He who has the gold makes the rules
Sep 27, 2011
- Congratulations! I have only told you only about five hundred thousand times that no gold sale feels like a sale.
- All gold sales of substantial opportunity feel like the end of your personal financial world, and this one has been no exception.
- Those of you who faced the winds of correction, held your head high, and bought, are today raising the flag of victory. Silver is up about 24% in 24 hours! Gold has soared to $1675, from the “ultimate on sale for you” point of $1530.
- Raise the gold flag, and celebrate your endurance. There was a song written about drug pushers, called something like “Gol Dang The Pusher Man!”. I say, “Gol Dang The Dollar Bugs!” should be your theme song, here and now.
- I told you repeatedly that one of the themes of 2011 is “gold goes aggressive”. I don’t know what percentage of gold analysts turned into top callers recently, and I don’t know what percentage engaged in selling their gold in size, but let me tell you a little bit about myself.
- I don’t sell gold bullion in size to buy crap. Crap is a bag of US dollars that pay anything less than 8% on a 30 year US T-bond, in my world.
- Click here now for a closer look at the gold rally. The top callers are celebrating their supposed victory vastly too soon, and they are doing it in dollars that could literally go off the trading board later in this crisis. Do you need ounces or dollars? If you need ounces, the time is here and the time is now, to take action. Ounces, not dollars, are what will take you to the other side of this crisis, intact.
- You can spend the next 500 years telling me all about why gold must fall down and I must avoid “the big correction”, if that really turns your dollarbug crank. The bottom line is that I don’t sell gold core positions for dollars unless the US Treasury is prepared to step up to the plate and hand me a 30 year T-bond that pays me 8% a year. That’s when I start buying bonds with core position gold, and not when I finish buying them.
- The idea of selling my gold in size for pure cash that pays no interest because “gold might fall down” is totally nonsensical.
- I’ve told you all to carry high cash levels because this is an all-epic crisis. That’s all there is to say about cash. I’m at about 30% cash personally, and roughly 22% for the monies I professionally manage. I don’t like to go under 20% cash, but to tell me to sell my core gold for cash because “it might fall down” is not going to do anything other than get me in a rage.
- I don’t think you understand how personal the dollarbugs made this fight. Do you understand what has happened to your constitution? They destroyed it. It can’t be fixed. There has to be a new one that doesn’t allow amendments. If you think a dollarbug in this crisis has any chance of convincing me to sell 1 gram of my core position gold or silver for their dollarbug crap, you are living on Mars.
- Most of you met me as the market collapsed in October of 2008, and you were staggered to see me buying both gold stock and the Dow right into the lows, hard and heavy. That was agonizing, but the profits that came “out of the hole” were mindboggling. Alcoa and GE were up 300% in just months, while team shorty pants was obliterated, as I told you would happen.
- I told you to remove cash from the banking system while buying the Dow and gold stock into the lows of 2008, because they system was either going to be shut down or there would be an upside astroblast in the markets. The bottom line is that you needed to insure yourself professionally, while taking massive market buy action. Few listened. Few got richer. I did.
- I don’t sell weakness in gold because it might fall further. I buy gold in my discomfort zone, and in your pain zone; that’s what I do, and that’s who I am.
- Gold’s little brother, silver, put on a showcase performance over the past 24 hours, rising an average about 1% an hour! Click here now to view one of the history’s greatest assets in action, taking it to the dollar bugs.
- The “great error” that exists in the gold community is confusing what gold and silver are, as assets, with where price is going, in dollars. I’m a buyer of silver every 50 cents down, all the way to zero.
- Be a player, not a plopper. If you buy too large at any one price point, the mental wear and tear on you if price falls below your entry point can be more destructive than most investors want to think about, when they first enter the “plop zone”. Moderation in all things, including the amount of risk capital you bring to play at any single entry point, is how to live a balanced financial life.
- This morning, do I wish I’d bought more silver into the lows $26, now that it is pushing at $33? Perhaps, but I wonder what those who bought none are thinking this morning? I’m a player at all points on the silver price grid. Are you? What if we go to $20? Who will be a player there, will it be those who borrowed money against their houses to buy silver at $45 because it was “getting away”? I don’t want to think about what is going through their heads now.
- Silver is going to be around long after you are dead, and so is gold. You should be a lot more concerned with your own mortality than with “how low silver or gold can go”, while you buy nothing and I buy like a machine, in moderate size, with no missed buys.
- Life is too short to pretend that the banksters are only short gold and silver. They invented the financial system, so by definition they must know that dollars are crap and only gold is money. They control the system with gold, and all the latest crew of top callers succeeded in doing was getting huge number of fund managers (and retail players in the gold community) to hand the banksters their gold items at firesale prices, in a loss-booking frenzy.
- What a horror. He who has the gold makes the rules. The banksters now have more gold. Expect more rules to follow, rules designed to enrich them, and impoverish you.
- Click here now for a look at the Dow. There’s an addiction to “getting the Dow” in the gold community that needs to be faced. Maybe some sort of financial rehab centre is needed, and a benefactor could step forward and make it happen.
- I don’t see the gain in shorting or buying the Dow at this point in the crisis. Risk capital employed to make dollars rather than increase ounces of gold is a questionable proposition, and shorting the Dow is nothing more than a bet on the dollar.
- I’m not interested in buying the Dow any more than I am in shorting it. Gold stocks remain the single best place to insert risk capital, here and now. Nothing has changed since gold rose above $1400 for a period of time, and got the attention of institutional money managers. The current sell-off is seen by value players as a major opportunity to take action. Look at the T-bond. Do you see it paying you 8% a year, for 30 years? No. So, let’s stand back from the drama stage, and get back to work, building your horde of gold, silver, and precious metals stock, that is now offered to you on substantial sale!
Sep 27, 2011
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