight up, from zero to a trillion?

Interest rates are around zero. So this is free money to the banks. It's also highly-leveraged, source Perrier money. The bankers can turn each dollar the Fed gives them into ten dollars, twenty dollars or more.

And what did the bankers do with these trillions? They sure as h-ll didn't lend it out to business. In fact, banks have stopped making loans. They know they won't get paid back.

Bankers dumped the trillions of free Fed dollars into their old friends. Derivatives. The same instruments they used to blow up the housing bubble, that created this mess to begin with. Now they are using these leveraged derivatives to buy up precious metals, stocks, oil, corn, wheat and every commodity under the sun.

That is why you see so many bubbles, in so many markets, all at the same time. Not because of increased demand, or the mythical “recovery.” It's because Wall Street and the banker whores took trillions of the public's dollars, and rigged everything they could get their hands on.

For example, they created bubbles in stocks. Which is why the Dow has soared -- even though unemployment is the worst since the Great Depression, and every major U.S. corporation is technically broke.

(If you believe the b.s. that U.S. companies are making money, remember they that don't count their retirement liability. That alone would bankrupt them. Just like it is bankrupting our state, municipal and local governments -– and will eventually bankrupt the U.S. government as well.)

They created bubbles in basic foods, like rice, wheat, oats and corn. That is why riots are erupting in poor countries around the world. The masses can no longer afford to eat.

And they created this vast bubble in silver. Like Bunker Hunt, they bought up every ounce of silver they could find. Like Bunker Hunt, they now face their worst nightmare: a crash that will take silver down to under $5 an ounce.

Behind the scenes,

hedge funds did the dirty work

for the banks

The bankers did not buy silver themselves. You see no silver on their balance sheets.

Instead, they invested in select hedge funds. The hedge fund then buys silver (and the other markets they manipulate). In the case of silver, they do this through the ETFs, or Exchange Traded Funds.

ETFs are simply shares of stock. They trade on the exchanges. Just like IBM, Microsoft, or any other share of stock.

But unlike IBM, there is no company behind the ETF. The ETF takes the money invested in it, buys physical silver, and stores it. ETFs don't buy silver for industrial reasons. They don't buy to make jewelry or flatware.

ETFs are 100% speculative. They hope to capitalize on rising silver prices.

The first silver ETFs were announced in 2004. Silver was trading then at under $5 an ounce. It had done so for over two decades, ever since Bunker's manipulation fell apart.

But news of the upcoming ETF alone pushed prices higher. When the first silver ETF finally opened, in 2006, silver had risen to around $8 an ounce. Again, not due to any changes in supply and demand. Supply and demand had stayed basically the same. The rising price was strictly due to anticipation over the ETFs.

Since 2006, the ETFs have acted like King Kong in silver. i.e. speculators have again cornered the market, just like Bunker Hunt and his cronies did in 1979-80. No shock that silver has soared in price.

The chart below shows you this, in glaring detail. The red line on it is the price of silver. The blue line gives you the amount of silver, in millions of ounces, held by one of the major silver ETFs, the SLV.

( Chart available upon request )

This one ETF now holds over 350 million ounces of silver. (The graph does not show purchases made in the last month.) Other ETFs hold hundreds of millions more. Remember that huge excess supply I showed you earlier in this report? The silver ETFs scooped up every ounce.

They have bought hundreds and hundreds of millions of ounces of silver. Far more than even Bunker Hunt bought. This is the only reason silver prices have gone from under $5 an ounce to over $30. The problem is, to keep the prices up they have to keep on buying. Eventually even our banker buddies will run out of money.

It's Bunker Hunt all over again. It will end exactly as Bunker's manipulation ended. I can't believe our good luck. Because we are positioned perfectly to make a killing when it does.

The same magical ETFs – that helped drive silver to new highs –

will make the crash even worse

Here's the next piece of the puzzle. It makes our opportunity even better.

ETFs were set up to do two things. To buy silver and drive prices higher. They've done that better than the silver manipulators dreamed possible.

But what happens when the buying stops? When silver price starts turning down, and people who own shares of the ETFs panic out of the market? Remember, that day has come to every bubble market in history. Silver will be no exception.

The ETFs will have to pay their shareholders immediately, with cash. They have no other option. And the ETFs can only do that in one way. By selling silver. Because silver is their only asset.

They can't wait till prices bounce back. They can't try to ride out the storm. By law, they must sell silver immediately, in the spot market, to reimburse any and all shareholders who liquidate.

In other words, the ETFs will be forced to sell vast amounts of silver -– at the exact moment silver is collapsing in price.

This is like throwing gasoline on a raging forest fire. It will crash silver even harder. In 30 years of trading, I've never seen anything like it.

Once the crash starts, I see $35 an ounce silver plunging to $18 in a matter of a week or two. To $5 in months. It will stay there for the rest of our lives. All due to this manipulation and the bubble it created.

Now for the best part of all. Not only is silver bound to crash. We have a way to profit from it. Just like I did in 1980. Only now things are far easier, far better for you, than they were 31 years ago...

The trading gift from God --

It lets us profit from the collapsing silver bubble...

potentially make 50-100x our money or more ... with

no futures, margins calls, or risk beyond our initial investment!

You might recall that to trade the Bunker Hunt crash, I had to use futures. If that were true now, we'd be stuck on the sidelines. S.O.L. Up the creek without a paddle.

Futures were hard back then. Now they are impossible to trade, unless you are a billion-dollar hedge fund.

In futures, you can be right about the market. Yet the Big Boys can still force you out of your positions. The dreaded margin calls mean you might have to close out your account, even though your analysis is correct.

The great news is, we don't need futures any more! A (relatively) new trading tool works far, far better.

I call it the trading gift from God. It levels the playing field between the little guy and the Big Boys. In fact, we've already used it a number of times, to tear Wall Street a new a$sh-le!

Like futures, this tool gives you the potential to make huge leveraged profits. You can potentially make ten, twenty times your money or more.

But unlike futures, your risk is strictly limited to your initial investment. You can never lose a penny more than that, no matter what.

With this trading tool, you have no time limits. No margin calls. No contract rollovers. You can wait out the *%&##@*'s, for as long as it takes: they can't touch you.

Then when the market tanks, as it always does, you could make a killing.

This tool I'm talking about is the silver inverse ETFs. They are called “inverse” because they go the opposite way silver does. When silver goes up, they fall. When silver falls, they rise in value.

These ETFs trade like shares of stock. You can buy them from most any stock broker, including online brokerage firms. Because they are shares of stock, you can never lose more than the price of the ETF. These ETFs let you sleep at night.

Best of all, your potential profits are outstanding. In May 2009, for instance, silver was at $13 an ounce. One of the silver ETFs I recommend traded at nearly $600 a share.

Now, thanks to the vast silver bubble, you can get this same ETF for under $30 a share. Meaning if silver merely goes back to $13, you stand to make around twenty times your money.

Insert > ( Update as of Aug 2011 - this etf price has dropped to less than $14 share)

Any way you cut it, that is a great return. But I expect silver to fall to $5. That is the fair market price considering supply and demand. It's the price silver was for over two decades, until this manipulation took hold. Counting inflation, that is its historical price, going back hundreds of years.

You could make over fifty times your money. A modest thousand dollar investment could turn into fifty thousand. Twenty thousand could turn into a million. Simply if silver goes back to its historical price, the price it's been for centuries without manipulations.

No time limits or expiration dates. No risk beyond your initial investment. You can sit on these trades till the cows come home, without margin calls of any kind.

You simply buy the special inverse ETFs I recommend....using our layering technique... and then wait for the second great silver manipulation to come to its inevitable end. When it does, you could make a potential killing.

My invitation:

Join me in making a fortune from this silver manipulation

(just like I did from the Bunker Hunt manipulation)

This is no exaggeration. Silver soared from $5 to over $30 in just a few years. With zero inflation. In the biggest business/economic slowdown since the great depression. Without any increase in demand, and with supplies rising, not falling.

How the h-ll does that happen?

And now that they've pulled off the 2nd biggest manipulation in silver history -– now that they have gotten every sucker into the market -– what is their encore? How do they drive prices even further into the stratosphere?

All I can say is look out below.

These bubbles are only weeks away from bursting.

This is your second chance to make a killing off Wall Street's lies

I can sum up my trading experiences of over 20 years, in six simple words:

The masses always buy the top.

You saw this in housing. People went hysterical, paying $500,000 for homes worth $50,000. Now millions of former homeowners have gone bankrupt. With foreclosures hitting new record highs, millions more will soon join them.

You saw the same thing in dot.com mania. The masses were convinced they could buy struggling Internet companies -– that owed billions of dollars and never made a dime -– and somehow retire as millionaires.

You've seen the same thing in oil, over and over again. The Big Boys use phony energy crises, to rig prices ten or fifteen times their true market value.

You're seeing it now in the commodities and precious metals markets.

The smart money bought silver at $5, $6, $7 an ounce. They didn't touch the stuff at $20, 25 and $30. Tell me. Who in their right minds buys a market that has just gone up by 200%...400%...600% and more? That's when you SELL, not buy!

To pull off their scams, bubble markets must have one main ingredient. Hysteria. The masses must buy into the lies of the market manipulators.

I have spent a lifetime looking for these markets. Markets where the hype has lured in the suckers. Where, thanks to extraordinary spin, people think white is black. Where they think up is down.

Then -- when the time is right, and I have the right trading instruments on my side -- I sell against the insanity.

I listen as everyone tells me I'm crazy. Every day I hear how wrong I am. The conventional wisdom lines up, dead set against me.

So I wait. I sit there calmly, analyzing the market, knowing the herd mentality always ends in disaster.

Sooner or later, the day comes when I'm vindicated. The heavens open up. Down comes the money shoot, pouring cash into my bag. It's a sight to behold.

The present silver market is just such an event.

Is the 600% rally in silver justified? No. In fact, h-ll no.

I sure don't see 600% inflation. Just the opposite. Inflation is the lowest in modern history.

I don't see a 600% decrease in silver supplies. Again just the opposite. Supplies are soaring.

I don't see a 600% rise in demand. Demand is falling.

I'll tell you what I do see. I see a 600% increase in amateur buying. A 600% increase in the herd mentality, driven by desperate people who have been brainwashed by the incredible lies of Wall Street.

Most important: I see a chance for you to make a lot more than 600% on your money, when the inevitable wipeout occurs.

Where were the Wall Street a$sh-les when silver was $5 an ounce? Why didn't they tell you to buy then?

Only now, with the price over $30+, are they telling the masses silver is a must-own investment.

Two things amaze me. $35 an ounce silver... and that anyone is naïve enough to buy it.

We should be happy this is happening. Thank God they can whip the masses into a frenzy, and create these bubbles. If they didn't -– if the masses didn't buy into the b.s. -- I would have to work for a living. And the only job I'm qualified for is dishwasher.

I can tell you for a fact that dishwashers don't live on exotic islands. They don't have yachts. They don't live the life of dreams.

I can also tell you that people who have mastered the art of selling bubbles... who have the strength of their conviction, and the patience to wait out the insanity... certainly DO live the life of their dreams.

So the choice is yours. Chase these silly-a$s bubbles with the masses. Lose your a$s when the bubbles burst, as they all do.

Or learn how to sell the sh-t out of bubbles. Wait for the cruel hard taskmaster of reality to return. Make a killing when it does.

The choice is yours my friend.

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$~ SILVER & GOLD BUBBLE TO BURST --

OPPORTUNITY OF A LIFETIME

The 2nd Bunker Hunt 'Manipulated' Silver Bubble Ready to Crash?

original body post

March 7, 2011

Posted By:

David Holt