Saturday, 21 May 2011

Peter Schiff - Warning NIA Penny Stock Pump & Dump

Schiff Report Video Blog May 20th 2011:

NIA touts penny stock Mega Precious Metals based solely on its "inferred" 1.2 million ounces of gold. However, NIA knows that "inferred" resources are practically meaningless. More important, they also know that their members, not being sophisticated gold investors, have no clue what "inferred" means and they exploit that ignorance to create a false impression of value. Mega Precious Metals is Mega B.S. DO NOT BUY ANY STOCKS TOUTED BY NIA

Note: NIA responded to this video by raising a straw man. They claimed they did not "pump and dump" the stock since they did not personally sell any shares. However I never accused them of that. I alleged that a third party paid them to pump up the stock so the third party could sell their shares. The fact that they never addressed this allegation is pretty compelling evidence that it's true.

In fact, by including a disclosure that NIA did not own any shares in their original pump and dump email, they deliberately created the false impression that there was no conflict of interest behind their analysis. However, this is certainly not true if they neglected to disclose that a third party looking to dump their shares paid them to send out the email.

They also claimed that they warned their members that Mega's gold ounces were merely "inferred." That is my point --they did not warn them!. They did not define "inferred", and they counted on the fact that their members would wrongfully assume that "inferred" meant they actually had gold. That is why they fraudulently calculated the value of their "inferred" ounces based on today's gold price.

They also included a list of legitimate gold recommendation. But they only make those "suggestions" to lay the foundation for future pump and dump schemes, as NIA members cannot differentiate between their legitimate recommendations and their paid promotions.

In addition, they accused me of running a failing brokerage firm that will soon be out of business despite the fact that my business has never been better. We have more clients, more assets, more revenue, and more profits than ever. We also generally charge much lower commissions than what they claim.

Crash Proof 2.0: How to Profit From the Economic Collapse

Like this post? Subscribe to our free gold and silver newsletter