Peter Schiff Lays Waste To NIA Pump and Dump Scam

Peter Schiff is one of my top 5 guys that I listen to. He was so far ahead of the curve, that I remember when people would openly laugh at him on Fox News. He predicted the collapse of the housing bubble and was very instrumental in me getting out on top back in 2005. I have not been following him much lately since I am working on my own message now, but I listened to him last night with this YouTube clip and I must admit he still has it going on.

I have not had much interest in the National Inflation Association or NIA. I saw that they were putting out a decent message but I could never understand why these guys would be pushing paper products if they were worried about inflation. I realize that Stansberry and other brokers like Peter Schiff push paper products, because that is what they do. Why did NIA do this? They weren’t brokers or had a horse in this race, right? Well after watching this video from Peter Schiff I now see why.

He is accusing NIA of a pump and dump scam were they potentially own a lot of a penny stock and then allegedly pump or promote the stock to get people to buy this stock. In fact this is very common and rarely prosecuted ploy of a lot of financial writers. You will hear some guys writing about these tiny little companies that no one has ever heard of, and write about how cheap they are. They never give you the whole picture, only the rosiest of forecasts, and they never say that they own a bunch of these shares that they are hoping to sucker you into. The worst part is that they warn you about the dangers of inflation, and then sell you another paper asset. This pump and dump is just another trick these paper pushers use in their casino and is probably much more common than the naked short. These games, are why I have made the decision to be 100% physical silver to take my chips out of the rigged casino and wait.

Peter warns people not to fall for this trick. He says that the NIA warns people about getting destroyed by inflation, but he goes on to say that who is going to stop people from getting destroyed by the NIA. LOL.

I saw a couple of weeks ago a lot of people promoting their College Conspiracy video. This video talked about the scourge of college debt and the value shift of even getting a diploma. I agree with this principle, but never watched the video. I wonder if they ever cut to the heart of the matter of our money system or simply blamed it on an education system gone wild? This video got a lot of people to trust the NIA and sign up for their emails. Peter believes that the only reason why they made this video is to get more people to pump and dump this stock to. He says that it was only three days after the video came out that they pushed this penny stock on to the list.

The stock that they are pumping is a cheesy named company called Mega Precious Metals. This company is a gold exploration business. This is the equivalent on investing money in a guy with a shovel next to a hole. They have no assets and only have the hope of finding gold. The email that the NIA put out talks about how the market is valuing the “inferred gold” (guesstimate gold) at only $14 an ounce and that gold is now $1,500 an ounce, making this stock seem so cheap. The reality is that this company may not have ANY gold and could go broke before they actually get an ounce out of the ground and that is why it is so cheap.

Inferred Resources is the lowest category or resources mining companies use and is an awful way of judging value of a stock.

  1. Proved Reserve An ore estimate that has been based, after application of mining recovery and dilution factors, on an in situ identified resource which has been categorised as “measured”.
  2. Probable Reserve An ore estimate that has been based, after application of mining recovery and dilution factors, on an identified resource which has been categorized as “indicated”.
  3. Measured Resource A mineralized zone intersected and tested by drill holes, underground openings, or other sampling procedures at locations which are spaced closely enough to confirm continuity and where geo-scientific data are reliably known.
  4. Indicated Resource A resource sampled by drill holes, underground openings, or other sampling procedures at locations too widely spaced to ensure continuity but close enough to give a reasonable indication of continuity and where geo-scientific data are known with a reasonable level of reliability.
  5. Inferred Resource– An estimate, inferred from geo-scientific evidence, drill holes, underground openings or other sampling procedures, and before testing and sampling information is sufficient to allow a more reliable and systematic estimation.

Before the email went out the stock was only trading at 40,000 shares a day at a 52 week low. The day after the email came out the stock shot up on 1.5 million share volume from 36¢ to 50¢ in one day. That is a heck of one day performance. We know who bought the shares, it is the poor people who listened to the NIA. The REAL question, is who sold?!

NIA tries to hide behind by some disclaimers, but Peter says that will ring hollow if they are found guilty of fraud. He says simply by the way that they chose their words very carefully, makes it seem that there must be some connection. Seriously, why wouldn’t these guys be writing follow up articles on the College Conspiracy to bring more attention to a worthy debate? No let’s pump a stock no one has heard about, yeah that makes sense. I recommend you at the very least unsubscribe from their emails. If you want to rattle their cage, ask them to respond to Peter and disclose their interest in this stock. Ask them if they were paid to write this piece. Or maybe ask them who do they know that owns the stock? The big story is that this is just one more reason why you need to get your money out of the paper casino.In a hyperinflation all paper assets will become worthless to REAL tangible assets and those that are dancing with the paper devil will get burned.

Disclaimer: Silver Shield is fully invested in physical silver and believes that paper pushers are laughing at all who play in their casino. Starve the beast.

Update:

For another perspective on the story go to:http://politicalmetals.com/2011/05/23/the-nia-friend-or-foe-the-schiff-vs-nia-debate/

George attacks Peter and does not address the issues Peter brings up. This reminds me of the kid trying to get out of being caught with his hand in the cookie jar.

Update:

Peter goes point for point and further buries NIA. I say Peter wins this hands down.

 

Update:

Here is the email in question…
NIA’s brand new documentary ‘College Conspiracy’ has just surpassed 500,000 views in 10 days, our fastest video ever to 500,000 views! We are very proud that NIA has signed more new members during the past two weeks than in any two week period in history!

After dipping to $0.42 on Tuesday, NIA’s latest stock suggestion Mega Precious Metals (TSX Venture: MGP) was up 11% on Wednesday to $0.465. The Chairman of MGP is Ewan S. Downie, who is also the President and CEO of Premier Gold Mines (TSX: PG), a stock that has risen from a low of $1 in 2008 to a high of $8 this year for a gain of 700%. PG now trades with a $650 million market cap vs. MGP’s market cap of only $34.5 million.

He was also formerly the CEO of Wolfden Resources, which was acquired in 2007 by Zinifex for $361 million, a gain of 1,500% from the company’s IPO price!

NIA is highly confident that MGP has the potential to become a very big winner similar to PG over the upcoming months and years. We suggested MGP the other day at $0.37 when it was at almost an exact nine month bottom. In February, MGP raised $11.5 million in a private placement at $0.80. In our opinion, MGP could see very little resistance up to $0.80.

Remember, MGP has an inferred resource base of 1,212,000 ounces of gold! If MGP is ever successful at turning its 1.2 million ounce inferred resource base into a proven reserve, the company could one day deserve to be trading for $500 per proven reserve ounce or more, giving the company a future potential valuation of $600 million similar to PG. Of course, it is impossible to predict whether or not MGP will be successful at turning its 1.2 million ounce inferred resource into a proven reserve.

MGP is trading for below book value! MGP had a book value at the end of the last quarter of $0.57 per share and that was before the company raised $11.5 million at $0.80 per share!

NIA has NOT been paid by MGP or any third-parties for our coverage of the company and we do NOT own any shares of MGP. NIA is in no way benefiting financially for suggesting MGP. We are only suggesting the company to help our members learn about a stock that we believe could become one of our biggest long-term gold winners in history. Anybody who says anything otherwise is lying because they are jealous of NIA’s success.

NIA is not an investment advisor. Please never make investment decisions based on anything we say. We never encourage our members to buy any stock or option. In fact, we strongly urge our members NOT to buy our stock and option suggestions. We are only suggesting companies for you to do your own research on so that you can make your own investment decisions.

Our Legal Disclaimer: http://inflation.us/legaldisclaimer.html

20 comments to Peter Schiff Lays Waste To NIA Pump and Dump Scam

  • CK

    That’s what I thought too when I first watched Schiff’s video blog. However, there’s always the other side of the story and I have put both sides together for readers to decide for themselves
    http://politicalmetals.com/2011/05/23/the-nia-friend-or-foe-the-schiff-vs-nia-debate/

  • Bradley

    Yes I heard both sides also. I like Peter Schiff but Wow. He really
    slammed the NIA and it disturbed me as I like the NIA also for the video’s
    they make. My gut tells me that the NIA is a sincere group. But when it comes
    to making money…well??? I will stick to my plan also though…no stocks for me. Thanks CK for putting up that link. People need to see both sides of this.

  • Bradley

    I had to write this note right away as I just listened to Peter
    responding to the NIA comments. Peter blasts back and makes a convincing argument here and maybe the NIA is not as caring about the American public as I thought. I know Lebed gets paid to pump stocks…he admits it in the small print. Lebed is a friend of the NIA President. Peter is a smart guy and I
    think he may be correct here. But I still like NIA video’s. And people…any penny stock is a super risk…all should know this. Peter’s response video needs to be watched. I wonder if this is going to become a verbal war.

  • Silver Shield

    I am glad both sides are here but I think any of these paper pushers are not being intellectually honest.

    First and foremost the entire game is rigged. Simply because we have a privately and foreign owned Central Bank that can manipulate money and interest shows that we do not have a free market.

    Secondly, the mob bosses on Wall St use HFT, naked shorting, insider trading, and a whole host of schemes to manipulate the markets.

    Mining companies will be taxed, regulated, or nationalized before they go through the roof.

    Simply having money in some stocks that will do relatively well does not mean that they will do REALLY well. The over all trend is towards tangible REAL assets not PAPER assets tied to REAL assets. Wonder why mining stocks did not follow the REAL metals this last time up?

    All of humanity will one day wake up from this fiat dream into a very REAL nightmare, where they are broke.

    What will be worse is that for many of you knew you should have done something and didn’t.

  • steve pritchard

    Chris,

    I actually have the NIA to thank for getting me into physical silver at $15.00. That being said, I do receive their news letter and often wondered about the stock suggestions (never invested). It is much like everything else, one must vet the information one receives and decide for themselves what to do. As you say, “question everything”. Great advice.

  • Rick

    I have profited both financially and with with peace of mind by acting on NIA’s suggestions, but I’ve never paid them a nickel. If anything, it is I who has taken advantage of NIA. So to hell with the complainers.

    • Silver Shield

      Peter isn’t complaining, he is possibly exposing a criminal fraud.

      Your attitude is equivalent to a JP Morgan banker saying I make money in a “free market” so to hell with the complainers….

      What if you lost money on their picks, would you be upset then?

      Our whole economy is a scam and people need to be warned.

      I have know young men that have made a ton of money on boiler room scams and they have seen jail time.
      That is a small victory to those that lost their life’s savings.

      In a bigger picture all of these paper pushers I feel are doing a great disservice to their readers by accurately pointing out the dangers of a dollar collapse, but leading them into paper assets as the answer.

      Just because the trades work now, does not mean they are the right answer when the music stops.

      I don’t mind if people speculate a little bit in the market so long as they have secured a large REAL asset position first. Just be prepared to lose it all in the rigged market and know that you are ultimately enabling those that seek to enslave you and your family.

      In a currency collapse, people will learn the very hard reality of counter party risk and the unique protection of REAL assets.

      I have no horse in this race, but I will question everything…

  • TexasFalcon

    Lebed got called to the carpet in the past by Fox Business:
    http://www.youtube.com/watch?v=qxmG5xVGBio
    He’s a damn shill. A fraud, a cheat, and a liar. Watch the video. Revelatory. From the mouths of babes…

  • rainmaker

    I followed Schiff for a long time as well and he has been pretty good barometer as an economist. Yes he is still selling his own paper, but thats what salesman do. The NIA guys are doing a pump and dump, but they disclose pretty well that they are and unless a complete dolt, how could someone not recognize they are pimping their own positions? (I do check out the website from time to time and their “The Day the Dollar Died” video is not too far off from Porters, albeit more entertaining.) Not much different from what UBS did with FNMA preferreds in 2008 or Enron or Leahman, but on different scale…..

    The stock market is a casino and a fixed one at that. Mom and Pop main street are the suckers and the banksters have fixed the game by buying off the government. NIA are small players pumping penny mining stocks and “selling” silver as the safe place (which is not an uncommon position). When I hear stories about the NIA and Ledbed it makes me wonder, “where is the really big swindle happening?”, because they are such small potatos.

    Moral of the story, stay out of the Casino.

  • James Woroble Jr

    Always mindful of a threat to his rulership of Hell, the Devil has yet to create someone so evil that they do not do something good on occasion.

  • I am a subscriber to BOTH the silver shield and NIA. I agree much more with Chris and his message (SS) than I ever will with the NIA. A few months back NIA sent me an Email saying they were going to release a penny stock ticker of a mining company, GUARANTEED to give you generational wealth tomorrow. All I had to do was click this link for more info.
    When I clicked the link THEY WANTED $1000.00 FOR THE INFORMATION!!!!!!!!!!!!!!
    I sent them a nasty Email thanking them for looking out for the “Little guy” and wishing them luck with their “Pump and Dump.”
    Amazingly they never responded to my Email!!!
    Most penny stock pumpers that I have seen give you the ticker symbol for free.
    Apparently they needed the money to buy more shares before starting their PUMP!!!

  • George

    Boy I wish I had not cleaned my email up. Had I not, I could post the letters. I am one of the folks who heard of NIA early on. I was involved with silver before their writing and so was aware of a company they recommended. I bought the option they mentioned as I had already played that stock on a swing or two. It had been beat up, and also had been written up by another newsletter I subscribe to. The result was that I did make nearly a net 200% gain ($300 to $850) on my flyer purchase. I thought I would give these guys a try. I was on-line when they announced another stock pick. That allowed me to be one of the first through the trading door, as I bought within minutes of the recommendation. It jumped with the volume of the additional buyers, generated from the earlier success. I rode it for a day or two and then let it go. I made a bit over 50% on that $500 and was glad I got out before it pulled back to just a bit over the original price point.

    I received an email stating that they had several recommendations to disclose to a special group of people who were making a “donation” of $1,000 to support the web site and research. You did not have to donate, but would not get first notification of the names without it. I bought in, thinking that if I covered my costs with a larger bet, I would be a happy camper.

    When the recommendations came out, I was away so I could not get in a that time. All four stocks were up significantly due to the major increase in volume. I did not chase the issues and over time, they all pulled back to between a 10+40% premium over the original price. Some are down even more now, but I no longer follow them.

    A bit later, another email came out stating that for a “donation” of $2,000, they had more recommendations coming out. I did not participate in this one as the first donation did not make me any money. I have seen this kind of stock touting before and you can make money IF……… you are one of the first in and first out. That tends to happen with companies that are highly speculative. Everyone rushes in, and then rushes out, leaving investors with a loss and a bad taste.

    I was fooled once and did not return to the table as I cannot risk the funds for the time needed to allow the companies to mature, thus causing the price to appreciate. I have other gambles I take with my funds.

    I still read some of what they share. Some of the information is good, but the pump and dump is not what I need. I wish the “stock promoter” part of NIA was not there. Then, I would be impressed with the message they are spreading.

  • RobertH

    divide and conquer.

  • Was wondering who are the other top 4 from your top 5 that you listen to. Peter, Max, Bob Chapman, Gerald and Jim Rogers are my top 5.

  • Cyrus

    Forgive my vernacular but “if it ain’t in your hand it ain’t shit. I have two gold mining claims in California. Neither has produced the first ounce of gold but the are registered as gold mining claims. Therefore, if I estimate what I think there ought to be on those claims, multiply by $1500/oz. then I could turn around and sell shares based upon what I think they “ought” to produce rathe than what has been produced over a 50 year period of time. Now I am a billionaire. How many shares do you guys want to buy? None, I hope you have that much sense.

  • I delight in, lead to I found just what I used to be looking for. You’ve ended my four day long hunt! God Bless you man. Have a great day. Bye

  • David

    While I trust Schiff on economics, I don’t trust anybody that promotes stocks. That applies to NIA and Peter.

  • […] NIA Pump and Dump? By Silver Shield, on September 17th, 2011 A few months ago Peter Schiff totally ripped apart NIA over their stock tips. Now it looks like they are at it […]

  • […] You can read about Peter Schiff tearing these guys apart about their business model here. […]

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