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