Investment Intelligence When it REALLY Matters.
Gold Charlatans Strike it Rich While Their Sheep Get Fleeced (Part 4)
Gold bugs and dealers alike have pumped out so many misconceptions and flat out lies about gold, silver, and the economy that it would be impossible for me to set the story straight in a single article; that's saying a lot considering the fact that my articles tend to be rather lengthy. However, I have previously written several articles that address the majority of the most common of these myths and lies (check the end of this article for a partial list).
If you have been sucked into the vortex of lies from these charlatans, you could stand to lose a HUGE amount of money over the next several years as the gold bull market comes to an end.
And if you really think gold will never again fall below $1000 as Marc Faber the gold-pumping clown has "guaranteed," I regret to inform you that you're a damn fool. Why would you even trust what a man who is always preaching doom has to say?
Moreover, if you really think the Dow Jones is headed to 1000 like Robert Prechter insists, you aren't thinking straight.
And if you think the euro and even the European economy is in better shape that the U.S. dollar and the U.S. economy, as Peter Schiff insists you might want to check yourself into the loony bin. And you can take these clowns with you.
Perhaps the real reason for the ridiculous statements and claims made by these men is due to FINANCIAL INCENTIVES.
Every single one of these gold hacks is making money in some way from pumping gold and making gross exaggerations about the U.S. economy.
The fact is that they are making false statements and coming to ridiculous conclusions in order to line their pockets with YOUR money.
Having no bias is no guarantee that you will be right, but it is something all investors should look for.
If you want the facts about gold and silver, hyperinflation and everything else, as well as the insights from one of the world's leading investment minds, we suggest you patch into our research.
Of course, the best way to access our investment intelligence is to subscribe to one of our investment newsletters. Newsletter subscriptions come with a complimentary Membership.
You will not find this level of insight anywhere else in the world.
Here we continue with this 5-part series.
See here for Part 3.
See here for Part 2.
See here for Part 1.
As I have detailed in previous articles, I do not consider precious metals to be much of an investment vehicle for a variety of reasons.
And with good reason, Warren Buffett and Charles Munger agree with me.
For instance when Warren Buffet and Charles Munger have been asked about gold, here is what they have stated.
"You could take all the gold that's ever been mined, and it would fill a cube 67 feet in each direction. For what that's worth at current gold prices, you could buy all -- not some -- all of the farmland in the United States. Plus, you could buy 10 Exxon Mobils, plus have $1 trillion of walking-around money. Or you could have a big cube of metal. Which would you take? Which is going to produce more value?"
Warren Buffet, Chairman and Chief Executive Officer, Berkshire Hathaway
May 2012
“[Gold] gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.”
Warren Buffet, Chairman and Chief Executive Officer, Berkshire Hathaway, July 2012
“Gold is a great thing to sew onto your garments if you’re a Jewish family in Vienna in 1939 but civilized people don’t buy gold – they invest in productive businesses.”
Charles Munger, Vice Chairman, Berkshire Hathaway, May 4, 2012
More recently, I posted an email from Kitco’s Senior Gold analyst praising my article on John Williams. See here.
But that doesn't mean that you should never buy gold or silver, because there certainly are some periods when these metals are a smart buy, as long as you realize that it's not like buying a stock or bond.
Rather than buying gold or silver and playing them as a part of your investment portfolio, these metals are more of a cyclical play. Therefore, you need to know when to buy and when to sell because you certainly don't want to get stuck holding these metals when the bag empties. The most conservative investors should stay out of gold and silver altogether.
On the other hand, gold and silver might not be as risky for investors residing in nations outside the U.S. Remember, the dollar runs the show because of the petrodollar relationship. All other currencies are fiat.
Less aware readers (typically gold bugs) of my articles have mimsinterpreted my articles on gold as predictions that gold would not rise higher because they do not want to see the real messages I have expressed.
For instance, I began recommending gold for select clients in late-2001 when it was trading for less than $300/ounce.
But I didn't recommend gold for all of my clients because there are suitability issues. Quite simply, gold is a speculative investment." Thus, I only recommended gold for somewhat more aggressive clients.
And I also recommended gold in 2006 in America's Financial Apocalypse.
When I wrote America's Financial Apocalypse, I felt that the speculative nature of gold and silver had diminished somewhat, although temporarily due to what I felt would be a rush into these precious metals. So at the time, my recommendations for gold and silver were less restrictive. But of course, now things have changed. And I certainly would not recommend gold or silver at these levels.
Even Warren Buffet, who clearly is no fan of gold or silver has bought these metals for somewhat short periods of time.
So what gives you ask?
Just because I recommended gold and silver several years ago does not mean I feel they are assets that investors should hold indefinately. The buy-and-hold mentality is for sheep.
When I recommended gold and silver in America's Financial Apocalypse, it was an easy call to make. The precious metals were in the midst of a bull market along with commodities. Therefore, the overall risk was quite low in my opinion. That made gold a suitable investment for even conservative investors. It was simply a sector rotation and momentum call.
[Always remember that if you don't consider suitability, you aren't looking at risk. And if you aren't looking at risk, you're going to regret it. Of course, suitability is an individual assessment based on several variables. The best person to determine suitability is YOU. Financial advisers are licensed by FINRA specifically for this purpose. We do not provide suitability assessments because that falls into the category of providing personalized financial advice and you must be licensed as an RIA or similar designation by FINRA to do so. The registration process is not a big deal and does not involve much other than filing out some forms and paying some fees. Once registered with FINRA you are subject to their BS. We don't want to be under FINRA's leash. Virtually no one who does not manage assets is licensed by FINRA. It just doesn't make sense to be licensed unless you are making money managing assets or providing some type of fee-based financial advisory service.]
While the bull market in precious metals is not necessarily over yet, most of the upside has been registered for those who have been in gold during the early stages of the bull market. That means the risk is much higher now for new positions. So generally speaking, investors should be looking to sell precious metals more than buy them. This is precisely what the smart money has done.
There are of course additional trading opportunities. And gold and silver probably have some upside from current levels. But it is important to ask yourself where will these metals be trading three, five or ten years from now.
If you do not think ahead, you will always be caught holding the bag when it empties. The same result is also obtained if you try to sell at the very top.
The bottom line is this. If you want to be a great investor, you need to know when to shift gears. Part of knowing when to shift gears is based on understanding risk. Understanding risk enables you to determine your suitibility for each investment. But it is very difficult to determine risk if you are not able to estimate a valuation for the asset you hold or wish to purchase.
Here is the big problem with gold and silver. Neither of these metals are productive assets, so the only way to determine valuation is based on current market prices. And if you think the market valuation method is accurate or prudent, I would like you to consider that real estate uses the marlet valuation method. Quite simply, it's driven by momentum. Investors don't pay much attention to momentum; traders do.
If you get caught holding nonproductive assets like gold (especially) and silver, when the bull market is over, you could be holding onto unrealized losses for many, many years. You won't get dividends and you won't really know what you have.
You certainly aren't going to know when to buy and sell gold by paying attention to the media. As I keep reminding readers, the media is designed to confuse and misguide you so that its financial sponsors take your money.
The clowns who spend most of their time in media and marketing (you know who they are by now) lack the ability to know when to shift gears. As a result, they feed their sheep audience delusions of perpetual doom and gloom (the perma-bears) or an endless bull market (the perma-bulls).
On the other hand, as I have discussed in the past, some precious metals (such as gold and silver) do offer some beneficial investment characteristics for funds and institutional investors. But retail investors are NOT institutional investors and they don't manage funds. The term "retail investor" basically means Main Street.
The fact is that for the majority of retail investors who own gold and silver are going to lose their shirt because they have no exit strategy. They have not been trading gold and silver, as I recommended in America's Financial Apocalypse.
Most retain investors own gold and silver because they have been brainwashed by charlatans who are either gold dealers themselves or they are compensated by gold dealers for spreading the typical "hyperinflation, doomsday, dollar collapse" rants.
But even for those who plan to eventually sell their gold and silver, as I discussed in Part 1 of this article, when you buy physical gold or silver and sell it, you could lose anywhere from 10% to 50% of the market value of these metals due to commissions...and that's EVEN IF the price of the metal appreciates by 100%.
There have already been many people who bought gold and silver from dealers who actually lost 50% of what they invested EVEN AFTER gold and silver DOUBLED IN PRICE due to the commissions they paid.
And if you really think Goldline is the only gold dealer that's scamming people, you need to think again.There are thousands of smaller "Goldlines" out there.
In my opinion, even if a gold dealer isn't engaging in bait-and-switch tactics, using high-pressure sales tactics, or spewing myths about gold and making ridiculous claims about the economy and so forth, the fees they charge for gold alone makes them dishonest in my book.
Remember, when you go through a gold dealer, you are buying gold and silver at RETAIL PRICES.
And when you sell your gold and silver to dealers, you are selling it at WHOLESALE PRICES. This means you are getting screwed twice.
Remember people, if gold is such a great investment...
...if gold is headed to the moon as all the gold dealers insist...
...why in the hell are they spending HUNDREDS of MILLIONS of DOLLARS trying to convince you to buy it from them?
Why don't these gold dealers just hoard gold and wait for it to soar??
Someone needs to ask Peter Schiff, Marc Faber and all of the other gold pumpers, hyperinflation and doomsday delusionists these questions.
Remember, Schiff is the same man who six years ago insisted the U.S. would face hyperinflation and the dollar would go to 0. The same can be said of Faber.
In fact, virtually every other gold charlatan and doomsday clown in this network made the same claims, or have you already forgotten?
Six years later, after the financial crisis and global economic blowout and the U.S. isn't even experiencing normal inflation!
Why Hyperinflation Isn't Coming to the U.S.
In addition, as Europe continues to implode, Schiff keeps claiming that the euro is safer than the U.S. dollar! WOW.
Today, as the U.S. dollar remains strong, the U.S. stock market closes in on all-time highs, inflation remains in check, these clowns refuse to address their miserable predictions. Instead, they distract their sheep with more buzz words and phrases that really have little meaning such as "currency wars."
Based on Schiff's terrible track record and ridiculous statements, in my opinion, anyone who has money with Schiff's Europacific Capital is a damn fool. And you know what they say about fools and money.
[If Mr. Schiff would like to make his case to me as to why I should not be worried about his "investment strategy" on a neutral platform (live), I am willing to listen, BUT he must allow me the chance to respond.]
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GOLD ARTICLES
(do NOT read one and form your opinion; you can
only obtain the full picture by reading each article)
Kitco: The CNBC of Gold
Manipulation of Gold and Silver Prices
Understanding the Proper Use of Gold and Silver
Kitco Senior Gold Analyst Agrees with My Views on Gold
Dismantling John Williams' Hyperinflation Predictions
Golden Dreams & Delusions: The Story about Gold You Haven't Heard (PART 1)
Golden Dreams & Delusions: The Story about Gold You Haven't Heard (PART 2)
Golden Dreams & Delusions: The Story about Gold You Haven't Heard (PART 3)
Golden Dreams & Delusions: The Story about Gold You Haven't Heard (PART 4)
Golden Dreams & Delusions: The Story about Gold You Haven't Heard (PART 5)
Golden Dreams & Delusions: The Story about Gold You Haven't Heard (PART 6)
Golden Dreams & Delusions: The Story about Gold You Haven't Heard (PART 7)
Debunking the Myth that China is Selling U.S. Treasury Securities
The Importance Of China To The US Economy
Understanding Manipulation of Gold by the Media
Gold Propaganda from Raymond Dalio
We Predicted The Market Selloff Yet Again
Did You Get Fleeced by Max Keiser, Alex Jones and the Rest of the Stooges?
Max Keiser, Alex Jones and their Lackeys Scamming People AGAIN
You can find much more about charlatans by accessing our massive and constantly expanding Encyclopedia of Bozos, Hacks, Snake Oil Salesmen and Faux Heroes.