Silver Train Is A Comin: Are You Onboard?
Feb 22, 2011
1. The Silver Train. Are you onboard? Just about six weeks ago, at the January highs for Silver, the average daily movement for Silver was about 50 cents a day. What is it now? It’s 50 cents an hour!
2. I spoke yesterday about the new $30 to $40 Silver “Range Of Play”. This morning you have approx. two dollars an ounce of visible weakness on the chart, in the range of play, to buy into. My suggestion: Do it now!
3. Here’s a look at that visible weakness that I just bought into at 4am. That’s a huge drop in price. A huge sale for you to buy. Early Morning Silver Chart Number One.
4. Here’s a second chart that is speaking loudly about why this morning’s weakness needs to be bought. Sometimes a chart almost sings, “buy!”. Click here video ;-)
5. Silver just fell 5%, while most investors are sleeping. A 5% price sale must be bought. The question is not whether Silver must be bought here, but with how much capital? Here’s the answer:
Silver Capital Allocation This Morning.
6. Notice the yellow highlighted numbers. The numbers on the left are a model amount of capital to lay in at current price levels, given a model $100,000 allocation to the $30-40 price range, using my PGEN (capital allocation generator).
7. Sadly, most investors look at chart points and stoplosses, as their chosen market tools to protect them from the pains of accumulating an asset in size, at the wrong time. It’s almost selfish. The selfish mindset is promoted by most advisors, unknowingly. “How much money do you want to make each year, what is your targeted percentage return this year while you sit in your chair and your money works for you per your specifications?” – Joe Golf Ball Advisor, at his advisor-client meeting with Mr. & Mrs Elmer Fudd, Public Investor.
8. Your targeted return is what the market sticks in your face, not what you order up from the market like you are Sir Blueblood, sitting in a high class restaurant, ordering the waiter around. You serve the market, not the other way round. Some years, it offers nothing. That’s what you take then, like a man or woman. Nothing.
9. Business owners confuse the market with their production lines. The markets are assets, not production lines. You increase capital to a production line, as sales grow. You do not do that in the market unless you want the banksters to call you a mark.
10. Market assets have to be bought and sold on a price grid, like groceries. 99% of investors are lifetime losers because they focus on making the market serve them, instead of working the price grid. If you don’t want to work, you are a bum. If you are a bum, you build no wealth. End of market story. The banksters sold most business owners down the river, by telling you that the market is, “making your money work for you, just sit back and watch it grow!”. Work your risk capital on the price grid, or be destroyed. As a bum.
11. Silver is still about 60% below its “Gold-equivalent” highs. Gold hit $887 in the last bull market while Silver hit $52 or $54, depending on which futures contract was your measure. Gold is the leader. Silver is the little brother or sister. Silver is poised to confirm Gold’s move thru $887 in a very big way. Silver is drastically undervalued even at last night’s high. Still, don’t get sloppy. It won’t matter if Silver is going to ten billion an ounce if you can’t endure some time in the discomfort zone. Don’t drop in $100,000 or whatever your number is, for the $30-40 range, yet have no capital allocated to buying Silver in the $20-30 section of the grid.
12. You should have more capital allocated to buy the $20-30 range, and at minimum, it should be the same size as what you lay in here, in the $30-40 range of the grid. Get more ounces, at lower prices! See Silver Ounces Accumulation Chart Number Two.
13. The number of ounces you own defines your wealth, not the price per ounce. Few want to hear this fact. I wonder if there is a connection between understanding ounces as wealth, and getting rich?
14. For those of you who, like myself, bought physical silver at much lower prices into the lows of the Silver bear, and have been trading some Silver for Gold as it has rallied here to $34, here is your bottom line: That recent move selling Silver for Gold, with no more than 1/3 of your Silver, cuts risk, books profit, and keeps you in the metals game!
15. For you, the rebuying of Silver in the current $30-40 and the $20-30 price grid ranges, if you are lucky enough to see that happen, you are going to be more oriented towards trading positions than core positions. What I have done personally, is sell 1/3 of my core physical silver for physical gold, into this tower of power Silver strength. That is physical that I bought into the lows of the bear market in Silver. The next phase of my “book profits on Silver in ounces of Gold Money Wealth” program kicks in at $50. That’s a $50-80 range sell program.
16. Silver is not really rising against the dollar. It is the dollar being shot down by the Silver Bullet. Remember: You are not getting richer holding a fixed amount of Silver, just because everyone else is getting poorer holding a fixed amount of dollars. You need more Silver ounces to get richer!
17. To get the richest, you need to pay the lowest possible price for the most amount of Silver. Don’t stand there knowing how low Silver can’t go against the dollar. Prepare to buy if it does! Focus on getting richer, not telling everyone what sale price for you Silver can’t go to. That’s not how to get richer!
18. If you are just coming into Silver here, you are not me or many others in the gold community who faced the bear as men and women, and ate a very large amount of discomfort, for a very long time. You didn’t go thru years of discomfort accumulating, while people spat in your face for even mentioning the word “Gold” or “Silver”. I was the personal whipping boy of many dollar-holics. Now, it’s hangover time, for these financial drunks. I don’t think aspirin are going to cut it, given what the punisher has in store for the dollar.
19. You can’t create a fantasy for yourself that some chart or story about the Silver Train is going to ensure your Silver does not drop against the dollar, to levels far below where you enter. Again, you answer to the market. The market is not your whipping boy. You are the market’s whipping boy. Accept it. Or get off the grid.
20. Do not book losses on your dollars to buy Silver! Book wins! When your dollars rally against Silver, as it is this morning, you are booking a profit on dollars, as you buy Silver! All transactions have two sides. Always make the exiting side, a winner! In the market, the dollar is an asset like Silver. It needs to be bought and sold as an asset, because that’s what it is. The dollar is not money. It is used as money, but fails to meet the full definition of money. The fact that the Gman tells you his dollars you hold as a creditor, are money, does not make them money. Dollars are credits and assets. Gold, and only Gold, is money.
21. Some of you have been told that Gold is not a medium of exchange. Wrong. The banksters use Gold as their medium of exchange all day long. Do you have any idea what the “non-reportable” transactions are everyday on the LBMA? It’s tens of billions a day, probably $100 billion a day on many days, double the entire NYSE stock exchange volume. Do you really think the banksters are going to report their transactions in money with each other to you or to the Gman?
22. Gold is the medium of exchange of the banksters. Gold is the breakfast of champions. Make it yours! You can deposit a bar of Gold with the comex and start buying and selling dollar assets with that golden bar of power. It’s time to get Gold-real. Dollars are the money of Chimps. Gold is the money of Champs. Decide who you are, and take action!
23. If you really understand Silver as money, then you are prepared to buy Silver, all the way to zero, in a price of dollars. Some of you think Silver is just like Gold, or even better than Gold. Silver is pretty much just like Gold, provided you are really prepared to buy it on the grid, all the way to zero. When this Gold bull market ends, everything except Gold and the dollar will crash. Gold will be locked to debt/dollars. Not Silver. Silver is poised to end the bull market with a worse crash than 1980. Why? Answer: Because the level of interest rates required to halt the food price rises that will threaten and begin to create revolution worldwide, is probably about the same as it was in the last bull market. In fact, it may require higher rates now, because of the fundamental weakness of the dollar that exists now. This is a far worse situation than 1929, let alone 1979. America’s economic foundation was still relatively strong in 1979. Now the foundation of America’s economy is: OTC derivatives that are marked to (lies) model. Sounds solid, LOL!
24. Russia will attack America with nuclear weapons if food prices cause a billion Asians and Russians to starve to death, while nothing is done with interest rates. So rates are going higher. Way, way higher. Starvation cannot be allowed to occur, so the impoverishment of millions of Americans thru higher interest rates is the only real solution, to the great OTC derivatives crisis. Check This Rice Chart and This Wheat Chart! Do it on a weekly basis. See what happens in terms of acceleration of the world revolution as they go to new highs! Are You Prepared? As Gold and Silver soar, they will take food prices higher. Two billion people spend all their money on food. To survive. I wonder what happens when the decision is: starve a billion Asians to death, or put a hundred million new Americans on food stamps via skyrocketing interest rates? For the average American, the surprise solution to end this crisis is: THE BREADLINE!
Feb 22, 2011
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