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Don’t Miss Out on One of the Best Investments of a Lifetime Due to Banker Propaganda
On July 25th, I provided a warning that gold and silver prices were NOT too expensive despite the propaganda of the commercial investment industry to the contrary, specifically for three reasons I outlined in the above linked article. We have just witnessed gold's price move higher by $98 an ounce and silver's price move higher by $0.64 an ounce in about one week's time.
With everyone mesmerized in the past week with the issue of whether or not the credit rating agencies would downgrade the US’s rating, I tweeted the following this past July 29th:
“think that a deal to raise debt ceiling will be announced before deadline. but in the end, whether it happens or not is really irrelevant.”
“for debt ceiling to be raised or not is like choosing b/w being on a sinking rubber raft or the sinking Titanic. both outcomes will be same”
“only timeline for crisis will change because no problems will have been solved whether debt ceiling is raised or not. that is the key point.”
Frankly, I really didn’t care whether the US credit rating was downgraded because in my mind, it should’ve been downgraded at least 5 years ago and I knew that any subsequent downgrade, if it happened, would not reflect the true state of the disaster that is the banker/US government kleptocracy. I knew that the fundamentals supporting gold and silver would not be changed by the outcome of this credit rating downgrade and that gold, regardless if the bankers and the CME colluded in the future to knock down prices by raising margins and forcing longs to liquidate, as they did with silver recently, would still recover strongly in the future no matter how far they were able to take prices down in their bogus-run futures markets in London and New York.
Commercial investment advisers consistently dole out some of the worst financial advice I have ever encountered. Why? I believe sometimes advisers at huge firms want to do what’s best for their clients but this often conflicts with their corporate directive, which is to feed the corporation’s bottom line. So even now, though there is a very high probability in my opinion, that the GLD and SLV ETF are fraudulent funds as I blogged about more than two years ago, commercial investment advisers continue to shuttle their clients that want exposure to gold and silver into these vehicles.
Secondly, financial advisers almost never contradict the top investment strategists of their company. For example, Robin Bew, chief economist at HSBC Bank, predicts gold will fall to $1390 by year-end and to $1000 by 2013. If the Chief Economist at your firm is predicting a substantial drop in gold prices, then as an adviser at this firm, you can’t very well advise your clients to buy mining stocks on the falling gold prediction of your Chief Economist, even if you believe they will go on a monumental run in the second half of this year. And if you do, you bring the competency and credibility of your firm into serious question at a minimum, especially if you turn out to be correct. Unhappy meetings with the higher-ups, anyone?
One thing I truly believe, however, as you can see in this graph, is that this current correction in gold and silver mining stocks have made them supremely cheap again and that the best-in-class mining stocks, when this correction ends, will offer some of the best returns of any asset class for the remainder of 2011 given the obvious and deliberate devaluation Central Bankers are inflicting upon the US dollar and the Euro.
Again, one has to remember that concentration does not equal risk though the commercial investment industry really wants all their clients to believe this rubbish concept. Secondly, 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. If one truly understands the fraudulent nature of today’s fractional reserve banking system, one would realize that concentrated strategies are the ONLY strategies that have led to wealth preservation, wealth growth and risk reduction in the past few years. Not owning a single ounce of physical gold and physical silver in this environment is absolute insanity (and remember if you own the GLD and the SLV, you DO NOT own a single ounce of physical gold or physical silver). Recall last week’s conversation below to know that politicians and bankers will lie to you much more frequently than they will ever tell you the truth.
Fox Business Reporter Peter Barnes: “Is there a risk that the United States could lose its AAA credit rating? Yes or no?”
US Treasury Secretary Timothy Geithner: “No risk of that.”
Barnes: “No risk?”
Geithner: “No risk.”
After all, former US Federal Vice Chairman and current Princeton University economics professor Alan Blinder, in perhaps what was one of the most arrogant and condescending declarations of all time, stated, “The LAST DUTY of a Central Banker is to tell the public the truth.” (emphasis mine). At SmartKnowledgeU, we have seen this disaster coming since 2006 and have literally been urging our clients for six years now to buy physical gold and physical silver. For those that have concentrated their investments in gold and silver the last 6 years, the rewards have been tremendous, even through the disaster of 2008. Still, it certainly is not too late to benefit from gold and silver investments right now though the Commercial Investment and Banking industry may be trying to convince you otherwise.
At SmartKnowledgeU believe that this current correction in mining stocks will offer/has offered the last great buying opportunity of the year and that any future correction in gold and silver that may happen before the end of the summer (if it even happens) will also offer the last buying opportunity of the year. And whether QE3 happens or not, this is irrelevant to investing in gold and silver assets. It is our firm belief, QE3 or not, that gold and silver will provide far superior returns to any global stock market for the remainder of this year and in future years as well.
About the author: JS Kim is the Chief Investment Strategist of SmartKnowledgeU, a fiercely independent investment research and consulting firm that tirelessly works to counter the propaganda of the commercial investment industry to provide the best and most profitable investment strategies to our clients in this troubling economic environment.
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For anyone that cares and didn't visit my blog to see the links/graphs associated with this article,I was finally able to upload relevant graphs/links to this article so they are now present!
I am hereby declairing myself to be my own central bank.
Backed by silver, gold, lead.
Moe Howard
WhatsamattaU Class of 55
summa cum laude
I hope the PTB do try another gimmick to drive PM prices back down...because I want to buy more. And each time they suppress the price, the more valuable it will be when people realize en masse how worthless paper is when it has already been written on.
Buy Californian slaves once the economy is worth 5$.
Fixed price whatever the colour!
Now you shall investment Stock Market too because PPT won't let it down. Since .gov covers your ass, just jump in anytime there is blood on the street with your 20% of money each time all the way to the hell.
I agree. If you haven't already, it's time to buy gold before it's too late.
Bought SI Z1 today at 11:05 NYDT @$38.80. Not sure about this; might get stopped out later this week.
Ultimately the primary reason I went independent many moons ago. Thank you for echoing something I say all the time. Can you say 'conflict of interest'?
CD
I have been an admirer of yours for some time, but have to disagree on this one.
I have worked for 3 major firms in my 25+ year career and have never paid any attention whatsoever to whether or not my recommendations to clients agreed or disagreed with my firm. Mostly I don't even know what their advice is since I do my own research.
There has been only one instance in my entire career when I was 'encouraged' to change any decision... By mid August, 2008 I had clients less than 20% invested in equities, 20% bonds (the remaining 'cash' being a concentrated possition, legally). The firms position was that my cash position was too high... that I was being paid annual fees to manage the money and being mostly in cash might get us sued if the market went up.
My independent nature being what it is, I did not change anything until late December and they didn't press the issue. That is the only time I have ever gotten any flack from a firm due to my investment decision(s). There are a few firms that discourage originality, but, they are well known and avoided by those of us who are inclined to make our own decisions. Clarity requires that me to say that much of this only holds for those advisors who have discretion authorization since a transactional broker cant communicate quickly enough to get everyone (clients) on the same page.
Keep up your good work.
Same reason I went independent too. I got tired of having to play the follow the herd mentality.
What am I gonna do with all these gold and silver eagles?
or these charts
precious metales etf
http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID3225058&cmd=show[s234896717]&disp=P
gold
http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID3225058&cmd=show[s172502148]&disp=P
gold relative
http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID3225058&cmd=show[s240729620]&disp=P
silver
http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID3225058&cmd=show[s212601479]&disp=P
precious metals relative
http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID3225058&cmd=show[s234896965]&disp=P
Graphs on another site. Shows metals at the top of all commodities and currencies.
115% increase for silver, yet CNBC and all the other financial networks don't mention it and definitely don't put these graphs up to show what people should really be invested in.
http://sherriequestioningall.blogspot.com/2011/08/graphs-of-commodities-...
Great chart on silver, something I don't follow as closely as gold. Note the slope of the trend line in silver prior to the May knock down matches almost exactly the slope it resumed in July. After the most recent attack, we seem to be returning to that degree of trend again.
You are right, I did not notice that before. I would expect silver to continue it's climb, though Blythe will be hitting it over and over, especially once QE3 starts and they have billions behind them in newly printed money to keep throwing at silver and gold.
I would offer a clarification with which I think you will agree. In the past, the game was to wait for corrections and purchase PMs. Mr. Kim's mastering of that game shows in his performance. Those corrections are now less dramatic and shorter in duration, while the trend has turned up dramatically. In other words, as the trend steepens, buying sooner rather than later will at some point outperform trying to time progressively weaker corrections. Prices could run away from you.
If you believe TPTB are willing to destroy the currency to "save" the banks, then the entry point is irrelevant because gold and silver will have no price targets. They are destroying the measuring stick by which those price targets are set (the USD).
Mke a note; Robin Bew, as chief economist at HSBC is one numpty to avoid.
If he scares some HSBC clients out of Gold, will they be able to sue him for giving crap advice?
@ Steve:
The fallacy in your thinking is that you are too western-centric. Billions of Asians and MEs will prove you wrong.
Hmmm ... gold is up $56 in one trading session.
Gold going parabolic is similar to crude going parabolic in 2008. Hedge funds were rolling out of shadow banking/MBS and into crude futures contracts and options. Oil bolted to $147/barrel while the stock/money markets tanked. Priced in crude, the dollar was worth a small fraction of what it was in 1999.
I'd look for gold to really run here since there is no economic reason for any particular gold price, high or low.
Selling the gold and getting a profit will be an increasing challenge as the price increases (and the pool of buyers shrinks). Remember, you have to sell your gold in order to make money.
:)
The price pinnacle is reached when there are no native buyers remaining in the market. At very high prices the central banks will not be buyers as they have been but will sell enough gold to depressurize the market and allow bank clients to profit. The big banks (and the exchanges themselves) who have large offsetting short positions will have a natural corner and the gold price will plummet.
The same thing happened in crude w/ price collapsing to $34/bbl in March of 2009. The crude oil 'central banks' put enough goo onto the market above demand to push the marginal leveraged trader out of his position. The higher the price, the more margin traders require in order to bid. Margin makes longs vulnerable.
The world is far from the point of embracing gold-backed currencies so the 'paper gold' market will 'set' the price ... steer clear of 'dollar death' talk as all important crude price in dollars is collapsing. Few Americans buy gold, most Americans buy gasoline so monetary policy is arguably made in gas stations all over America, not at the FRB.
Watch crude, if prices fall to last spring's $70/barrel or less the gold market will be deleveraging like all the rest of them.
"Remember, you have to sell your gold in order to make money.
:)"
What will I be getting when I sell? Ameros?
sell if for some loving
Steve,
Your arguments make sense except for the fact that this isn't 2008. Trillions upon trillions have been spent since then, with no appreciable improvement in the economy. If anything, it has gotten much worse, and the people who are buying gold know it. The USD and Euro of 2008 do not resemble the fiat of today.
Your arguments are the same arguments that didn't prove out over the last several years. Another thing which has changed is the ability of TPTB to manipulate gold prices lower and keep them lower. You can only raise margins so high. You can only suppress the price levels of gold for so long before it pops back, and the costs of that suppression are mounting. If TPTB had unfettered abilities to suppress the prices of gold for unlimited time periods, gold would still be at $200.
Even if that is untrue, and they can suppress prices all they want, the central banks and insiders are the very people raising the prices through their acquisiton of gold and silver.
Central banks love paper and hate gold
Central banks are buying gold, do you suppose they are doing so because they think it's value will fall? Are they that into tradition?
Don't worry, there will be buyers available, and they have all the paper they need.
The problem, of course, is the criminal collusion by the banksters, the exchanges and the regulators to suppress the prices. Look no further than the rediculous waterfall occurring now (8:30 am). Every month, the PM experts we all follow tell us that the manipulation has to end; the question is when?
Those of us who invest, rather than trade in, PMs will be rewarded when the extend and pretend game hits the proverbial brick wall. Meanwhile the traders are merely flipping a coin, or alternatively playing red or black on the global roulette table. It is, after all, a mafia run casino.
re "financial advisers almost never contradict the top investment strategists of their company"
You are too kind young man, to the company/firm; and from here on out I'm talking big primary dealer/bulge-bracket companies, not boutique firms.
Financial Advisors are not allowed to do so, at least not clearly. It's a bit of that old "hold" = "sell" translation.
Here's how the controls are put in place to effectively take away the advisor's opinion. First, if there is a written communication that is sent to more than "x" clients (x being different for each firm, but generally hovers around 10-20) then the communication must be run through the firm's compliance department. Which takes at best a day to turn around. So any "timely" way to provide information, especially in today's world of instant data, is taken out. Second, advisors are told their job is to keep their clients "calm", because as everyone knows being fully invested all the time is the only way to invest. Of course that's utter BS. However, when your boss tells the advisor that's the firm's business plan, and the advisors clients, as stated in the contract between the advisor and the firm, are considered the firm's clients. It becomes clear the advisor is in a tough place to thread the needle.
The sad fact is, most advisors at big firms believe in the distorted manifestations of EMT & MPT. Add to that fact having over, on average, 200 clients, makes getting out an opinion at an individual clip impossible, one begins to see the system for what it is.
In my opinion and experience, and I know quite a few advisors, of all levels of success - from ones that manage billions to ones just starting out, almost all advisors try very hard to do what's best for their clients, and have the best intentions. However, the system they are in makes it very hard to communicate effectively.
Firms make non-verbal communications difficult because they are afraid of a bad hire hurting their brand and reputation. Think back to the Vampire Squid hearings in which the internal emails came out. This was supposed to be the conversations of some of the best and brightest. Can one really blame a 50+ year old CEO being scared sh1tless by the thought of a 20 or 30 something reading ZeroHedge and sending a link, and their commentary, to 500 people?
That's the reality.
Personally, I think the info gates should be opened up wide. Sure there will be volatility in the beginning, but in the end the wise opinions will rise to the top.
Right now, the networks and the firms do there best to control the story and direction of the sheeple's gaze.
Thankfully there's one little word that will eventually bring this down like the Former Soviet Union, the Internet. You can see it happening. But things take time.
Leviathans' don't go down easily.
for some reason, the graphs and links I intended to post with the above article are not posting today, so please visit my blog at www.theundergroundinvestor.com to see the graphs/links I refer to in the above article. thank you.