Beware the 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 PENNY 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.

The fact that NIA resorts to personal attacks against me, complete with false and completely unfounded accusations rather then addressing the merits of my claims provides further evidence that my suspicions are correct.

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[Rhamsody]

ok i'm confused. when i was alerted about MPM, the stock was .37. it jumped up to 1.03 and now its hovering around .74. this has been over a month and a half period. thats pretty good for a "scam".

[SchiffReport]

@Rhamsody The stock only rose because NIA members bought it. The stock closed Friday at 41 cents. That is the lowest price the shares have traded since NIA recommended it. At this price not a single person who bought this stock and still owns it is ahead. Some NIA members paid as high as 93 cents. My guess is that the average NIA member paid about 70 cents for his shares. Imagine how much lower the stock would fall if NIA issued a sell recommendation?

[SchiffReport]

@thetwentyteens I did not star in any of their documentaries. They simply copied videos of me and used them in their documentaries. They neither sought nor obtained my permission.

[Juankite08]

You can't trust anyone now a days smdh. 

[Brock79]

@ezra106 I was planning on putting 10k into this stock back in Dec when the stock was $10 a share. I could have possibly sold at its runs, and bought more shares, and kept buying back in... I would have accumulated 4000 shares of BVSN, which I could have sold last week for $152k.... I wish more than anything I would have taken NIA's recommendation.

[GoldRevolt]

I had no idea that NIA was involved in any of this; thanks for your video. Peter, you da man!

[dogfight156]

holy shit! excellent vid. it seems like a bit was cut off at the end though.

[MrCookiedMilk]

@Juankite08 You can always trust Peter Schiff and Ron Paul!

[ezra106]

they're at it again with the Romney vid!

look at the BVSN stockpick blurb on the NIA site, they basically admit the scam in the disclaimer!!

[AlcraineProductions]

my antenna went up when I saw that they wanted 100 bucks for pdf

[thetwentyteens]

@TWSceptic

You people took away my freedom of speech by having a comment I made censored. Then you talk about how libertarian you all are. You are the ones who should be ashamed of yourselves.

[TWSceptic]

@thetwentyteens You should be ashamed of yourself, accusing people like that without evidence. It's people like you who waste our time and resources. I hope one day you will experience the dangers of your own stupidity.