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Last week,
Bill Holter wrote a great article about the
“hand wringing” currently going on amongst Precious Metals
investors. But “investors” is the key word; as holding
“PAPER PM Investments” is entirely different from owning
PHYSICAL gold and silver; i.e., REAL MONEY…
Why all the
hand wringing? – Bill Holter, Miles Franklin
I, and a
handful of others like Bix Weir, have been among the loudest critics of
“PAPER PM Investments” like ETFs and mining stocks; which, care
of the Cartel, are marked for death. Remember, “THEY WANT YOU DEAD”
– and the easiest way to accomplish this is to DESTROY your PAPER PM
Investments. “They” can naked short miners into oblivion;
essentially, making supply UNLIMITED – as opposed to the incredibly scarce
supply of PHYSICAL gold and silver; which, by the way, is getting more scarce
EACH DAY…
DECLINING
GOLD & SILVER ORE GRADES FOR DUMMIES
TRUST ME, I know what I’m talking about! From 2002 through
2008, I held 100% of my net worth in mining stocks – many of them juniors
– and 70% until mid-2011, when I sold my last mining stock and went
100% PHYSICAL. Not to mention, I spent five years working as an investor
relations officer or consultant to dozens of public juniors; of which,
roughly 95% have seen 50%-90% stock price declines – and a good
portion have gone BANKRUPT.
In other
words, I’d BET MY LIFE the “hand wringing” Bill describes
emanates ENTIRELY from those holding “PAPER PM Investments”
– particularly mining stocks. I have 100% of my liquid assets in
bullion; and thus, sleep the “SLEEP OF THE JUST.”
Consequently, I haven’t “wrung my hands” one second
this year – although I’ll certainly admit frustration.
My coins
aren’t going ANYWHERE, particularly as most are sitting in Miles Franklin’s Brinks vault
in Montreal. Moreover, my brokerage account didn’t drop one
penny during Thursday’s “POST QE4 ABOMINATION,”
February’s “LEAP DAY
VIOLATION,” or any Cartel attack of the past 18 months. In
fact, my bullion – as I write Friday morning – is up 11% this
year, care of my allocation of 60% gold/40% silver; outperforming the “DOW
JONES PROPAGANDA AVERAGE” handily during easily the most maniacal
year of Cartel suppression in my “TEN YEARS
OF HEAVEN AND HELL”…
I agree
with everything in Bill’s article except the part about the HUI being a
12-bagger. Sure, if you bought it in 2000; and held on through the dozens of
Cartel attacks – particularly at the 2008 BOTTOM, when millions of
worldwide investors liquidated ALL their stocks, for fear of going BANKRUPT
– you would have had a 12-bagger.
However,
even I didn’t get into mining stocks until 2002 – when the HUI
had already moved up significantly; and the sector, objectively,
peaked in April 2007 when the TSX-Venture – i.e,
Vancouver – Stock Exchange peaked at 3,300, compared to barely 1,100
today. Worse yet, this is the ugliest looking long-term, MASSIVE
“head and shoulders” top imaginable; and given the sector is
essentially out of capital, “investing” here could be a
VERY dangerous “prospect” indeed…
In fact,
I’d bet that just 1/8 of ¼ of ½ of a percent of current
mining share holders have been around since 2000;
and even they had to own the RIGHT stocks to make the aforementioned
12-bagger.
Many of
the senior miners are at the same prices as in 2005-2007, while gold and
silver prices have soared; and as for what miners will do in 2013 and
beyond – who knows? Irrespective, I have LONG warned that any
such window of opportunity will likely be VERY short; as surging miners
– suggesting a collapsing Cartel – would likely coincide with a
breakdown in fiat currencies, social unrest, and draconian government
actions; such as what has been discussed in Congress this month…
Cash-Hungry
Congress Eyes Levy on Gold Mining
…not
to mention, what is about to occur in two weeks…
Effects
of Ending Bush Tax Cuts
Of course,
I could be completely wrong – and mining shares could be the
market’s biggest winners. However, I find the odds of such an event to
be small; and irrespective, the RISKS involved –discussed in countless
RANTS, such as “MINING SHARES REDUX,”
“LEAVING
THE SANDBOX,” “OUTING
GLD AND SLV, AND ‘INNING’ ALTERNATIVE FORMS OF GOLD AND SILVER
INVESTMENT,” and – most recently – “SELL
MINERS, DESTROY THE CARTEL!” – are simply too high, in my
view. PHYSICAL gold and silver will rise more than 99% of ALL bull markets in
HISTORY – and will do so at essentially ZERO risk; so why on Earth
would you risk losing EVERYTHING, when you could do just as well by risking
NOTHING?
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