Join        Login             Stock Quote

The False Myths Of Gold & Silver Bulls Promulgated By Gold & Silver Bears

 May 10, 2011 01:27 PM

For those that think gold and silver bulls are perpetually long gold and silver, that is a patently false notion. In light of the recent steep silver correction, an asset that periodically has steep corrections every year (the majority of which are induced and engineered by corrupt bankers) does not a bubble bursting make. Personally, I have been a gold and silver bull since 2005 (admittedly a little late to the party but still far enough ahead of the curve). Since that time, I have grown to know many precious metals bulls that were bulls for an even longer period than I. And what I've learned is the following. Those among us that understand the Central Banker effort to transfer wealth to the top 1% of people in their country through their Ponzi reserve fractional banking schemes, their constant schemes to devalue fiat money, and their unfair manipulation of stock markets, have NEVER advocated staying long at all times in all precious metal assets during the current gold and silver bull.  Despite bankers' allowances for paper gold and paper silver to be substituted for physical gold and physical silver in their Exchange of Futures for Physical (EFP) transactions and their clever invention of unregulated paper derivative commodity products that are hardly backed by any physical product, gold and silver has rebounded every year from banker attacks to keep trending higher. And the uptrend is still not only intact but it is intact and strong.

[Related -Gold hasn’t lost its allure in my portfolio]


In fact, among all those I know that have been long-term gold and silver bulls for at least 6-10 years, all of us adequately manage the volatile downside engineered manipulation of gold and silver futures quite well most times with hedging strategies that combine shorting gold and silver, cashing out, and/or buying puts on mining stocks/ETFs.  Yes the intelligent silver/gold bulls among us will always have core positions in gold/silver whether that core position consists of just the physical metals, a fraction of the mining shares, or a combination of both physical and mining shares.  But the intelligent silver/gold bulls will also fully expect banker manufactured price suppression schemes executed against gold and silver to occur every year without fail as well. However, since we have understood this global fiat monetary crisis for so long and have accordingly been precious metal bulls for many years now, due to our cost basis in gold and silver that remains far below the banker-manufactured steep drops in the price of paper gold and paper silver, the recent steep drop in silver is rendered nearly irrelevant (for example, for my newsletter subscribers that have been with me since the launch of my newsletter, the cost of silver, even after this dip, at $38 a troy ounce today, is still more than a couple hundred percent above their cost basis).

[Related -SPDR Gold Trust (ETF) (GLD): Has Gold Entered a New Bull Market?]

For some reason, gold and silver bears always assume that gold and silver bulls are unidirectional traders that always buy gold and buy silver no matter what direction gold and silver are heading and will buy blindly into short-term peaks. This assumption, besides being patently false, is a blind assumption with zero merit. I consider myself a gold and silver bull yet have never suffered huge losses even in years when my newsletter portfolio has been heavily over weighted in gold/silver mining shares and gold/silver mining shares ended the year heavily down. For example, in 2008, when stock markets crashed, I managed my Crisis Investment Opportunities newsletter so that it still returned a small gain versus the very large 38%+ losses of most global major indexes and the very substantial -28.56% loss of the PHLX Gold/Silver Sector Index. In the following year, when the PHLX Gold/Silver Sector Index rebounded significantly and returned a very substantial +37.55%, I still managed the downward volatile periods in gold/silver to end the year with an even greater +63.32% return. On April 26, 2011, I sent a very comprehensive warning to my Platinum Members.

Next Page >>123


Comments Closed

rss feed

Latest Stories

article imageBogle Says Indexing Destined To Win The Battle Of The Quants

Vanguard founder John Bogle gave a powerful speech last month at the Q Group’s Spring Seminar that lays out read on...

article imageVMAX and VMIN Poised to Be Most Important VIX ETP Launch in Years

REX Shares is launching two new VIX exchange-traded products on Tuesday in what is likely to be the most read on...

article imageThe April 29 Gold Triangle Breakout Update

If you’re just watching stocks, you may be missing this powerful Triangle Breakout surge in read on...

article imageSell In May, But It Is A Presidential Election Year

With May just around the corner, articles covering the "Sell in May' phenomenon are not in short supply and read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.