Everything I Know About Improving My Life, I Learned Outside the Institutional Education System, Part 3

May 16th, 2017
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Embrace, Don’t Fear Change

In part two of this series (read Part 1 and Part 2 here), I stated that I realized that I had made a huge mistake not only in pursuing an Ivy League education, but also in achieving two graduate-level degrees, only after I entered the real world, and discovered, much to my chagrin, that everything I had studied during my 20-years in academia had little or no utility in the real world. Furthermore, even worse, I discovered that much of the theoretical information I had learned in my MBA program was pure nonsense, as the real world of finance and money was the antithesis of what I had studied in school, and was actually harmful to my ability to understand the real world. At that point, I realized that not only had I been taught an improper way to think about life during my whole academic life, but that I had also been taught an improper dream – to get as much money as I can for myself with no regard for the social consequences of my actions. Upon this realization, I knew I had to reconstruct my life if I wanted to be happy.

I literally made the decision to resign from my job at a Wall Street firm and a top American bank one morning during my drive to work, well before I had made any real money at these firms, though I was well on my way to making some serious money at these firms when I quit. Some say never to make snap, whimsical decisions like that regarding such a critical matter as one’s career, but in all honesty, I’m glad I did. Had I become too comfortable with the routine of my life and the perks of corporate banking, such as free box seats to Los Angeles Lakers NBA finals games, I may have made a different decision. Had I spent weeks contemplating the future material things I would be giving up, I may have decided to follow society’s definition of material wealth as the sole determinant of success and not quit that day. In retrospect, however, I am very happy I had the courage to walk away from corporate banking that day, as had I not rashly quit that morning, there’s a chance I might still be stuck in that miserable, corporate life. In reality, it wasn’t even a hard decision at the time, not because of how rashly I made the decision, but because of the fact that when a choice is clearly right, then even a difficult decision becomes easy to make. When a decision is right, the uncertainty created by that decision no longer remains frightening or daunting. I am not the only one to state this, as many others that have made decisions they knew would curb their future monetary earnings have stated similar sentiments about the ease of decisions others viewed as difficult, due to the clear-cut delineation of the settled-upon choice as “the right thing to do.”

After leaving the corporate world, I chose to personalize my definition of “wealth and success” that vastly differed from the traditional, narcissistic, narrowly-focused definition that revolves solely around material and monetary gain. Instead, I decided to throw my money-based definition of wealth in the rubbish bin and pursue a much more expansive and holistic definition of success that incorporated high levels of compassion, friendship, health and happiness in my definition of wealth. Today, we have perpetual war, massive amounts of drug addiction (both illegal and legal prescription), and banking-spread financial misery around the world simply because the majority of those engaged in these industries pursue profits over all other considerations with little to no concern for the suffering and misery created by their pursuits. For example, I have urged some of my former colleagues for well over a decade now to leave HSBC, as HSBC has engaged in numerous criminal activities for over a century, including its origins as the bank for drug-laundering China opium trade profits. Even today, more than 150 years, HSBC remains known to murderous drug lords, in their own words, as “the place to launder money”. Despite my appeals to integrity, I have never convinced one former colleague to leave HSBC, continuously rebuffed with callous replies of “I’m not the one laundering their drug money!” (Source: Mollenkamp, Carrick. “HSBC became bank to drug cartels, pays big for lapses.” Reuters. 11 December 2012. www.reuters.com/article/us-hsbc-probe-idUSBRE8BA05M20121212 ).

I remain disappointed, to say the least, in my failures to convince others that all life is connected on our planet, and that any work we engage in to hurt others hurts all of humanity, including ourselves. In fact, when I urged many of my friends to close their Facebook accounts (as Facebook remains wildly popular in Asia, even though its popularity has vastly decreased in the United States in recent years) due to Facebook’s very close ties to alphabet agencies and their morally questionable activities, all except one refused, with the most common reason being that they did not care if alphabet agencies spied on them through Facebook because they “had nothing to hide.” In turn, I replied that privacy is a matter intertwined with freedom, and that if they don’t care about privacy, then they don’t truly care about their freedom either. Except for the one friend who closed her Facebook account after hearing my reasons to do so, all the others said, “Until it affects me personally, I don’t care”, to which I replied, “It will affect you much sooner than you think it will, and at that point, you will realize that you should have cared about this issue even though you didn’t think it had any personal impact upon you.” Less than one year after I had this conversation with a friend, this friend had her computer bricked by the wanna cry ransomware virus in May 2017. Consequently, in response to the apathy I have witnessed around issues of vital importance simply due to the selfish “it doesn’t affect me, so why should I care” argument, I decided to create SKWealthAcademy as a positive endeavor that could bring light to important issues that many still find inconsequential (so stay tuned for its launch later in 2017).

Pedigree or High GPAs Do NOT Make You Smart

The other facet of the traditional education system that I realized had near zero utility to improving my life was its reliance on an exam system to measure progress and intelligence. Despite attending some of the most “prestigious” universities in the world, I reached the conclusion that these “top-tier” universities miserably failed to teach me how to apply any of the knowledge I gained to improve my life in the real world. Instead, the academic system I attended my entire life focused on testing my ability to memorize and solve complex formulas and regurgitate complex formulas, all of which taught me nothing about how to apply this knowledge in the real world to improve my life or the lives of anyone around me.

We must “do”, or engage in activities that help us understand how to apply the knowledge we learn, in order to trigger life-changing transformations, not only in life skills, but also in mental acuity. Testing retention of knowledge through exams, as is the centuries-old tradition of brick and mortar “educational” institutions, results in no deep fundamental changes in the way we think and behave, and only results in elevating our ego about our false and unproven mental superiority to others. The reason why we often feel great and “buzzed” for a week after attending an inspirational life seminar, but then subsequently fail to transform this “high” into any significant improvements in our lives, is because many motivational seminars focus on creating an emotional “high”, with little direction on how to engage in the meaningful activities that are necessary to improve one’s life. Consequently, because many attendees of inspirational seminars are asked to rate the seminar’s quality right after the seminar leader has whipped attendees into an emotional “feel-good” frenzy, many seminars receive awesome testimonials, continue to attract attendees by the thousands, but ultimately fail to transform anyone’s life for the better. In this sense, exams accomplish the same hollow result, delivering an endorphin high in the recipient of a high exam score and producing a false sense of accomplishment, but ultimately failing to deliver any real improvement in that person’s life.

In other words, many students, when they receive that “A” or 98 out of 100 exam score, are imbued with a false self-assessment of mentally superiority to their peers, when the reality is that exams rarely test any knowledge indicative of well-rounded intelligence. Throughout my life, having graduated from the Ivy League university system, I have known many other Ivy League graduates who graduated with sizzling GPAs yet lack the most basic understanding of logic and critical thinking constructs. Without the provision of specific exercises designed to enhance understanding of the knowledge disseminated, and universities and inspirational seminars almost always fail or fall short in this regard, it is impossible for us to make significant life-changing alterations to our everyday thinking and behavior. We may indeed be intelligent if we scored spectacularly high on an exam, but this is an example of correlation, not causation. Our intelligence is achieved despite this exam score, not due to it.

I once foolishly believed that achieving high test scores was essential for “success” in life, and as such, I actually, at one point, developed exams for my soon to be launched SKWealthAcademy. During my academic life, I too had been fooled about the utility of high exam scores, and I mistakenly focused energy and time to achieve a 1480 SAT score that placed my score above 98.5% of all test takers in the US. Likewise, I also achieved exam scores for my graduate school entrance exams that placed my scores above 93%, 95% and 97% of all test takers in America as well. In retrospect, my pride in these accomplishments, given what I now understand about the utility of high test scores, bordered on absurd insanity. While these high exam scores may have enabled me to gain entrance into some of the “best” schools in America, I pondered the question of whether these high exam scores really had helped me build happiness, success, and comprehensive life wealth. If you are wondering why my realization of the low utility of the exam system came so late, years after I realized that my institutional education was of low utility, it was only because my development of a platform to test achievement for SKWealthAcademy happened only about mid-way through the development timeline.

At this point, I concluded that an exam process to test knowledge retention was necessary simply because nearly every school in the entire world tested knowledge in this manner. It was only after spending hours of hours developing exams for each course and still feeling as the exam, weeks of contemplating whether exams would achieve the transformational process I wished to bestow upon every person that signed up for my SKWealthAcademy, and realizing that the answer was a resounding “no”, did I make the painful decision to scrap hundreds of hours of work and start from ground zero again. I arrived at the honest conclusion that high exam scores literally would contribute little to nothing to the goals I have set for every future member of SKWealthAcademy, and just because nearly every other school in the world uses exams to test knowledge retention, that knowledge retention was not what I wanted SKWealthAcademy to achieve. At this point, I developed the 9 Pillars of SKWealthAcademy that you can read about in our fact sheet, and realized that were I to achieve every goal outlined by those 9 pillars, that I would have to provide specific exercises that illustrated how the knowledge granted in every course could be applied to improve one’s life and the lives of others. At that point, I started working on developing a series of exercises and activities for multiple lessons of every course that would accomplish this goal, and for the first time, felt a real sense of accomplishment that my academy was shaping up to provide the significant life transformation that I wanted to deliver.

Have you ever thought about the reasons why the saying, “Ignorance is bliss” is known by nearly every single person in the world, regardless of culture, religion and race? Those that set economic and political agendas in every nation know the answer to this question – that a behaviorally-conditioned, unthinking world produces an easy population to control. However, more importantly than simply understanding the reasons behind this well-known saying, I spent years researching and understanding the platforms that encourage the global population to embrace and accept the “ignorance is bliss” narrative, and I sadly discovered that certain tools imbedded into the institutional education system are complicit in infusing us with a subconscious desire to remain ignorant and “blissful”. I don’t know if the launch of my SKWealthAcademy can change the future of academics, but I do hope that it at can, at a minimum, plant the seed from which real change will grow. I hope that even this article series, and future ones that I will release, can redirect the attention of academics away from behavioral conditioning, theoretical information that is of low utility in the real word (in regard to business degrees) and rote memorization tasks (in the sciences) and towards the distribution of knowledge that is truly applicable to the real world, with a focus on application of this knowledge to improve not only our own lives, but also the lives of all others, regardless of race, age, socio-economic status, and creed.

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Everything I Know About Improving My Life, I Learned Outside the Institutional Education System, Part 2

May 15th, 2017
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Challenge Any Limiting Beliefs About What You Can Accomplish

I believe that one thing we should do every year without fail is to take inventory of our beliefs and test our beliefs to see if they may need modifications and/or alterations. If we all challenged ourselves to become a better person every year, the nature of such a challenge would require a constant annual analysis of our current beliefs and a consideration of the possibility that some of the core beliefs we presently hold may be wrong. Growth is not just about accumulating more knowledge, but it is about having the wisdom to recognize the error of some of our core beliefs, changing them, and consequently understanding how to apply newly acquired knowledge to improve our lives. Had I never gone through the process of killing my ego and my Ivy League-obtained arrogance when I was young. After I graduated from university, I really thought that I was quite clever and already understood how the world worked, and it wasn’t until years later that I eventually understand how much I didn’t know. If I never opened my mind and my belief system to new ideas that sounded crazy when I was just 21-years of age, I still would have no clue as to how the global finance and monetary system really works, and my belief system today would still revolve around all the lies I “learned” in business school. Because of the behavioral conditioning that occurs in institutional academia today, even when many of us encounter new knowledge that can significantly improve our lives, most of us will dismiss this new knowledge and unfortunately fail to apply it. The fact that most of us spend zero time inspecting our core beliefs every year means that we will never be able to upgrade the most important operating system we use every single day of our lives – our brain.

Imagine if we were still using the LEO (Lyons Electronic Office), the first computer OS (Operating System) invented in 1951, on our computers. How limiting would the continued use of a computer OS from 1951 be to our ability to complete our work tasks? Or let’s leap forward by two decades and upgrade our OS from LEO to DOS-11, invented in 1971. Even though the DOS-11 OS was lightyears ahead in complexity of LEO, if we were all forced to still use the DOS-11 OS today, I don’t know a single one among us that would not complain about being taken back to the stone age of computing in the ability to complete tasks. If we fast forward 14-years, Apple introduced to us the first Mac OS, then lauded as a revolutionary leap ahead of the DOS-11 OS. In other words, computer companies are continually updated software, with very significant upgrades every few years, but yet we, as humans, fail to update our OS ever since graduation from high-school, and often operate on the same OS ten, twenty, thirty and even fifty years later!

With the May 2017 wanna cry ransomware attack infecting hundreds of thousands of computers worldwide, unfortunately, sometimes computer software OS upgrades are downgrades, as software upgrades contain deliberate exploitable hacks for the alphabet agencies worldwide to spy on all of our daily computer activity. However, patches are constantly released to close these exploits even though new exploits likely will constantly be imbedded in future software “upgrades”. As humans, our hackable exploits are manipulation of our emotions to cancel out our logic, independence, sanity, and critical thought. We must realize that every year, these hackable exploits are programmed and further imbedded deeper and deeper into the OS of our brains, and yet most of us put forth little to zero effort to close these exploits. To the contrary, we should expend a considerable amount of energy every year to close these exploits in our brain that are being used to divide and conquer us today. I believe that it is our refusal to address these exploits in our brains that has created today, in my opinion, the most divided state of humanity during my lifetime. Please click here if you wish to view a video about this topic. Read the rest of this entry »

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Everything I Know Today About Improving My Life, I Learned Outside of the Insitutional Education System, Part 1

May 15th, 2017
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Greetings. Here is part 1 of a multi-part series regarding some of my thoughts about everything that is wrong with institutional education today that hinders most of us from reaching our goals in life. Today’s “modern” educational institutions, even the most prestigious universities in the world, remain deeply rooted in behavioral conditioning and boring, repetitive rote memorization tasks that kill individual creativity and critical thought, and consequently, we are conditioned in classrooms to think robotically and convergently instead of intellectually and divergently. In life, being able to think critically and divergently is paramount to success, regardless of our specific goals. By the time we graduate from high-school, university, or graduate school, the academic system has excelled in stripping most of us of our individual creativity and our critical thinking skills, and unfortunately, we apply this close-minded, conditioned and modified way of thinking to our careers, and more tragically, to our lives. In fact, this process occurs in such an insidious manner that most of us are oblivious to this end result. In my opinion, here are the many things that are, in general, wrong with the global education system today:


9 Things I Believe Are Wrong with Institutional Education Today

(1) Focuses on rote memorization, not true learning

(2) Focuses on achievement of useless high exam scores instead of any real-life application of knowledge

(3) Stresses same mind-numbing knowledge regurgitation in homework exercises instead of any real learning applicable to life, thereby continuing to waste students’ energy outside, as well as inside, the classroom

(4) Stresses success in gaining entrance to prestigious schools with end goal of obtaining a high paying job instead of stressing maximization of one’s creative potential, contribution to society and humanity, and achieving high levels of satisfaction with life

(5) In business curricula, actually spreads and disseminates a mountain of lies about money and the financial system to brainwash young adults and prevent them from understanding the true origins of financial crises and the true destroyers of the middle class

(6) Behaviorally conditions young adults to assume a hive mentality and blindly obey “authority” figures instead of teaching critical thought and independence

(7) Divides academic settings (classrooms) rigidly by age instead of encouraging learning across age groups that better enhance learning and development of critical thought, falsely teach students that may progress at a slower rate in a certain topic that they are dumb, and falsely equates high score exams with intelligence

(8) Rarely encourages young adults to seize personal responsibility, but instead encourages them to scapegoat and blame others for failures by encouraging all students to become part of the hive

(9) Fails to utilize peer to peer learning in which students can more efficiently learn from one another as well as a teacher, and learn the benefit of cooperation versus the narcissism of egoism. In addition, when the system teaches cooperation, it still teaches poor principles of cooperation, administering the same grades to all members of a group project, even if that member contributed zero effort and work to the final product

  Read the rest of this entry »

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Interest in Gold and Silver is Always Lowest When Opportunity is Best

May 12th, 2017
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Earlier, in February/March of this year, on my SKWealthAcademy SnapChat channel, I warned daily of potential deep pullbacks in the asset prices of gold and silver that then materialized. In mid-March as gold/silver prices recovered, I wrote a blog article, here, titled, “Expect Divergences, Not Convergences, Between US Stock and PM Asset Prices for the Remainder of the Year.” This too has manifested, almost to perfection, thus far. As you can see from the chart below, after I posted that article, gold and silver mining stocks rose and US stocks fell. Then US stocks rose and gold and silver mining stocks fell. Will this relationship remain for the rest of 2017 as I predicted? Maybe not as perfectly as the below chart illustrates, but I still believe that this relationship will hold true in general for the rest of the year.

However, what is much harder to fathom, are the excessive amounts of pessimism that surround gold and silver assets at this current time, when quite a strong buying opportunity exists. Though the enormous volatility of PM mining stocks this year has of course contributed greatly to this pessimism, as people have a strong distaste for uncertainty, if we step back, just for a second, and look at the greater picture, there should not be, in my opinion, this much pessimism surrounding gold and silver at this time, especially when you compare yields of gold versus US stock markets over a longer period of time. Again, from a close-up view, if we look at spot gold prices, it’s been a rollercoaster ride, though volatility in physical gold prices has been fairly muted this year, due to growing premiums of physical prices over paper prices, which illustrates the necessity of holding physical gold and silver over their banker-controlled paper derivatives. Gold dropped sharply in March, then rose sharply for about four weeks, and then dropped sharply again from mid-April onward, falling roughly $80 an ounce over 18 trading days before stabilizing the last couple of days. Read the rest of this entry »

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The Divergence Between US Stock Markets and Gold & Silver Stocks Has Begun, But it is Far From Over

April 14th, 2017
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About a month ago, on 23 March, I wrote that a divergence between gold and silver stocks and US stocks was likely later this year. If we look at the two below charts, we see that a divergence between US stock market indexes and gold and silver stocks (as represented by the Philadelphia Gold and Silver Index) started diverging almost immediately after I posted these thoughts a month ago. However, this divergence is not the one I was referencing in last month’s article, because while the XAU index has risen a decent 7.57% since 23 March and the US stock market indexes have only fallen very slightly since then, I am speaking of a much greater divergence that I firmly believe will manifest in the future, one in which US stock markets will sell off by more than 20% and one in which gold and silver stocks will rise by more than 20%, for a divergence in excess of 40%. And since the gold and silver stocks have had a good run for the past couple of weeks, we may receive some more consolidation before the real breakout happens, depending upon how many different geopolitical events in the near future play out. Given the banking cartel-executed gold and silver asset price manipulations thus far this year, it may seem as if nothing has changed, but there are many changes happening beneath the surface, especially between Russia and China, that will allow both of these countries to play a much larger role in setting spot gold and silver prices in the future without having to worry about punitive sanctions imposed upon them by the Western banking cartel. Read the rest of this entry »

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Expect Divergences, Not Convergences, Between US Stock and PM Asset Prices for the Remainder of 2017

March 22nd, 2017
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22 March 2017

For those that have been following my daily updates on Snapchat (SKWealthAcademy), you know that I stated this past Tuesday that I expected silver and gold to rebound this week after a brief pause that some technical analysts said was a sign that the prices of gold and silver assets were heading lower again this week because of less than impressive follow through after the significant rise last 15 March. Again, the reason I so often contradict the predictions of technical analysts specifically in regard to gold and silver price behavior is because of

(1) my long standing contention that with gold and silver, big global bankers often paint the charts, and try to fool people into selling right before significant rises and into buying right before significant raids; and

(2) my even longer standing contention that one must take a much deeper look behind the scenes to understand what direction global bankers are trying to push gold and silver in the short-term, as there are plenty of times global bankers push gold and silver asset prices higher in the short-term, though long-term, they are perpetually interested in suppressing them. Read the rest of this entry »

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Is Silver a Better Value than Gold Right Now?

March 17th, 2017
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Earlier this month, I wrote that we would have a window of a few more days to weeks in order to get on board with gold and silver mining stocks at a good price for the first half of this year. I also have written extensively this year about the necessity of using hedges during raids on gold and silver combined with temporary moves to cash to balance out any downside exposure during these raids, and mentioned that again we had applied some hedges against paper gold and paper silver during this last raid. We unwound one hedge last Friday, and we unwound the others earlier this week. If you follow us on SnapChat (SKWealthAcademy), I also stated on the morning of the 15th that there was a good possibility of the interest rate hike that was to happen later that day being already priced in to the current price decline in gold and silver assets and that the announcement could cause a spike higher in the prices of gold and silver assets. And this is exactly what happened.

 

So now with a substantial spike higher in gold and silver asset prices on the back of the US Central Bank’s interest rate hike, has the reversal now begun? It’s a little premature to state the reversal is on its way now, but if you’re new to the gold and silver game, and want to know if now is the time to get on board, visit us at smartknowledgeu.com for more information on how to identify the best junior gold and silver mining stocks and for information on a more conservative gold and silver mining stock portfolio. Read the rest of this entry »

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How Much Further Will the Gold and Silver Correction Run?

March 10th, 2017
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In my last article, I stated, “I believe that this current correction in gold and silver stocks will provide a window for a few more days to weeks to get on board at a good price for the first half of 2017.” As we are still in this window of correction for gold and silver spot prices, and for those of you that follow my Snapchat channel, you know that I warned of further declines in gold and silver spot prices yesterday before market open in NY, and thereafter, silver sold off by another 1.73% and spot gold descended below $1,200 an ounce. So what is next? Is the correction over yet? I don’t believe so, and as I stated in my most recent Snapchats, we are continuing to take hedges and maintain them until further evidence of a bottom has been put in. Recall that in the articles I released earlier this year, I stated the basic wisdom regarding the premise of using hedges to short paper gold and paper silver when uncertainty about current direction remains. Given the volatility of short-term periods that bankers like to use to obscure and cloud the long-term picture, the necessity of using such hedges will always remain until such obvious banker PM price manipulation disappears. Regarding Snapchat, I mentioned before that I am posting daily when possible and that remains true. For those of you following me there, at SKWealthAcademy, I apologize for missing a few days, but that was only due to the fact that I was on the road in an area with poor internet strength, so I just waited until I returned to an area with good internet signals before posting daily again. Read the rest of this entry »

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How to Interpret the Deliberately Ambiguous Language of US Central Bankers

February 28th, 2017
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As I stated yesterday, “I believe that this current correction in gold and silver stocks will provide a window for a few more days to weeks to get on board at a good price for the first half of 2017.” Yesterday, gold and silver stocks corrected further as I believed they would, but they also sold off an inordinate amount considering the slight pullback in the underlying metals themselves, with gold only correcting less than $5 an ounce and silver down less than half a percent. These minimal pullbacks in spot gold and spot silver prices shouldn’t have triggered the much larger percent sell-offs in gold and silver mining stocks that occurred in yesterday’s markets, so are the larger price sell-offs in the PM stocks predicting imminent future sell-offs in spot gold and spot silver prices? Read the rest of this entry »

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Will Gold and Silver’s Strong Start to 2017 Resume Shortly?

February 27th, 2017
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As I stated in my last article here that I published in 9 February 2016, one should have disregarded the sensationalistic articles that were touting a massive gold and silver stock breakout back then, because as I explained, even if one presumes that such a breakout is going to happen from whatever analysis one engages in, it is literally impossible to predict the exact day when such an event will occur, save for pure luck. From the chart below of the VanEck Vectors Gold Miners ETF (NYSE: GDX), you can see the technical event that led to such predictions back then, which I’ve circled below. The event was basically a break above the 200-day MA, which prompted many predictions of the GDX immediately rising to about 28.50 before happening.

 

 

And as normally happens, instead of continuing higher in a rocket shot as predicted by some, those predictions instead acted almost as the perfect contraindicator in marking the short-term top, from which the GDX and many other gold and silver mining stocks have now pulled back by about 6% or so. Of course, gold and silver mining stocks could have broken out back then, but those predictions again would have been right from pure luck and nothing else. As I’ve stated probably at least a couple dozen times in the past decade, the problem with relying solely on technical analysis in gold and silver assets is that it is more a leading indicator than anything else because traders paint the charts to produce certain expectations, and often use these expectations to sucker people in on the wrong side of the trade to skim profits in the short-term. For example, if a lot of money poured into call options on gold and silver stocks based upon the short-term prediction of an imminent breakout on technical analysis, traders and bankers could then proceed to make some easy money by painting charts that “predict” an imminent move and then influence markets to manifest the exact opposite move. Read the rest of this entry »

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Will Junior Gold and Silver Mining Stocks Outperform their Larger Peers in 2017?

February 10th, 2017
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In yesterday’s article about BTC, I wrote “it is always critical to track what is happening to the Chinese BTC market to understand what may happen to BTC prices in the future ” because “if the PBOC cracks down on BTC, they could cause another huge, rapid sell-off in BTC prices.” About 12 hours after I wrote this, after observing an environment of a large number of Chinese traders shorting BTC that predicted imminent new regulations, the Chinese government imposed new regulations on Chinese BTC exchanges, and BTC rapidly plummeted $100. Of course, with large global banks rapidly increasing their influence among blockchain development companies and other digital currencies, the Chinese government is not the only institution one has to worry about when predicting future BTC price volatility, but you can refer to yesterday’s article for more information about that topic.

 

Today, I want to return our focus to the 2017 global gold and silver outlook. As I stated to start this year, I still believe that 2017 will mark another strong year for gold and silver asset prices, and certainly this year has gotten off to a strong start. I mentioned in previous articles, that we utilized a lot of successful hedges and moved some positions to cash in December when bankers were raiding gold and silver to deal with the temporary downtrend in gold and silver assets while still remaining net long gold and silver assets, and then became more aggressively long after the raid ended. Read the rest of this entry »

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Will the Banker War on Cash Spread to a War on Bitcoin?

February 9th, 2017
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Over the years, I’ve written a number of articles regarding why I prefer physical gold and physical silver over bitcoin (BTC). I believe in monetary competition, however, and believe that different forms of money should be allowed to compete, because the best form will eventually and quite rapidly always rise to the top. However, we are far from such an environment, as government/banking cartels have banned the use of gold and silver as systemically-wide accepted forms of money worldwide while ensuring that their rapidly devaluing fiat currencies remain the norm. So where does BTC fit into this picture? Again, I think that BTC has its place in the economy, especially since transaction fees using BTC are well below the highway-robbery rates of global banking institutions. However, BTC has yet to prove itself in preserving purchasing power over decades of time as has gold and silver, nor does it meet all 9 qualities that I deem necessary for sound money.

 

In any event, as some of you may well know, BTC has exhibited massive volatility in 2017, far beyond even the sometimes volatile price fluctuations in spot gold and spot silver prices. BTC started out this year reaching an interim high of $1,129.87 per BTC, then plunged a maddening 31% in just 5 trading days to $775 after the Chinese government placed more restrictions on BTC trading, but since then, has nicely recovered 24% of that plunge and has risen back to $1,052.54 per BTC. At the time, BTC rose to $1,129, many posed the question of whether BTC was better than gold, which in my opinion, it will never be due to its digital nature. Some ask why would Chinese regulations cause BTC to plunge 31% in five trading days, and the answer is simple. Chinese speculators were almost entirely responsible for the rise of BTC from $800 to $1,129 at the end of 2016 into the start of 2017. As the Chinese government took more measures to clamp down on black money leaving China, wealthy Chinese turned increasingly towards BTC as their preferred mechanism to move black money out of China, thus fueling a speculative, unsustainable rise in BTC price. Furthermore, Chinese traders not even using BTC to move black money out of the country piggybacked off of this rising, easy trade because most Chinese BTC exchanges charged no fees on either end of the buy and sell transactions for BTC. However, when regulators changed these rules and implemented a 0.2% transaction fee on both ends of the trade, the easy speculative profits disappeared, and in response, BTC volumes collapsed 90% almost overnight on every Chinese BTC exchange. Read the rest of this entry »

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What Lies Ahead for Gold and Silver Prices?

January 27th, 2017
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Every time gold and silver prices have a good run, there tends to be a proliferation of sensationalistic articles that state something to the effect of “gold ready to break out to new highs now” or “silver about to surge tremendously”. To such sensationalistic articles, I always say, pay no attention to them, because no one really can ever predict the exact date when gold will surge by $100 and silver by $3 or $4 in a single trading session, as these events are likely to happen at some point in the future when most people are not expecting it to happen, and not during a time when everyone is expecting it to happen. It’s good to be optimistic whenever gold and silver have a good run, but it’s also good to stay rooted in realism as well, so one can spot risks when they appear instead of being blinded to such risks by excessive optimism. Furthermore, more often than not, a proliferation of such articles often marks a short-term reversal in prices. Certainly gold and silver have had a good run since the last week of December into the New Year, such that our CIO newsletter has gotten off to a solid January, up by 7.53% in January.

 

Still, risk is risk, and when risk rears her ugly head, much better to heed it than to ignore it. In fact, based upon my analysis of global gold and silver markets, I announced on my Snapchat channel (yes I’m posting every day now) two days ago on 25 January (24 January in the West), when gold was still trading at $1,210 and silver was still at $17.20 in Asia that morning, that there “was significant risk” to gold and silver prices that could very well manifest as we closed this month and headed into February. That very evening in New York, just several hours after I posted this warning on Snapchat, spot gold and spot silver closed down by its largest single-day decline since 21 December. I reiterated the following day on Snapchat, the morning of the 26th in Asia (the evening of the 25th in the West) that even though many thought this gold pullback was just a temporary one to the $1,200 mark or slightly lower, and that gold would rebound off support at $1,200, that there was still considerable risk to spot gold and spot silver prices right ahead. So for those that have supported me on Snapchat, thank you for following, and I hope you heeded my warnings if you are long gold and long silver. Read the rest of this entry »

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