SmartKnowledgeU_Vlog_005: Understand 6 Sigma Events to Predict Financial Market Behavior Accurately

September 2nd, 2015
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In today’s vlog, we discuss why an intelligent investment strategy is impossible without incorporation of market fraud analysis, something we have incorporated heavily into our strategies since we launched our company in mid-2007 and the key factor that is responsible for our outperformance of our benchmark yields by more than 127%+ from 2007 to August 2015. Our subscription CIO newsletter has even outperformed the soaring US S&P500 index (at least until August of 2015) by nearly 28% over this same investment period.

 

SKU_Vlog_005Click on the above image to play the video

 

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How We’re Beating the Market Riggers During This Period of Extreme Volatility in Global Stock Markets

August 27th, 2015
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Recently the volatility in US stock markets has been extreme to say the least, with intra-day volatility in the Dow Jones index an astounding 2,588 points on Monday and experiencing another intraday rollercoaster of more than 1,246 points yesterday (up 434 points at market open, down 313 points, then up 499 points). Number one, is there any way to actually play these markets without losing your shirt? Number two, is there any way to make sense of this extreme volatility?  First, start by turning off your television and putting down the New York Times and Wall Street Journal, because I haven’t heard one talking head or read one author of any mainstream media article that has been within 100 kilometers of the truth in their attempts to explain the source of the extreme volatility in US markets. The reality is that all of this extreme volatility is the direct result of Central Banker market manipulation and Commercial Banker HFT (High Frequency Trading) algorithms. If you understand anything about statistics and the 5-sigma, 6-sigma and 7-sigma events that have been happening in gold markets, stock markets and forex markets with regularity over the past 5-years, then you understand that such events would have only the most minute of chances of ever materializing were free markets to exist. For those that understand nothing about statistics, don’t worry, I’ll make a vlog about this concept and post it so next time anyone tries to tell you that the extreme volatility in US stock markets is due to a natural “correction”, you can call them out for knowing nothing about the next to zero probability of these events happening without massive manipulation. Just subscribe to my YouTube channel here to be informed of when I release this video. In fact, all of our current YouTube channel subscribers were well aware that a US stock market crash was coming well before it happened, as we posted a video on our channel on 25 July 2015 titled, “Bankers’ NYSE Shutdown to Stop US Stock Market Crash Will Eventually Fail”. Consequently, we hope that many of you that subscribe to our YouTube channel were able to earn some of the similar yields we earned this month by positioning yourself short in US stock markets sometime this month, as we provided adequate warning of what happened in US stock markets in the above video.

 

Here are two ways to remain profitable in this market:

(1) Disregard the commentary of big bank analysts and the mainstream media about the causes of this extreme volatility; and

(2) Make decisions based upon understand the fraud that is being exercised in these markets and have strategies to lock in profits and to prevent significant losses when banker manipulation causes huge reversals like the kind that happened yesterday.

 

In the meantime, even with all US markets rebounding by about 4% yesterday (on the backs of more Central Banker manipulation), as of market close yesterday, here is the performance of every asset we hold in our CIO (Crisis Investment Opportunities) newsletter this month since our last newsletter was released at the beginning of this month. +16.04%, +13.15%, +11.14%, +5.93%, +5.27%, +2.75%, -2.43%. And we closed out four positions that soared +36.54%, +18.19%, +16.40% and +21.01% in this past month. So with mainstream media commentary so wrong in saying that gold and silver advocates are all the same and always claim that it’s time to buy gold and silver stocks 24 hours a day, 7 days a week, 365 days a year, and in a year that our benchmark Philadelphia Gold & Silver Index is down -35.50% YTD, the yield of our CIO newsletter is positive YTD as of 26 August 2015. In fact, we told all of our clients two weeks ago that bankers were going to smash gold and silver prices once again, and last week, we opened up some short gold and short silver positions in preparation of the smash we knew was coming. Currently, our only two gold and silver stocks that we hold are among the positive yields above for this month. All of our other gains above came from shorting the US stock market into the huge fall that has occurred.

 

Remember, even though we released our Vlog_004: 8 Charts that Illustrate the Necessity of Owning Physical Gold and Silver earlier this week, if you read the video description in our YouTube channel we posted this disclaimer the same day we posted that vlog: “This video is not an endorsement of buying gold and silver right at these prices today, as specific guidance of when to buy gold and silver is provided only through our subscription services. However, this video should adequately outline the necessity of owning physical gold and silver to all viewers.” And indeed this is still true. We still strongly believe in the necessity of owning physical gold and silver, especially as prices become ridiculously cheap in these assets.

 

In the end, the best guidance we can provide to you is to learn the true drivers (Central Bankers) of what is making these stock markets (in the US and China) move so erratically and to expect massive volatile swings up and down and to have adequate strategies to deal with them. Stick to these two principles, and you will emerge from the rubble of these collapsing global stock markets fine. If you need some help with your strategies, please feel free to come by smartknowledgeu.com and read our fact sheets regarding our available strategic services.

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8 Charts that Illustrate the Necessity of Owning Gold & Silver

August 25th, 2015
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Welcome to SmartKnowledgeU_Vlog_004. Today we illustrate the necessity of owning gold and silver by discussing plunging fiat currencies, and in particular, 8 forex charts. Please note that today’s vlog is not an endorsement of buying gold and silver at today’s prices as we only provide specific price guidance in buying and selling to members of our subscription services. With crashing Chinese and US stock markets, and with crashing Asian RE markets one the way soon (especially in SE Asia), the necessity to own REAL money over FIAT currencies becomes even stronger.

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please click on the above image and then click the link “watch this video on YouTube”

More on this topic (What's this?) Read more on Gold, Silver, PCCW at Wikinvest
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The Key to Earning Positive Yields During Uncertain Global Markets & Stock Market Crashes

August 24th, 2015
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Many people think that being a contrarian investor is the key to earning positive yields because most of the time, most of the herd is wrong. However, being contrarian in it of itself is not sufficient in such times of fragile global economies and even more fragile financial markets. Last week, we warned that the US stock market was “ripe to break” and most people were shocked at how quickly the sell-off accelerated last Thursday and Friday. Certainly people would say being a gold and silver believer in the past four years was a contrarian view that hasn’t worked. However, we’ve been contrarian within a contrarian view at times, assuming short gold and short silver positions right before banker raids on gold and silver occurred, when most of the gold and silver community was expecting further rises in price. Furthermore, in a deceptive financial world in which distortion rules and truth is marginalized over and over again,  often times the truthful outlook is wrongly mislabeled and scorned as a “doomsday” outlook, especially in light of banker cheerleaders that attempt to sell every dip as a “buying opportunity” instead of as a warning of further larger drops as they may be. We’ve seen this narrative play out twice just within the past three months.

 

A few months ago, we were inundated with quite a few requests to consider adding Chinese stock market ETFs to our portfolio as Chinese stocks were rising in a seemingly unstoppable move higher. At least, the rise appeared to be “unstoppable” on the surface level, given that every Chinese banker was selling the move higher as a “get in now or be left behind” opportunity. But as we stated many times in this very newsletter, “things are fine [in structurally shaky markets] until they’re not”, meaning that when things go south, the selling could accelerate very quickly in a stock market crash. This is exactly what happened when the Chinese stock market crashed in June and the Shanghai composite collapsed by -35% and the CHINEXT index collapsed by -40% in a month’s time. Furthermore, as you will see from some of the mainstream media headlines below, the mainstream financial industry  is often quick to sell every pullback in the US stock markets in recent times as wonderful “buying opportunities”, even though anyone that actually bothers to look beyond the rhetoric could have easily spotted the numerous warning signs of impending structural collapse in both the Chinese stock market and US stock market that preceded both of their sell-offs and a potential US stock market crash.

 

Given our recent spot-on calls to short the US stock markets before they happened, quite a few of the positions we hold in our Crisis Investment Opportunities portfolio performed incredibly well last week. In fact, here is the performance of every single asset we hold in our CIO portfolio just this month thus far since we released our last newsletter: +27.27%, +17.30%, +10.80%, +21.01%, +4.80%, +2.67%, +5.61%, +0.35% and -0.42%. We hold the rest of our allocation outside of these returns in cash.

 

Again, many of you have heard us discuss the necessity of patience as an investing tactic when you have done your homework and are certain that your strategies are correct, even when the mainstream media is flooding the public with opposite strategies! For example, here is the massive difference between Mainstream Media (MSM) analysis and the real analysis we provide at SmartKnowledgeU. The one promise we have always kept to our clients is that we will always provide the truth to them, as ugly as it may be. Notice that we posted a warning on our Twitter account on 19 August 2015 of an imminent crash in US markets.

 

 

What has happened since then? The US S&P 500 tanked by -5.2% over the next two days, part of its worst one week performance in four years, and the Dow Jones Industrial Average (DJIA) tanked an absolutely massive -888.98 points the next two days on 20 August and 21 August completing a stock market crash of over 1000 points in just three days. Even the Chinese stock market crashed another -12.2% last week after so many investors in Chinese markets had been misled to believe that the Central Bankers in China were going to be able to successfully reinflate the Chinese markets and pump them higher again.  Look below as to what the MSM media was saying.

 

 

Incredibly they were saying to buy US stocks just one day after we warned that US stock markets were “ripe” for a selloff. And certainly, there were no shortage of headlines in the mainstream financial media about all the “opportunities” to go long Chinese stocks again when Chinese stocks temporarily rebounded from their initial crash. Investors in Chinese stock markets that tried to “buy the dip” discovered how wrong these headlines were as well, after Chinese markets crashed another -12.2% last week.  As you can see from the above returns of various hedges we took to guard against the very US stock market fall we stated was “imminent”, the very shorts that were not performing at all for us earlier in the month paid off in a big way this month due to our patience. Due to our patience, our yields are slightly positive for the year (though we are still holding a lot of cash at this point) at a time when the S&P500 is down -4.27% ytd and our benchmark XAU Philadelphia Gold & Silver Index is down -23.48% ytd.

 

Furthermore, check out another MSM headline below, disseminated by Credit Suisse called “No Hope for Gold Bugs?” on 11 August 2015.

 

 

Quite appropriately, since Credit Suisse declared gold “dead” as a safe-haven asset, gold has had its best run in over six months, moving higher by more than 5%+ in US dollars from $1,103.88 an ounce to $1,159 an ounce. These two headlines should prove to you that beyond doubt, the mainstream media is not interested in disseminating truth, but only in influencing your investment decisions to align perfectly with the wishes of big banks, whose wishes often are out of alignment with what is best for you. Furthermore, for those that were able to see through the banking industry’s “buy the dip” propaganda as it pertained to stock markets, US, Chinese, or otherwise, and actually exited US markets before last week’s huge sell-off and China’s stock markets before its huge crash that began in June, the tremendous volatility in all global financial markets this year has still scared many into holding cash only and taking zero action to protect their savings. This is NOT an intelligent strategy either as a hedge against the Central Bankers’ escalating global currency wars. Why? A strategy of holding your savings all in cash is 100% guaranteed to yield considerable real losses every year to your wealth. If you don’t understand this statement, then just subscribe to our YouTube channel and watch the upcoming vlogs that we will be posting over the next couple of weeks.

 

For now, remember that during phase 2 of this global economic crisis (that never really ended in 2008), inaction will be a disastrous strategy. For the most part, there are only two strategies that will yield positive yields during these uncertain times. 

(1) Understand the long-term trends that are in play and to have the courage of your convictions to be patient enough for them to turn profitable.

(2) Understand that the extreme volatility of financial markets this year will necessitate constant tweaking to your long-term strategy, and that, at times, you will have to exercise caution and exit positions as Central Bankers interfere in markets to introduce short-term volatility that may go against your positions in the short-term.  After this artificial short-term volatility passes, then you will need to  re-enter your positions with the understanding that your assessment of long-term trends are still intact and correct.

Stick to the above two strategies, and you will be fine. Want to know if gold and silver will continue to rise, or if we are now due for a pullback in price again? Want to know if this pullback in US markets is likely to accelerate now, or if the Feds can once again interfere and re-inflate them? Or need some assistance with managing the two above strategies? Then come by smartknowledgeu.com and learn how to protect and preserve your wealth during global times of financial uncertainty and volatility. How have these two strategies have worked out for us during the past 8 years? Click here to view SmartKnowledgeU portfolio yields from the date of our launch in June 2007 until year-end 2014.

More on this topic (What's this?) Read more on Gold, Silver, Investing in China at Wikinvest
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Have Gold & Silver Finally Bottomed?

August 20th, 2015
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Have gold and silver finally bottomed? As all of our clients know and those that follow us religiously on our blog and on this newsletter, I’ve been bearish on gold and silver now for nearly the entire year to date. At SmartKnowledgeU, we’ve only been long in gold and silver mining stocks for 40 days this year and in cash the rest of the time regarding our allocation to mining stocks. I’ve also been providing many warnings regarding the great fragility in US stock markets, Asian RE markets and emerging market currencies, and the last time I’ve issued so many warnings about the overall fragility of the global financial system was in 2008, right before the global financial crisis hit, so please take heed of these warnings. All my look fine on the surface, but if you look beneath the surface of the incessantly propped up US stock market indexes, for example, you will discover collapsing breadth that is flashing all kinds of warning signals for a coming major correction, if not crash. Banker committed market fraud is only sustainable until it is not.

tsx15yr Read the rest of this entry »

More on this topic (What's this?) Read more on Gold, Silver at Wikinvest
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The Only Graph You Need to See to Understand the S&P500 Is Already Broken and Ripe to Break Further

August 20th, 2015
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The PPT (Plunge Protection Team) has been throwing its weight in the US stock markets with incessant futures buying, likely individual stock buying to ramp up the S&P500 index everytime it has broken key technical support line in intraday trading, and with even a blatant shutdown of all trading on the NYSE on 20 July 2015 for good measure. This is done all for the purposes of selling the MSM narrative that “everything is awesome” in the US economy and to support their Wall Street banker bed mates even as the average American is barely scraping by in a US economy that has really been in recession for quite some time now. In the below chart, we see that every single time the US S&P500 broke down below its 200DMA (eight times in all in just the last six weeks!) in intraday trading, the PPT rescued the market to ensure that by market close, the S&P500 was above its 200DMA. But you can only stretch a rubberband so many times before it snaps. At SmartKnowledgeU we’d say that the S&P500 is getting ready to break at some point over the next several weeks.

 

s&p500readytocrash

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The Financial World in Review – Fragile Markets, Fragile Currency, Fragile Economies

August 14th, 2015
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We have subscribers to this newsletter from many different countries in the Americas, Europe, Africa and Asia. So today, we will discuss critical developing market situations all around the world.

 

As our offices are located in Singapore, consequently, sometimes people ask us, “When you discuss global stock markets, why do you concentrate on US stock markets in your commentary?” The simple answer is because by market cap, the US stock market dwarfs all other major global markets. For example, as of May, earlier this year, the NYSE and NASDAQ market cap was still more than 2.5 times the combined market cap of the Chinese Shanghai Stock Exchange and Shenzen Stock Exchange, though with the recent collapse of Chinese stock markets and the incessant US Central Banker artificial support of the US stock market, this margin has just grown a lot larger than 250%. The next largest stock exchange after this, in Tokyo, is absolutely dwarfed by the US exchanges, at less than 1/5th the market capitalization. In fact, as absurd as this may sound, the US stock market is so inflated right now that single US company stocks have larger market caps than the entire market cap of other country’s stock exchanges. For example, Intel has a market cap equivalent to 100% of Russia’s entire stock market, Wells Fargo bank’s market cap is larger than the entire market cap of India’s stock market, General Electric’s market cap towers over the entire market cap of Brazil’s stock market, and Johnson & Johnson’s market cap falls just short of equaling South Africa’s entire market cap.

 

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USA

So what happens in the US stock market can cause contagion in the entire world and vice versa as we just witnessed the PBOC’s decision to severely devalue the Yuan introduce turmoil into global markets. Read the rest of this entry »

More on this topic (What's this?) Read more on Currency at Wikinvest
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The Only Sustainable Solution for the Greek Debt Problem: Greece Must Grexit

August 12th, 2015
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Below, find SmartKnowledgeU_Vlog_001, “The Only Sustainable Solution for the Greek Debt Problem”, where I discuss three steps Syriza must take to solve their unsustainable debt problem: (1) Declare all EU imposed debt as illegitimate; (2) Arrest all bankers imposing this illegitimate debt upon Greece; and (3) Return Greece to sound money and return Greek banks to banking functions only while outlawing all bank operations that put client deposits at high risk. We explain the above in more detail as Syriza has just foolishly accepted the THIRD troika bailout of themselves and further austerity measures that will doom all Greeks to bank enslavement and debt for multi-generations.

why Greece must Grexitto watch SmartKnowledgeU_Vlog_001, click on the above image, then click on the text “watch this video on youtube”

Here is the transcript of the video above: Read the rest of this entry »

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The REAL World Series of Poker (the Global Currency War) is Heating Up

August 12th, 2015
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At SmartKnowledgeU, we started talking about developing global currency wars and the negative affects it would have on the global population well before it became fashionable to call them “global currency wars”. For example, I discussed in this article, In the REAL World Series of Poker, the Stakes are Sovereign Default, that I wrote in March of 2010 more than five years ago, the Chinese view about US Central Banker tactics of strong arming the rest of the world into destroying their currencies to support their destruction of the USD through Quantitative Easing. Back then, appropriately named Luo Yuan, a researcher for the Chinese Academy of Military Sciences, stated that China’s response to US Central Banker qualitative easing and USD destruction measures “should not be restricted to merely military matters, and [China] should adopt a strategic package of counter-punches covering politics, military affairs, diplomacy and economics to treat both the symptoms and root cause of this disease.”

Back then, I also stated, “There is little doubt in my mind that China wishes to ‘win the world’ and assume the mantle as the world’s number one economic power” and I warned “don’t forget the dark horse of the Middle Eastern Sovereign Wealth Funds that I mentioned earlier.” I still believe the first statement, and the fact that Middle Eastern Sovereign Wealth Funds are a critical component of the currency World Series of Poker (WSOP) is apparent in how bankers are managing the price of oil downward in paper derivative markets. Yes, slowing global economic growth has been a factor in the collapse of oil prices recently, but only the most naïve of people would believe that it is the singular factor in oil price collapse, as this narrative is the most widespread one that has been presented in the mainstream media. Manipulating oil prices lower is a geopolitical weapon against all OPEC nations, and especially Russia, in this ongoing global currency WSOP game. Just refer to Mr. Yuan’s comments above and you will understand this. Read the rest of this entry »

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Something Wicked This Way Comes

August 12th, 2015
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This article was originally released via our SmartKnowledgeU free newsletter on 6 August 2015. To subscribe, please sign up at smartknowledgeu.com

There is something happening in the global economy that definitely scares the bejesus out of the Central Bankers now because the levels of manipulation to keep US stock markets propped up and gold and silver prices pressed down far exceed the similar shenanigans I witnessed that preceded the approximate 50% 2008 US stock market collapse. In the 1962 Ray Bradbury novel, Something Wicked This Way Comes, a Mr. Dark arrives in a Midwest town in the US with a traveling carnival and displays mysterious powers to seemingly grant its residents their secret wishes. Many quickly become enamored with Mr. Dark’s ability to grant their wishes, though in reality, he is a demonic spirit that tricks the citizens of the town into bowing down in servitude to him.

 

For all those riding the US and Chinese stock market bubbles and the various RE bubbles around the world, Central Bankers are your Mr. Dark. We may think that our wishes are being granted by rising asset prices on the back of Central Banker currency devaluations, but in a world in which their literally is no price discovery any more and only Central Banker price setting in many markets, if we believe the rises in the various stock market and real estate bubbles around the world are founded on price discovery, when in fact Mr. Dark is setting prices artificially high (RE, stock market bubbles) and setting prices artificially low (gold, silver, oil, copper price drops), we will not be prepared at all for when Mr. Dark decides to unwind his devious plots that have gained our admiration. Read the rest of this entry »

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How Bankers Intervened and Stopped a US Stock Markets Crash on July 8

July 24th, 2015
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Here are the larger versions of the charts from our video of the same subject to be posted later today on our SmartKnowledgeU Video channel. We’re having some technical difficulties with the upload today but hopefully we can resolve these problems and get the video posted about how bankers stopped a US stock markets crash on 8 July 2015 later today. In any event, the short message of our video is that only the most naive of the naive would believe the “official” banker explanation that a system upgrade caused the NYSE to be shut down for more than 4 hours on 8 July 2015  and that bankers intervened specifically to prevent a US stock markets crash and rout that was developing that day even before markets opened in NY that day, and certainly was well on its way, by 11:30 AM NY time. Just search for our video on YouTube under the SmartKnowledgeU channel for the accompanying commentary and more detailed explanation of the below graphs. In the end, all of the bankers’ meddling, interference, and manipulation of US stock markets will come home to roost and the emperor will be revealed to have no clothes in the near future, so buyer beware.

 

spnvolumecollapse

snp500dailyvol

snp500crash

djiafutures8july

msft8july

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What Really Caused the NYSE Shut Down For Nearly Four Hours on July 8th?

July 22nd, 2015
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It appears that after yesterday’s market action, Apple (AAPL) shares will suffer the “sell the news” syndrome and that Microsoft (MSFT) shares will also suffer the same “sell the news” fate to their before market open announcement of a record quarterly net loss today. Still, despite the facts, the US mainstream news (CNBC) somehow was still able to conjure up the disinformation grease to spin MSFT’s record quarterly net LOSS into a positive disinformation headlines touting that MSFT’s earnings “topped analysts’ expectations”. Ironically, CNBC produced this disinformation headline about MSFT’s record quarterly loss just two days after it urged investors to “ignore [the coming] MSFT earnings and [to] buy the stock.” Well, which one is it, propagandist CNBC news? Is it “ignore MSFT earnings and buy the stock!” as you touted two days ago, and if so, then are we to ignore your story today that MSFT earnings “topped analysts’ expectations” and believe the truth that they really reported record quarterly net losses? Just follow the headlines from the same mainstream financial news source for more than a few days, and their own headline writers will trip over their own lies.

 

Even more importantly was the intraday selling behavior that surrounded AAPL, MSFT and other top components of the US S&P 500 on the day the NYSE shut down for nearly four hours on 8 July 2015. We are in the process of filming a short vlog in which we will show you why Central Bankers, and not a technical glitch from a systems update, likely decided to trigger a panic button and a NYSE shut down to prevent a full-blown US stock market crash from starting on July 8th. Subscribe to our SmartKnowledgeU YouTube channel here and be among the first people to receive our notification of when we release our vlog explaining the REAL reason why the NYSE shut down for nearly four hours earlier this month.

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Gold and Silver Are Crashing. What’s Next?

July 22nd, 2015
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In our last newsletter (our free newsletter that you can sign up for by visiting SmartKnowledgeU ), I stated, “we’ve been sitting in cash for large chunks of time this year and strategically entering and exiting short positions in paper gold and in paper silver occasionally” and I followed this statement up with a strong warning, right here, against any “excitement and anticipation that gold and silver would ‘pop’ on the Greek No vote, [even] as the HUI gold bugs index rose +2.2%.” To be crystal clear no one would miss my bearish stance towards gold and silver in the intermediate term, and so there would be absolutely no misunderstanding to follow a circulating internet story that a silver short squeeze may be developing, I went the further step of stating, “there [will] probably be further gold and silver weakness this month”, and indeed we have since received further gold and silver weakness this month.

 

However, for two months now, we’ve been repeating the same message for all new subscribers that may have missed our earlier messages [though all our old free newsletters are accessible in our archived newsletters online]. As far back as 5 June 2015, I stated, “to deal with the downward volatility in the meantime, the key is to exit before bankers execute the significant raids that push gold and silver prices significantly lower [such as the one that happened today], and to additionally assume hedges against falling gold and silver prices to provide counterbalance. Throw in a massive dose of patience into this mix, and when gold and silver prices eventually turn up, and they will do so with a surprising vengeance that will catch most everyone off guard when this event eventually transpires, and one will be ready to execute a solid strategy to survive the coming fractures of the coming global banking and financial system.”

 

Today, in low volume trading , immediately prior to the Chinese metals markets opening, Western bankers dumped another $2.7 billion notional in gold futures contracts to the market that initially took gold down by more than -4.0% although it has now recovered to “just” -1.62% and silver has recovered quite a but as well, down only -0.24% right now after being down well over -1.5% earlier in the day. We will have to see if these recoveries hold up once New York markets open up, however. In fact, gold and silver were taken down so much in spot price earlier today that they almost hit the bottom targets we provided to our paying subscribers earlier this month as we continued to warn that gold and silver prices were heading lower this month.

 

If you look at the graph below, you will see that there have only been two times that we have been long gold and silver miners this ENTIRE YEAR, and both were brief periods in which we were in and out of the mining stocks in less than a month each time. I have circled in red on the HUI gold bugs index, the only two periods this ENTIRE YEAR in which we have been invested in gold and silver mining stocks in our two subscription services, the Crisis Investment Opportunities newsletter and the Platinum Membership.

huiL

Interestingly enough, as we just completed our mid-year reports for our Platinum Members, in which I provide all my favorite junior mining stocks, during these two periods of time, from December 19 to January 21, and from March 27 to April 23, the junior and intermediate miners’ performance far exceeded the performance of the major gold and silver miners we hold in our CIO newsletter portfolio during these two periods, as below is the performance of every single one of the 23 gold and silver stocks that I marked as one of my favorites for my Platinum Members in 2015. To summarize our first half performance of our Platinum portfolio, during a time period when junior mining stocks were flat as a sector, and the HUI gold mining index lost -6.8%, here were the returns of every one of the 23 gold and silver mining stocks I marked as my “favorite” stocks in our Platinum portfolio thus far year-to-date (though I include about 35-40 mining stocks in the Platinum portfolio every year, I only marked 23 as my “favorite” picks this year):


+15.8%, +18.1%, +121.0%, +64.9%, +12.9%, +15.2%, +35.1%,
-1.3%, -15.7%, +26.3%, +46.4%, +24.7%, +75.6%, +5.8%, +53.3%, +17.8%, -3.6%, +40.3%, +13.4%, -3.3%, +32.4%, +60.1%, & +3.6%

 

(Returns were calculated simply by taking the opening market day price in Canada and New York of the days I issued special alerts to our Platinum members to buy and sell the mining stocks, unless I provided a specific buy and sell price for the stocks, as was the case for a handful of my favorite stocks during the first half of 2015. For the stocks we bought and sold twice this year during the limited time periods we invested cash this year, the above returns were calculated by our normal strategy of reinvesting the cash proceeds of the first sale into the second purchase and sale).

 

Consequently, for every $10,000 invested in each of our favorite major and intermediate stock picks and for every $5,000 invested in each our favorite junior miners from our Annual 2015 Platinum Stock & Asset guide, every $155,000 invested into every one of our favorite stocks yielded $204,025, or a +31.6% gain in H1 2015. What is absolutely crazy about the above returns is the furious nature of all of those returns, as they all came within just a 7 to 8-week period of time. What is even crazier is the fact that had we not sold the above gold and silver stocks when we did, all those positive returns above would now all be losses, and some even would be very significant losses, as gold and silver stocks, as an asset class, are all sitting on significant losses for the year now. For example, Silver Wheaton, a flagship silver company, has lost -43.2% from its high of $24.10 a share in early January, and Kinross Gold, a flagship gold company, has plummeted -48.8% from its highs in early January.

 

Our above junior mining stock performance of our Platinum Membership portfolio illustrates the necessity of staying completely out of the gold and silver mining stocks during a downtrend with cash ready to be deployed after gold and silver mining stocks have bottomed. However, when gold and silver mining stocks finally bottom in this latest banker gold and silver raid, the best returns from the mining stocks of the entire year will almost certainly come from our third entry into the mining stocks this year. In fact, just as we referenced the accuracy of two statements from our earlier free newsletters in this one, we will likely be referencing the very previous sentence for its accuracy in a future newsletter.

 

And this time around, the major gold and silver mining stocks we hold in our CIO newsletter portfolio should also massively benefit from the next upleg in gold and silver stocks along with the junior mining stocks. Thus, as we’ve stressed all year long, patience has been the key in the gold and silver markets this year as they have relentlessly been attacked by bankers this year. But do not worry, this attack will not last that much longer, though this sentence will likely be very hard to believe by those that have not been following the guidance of this newsletter that has been warning of lower gold and silver prices for months on end now. Many of you have inquired as to what are the differences between the information contained in this free newsletter and the information we provide in our subscription services. The differences are enormous and we explain in great detail what these enormous differences are in the fact sheets that can be downloaded on our homepage at smartknowledgeu.com
Though we’ve been bearish on gold and silver the entire year, as we’ve only been invested in gold and silver mining stocks for barely more than 40 trading days during the entire year-to-date , we may very well be approaching the point when our view is going to switch from bearish to bullish for the first time in many months. For those that have been holding a lot of physical gold and physical silver, don’t let this latest Western banker raid against spot paper prices of gold and silver shake you out of your positions. And don’t misinterpret our near-ending intermediate bearish stance on gold and silver as a change in our long-term stance on physical gold and physical silver. Our long-term stance on physical gold and physical silver is still bullish, and soon may be as bullish as it’s been in fifteen years.

 

Back in the days when everyone, versus just a miniscule percent of people, understood what banker JP Morgan meant when he stated, Money is gold. Nothing else, people only cared about how many ounces of gold they had, and not how many fraudulent pieces of paper their ounce of gold represented. Many people today understand that holding their life’s savings in rapidly devaluing fiat paper and plastic currencies is a foolish decision, yet many of these same people inexplicably and wrongly value their physical gold and physical silver in terms of these rapidly devaluing paper and plastic currencies.

 

It will not be too much longer before everyone realizes that valuing gold in terms of fiat currencies is the wrong method of valuation, and the correct methodology for valuing physical gold and physical silver will become self-evident in the not-so-distant future.

 

As I stated in the last free newsletter, “At this point, we are [still] just waiting for our comfort level to grow with the risk-reward setup for gold and silver mining stocks, at which point we will go long again.” Again to subscribe to our free newsletter, merely visit our homepage at smartknowledgeu.com.

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