With Gold & Silver, Why Does the General Population Consistently Get the “Buy Low, Sell High” Mantra Backwards?

smartknowledgeu's picture

To successfully keep your head above water during this economic crisis, it is not an option, but a necessity to convert your fiat digital currency into something tangible and real like physical gold and physical silver. To be successful in this game, one must understand the paradigm in which these two precious metals operate. The reasons why interest is so incredibly low in buying gold and silver among the general masses when they are screaming bargains, and why the general populace’s interest in PMs only perk up after prices have moved much higher, or worse yet, never at all, is a testament to the disinformation campaign waged by the bankers against the people. Many among the general populace still fail to understand that when banksters create fraudulent futures markets backed by a woefully small percent of physical metals to control paper prices of gold and silver, the dynamics of this fake market vastly differ from the dynamics of the tangible real physical gold and silver market. Furthermore, and more importantly, the general masses fail to realize that the negative perception of gold and silver prices the banksters create through their false paper markets will ultimately fail when confronted by the reality of tighter and tighter physical supplies of gold and silver. People often make critical mistakes when buying gold and silver because they do not take the time to learn the bankster-manipulated paradigm in which both of these PM operate. Thus they enter the game blindly, merely following the advice of talking head puppets on television, engaging in the absolute worst form of decision-making possible.


The general populace misinterprets volatile short-term corrections as confirmation that banker trolls calling for a gold and silver bubble popping were correct, even though long-term charts below demonstrate no evidence of a bubble. Gold and silver bubbles will form in the future due to the deliberate Central Banker campaign to destroy fiat currency valuations, but we are not remotely close to either a bubble in gold or silver yet. However, a complete collapse of the Euro, the USD, or some currently bankrupt international bank that is fudging its balance sheet, could definitely condense the timeframe to a gold and silver bubble. Today, banksters continue to steer their misinformed clients away from gold and silver and into stock markets even though stock markets have woefully underperformed gold and silver for the past 12 years. Furthermore, most gold and silver bugs that truly understand bankster manipulation games have been analyzing gold/silver behavior for nearly a decade or longer. Thus, though the media has a proclivity to paint gold and silver bugs as the perpetual cheerleaders that one so easily finds at commercial investment firms in the form of financial “advisers”, this simply is inaccurate.


The majority of true gold and silver bugs are intelligent enough to understand that gold and silver will exhibit high volatility every year due to the bankster manipulation of paper markets and further understand that volatile markets must be assessed to identify low-risk, high-reward entry points to mitigate the risk of artificial volatility in gold and silver prices as well as gold and silver mining shares. Yet, though very few gold bugs or silver bugs ever advocate the bogus commercial investment industry strategy of “buy and hold for 10 years” in regard to Precious Metal (PM) mining stocks, many in the banking industry falsely attempt to create a perception that gold and silver bugs state that anytime, all time, every hour, every day, every year, is a good time to buy all gold and silver assets. Obviously as you can see below, from the performance of the SmartKnowledgeU Crisis Investment Opportunities newsletter as compared to the XAU Philadelphia Gold & Silver Index, for the past five years, we have strategically opted to exit the gold and silver market at times, and despite an admittedly off-year last year in 2011, we have still outperformed the XAU by 140.51% (in a tax-deferred account), a feat that would literally have been impossible if we constantly stated that gold and silver were a buy 24/7 for 365 days as the media tends to misleadingly and duplicitously portray all gold and silver bugs.

It is important to realize that the banking propaganda machine controls its clients into making poor decisions about gold and silver through two mechanisms:


Creating artificial short-term volatility that is specifically designed to further the lie that gold and silver are risky to prevent people from buying them; and

Creating false perceptions about “gold and silver bugs” as irrational people when in fact, it is only the commercial investment industry that sells the kool-aid laden strategies of diversification and buy and hold, to their clients.


For example, I will use one of my own articles that I wrote before market open on May 17, 2012, Fear & Panic are the Banking Cartel’s Weapons V. the Gold & Silver Bull, to illustrate my point. In this article, I wrote, “For the record, I believe that we are much closer to the bottom of this gold and silver correction right now than we are to a repeat of the [2008 gold and silver crash].” In the charts below, I have marked the May 17th date for the HUI gold bugs mining index, and for gold and silver prices.






Note that with gold and with gold mining stocks, as of today, May 17th still marks the very bottom of these two asset classes. Silver actually headed slightly lower than its opening price in the days that followed, but still, its May 17th price was very, very close to its bottom for this current correction as well. Note that since then, all three charts have been very volatile, moving significantly higher, significantly lower, and significantly higher again. Banksters have used this volatility to reinforce the false perception that gold and silver are risky to prevent more people from buying gold and silver assets. On an anecdotal level, banking industry trolls used the volatility that bankers deliberately create in gold and silver futures market to often falsely attack the calls of those that maintain that gold and silver's uptrend is still very much intact during periods of weakness. Again, as the purpose of trolls is to prevent the masses from learning the truth about how their manipulated financial world really works, they have a tendency to never stick to facts and to always misrepresent the statements of sound money advocates to distort our message. For example, if you read the article I posted on May 17, 2012, which is easy enough to do since it is posted on my blog, you will note that I stated my strong belief that “a major bottom [was] imminent” in gold and silver prices. This is a very different declaration than stating that a rapid rise in gold and silver assets is imminent.


Bottoms in PMs can and do linger, and the fact that we have yet to fall below the May 17, 2012 levels for gold and gold mining shares and never significantly violated the May 17, 2012 levels for silver and silver mining shares means that this bottom is still holding up. Interim volatility, no matter how massive it may be, does not invalidate the comments I made on May 17, 2012. Yet, banking industry trolls used the subsequent volatility that arose after May 17th to attempt to discredit my May 17th call and the calls of anyone else that stated the gold and silver bull were still intact by trying to use the volatility to induce fear of an "impending collapse in gold and silver prices". Now, if gold and silver assets reverse in price, crash through the May 17th lows and head much lower, then, and only then, will I be happy to admit being wrong with my May 17 calls. Though I have ignored all comments from banking trolls in the past, I have somewhat changed my mind about ignoring trolls. The reason I have chosen to discuss these points today is because I am increasingly realizing how important it is for everyone to understand how bankers use the very volatility that they inject into paper gold and paper silver markets to falsely discredit the people that try to expose the truth of their artificially managed markets and to also cause indecision and paralysis in people's decision-making processes by injecting them with excessive, irrational fear about gold and silver (as you will see below, banksters themselves, for their own internal uses, are defining gold as an asset risk-weighted at 0%!). On the flip side of the volatility equation are the US stock markets. Bankers remove volatility from the US stock market (the VIX is currently at 5-year lows) to lull investors into a false sense of complacency that everything is fine in the broad stock markets when in fact, it is fragile as it has ever been at the present time.


Returning to my point about banksters using artificial volatility in gold and silver to buttress their anti-gold, anti-silver campaign, look at a recent sampling of comments by financial “journalists” about gold and silver thus far in 2012.


The Financial Times reports that “investors are losing their enthusiasm for gold as signs of improvement in the U.S. economy tempt them away from the traditional haven.” And if it’s made the financial press, you know the bubble has really started to deflate in earnest. – J. Patrick Coolican, Las Vegas Sun, March 24, 2012.

Yoni Jacobs, author of Gold Bubble: Profiting from Gold’s Impending Collapse, believes [ ]one thing: “a gold bubble has formed and will collapse very soon.”

James Paulsen, chief investment strategist at Wells Capital Management, writes, “[gold] is an investment which today seems far too popular among the masses, appears extremely overvalued relative to most other asset classes and faces a challenging environment should economic confidence slowly improve in the next several years.”

“Gold is now behaving like a risky asset,” said Capital Economics chief global economist Julian Jessop in a research note.


The above statements are replete with misinformation, yet no one in the financial media ever points out the blatant lies that can be quickly and thoroughly debunked. For example, James Paulsen says gold is “far too popular among the masses.” However, as of February 2012, the amount of money invested in gold still represented less than 1% of the total aggregate value of global investments (stocks, bonds, money markets). Thus, if James Paulsen’s statement is to be accurate, then the university he attended must have taught him that a less than 1% market share qualifies as “popular”. Secondly, regarding economists Julian Jessop’s statement that gold is “behaving like a risky asset”, again his statement piggy-backs off the bankster created “volatility equals risk” myth that they have employed to perfection in the gold and silver markets to prevent the general populace from buying when prices are low and on sale. Again, just look at the 12-year charts of gold and silver below to understand that volatility does not equal risk as long as one manages the volatility properly by taking the time to understand how and why bankers manipulate and suppress gold and silver prices.




Furthermore, according to the banksters themselves, gold will soon be re-categorized as one of the safest assets in the world as a Tier One asset. The Bank for International Settlements (BIS), noted the following recently, in footnote 32, in its April 2012 progress report:

“At national discretion, gold bullion held in own vaults or on an allocated basis to the extent backed by bullion liabilities can be treated as cash and therefore risk-weighted at 0%.

However, according to the banking propaganda mass media machine, an asset risk-weighted at 0% still fits the definition of “risky” asset.


Earlier this month, India’s Finance Minster P. Chidambaram stated, “there is a need to spread financial literacy to encourage people to invest in market instruments and not bullion”. Of course, as an agent of the state, Chidambaram is spewing rubbish, as one can see from the below chart of the Bombay Stock Exchange priced in gold, the utter failure of those that have taken Chidambaram’s advice for the past four years.




Just because bankers create volatility in PM markets to make gold and silver prices appear to be weak, this does not mean that these markets ARE weak. We are literally just witnessing the banker perception management game. China is a perfect example of a country that recognizes what the general populace does not. In 2009, they stated that they doubled their gold reserves and admitted lying about their gold purchases for six years. Even back then, I informed my clients that I believed that the doubling of gold reserves was a lie and an underestimation of their true gold reserve levels. It's odd to me how everyone believed China's declaration back in 2009. China lied for six years, then informed the whole world they lied, yet I did not see one journalist back then question the possibility that this "official" figure could have been a lie as well. Since then, China has all too willingly participated in the manipulation game as well to serve its own national interests. In late 2009, when the price of gold hovered at $1,200 a troy ounce, Deputy Governor Hu Xiaolian of the Bank of China hinted that gold may be a bubble and stated, "China will not continue to buy gold in an indiscriminate manner”. Given that we have just discovered that China has imported 383 tonnes of gold in 2012 year-to-date at prices considerably higher than $1,200 a troy ounce, we discover that China is not exempt from releasing propaganda to serve their purposes as well.


In conclusion, it is quite easy to debunk the propaganda of counterfeit fiat currency advocates that wish to financially enslave the people and prove up the logic of sound money physical gold & physical silver advocates. Yet, propaganda is all too often accepted as truth and facts are ignored by the people. As long as one understands the paradigm that has been created by banksters in gold and silver in which perception does NOT equate to reality, one will continue to take advantage of significant pullbacks in gold and silver markets to buy both of these PMs at low prices and eventually sell much higher. However, for those that fail to distinguish between the bankster-created artificial price suppression mechanisms of gold and silver versus the real determinants of future gold/silver prices, they will continue to make wrong, potentially fatal choices. No one for sure can determine exactly when gold and silver will take off to the races, as when they break through current resistance levels, they may slowly creep past current resistance levels and then take off, or they may smash through resistance levels very quickly. The one thing I can guarantee, however, is that when gold and silver finally make new highs, and they will, some of the ferocious moves higher are absolutely going to stun a lot of people as most of the general population never takes the time to understand the bankster gold and silver manipulation game and therefore never recognize the true dynamics of the physical gold and physical silver markets that are never reported by the bankers and rarely reported by the mass media.


About the author: JS Kim is the Managing Director of SmartKnowledgeU, an independent research and consulting firm with a focus on gold and silver, that is dedicated to helping re-introduce freedom to the world through the abolition of Central Banking and unsound fiat currencies, and the reintroduction of sound money.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
silverserfer's picture

I think sanovabitch is million dollar bouns's cousin from  New Jersey. He the real deal though not  the perma sarc-on type. He's a natural clown-troll . I thiink this is kinda special. Its not every day you see a mythical creature like this on zerohedge.   

_underscore's picture

Yes, agree. I thoroughly enjoyed MDB, and I think SanOvaBeach is doing a fine job too - perhaps just  bit too much ad hominem & cursing for my total approval though - overall, good start, keep it up!

LightWalker's picture

Talking about Bitcoin,I see it as the only commodity that has true mark to maket value,supply and demand.The value of Bitcoin going up is because people who understand Bitcoin see it as an investment with value,not the fiat ponzi crap they've been shoving down our throats for 100 years,which now is about to fail.They do have value in creating them,my computers running 24/7 are work,my maintinence and electric,heat in the winter.And you can by silver and gold directly with Bitcoins,check out my stack!!!Now thats value.

Zero Govt's picture

"Why Does the General Population Consistently Get the “Buy Low, Sell High” Mantra Backwards?"

probably listening to Turd Ferguson, James Turk and the shills at King World News

when they're at peak hysteria to "buy, buy, buy" it's usually only days/weeks from the metals prices falling through the floor ..or flourrr, fluwwrrr, as Eric King says


billsykes's picture

As much as I like pm's, have physical sometimes buy financial. Silver, chart wise has been down since May 2011, a year and a half.
So really not much going on- I got in at 26.50 in Dec 2011, but I am not real impressed.

Its just one of those things you allocate- 10-15% of your net into, but not really expecting to make a return on, especially if you are watching it. In the widely known silver manipulated market it takes guts to trade often.

One stroke of the government pen and all this stuff is state owned again, that's something to consider.

I am considering buying copper and platinum.



jimmyjames's picture

Silver, chart wise has been down since May 2011, a year and a half.
So really not much going on- I got in at 26.50 in Dec 2011, but I am not real impressed.



Kasperfx's picture

"One stroke of the government pen and all this stuff is state owned again, that's something to consider.'


that's another good reason to buy physical.... if the gov does  take those steps,  it would open up all the gold, silver backed funds to forfeiture! "Poof and it's Gone" !

billsykes's picture

Then if you trade this-  you get busted- lose your PM's get a  crim record- low employment prospects, loose passport (possibly), and make a great excuse for the govt to rehab you in a FEMA camp.  Don't think you will get busted in a "new society" (everyone becomes rats in a controlled country). 

This isn't like when Egypt or Syria folds, power goes out everything goes amok, it would be full on UN troops, military contractors (think Katrina and blackwater), US troops, UAVs, helicopters,  swat teams, reserves- basically fucking everybody against the "domestic terrorists" and they would not give a fuck what the body count is and UN, contractors would not be accountable to anyone (think death squads). 

Defiantly not the romantic patriot movie with our friend Mel Gibson running around with an axe. It would have to be a thing that would happen where the army would want a coupe, against the UN, Canada, UK, and domestic police- I doubt a well trained civilian force could overtake a mid sized city police force and hold the ground, unless it is California where there are no cops(bankrupt city).

A government is about control, at any and all cost.


ItsDanger's picture

I LOL'd at this quote, “Gold is now behaving like a risky asset,” said Capital Economics.  If gold has been risky, what would he say about basically every other type of investment out there?  I would argue that exact opposite, it has been behaving like a conservative asset.

dmger14's picture

You don't understand, the dollar is backed by the federal reserve, while gold is backed by nothing!

savagegoose's picture

heres ad for new mintchip from canada mint




bye bye bit coin

SanOvaBeach's picture

Very interesting!  A most sincere thank you for sharing that.

onebir's picture

"To successfully keep your head above water during this economic crisis"

you need to give me large amounts of money for the privilege of my reading tendentious, self-referential and overlong missives.

JOYFUL's picture

Getting out of fiat and into metals is a necessary and logical step in preparing for the koming kollapse. But once yur in, there are a whole set of circumstances which need to be considered, including ones which I seldom see given adequate weight here...

the folks planning the forthcoming forfeiture event are not pre-disposed to there being any freemen left around afterwards. They have plans for pretty much everyone, and if yu think that pm bugs have been somehow left offa the list, yu are most certainly in what Nigel calls noddyland.

yu will not successfully stymie them by using the most commonly quoted strategies....repetition of the mantra out of my cold hard fingers, over my dead body, etc, etc....nor by jocular reference to boating mishaps, using safe deposit boxes, stashing it in the house or burying in the backyard[not much use if yu are residing in Kamp Fema-after pm "hoarders" are declared domestic terrorists!]nor, as has been pointed out here before, held in a foreign country in which yu are not resident.

Yu can only keep all thought and discussion about this vital element of the future on deep freeze for so long before the question of what to do becomes moot....because it's not gonna be much longer fore the Beagle Boys already have yur loot!...at which point it's not going to matter much whether gold is manipulated, under-priced, or through the roof. 

Articles like this one are good for review, but there is some severe underappreciation of what lies up ahead just around the next bend, for goldsters pre-registered to inclusion in the Euro-merikan prison zone!

SanOvaBeach's picture

My friends in Hollywood make a bunch of fiat USD's off doo-doo's like you when they produce all those end-of-the-world movies.  Keep it up moron.  I really dig crusing Sunset Strip in there Lambo's chasing tail when I'm in the States.

Geruda's picture

The many angries you are showing and the bad words you are telling to many peoples in the writings you are doingin many places below the words I am speaking now is showing you are not one of the happy peoples in the world.  There are being many peoples who say bad words to other peoples because their face is not showing who is saying the words they are speaking.  But faces are not the only thing that are showing the feeling inside of peoples.   You have bad feelings.

SanOvaBeach's picture

I'm really happy!  Just took another hit off the crack pipe.

SanOvaBeach's picture

Your english is kinda weak.  Do you have a license for this in your own country?

SubjectivObject's picture

Your conceit and contempt is a dead givaway to your corruption and cunning. 

Get your alfa mammalian on!

shovelhead's picture


The short bus makes stops at ZH now ?

SanOvaBeach's picture

Only if you have BitCoins...............

JOYFUL's picture

if yu keep using government property and stealing duty time to make a fool of yurself on the internet, yur TSA supervisor is going to come down real hard and make an example of yu....

yu have a grope quota to fill, and yur not going to get there jerkin around like this! Bit shy of a round coin I'd say.

SanOvaBeach's picture

Were having a bunch of fun here.  Besides selling these print-outs of the hot chicks that walk thru the x-ray machines on e-bay.  Were using TSA computers to mine BitCoins.

HardAssets's picture

The majority of people aren't 'Big Picture' or long term thinking types. They prefer dealing with the more immediate and what they consider as 'practical' and hands on. Many are 'rule followers' and 'leader followers', who do not think for themselves.  (BTW - helping to create such individuals is one of the prime purposes of mandatory public 'schooling'.) Combine this majority temperment factor, with the natural human tendency to avoid bad news, and the massive disinformation campaign - - and you get people who move too late, or not at all.

Very rarely will people ask me about the PMs, or even bring the subject up. I'll refer them to a few basic books to read. I stress the importance of buying whatever amount works for them on a regular monthly basis and then forgetting about it. Few gain the necessary basic knowledge and very few act on it. (You may be amazed at the number of adults who havent read a book on a serious subject since being forced to do so in high school or college. Another purpose of 'schooling' is to kill natural curiosity.)

It takes this foundation of knowledge to have the necessary intestinal fortitude in such a manipulated market as the PMs.

america4me2's picture

A question, if I may:  What is your opinion on SILVER CERTIFICATES reappearing as a viable tool to obtain silver as was the rule prior to the 1968 ban?  What prompts this is the resurgence of commentary on reinstuting the gold standard.  Thank you.

HardAssets's picture

IMO an instrument that is 100% backed by PMs and can be redeemed on demand is fine. Havent had that for a long time. I prefer the real thing for the PM portion of the portfolio.

One of the best books written on the subject of the gold standard is "Case for a 100% Gold Backed Dollar" by Murray Rothbard. It can be downloaded for free here:


His book "What Has the Govt Done to Our Money?" is also outstanding. Do a search at the website after downloading the above. 

 P.S. - - IMO people like Ellen Brown and Bill Still who promote a non debt based, non commodity based 'peoples money' are off the mark. They never answer who 'the people' controlling such a system will be. Whenever actions are taken in the name of 'the people' they usually end up being just a cover for the actions of a small, insider group - - for their personal advantage. This is a lesson found throughout history in many places.

SanOvaBeach's picture

I guess I'm one of those immediate-types!  I immediatly have to now take a shit...............

mrfreeman's picture

The trouble with gold now is that the Indian economy/rupee has deteriorated significantly in the last year or so, and has severely reduced demand over there.   And it doesn't look like improving any time soon.   So it is now up to the western investors/hedge funds etc. to fill in the gap.  If they start losing faith and bailing out of the GLD (due to no QE3/improving US economy etc.), then look out below.  I reckon there could be at least $300-$400 of downside in that situation.  This is what the banksters have been trying to make happen over the last year, with the smackdowns and media propagander.  Trouble is, if they succeed, then buying now means you are sitting on a 'loss', maybe for a long time. 

Also, I wonder if the new supply coming from the miners will be taken up by the investors?  Even if the GLD doesn't collapse and demand was flat, would gold still decline because of this extra supply coming along?  I am very curious about that. 

This is not 'trolling' to say this, it is highlighting a clear and present danger.  But it doesn't mean that gold and silver themselves are any less worth holding (I want to buy myself), it's just the stupid 'price' that people put on them.  And if a severe correction happens, it will mean the rupee price will be dragged down aswell, which will stoke demand again in India!  So we could then be back to square one like a few years ago, with the bull market resuming again.  Lol.  There are so many possibilities with all this, it does your head in.

silverserfer's picture

it doesnt sound like youre trolling, but rather you decided to take the blue pill when asked. Bankers still have you  by the balls. Youre not man enough to buy physical thats ok. Just keep waiting and waiting.

HardAssets's picture

Many of us welcome strong and logical counter-arguments to our positions. It tests our assumptions and thinking. It may shine a light into our blind spots.

It is a real battle to try to look at things without 'defending' a previously taken position.

Personally,  I find the case for PMs to have stood up against the counter arguments I've studied, so far.

dmger14's picture

Good point.  Many of the comments below detest the challenge, but I welcome comments like those made above because it gives PM investors things to consider that they wouldn't necessarily have come up with on their own.  I have a substantial position and am debating whether to buy more now or wait for a dip.  If I had no position, I would be going in now bigtime.

HardAssets's picture

One advantage of having a substantial position that you've been in for a long time . . is the ability to play a little waiting game while modestly stacking a little bit more each month.

EnslavethechildrenforBen's picture

Technically speaking, you're Trolling. Your "what if" scenario does not hold water.

What if Gold goes to $100,000.00 an ounce?

What then Troll?

fonzannoon's picture

It's not about gold it's about the dollar, and they are gonna kill the dollar.

silverserfer's picture

all fiats will go together when the dollar goes. it will be orchistrated and widespread.

SanOvaBeach's picture

That is a profound revalation!  Have you considered running for office?

SanOvaBeach's picture

I know all the arguments against the almighty USD and have physical AU.  But just to prove a point to a friend.  Went into the local McDonalds and ordered a Big Mac.  Threw down an American Gold Eagle.  Has $50 stamped on it!  The guy looked at me like I was trying to cheat him.  My friend bought it for me with his fiat USD's.

Geruda's picture

The words you are speaking is a hard story to be believing.   The hardest words to be believing is that you are having peoples who you can be calling a friend.   

SanOvaBeach's picture

What flavor do you poop out?  Finally, a pseudu-intellectual came crawling out of her box.

shovelhead's picture

No Bitcoins?

The clown doesn't take clownbux?

SanOvaBeach's picture

I'll ask him next time.........

HardAssets's picture

And the same guy who wouldnt take your GE, doesnt know why the cost of lunch at MickieDs has been going up so much over the last few years or the gas to drive there for work. (If he can afford a car.)

SanOvaBeach's picture

What flavor do you poop out?

akak's picture

I poop SanOvaBeach Swirl, myself.

Your trolling here has become most tiresome.

SanOvaBeach's picture

By the way, I have a patent on that name (SanOvaBeach Swirl).  If you use that name to market anything, I'll have to turn the matter over to my legal department.  I am looking for people to test market this brand.  I made some in my loo yesterday.  Can I send you a case and you can give a bunch to your friends and they can tell me how they like the taste?

ammo42's picture

A patent isn't a trademark you fucking moron.

SanOvaBeach's picture

Then turn off your computer you stupid fuck!