LME steals Nickel in Broad Daylight!

Media too Dumb to Notice

Silver Stock Report

by Jason Hommel, June 7, 2007

An ominous development took place today that clearly shows how important it is to take physical delivery of your silver, in person, and store it in your own safe.

The LME declared that two people who own more than 25% of the remaining nickel at the LME must lend some of their nickel!  Imagine that!  “MUST LEND” sounds like a “forced theft” taking, to me!  If you store your stuff at another person’s place, they can just “up and declare” what you can, and cannot, do with it.  Can’t keep it, must lend it?  Truly astounding.  It’s almost as if those who own the nickel, don’t really own it, but rather, the LME owns it, if it is in “LME approved” warehouses.

Be astounded at the news headline, it reads as if it’s right out of a “Ripley’s Believe it or Not!” book.  The authors of the articles write as if they are totally clueless about the content of what they are saying.  (Maybe they are too close to the action, or even accomplices?)

Nickel tumbles after LME changes rules, Friday June 8

Nickel tumbles after LME changes rules

Nickel Falls to 10-Week Low After London Exchange Changes Rules 

I almost can’t believe that nickel investors let these institutional crooks get away with that.  It’s not a ‘rule change’, it’s theft!  They are actually stealing the nickel owned by wise investors who have wisely predicted the price rise, and wisely planned to hold nickel in advance.  So, it’s not enough for such wise investors to have to pay all the taxes on their capital gains that they will eventually pay, but they are forced to “dump” some nickel, too!  And in amounts they didn’t choose, at a time they didn’t choose, at a price they didn’t choose.  

And don’t write to me saying, “they are just borrowing, so it’s not stealing”.  Yeah?  Well, borrowing without asking is the exact same thing as stealing. (Don’t tell me your mama never taught you the difference!)  

LME nickel stores are down to 8,604 tonnes, and now anyone who owns more than 25% is declared to be a criminal, by the LME criminals?!

(25% of 8604 tonnes is 2151 tonnes x $42,900 per tonne = $92,277,900.)

So, it’s somehow a crime to be a businessman, and own more than $92 million worth of nickel?

So, it’s a crime now, to be wise enough to look at a chart of declining nickel inventories, and plan ahead for the future nickel demands of the world?

It’s a crime now, to be aware that increasing demands for hybrid cars such as the Toyota Prius, that use nickel for batteries, will need nickel, and to try to plan ahead for that?

They might as well try to put people in jail who own a Toyota Prius!  And maybe they will, if nobody protests.

And what will they come for next?  Your nickels?  Hold on to them if it’s worth your time, they are now worth about 8 cents each!

I can’t believe such rich men, who own more than $92 million worth of nickel, don’t do something about this, like hire hit men to kill the blatant thieves who “change the rules”.  I can’t believe that the LME wouldn’t think it mortally dangerous to try and steal from wealthy investors like this.  But then again, maybe I’m only entertaining such notions because I watched a James Bond film last night, where people were dying left and right over $100 million in the movie, “Casino Royal”.  Besides, it’s not men who own the nickel, it’s “companies”, and it’s always easier to justify theft from “companies” than from people, in the name of a “crisis”.

The last time the LME pulled a stunt like this in the nickel market was about a year ago.  The prior rule change only temporarily stopped the price rise at around $13/lb., but clearly, with nickel at $23/lb., that didn’t work.

The last time, they made a rule change where they imposed an arbitrary cap on the price rise, of 1% per day, on people who sold nickel short and didn’t have any nickel to deliver.  In other words, they disallowed bankruptcy to take place (those not delivering nickel were bankrupt), by a delay tactic that did not work.  They delayed higher prices, because the bankrupt nickel traders refused to pay higher prices to buy nickel to deliver nickel!  The delay in the rise of prices has caused a delay in investors funding nickel development, which has made the nickel problem even worse!  And now, they are reaping what they have sown:  a worse crisis.

This won’t work to help the nickel crisis, either.

The only thing that will help reduce the nickel crisis is investment in nickel mining.  Period.  Nothing else. 

The LME ought to be promoting my services (I can help them to identify good nickel mining investments), not stealing nickel from their own investors who trusted them!

Rule changes are actually a sign of desperation on the part of those people who bet wrongly, against the nickel rise.  It would not surprise me if the LME members themselves, who forced this rule change, were the foolish ones who shorted nickel.  But they don’t have to pay; they just take the nickel from others, through rule changes!

And, oh yes, the Feds are trying to shut down e-gold, too.  And why?  Because some account holders are engaged in crimes. 

If that’s the standard, then the Feds should shut down the LME, they are the ones engaged in crimes right now, we can read about the crime taking place right now in the headlines!  Who can’t see it once it’s been explained?

Again, do you see why you must take physical possession of the actual, real, physical, hard, heavy metal yourself?  And store it on your property, in your safe, guarded by yourself, with the combination to your safe safely stored in your own head?

Don’t ask me about this storage company, or that company, or if you can be lazy enough to trust this certificate program, or that bullion depository.  I don’t trust any of them, and neither should you.  Even if the company is trustworthy, it becomes a target, due to the concentration of so much precious metal in one place.

When men desire to pool their wealth in the same place as other men, that’s socialism, and a lack of responsibility!   That doesn’t work!  And I’m not going to promote it!

You want to protect your life?  Get a gun.  Protect your freedom?  Get a gun.  Protect your wealth?  Get a safe, a security system, dogs, and maybe also a shotgun.

Interestingly enough, our online database of mining stocks, shows that the most highly leveraged stocks that we know about (out of 193 stocks) are primarily the copper stocks and nickel stocks.  Signup to “look at my portfolio” to see my stocks, and get access to our ever-growing online database or encyclopedia of mining stocks.

And if you know one of the members of the LME, please forward this on to them.  You can contact the LME here: http://www.lme.co.uk/
Perhaps they can avoid theft, reprisals and bloodshed, by working to solve the problem through investment and productivity instead.

Whoever thought investing was a boring industry certainly never read the headlines with a critical eye.  Sound investing may well be simply the fine art of planning ahead and avoiding being robbed, by robbers who operate at all levels of society.

I have no positions in the nickel futures markets.  I hold physical silver, and many natural resource exploration and mining stocks in silver, gold, copper, zinc, nickel, cobalt, and other metals.