Thursday, April 18, 2013

This Time It's Different

Recently a spate of pundits have appeared in print and on talking head's channels, each solemnly proclaiming that recent price cascades across the boards in all four precious metals officially pronounce that the Gold bull market, or Silver bull markets, are dead. As Mark Twain was once heard to exclaim (and you could include Arnold Schwartzenegger here as well), "reports of my death are greatly exaggerated."

So, too, it should be said, are ominous pronouncements that the bull run in precious metals is over, regardless of whether such proclamations emanate from Mt. Olympus from the deities themselves, or merely from such God wannabes as GoldmanSachs, or those who intentionally release misleading rumors of the imminent sale of Cypriot gold reserves.

Yes, as we've all borne painful witness, those with virtually unlimited means at their behest can move the markets sharply with immense paper selling of ostensibly tangible physical gold and silver. Look the other way and just accept this as gospel, that the paper price equals true price discovery of physical, as ... well, isn't it perfectly reasonable to suppose that more than an entire year's worth of gold production would be dumped in a number of hours on sequential days? What other motive could there be for such tactics? Surely the sellers intended to optimize their profits in the process, right?

This piece is not meant to point fingers at putative criminals, when corroborative evidence (according to the courts and CFTC) is lacking or hard to prove. It is merely intended to make you employ critical thinking. The entire motive of the recent horrendous manipulation is to utterly demoralize silver and gold longs who are not fully convicted that there is no path (long term) for precious metals to trod (in the face of global quantitative easing) other than upwards. On a short term basis, however, they will do their worst to convince you otherwise.

They would have you believe that economies worldwide are upon the verge of recovery; that dollars, yen, pounds, and euros are all healthy and strong, and that those who hold barbarous relics to preserve their purchasing power do so in folly. "This time is different," they will tout... and yet nothing has changed in the dynamics of why silver and gold have been sound, real money investments during the past decade, and will continue to be so in the years to come.

Baron Rothschild is credited with having stated "buy when there is blood in the streets." Or, to paraphrase Warren Buffett "buy when others are fearful, sell when others become greedy." The value, the intrinsic true worth of physical precious metals has not been destroyed, although their paper price surrogates have been decimated. What has been ruinously injured is investor confidence; that accumulating precious metals is a slam dunk.

Just as they intended.

Listen to those who counsel you to sell all of your silver and gold at your own peril. There is more afoot than meets the eye. Shy away from using margin to acquire these assets, unless you are prepared to lose those funds. Those in power know where the stops are, and they can easily empower massive naked shorting to trigger them, much to your dismay. Those who stack physical metals, not engaging in transitory paper ploys to accrue ephemeral fiat profits, have nothing to fear... their prescience will pay off handsomely in the future.

This time is not different.

Don't let a blip on a long-term chart catalyze you into waves of panic-induced selling. Although at times it can appear a sudden cardiac arrest victim has been lost, you'd be surprised at how fast they can be resuscitated simply if enough joules are applied. Silver and gold, platinum and palladium, are more valuable than precious gemstones. They are jewels that will glitter in perpetuity, long after memories of a once great reserve currency has been laid to rest within its well-deserved grave.

Buy Silver. Buy Gold. Save Copper. Start Now.

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