Special Silver Fraud Alert
A special alert to readers tonight to a story starting to bubble over all across the 'net. Seems that someone on Le Metropole Cafe (where the gold realists hang out) posted a fairly well-documented note that a large portion of what is sold as Sterling 92.5 fine jewelry in major retail stores throughout the U.S. are selling junk that is attracted by magnets. A check with the think tank confirms that "oh sure, this has been going on for a while ' and not only has this been going on for some time, but that so far, none of the silver-coated junk has been found in coins.
So here's their tip. Don't use a cheap refrigerator magnet, run out and get a good one at Radio Shack, or in the toy sections of some better stores. They actually suggested a magnet from a hard drive, but most of us aren't in a position to be able to rip apart a hard drive just because we need a $5 magnet in a hurry. Think tanks reports some gold has been discovered the same - plated with 4-5 mils of gold over a base metal. Not as prevalent in gold though and again, none found in any coins.
According to the 'tank, there are apparently 4-5 major manufacturers, mostly in South Asia (yes that would include India) where some of this was reportedly centered.
Please check all your recent silver purchases with a magnet and email us the results by clicking here george@ure.net . We will post your results as they come in.
More on point, the major U.S. retail chains (pun intended, for this crowd is not exactly gems in our book) are not especially worried about what shapes up as a billion dollar rip off. Want to make some fast cash? Be the first in your federal district court to file a class action lawsuit against the major stores that are involved. Just buy a heavy looking piece, keep the receipt, and see if it's attracted to a magnet. Sterling silver is made with copper - and last time with check our 40 year old copy of "Hildebrand's Inorganic Chemistry", the amount of magnetism in silver and copper was about the same as you'd find in piece of typing paper.
What you buy at the shopping mall should be inspected with a very high degree of skepticism - especially if it is marked 92.5 and looks heavy. Even thick chain should be tested, as the think tank reports all but the smallest stuff has been "stuffed" with cheap steel.
So now we may know one answer to the previous metals paradox: How can worldwide demand be met with insufficient physical metal? Repeat after me: The reason metal prices have not gone skyward - especially silver - is what could be pervasive worldwide fraud of a level rivaling the South Sea Bubble.
Watch Japan and overnight metals prices for clues before trading in the stock market in the morning. Nikkei is down more than 150 as I write - closing in on 9,000 - and I sense blood in the street tomorrow after the 4% melt and absence of buyers in the U.S. markets today. Don't be surprised if we sink under 8,000 tomorrow in the U.S. markets.
Developing hard... When I get some time to download off my work laptop, a great street level economics update from Phoenix from reader Allan "Counting the cars for Sale" Sleuth.. but this silver fraud - if widespread - has the potential to wreck markets. Think of the lawsuits against retails! It's a monster... |
