RSS FeedRSS

What’s right about gold and silver investment is exactly opposite from what is wrong with the stock market.

December 13, 2010 – What’s right about gold and silver investment is exactly opposite from what is wrong with the stock market. Individual investors are fed up with Wall Street insiders raking in the cash while their retirement dreams melt away. Now Paul B. Farrell with the Wall Street Journal’s Market Watch has taken the insiders to task calling stocks “Wall Street’s ultimate sucker bet.”

The majority of investors are already mistrustful of Wall Street and believe the market is rigged to favor insiders. That is going to get exponentially worse as insider trading investigations lead to prosecutions that could surpass “Enron and the SEC mutual-fund fraud suits combined.” Already the evidence is mounting.

Preliminary results of "Operation Broken Trust" draw a clear distinction between investors and traders. “Investors buy stocks in companies whose profits they expect to rise. The conventional wisdom says stock prices will follow profits up, but over the last two business cycles, that simply has not happened.” In fact, since 1998 profits have grown 29 times the rate of the S & P 500. Rather than flowing back to investors, profits are being gobbled up by insiders through hedge funds and a vast array of complex structures.

Meanwhile the gargantuan financial institutions that brought the economy to its knees in the first place are awash in profits. Commenting on how J.P. Morgan and Bank of America had no negative trading days in the whole third quarter, Peter Morici, the former chief economist at the International Trade Commission said “Unless you believe in perfection, something stinks . . . If someone is winning all the time, then someone else is losing. That’s the ordinary investor. Stocks have become a rigged game.”

Fortunately privately held gold and silver investments are out of the greedy clutch of Wall Street insiders.

Shannon King

Senior Staff Writer – GoldSilver.org

GS social media share img

Get Your Complementary Award Winning Guides Below

 Publish Real Money Magazine

 Publish Gold Investment Magazine

 Publish IRA 401K Kit Magazine

 Real Money Magazine