Studying Gold and Silver’s Past Gives Us a Glimpse of Where We’re Heading in the Future

smartknowledgeu's picture


The banking-government industrial complex has been pulling the wool over investors’ eyes for years when it comes to getting the masses to keep their savings tied up in ever rapidly devaluing fiat currencies instead of intelligently converting them into the only real money out there - physical gold and physical silver – that has no counterparty risk. Just note the massive 50% collapse of the Argentine peso in less than 5 years, the 40% collapse of the Venezuelan bolivar in one year, and the Ukranian hryvania’s collapse of more than 50% against gold just this year, and the fact that Ukranian banks are now limiting withdrawals to about $100 a day now.


Hard as it is to believe, and by now most people have forgotten this fact, but back in 2006, the bankers tried their hardest to sell the world on the notion that the gold bull was dead when gold had climbed to just $620 an ounce. Bankers attempted to misinform people by releasing a flood of anti-gold articles and banker predictions that gold had peaked and that it was going to crash to $250 to $300 an ounce later that year.

In reply to this banker disinformation campaign in 2006, I released a number of emphatic opinions that all the anti-gold propaganda was just that – propaganda – and I even called out the head commodity analysts at some global banks as I waged war against their disinformation campaigns. I believe we can learn a lot about the future of gold and silver today by taking a step back in time to re-visit the bankers' propaganda campaigns in 2006.


On 3 September, 2006, I released the article: "Gold’s Glitter is Genuine".


Here is a short excerpt from that article:

“In the past month, I’ve seen stories on MSNBC’s website about the demise of gold. I’ve read stories in major media about the demise of emerging markets. And this was literally just weeks after the major media was touting gold as the asset to buy and saying that if you weren’t in emerging markets you were missing out on great opportunity. Every day, the major media has bandwagon syndrome. Just look at some of the major financial websites online. Their headlines literally change in the course of a single hour, especially during the volatile global markets in mid-2006. I’ve seen headlines change from “Bulls lead recovery in stock markets” to “Bulls lose stomach, bears turn market sentiment downward” in literally an hour. No wonder the average investor is confused. Gold has bumped up to $620 an ounce since we invested at $570 an ounce, so are we patting ourselves on the back? Hardly. I know that gold is likely to see a steep correction before it goes higher, so if it pulls back all the way to $570 an ounce again, will we panic? No, because we’ve done our homework and understand exactly what drives the price of gold and why even short term, steep corrections won’t change our opinion of it.”


Just two weeks later, when the predictions I made in my September 3rd article came true and the global banks stepped up their anti-gold, anti-silver propaganda campaign, I released an article titled, “Has the Commodities Bubble Burst? No, No, No!” 


Below, is a short excerpt from that article:

Everywhere in the media, you have pundits saying that the commodities Bull Run is over – including even chief global economists of major investment firms like Steven Roach of Morgan Stanley. They’re all wrong. This is a case of everyone panicking from sharp corrections that no doubt have caused millions of people world wide some mental anguish and hand wringing. But not me. I’ve dug deep enough down into the rabbit hole to know that gold will rise much much higher in the future. In fact if you go back and read my earlier blogs and [free newsletters] you’ll see that when gold was at over $625 an ounce I said that gold was heading lower than $600 to test its June lows of $570 and possibly head lower. And I still think that we haven’t seen the end of the correction in gold. Yes, oil has slipped to below $60 a barrel but again, this doesn’t mean that oil is done either.”


The above 2006 article was very similar to the response I published on my blog at the end of last year in 2013 titled "All the Big Banks are Saying Gold Will Crash in 2014 But That's Now What Will Happen", which I published before gold and silver assets truly started to rise significantly higher again.


On 16 September, 2006 gold pulled back below $590, then pulled back slightly below $570 in early October 2006 just as I had predicted, then bottomed and rocketed to $800 over the next year. In 2010, I wrote about the increasingly diminishing returns of an institutional business education due to the massive propaganda that bankers spread in this system that is virtually useless in the real world.


In May of that year, I scripted, Delaying a College Education in this Environment is the Right Choice”.


In that article, I offered the following:

“Since college students are already likely to end up living back at home with their parents after they graduate as the job horizon will appear no better in four years than it is today (unless you believe the drivel of government officials and economists), why not spend that time immersed in self-education of how the financial and monetary systems really work? In the process, students will save their parents tens of thousands, or even hundreds of thousands of dollars, in tuition and save themselves the fate of being a sheep led to the slaughter by banking shills like Joseph Stiglitz, Paul Krugman and Jeffrey Sachs. Furthermore, students will be much better prepared to face the ongoing global economic crisis from not only a financial perspective but also from an educational perspective.”


I followed that opinion up with my article in October, 2010, “The Astounding Failure of the US Education System.”


I was ridiculed in 2006 for stating that gold would continue to rise much higher in price from $570 an ounce, even though it had already more than doubled in price in five years from $250 an ounce. Likewise, when I wrote these articles that stated that a college business education was a poor use of savings when job markets would be worse in 2014 than they were in 2010, I was ridiculed by all the financial “experts” that stated the banker-government industrial complex meme of recovering economies in 2010 and who stated that global economies would be flourishing in a few years. Well, here we are, four years later and according to the latest figures by the US Bureau of Labor Statistics, there are twice as many college graduates in minimum-wage jobs in the US as compared to just five years ago. Furthermore, more than half of all 18-24 year olds in the United States are now living at home with their parents due to the inability to secure a high enough paying job that allows them to move out of their parent’s home.


“Studying Gold and Silver’s Past Gives Us a Glimpse of Where We’re Heading in the Future”



So the next time gold and silver take a dip in price in the markets and bankers react by telling you to sell gold and silver, or a politician goes on TV to announce to you the strength of the "recovering economy", trust your history first over the mass media.



About the Author: JS Kim is the Managing Director of SmartKnowledgeU, an independent consulting & research firm that focuses on the best ways to buy gold and silver in preserving wealth.

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Tue, 03/04/2014 - 01:21 | 4505346 daedon
daedon's picture

Unfortunately there doesn't appear to be any difference in the price of physical gold and paper gold, and since "they" can print as much paper gold as they want combined with the gulibilty of the general public, they may be able to drag this game on for another 25 or 50 years.

Mon, 03/03/2014 - 13:19 | 4502135 KingdomKum
KingdomKum's picture

we few,  we happy few,  we band of silver holders  .  .  . 

Mon, 03/03/2014 - 15:06 | 4502725 strannick
strannick's picture

JS Kim has been providing quality analysis for a decade. He was the first I recall, to prove GLD was bunk. And yes A.K., he is still here and Noodles Nadler had thankfully disappeared into Santas land of unwanted toys.

Mon, 03/03/2014 - 12:45 | 4501936 akak
akak's picture

At least Jon Nadler has been finally shitcanned by Kitco, and is no longer a part of the Establishment's anti-gold propaganda campaign this time around.  Thank God for small favors.

Mon, 03/03/2014 - 12:40 | 4501915 AGAU
AGAU's picture

Every now and then I have a look at the MSM, saw this just now....

Lagarde: ECB must fight inflation with more stimulus


Mon, 03/03/2014 - 14:02 | 4502346 IPA
IPA's picture

A good book, "thinking fast and slow"( i am not trying to debate the theory of the book but it does have good insight into how people think) . If you can keep people from engaging their system 2 thought process, you can get the to believe anything. System 1 acts on intuition. If a person trusts the msm they do not engage system 2 to actually think about and determine if what is being said actually makes sense. 


Mon, 03/03/2014 - 12:03 | 4501691 sessinpo
sessinpo's picture

History back to 2006. That's deep. sarc

Mon, 03/03/2014 - 11:47 | 4501593 StopIt.Now
StopIt.Now's picture

It's ironic that I want the Dollar to fail so my silver I bought at $44 will regain it's real worth.

Banksters: Worse than any international drug, gambling, or prostitution organization by FAR.

Mon, 03/03/2014 - 16:12 | 4503114 headhunt
headhunt's picture

I feel your pain man, 44 is a long way off - unfortunately

Mon, 03/03/2014 - 12:05 | 4501706 GoldSilverDoc
GoldSilverDoc's picture

My question, for Mr. Kim, is.....

Why do you continually quote "prices" for gold and silver, in a fiat currency?  Seems fairly hypocritical to me.  If you are really consistent, and believe what you say, there should be only one "price", and that is the price of a dollar, in grams of gold.

Amazing how that will change your (and everybody ELSE'S) thinking with time. 

Quit quoting "gold prices".  There is no "price" of gold.  Gold is measured in weight or mass, not in quantity of fiat required to purchase it.  There are prices (denominated in REAL MONEY, i.e. gold) of pretty much everything else, including fiat dollars.  But confusing the issue continually obfuscates the reality behind the curtain.



Mon, 03/03/2014 - 11:28 | 4501477 joego1
joego1's picture

PM's don't care what humans think of them they just shine on like the stars they are made from.

Mon, 03/03/2014 - 10:57 | 4501285 RaceToTheBottom
RaceToTheBottom's picture

The war against the PM is the most important thing that the Central Banks have to deal with. 

It is even more important than Congress getting costs under countrol.  Congress and the FEDs have a symbiotic relationship, neither will hurt the other.

PMs are what the FED and therefore even Congress fear. 

PMs taking off would indicate that they can no longer spend into oblivion;  That economic growth would be governed not allowed into bubble, crash cycles designed to feed WS banksters

Mon, 03/03/2014 - 10:43 | 4501244 Sufiy
Sufiy's picture

Koos Jansen: Chinese Physical Gold Demand YTD 369t Up 51 % Y/Y 

 Koos Jansen continues his remarkable work reporting the real demand for Gold in China. According to his information this demand is on track for another record annualised so far and is up 51% on Y/Y basis. Geopolitical shift with the Ukraine situation will only add to this fire and ongoing Financial War will claim its victim US Dollar.

Mon, 03/03/2014 - 10:04 | 4501087 fijisailor
fijisailor's picture

Kim is right on the mark when it comes to MSM disinformation regarding the gold price.  If you want to be a winner in the gold market follow what Chinese housewives and Indian bride families are doing.  They will overwhelm the fraud.

Mon, 03/03/2014 - 12:35 | 4501889 Ban KKiller
Ban KKiller's picture

Failed economies ("money") are not strangers to India and China. The only reliable storage of wealth? Preaching to the choir!

PMs are safer than the current unit of exchange. The moms in China and India know...

Mon, 03/03/2014 - 09:28 | 4500945 freakscene
freakscene's picture

just like going to the grocery store bitchez. get yer bullion regularly  - even if its only small amounts each month

Mon, 03/03/2014 - 09:03 | 4500878 Agstacker
Agstacker's picture

I can't believe how cheap silver is right now, picking up more Canadian maples.

Mon, 03/03/2014 - 14:23 | 4502457 LawyerScum
LawyerScum's picture

definitely my favorite silver coin (if they would just remove the likeness of that hideous old royal twat it would be the perfect coin)

Mon, 03/03/2014 - 12:01 | 4501678 RaiZH
RaiZH's picture

I love the Canadian maples! Just ordered a few after reading your comment lol. 

The 20% tax here (UK), is a real pain though when buying phyz silver. 

Mon, 03/03/2014 - 11:19 | 4501428 joego1
joego1's picture

Me too! I think that theyare a better deal than eagles.

Mon, 03/03/2014 - 08:50 | 4500851 ms8172
ms8172's picture

CNBC downplays Gold because the only way they are all allowed to invest is in their 401K's.  You will see them crying on TV soon because equities will take them out not to mention inflation.

Mon, 03/03/2014 - 08:37 | 4500820 eddiebe
eddiebe's picture

Dollar is king, and there are hellfire missiles to prove it. Now watcha gonna do about it?

Mon, 03/03/2014 - 12:11 | 4501745 TheReplacement
TheReplacement's picture

I wonder how well you would do with that in Crimea right now.

Mon, 03/03/2014 - 10:51 | 4501284 savedeposit
savedeposit's picture

There are milions of small stackers of physical gold out there in the world who know what is long time value and what is not. Now watcha gonna do about it ?

Send milions of hell fire missiles to every stacker out there, not to mention every "central banks", "Royal", "bil- and milionaire" accumulating ?

Mon, 03/03/2014 - 10:12 | 4501115 easypoint
easypoint's picture

You are correct. The US dollar is backed by the force of the US military. If you do not accept the USD in payment for whatever it is corporate America wants from you, there will be hell to pay. That is not free market capitalism. It is not a free agreement to exchange goods and/or services for a freely negotiated price.

How long can this inequitable system remain in place? That largely depends on the world's acceptance of the USD as its reserve currency, which largely depends on how long the US military rank and file and middle management remain comfortable with their roll as the enforcement arm of the bankers.

Mon, 03/03/2014 - 10:50 | 4501278 Bindar Dundat
Bindar Dundat's picture

SO AS THE U.S. MILTARY FUNDING DROPS THE value of the U.S. dollar will too?  Me  thinks your  right on the button with that analysis.


Therefore  the value of gold will be inversely realted to the U.S. defence budget. 


Comments from the peanut gallery

Mon, 03/03/2014 - 08:15 | 4500779 sunnyside
sunnyside's picture

The article reads like iReggie wrote it.

Mon, 03/03/2014 - 07:50 | 4500753 Racer
Racer's picture

I wouldn't trust a bankster with the care of a dirty floor mop

Mon, 03/03/2014 - 08:35 | 4500812 philipat
philipat's picture

How about a nail gun??

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