smartknowledgeu's blog

First, concentration does not equal risk though the commercial investment industry really wants all their clients to believe this rubbish concept. Second, corrections in gold and silver, though they are very frequently sold by the commercial investment industry as the “bursting of the precious metals bubble”, are just that – corrections, and additionally buying opportunities to accumulate more physical, when they happen. Not owning a single ounce of physical gold and physical silver in this environment is absolute insanity.

Those that are familiar with my writings about gold and silver for the last six years know that I have said gold was cheap at $500, $600, $700, $800, $1000 and $1,200 a troy ounce and know that I have said silver was cheap at $11, $12, $14, $16, $25, and $30 a troy ounce. Today, I will reiterate that gold is still cheap in the $1500 to $1600 range and that silver is still cheap in the $40 range because the largest movements in gold and silver prices as well as gold and silver mining stocks have still not happened and will materialize over the next four to five years.

The old Cold War USA-USSR nuclear arms race has been replaced by the East-West battle to accumulate physical gold and physical silver reserves. While Western Central Banks and their puppet bullion banks have distracted and goaded private citizens with the invention of fraudulent bogus paper gold and paper silver derivative products, they themselves have been diving headfirst into real physical precious metals.

Every Precious Metals investor knows about the typical summer doldrums that usually afflicts the Gold & Silver sector as summers are typically poor performance months. However, this summer we were hit with a steep downfall earlier than in most years in April and early May, so there is a distinct possibility that despite gold and silver mining stocks normally waiting until late August to put in a bottom, that the bottom may already be in.

The one characteristic that most investors fail to understand, by far, are the reasons behind the periodic volatility that afflicts gold and silver every year. Understand the deliberate banker price suppression schemes executed against mining stocks, and a completely different take on the asset class of mining stocks will emerge. You may just startlingly conclude that the “best in class” mining stocks are grossly undervalued and a great buy this summer season.

Here is an exclusive interview forwarded to me by German investigative journalist Lars Schall conducted with James G. Rickards. The interview with Mr. Rickards covers a variety of topics including his thoughts on quantitative easing, the currency wars of the past and the present, and central banks’ views towards gold.

Please find below my interview with Max Keiser and our discussion regarding the Greek crisis and continued banker price suppression and manipulation schemes executed against gold and silver to prop up the US dollar and prevent a US dollar collapse.

On May 11, from the previous close in New York, silver futures rose nearly +2.5% in Asia. Then, after New York opened on May 11, silver precipitously tumbled to a low of $34.87, more than an 11.4% drop from its high in Asia just a few hours prior. Look familiar? It should.

For those that think gold and silver bulls are perpetually long gold and silver no matter the present condition of the PM markets, that is a patently false notion. In regard to the recent steep silver correction, an asset that periodically has steep corrections every year (the majority of which are induced and engineered by corrupt bankers) does not a bubble bursting make.

Want to send the bankers a message and serve up the biggest nightmare possible to bankers? Use the massive dip that they thought would scare all silver holders out of their position as an opportunity to finally extract yourself from the awful possibility that silver and gold paper derivatives such as the SLV, GLD, and gold and silver futures contracts may crash in value in the future. Convert your PAPER silver into PHYSICAL silver now.

I expect the silver bears to proclaim this recent huge move as a "blow-off" top that marks the inevitable bursting of the silver bubble. My take? Let’s wait until silver reaches the mid-triple digit range before we realistically start talking about a silver bubble.

Let’s parlay the publicity given to the recent University of Texas endowment fund’s decision to convert all of their paper gold to physical gold into a campaign to convince large endowments/foundations all over the country to follow in their very wise footsteps. Here's how everyone can do their small part to break the banker shackles that have been imposed upon our financial freedom.

One should expect to consider political risk as a much greater part of the equation when investing in mining stocks in coming years. So where are the riskiest mining jurisdictions in the world and where are the safest?

Here are some excerpts from an interview forwarded to me by Mr. Lars Schall of chaostheoren.de with oil expert F. William Engdahl. Whether you agree or disagree with Mr. Engdahl’s theories, his insight always presents perspectives given almost zero coverage by the mainstream media. Much of the fraudulent and deceptive practices of big global banks that Mr. Engdahl discusses regarding the oil markets can be extended to other commodity markets such as gold and silver.

Though fundamentals may drive behavior in the long-term, fundamentals have had, at times, zero effect on the price discovery of assets in the short-term. At a time when everyone but the most naïve of the naïve understand how grossly distorted capital prices are both to the upside (in global stock markets) and to the downside (in gold and silver markets) due to massive manipulation schemes executed through collusive bullion-bank and government efforts, it makes zero sense to continue to put faith in technical analysis in a vacuum as well.