The Current Fall in Gold and Silver Prices Will Proved to be a Lull in a Strong Continuing Uptrend That Started Last Year

July 26th, 2016
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Currently, the prices of gold and silver assets have been taking a breather, so if you have been seeking a time to purchase, another opportunity will likely materialize between right now and the end of the summer. The time to buy assets are not when they are rising and in a frenzy, as many people mistakenly do when they commit the cardinal sin of chasing assets higher, but when asset prices are falling, are on sale, and when interest in them is declining.

As an example of some of the tremendous gains that junior gold and silver stocks yielded during the gold bull run of the 1970’s, Lion Mines appreciated from $0.07 a share in 1975 to $380 a share in 1980 for a legendary 542,000% gain. Mineral Resources gained 69,000% during this comparable investment period. More recently, in 2004, Afriore Limited rose from $0.29 a share to $8.72 a share for a 2,906% gain, Aurelian Resources rose from $0.25 a share to $10 a share in just seven months in 2007 for a 3,900% gain, and Kodiak Exploration rose from $0.35 a share to $4.50 a share in 2007 for a 1,186% gain. Earlier in this current gold and silver bull, at SmartKnowledgeU, we’ve already provided buy and sell strategies for a junior mining stock that gained more than 1,000% in a single year. In 2010, of 21 junior mining stocks we suggested buying and selling at specific prices, here were the returns in a single year:

+457.14%, +346.22%, +189.42%, +221.50%, +119.23%, +65.05%, +70.51%, +72.06%, +154.34%, +84.07%, +73.78%, +97.07%, +97.90%. +88.68%, +80.08%, +77.78%, +68.72%, +45.16%, +8.97%, -11.70%, -23.52%.

Eighteen of 21 were huge winners, and only two suffered losses.

During 2015, a time period when junior mining stocks and the HUI gold mining index crashed, here were the returns of the major, intermediate, and junior mining stocks we marked as our favorite stocks, based upon our buy and sell price points:

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

Remember, we accomplished these returns in our Platinum Membership during a year in which the HUI gold mining index crashed and lost 32% and many junior mining stocks crashed and lost 35% to 40%. Furthermore, in 2015, we called near exact bottoms for gold and silver prices in the reports we distributed to our Platinum Members. We called for $13 to $14 an ounce silver as the bottom price in 2015,  and in December 2015, spot silver bottomed at $13.62 an ounce. We called for $1,050 an ounce gold as the bottom price for gold in 2015, and gold bottomed at $1,045.40 an ounce on 3 December 2015.

At the start of 2016, I recommended 32 total gold and silver mining stocks for consideration to purchase, after correctly telling our members that gold and silver prices had bottomed in December 2015. Given our massive outperformance of the market in 2015 in our Platinum Membership, when we returned big gains to our members during a year most junior mining stocks lost 30% to 40% in share price, we were a bit conservative during H1 2016, as we sold a lot of the PM mining stocks we purchased at the end of last year, later during Q1 2016, as we wanted to confirm the recovery in the mining stocks. However, even though we only benefited on the surge in PM mining stocks in H1 2016 with a handful of stocks, we still were able to capture some really nice yields on a few stocks during H1 2016, among them gains of +113.3% and+185.3%, for example. However, note that not one of the 32 PM stocks we suggested for purchase in H1 2016 suffered losses. Here are the yields of not just the best performing of our stocks, but the yields of all 32 of the PM gold and silver mining stocks we suggested for consideration during H1 2016 from the start of the year until July 2016.

+414.70%, +218.7%, +393.2%, +238.2%, +244.5%, +200.0%, +300.0%, +465.0%, +113.3%, +118.1%, +111.7%, +127.4%, +100.0%, +117.7%, +122.3%, +166.8%, +151.4%, +121.7%, +81.2%, +22.4%, +70.5%, +16.5%, +7.3%, +53.0%, +59.3%, +91.7%, +79.3%, +86.2%, +93.0%, +71.8%, +89.6%, +76.8%

These yields will allow one to understand the literally hundreds of hours that goes into my research to identify the best gold and silver mining stocks in the world, especially, the best junior gold and silver mining stocks in the world. Had any of our members been more aggressive than our suggested buying and selling guidelines, and some were, and had they chosen to buy and keep positions open on every single gold and silver mining stock we suggested for purchase consideration at the very end of last year, they would not only have not lost any money on any of these positions during H1 2016, but would have owned six stocks that returned more than 200% to 300% and owned two additional stocks that returned more than 400% of yield.

Given such returns of the best gold and silver mining stocks, we find it incredibly strange how Wall Street and other large global investment firm have been across-the-board silent about discussing the returns of this asset class. Can you imagine if every company that traded on the US S&P500 had yielded the above returns during H1 2016? The only topic you would hear discussed on every mass financial media outlet in the world for 24 hours a day, 7 days a week, would be the phenomenal, unprecedented, once-in-a-lifetime, performance of the US stock market. Yet, we hear not a peep from these media channels that serve the banking industry’s agenda, not only about the strong performance of the top gold and silver mining stocks during H1 2016, but also about the massive untapped upside in potential yield that still remains within this asset class in coming years.

While it is true that we’ve heard physical gold and physical silver advocated by a few big bank analysts in recent times, PM mining stocks have largely been ignored completely by them, despite the yields they have been throwing off in recent months.

So even though we were conservative in our buy and sell guidance in H1 2016 in our Platinum Membership due to our positive performance in 2015, the above extremely significant yields on every single gold and silver mining stock we suggested for purchase consideration at the end of 2015 illustrates not only that our analysis is on point regarding the identification of the strongest gold and silver mining stocks, but also illustrates the further untapped potential of this asset class when one compares the current yields with the spectacular yields provided by this asset class during past historical PM bull markets (Lion Mines, Mineral Resources). However, be warned that for every Lion Mines and Mineral Resources, there will be at least 10 junior mining gold and silver stocks that crash and burn. This is why I spend at least 200 hours of research twice a year to produce our Platinum Membership Stock and Asset report (exclusive of hundreds more hours of additional research during the course of each year in support of these reports).

In coming years, there is little doubt in my opinion that escalating Central Bankers’ currency wars and intensifying world-wide fiat currency purchasing power destruction schemes will continue to propel the best gold and silver assets higher.

So how far do I believe gold and silver prices will fall during this current typical summer pause in gold and silver prices? Let’s just say that you already know that I think the Rabobank Chief Investment Officer’s prediction of $500 an ounce gold is ludicrous and that the current pause in the gold and silver price trend will be far more shallow than most big bank analysts believe it will be, with a strong rebound happening from the reversal point upon stabilization of prices. If you haven’t done so already, just read my post, “Three Charts That Show Much Higher Gold and Silver Prices Ahead” to understand that the PM uptrend, despite any interim corrections that develop, is still very much intact.

To learn more about our Platinum Membership, click here.

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Proof That the Largest Gains of in the Best Gold and Silver Mining Stocks Are Still Ahead

July 4th, 2016
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As a follow up to my SmartKnowledgeU article article, “Three Charts that Show Much Higher Gold and Silver Prices Are Still Ahead”, posted on 21 June 2016, spot gold has since risen 5.8% higher while spot silver has exploded an incredible 14.3% higher in just the following eight trading days. Now that gold and silver have moved so rapidly over a short-time period, if they correct somewhat over the next several weeks, any correction will not be a cause for worry, though Goldman Sachs will likely try to sell us once again on their 2016 mantra of gold falling below $1,000, as they’ve been pushing this meme anytime gold has experienced any type of temporary resistance or fall this year.

Eleven days prior to this posting, given our belief that “much higher gold and silver prices” were ahead, we informed both our Platinum Members and Crisis Investment Opportunities Members to purchase two mining stock positions on 10 June 2016. In that alert, I explained, “Silver looks very bullish again so let’s put the following amounts of cash in our portfolio to work ”, proceeding to suggest purchasing two mining stocks that appeared to have huge very immediate upside. And those two vehicles promptly and very rapidly soared respectively by 27.72% and 37.98% higher from 10 June to 1 July. In fact, one of these two assets was not even a gold or silver asset, but another precious metal asset. There was another asset category that we identified with huge potential at the start of June that we believed would be carried higher with the rise in gold and silver, and indeed, it was. Finally, a third asset that all SmartKnowledgeU members held throughout the month of June rose higher by 23.29% just from the start of June to the first day of July. Since we posted our opinion of “much higher gold and silver prices” on the way and accordingly purchased many gold and silver mining stocks in June, our CIO portfolio racked up 12.31% gains last month. In addition, our Platinum Members hold a few junior mining stocks that we purchased early on in 2016, that as of 1 July, have respectively risen in price by 100%+ and 86%+. Read the rest of this entry »

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The Number One Reason to Buy Gold and Silver is NOT What You Think It Is

July 2nd, 2016
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Republishing rights: You may reprint the first two paragraphs of this article with a link back to the original article on smartknowledgeu.com/blog. This article may not be reprinted in full without the expressed written consent of smartknowledgeu.com. If you are reading this article in full on another site, please report this copyright violation to smartknowledgeu.com.

 

The number one reason to buy physical gold and physical silver (not paper gold and paper silver, which is not the same thing) is very likely not what you think it is. I can deduce the number one reason why most people buy gold and silver simply from the disproprotionate amount of questions I receive about buying gold and silver whenever gold and silver prices are rising significantly versus when gold and silver prices are falling. In other words, most people believe that that top reason they should buy gold and silver is to profit from rising prices. However, this is far from the best reason to buy physical gold and physical silver. Furthermore, there is a fundamental difference in the mindset of the person that buys gold and silver, seeking a quick profit, and of the person that buys gold and silver as insurance against the inevitable destructive black swans that will continue to materialize in the global banking and monetary system.

 

The number one reason to buy physical gold and silver, bar none, is the global currency rot that is happening today, that is relentless, and that Central Bankers are now helpless to stop (though they are responsible for creating it). Of course, some may say that benefiting from rising fiat currency prices of gold and silver is the same reason as protecting onself against currency rot, but in reality, these two reasons for buying gold and silver are as different as night and day, and here’s why. Of those that want to benefit from rising fiat currency prices of gold and silver, the vast majority are looking for a quick score, and they buy gold and silver for this reason without even taking the time to truly understand the value of gold and silver. Those seeking a quick profit from ownership of gold and silver typically fail to understand that: Read the rest of this entry »

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Why Intelligent Gold and Silver Mining Company CEOs are Deferring Current Production From Sales

June 21st, 2016
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Republishing rights: You may reprint the first two paragraphs of this article with a link back to the original article on smartknowledgeu.com/blog. This article may not be reprinted in full without the expressed written consent of smartknowledgeu.com. If you are reading this article in full on another site, please report this copyright violation to smartknowledgeu.com.

 

In the last article, I discussed why, despite the very strong recovery in gold and silver prices that have occurred ytd in 2016, that the uptrend has been just that – a recovery – and not anything close to one resembling a breakout as of yet. Despite very solid gains ytd, USD gold and silver prices have not even surpassed the highs of 2015 as of yet on a weekly close.

 

In the past I’ve repeatedly discussed in our membership materials how silver mining companies delayed bringing production of silver to the market for sale due to ridiculously low prices of silver in past years. I continue to call for more silver companies to suspend sales in 2016 at least until USD silver prices rise above $30 an ounce, as continuing to bring current silver production to market for sale at prices below $20 an ounce illustrates no understanding of banking cartel silver price suppression schemes that have totally disconnected prices from supply and demand fundamentals of the physical silver market. Unfortunately, the PM mining industry is full of management teams that are (1) neither interested in helping humanity by pushing a sound money agenda even though the very product they mine is equivalent to sound money, or (2) cater to the whims and unproductive interests of the banking industry rather than the best interests of the people and the people that invest in their stocks. We should all take the time to identify those special management teams in the PM industry that look out for our interests and support these companies much more so than the others that still bow down to banking interests. Read the rest of this entry »

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Three Charts that Show Much Higher Gold and Silver Prices Are Still Ahead

June 21st, 2016
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Republishing rights: You may reprint the first two paragraphs of this article with a link back to the original article on this page. This article may not be reprinted in full without the expressed written consent of smartknowledgeu.com. If you are reading this article in full on another site, please note that this is a copyright violation and that requests to remove this article in full will follow.

 

Gold and silver have been on the forefront of financial news this year for their solid performance this year and deservedly so. However, we are only in the beginning innings of the next great leg higher in gold and silver and here are three charts to clearly illustrate this point.

 

Despite the extremely solid performance of gold and silver YTD, a quick glance at the multi-year USD gold and silver charts below clearly illustrate that gold and silver prices have not yet even recovered with a weekly close that exceeds the highs of 2015. Thus far, we should only interpret the rises in gold, silver and the PM mining shares as the first phase of RECOVERY in prices that will be followed by much greater rises in prices of all these assets as global Central Bankers continue to destroy the purchasing power of all digital and paper fiat currencies worldwide.

 

multiyrau

 

multiyrag

 

However, the third chart I am going to show you is the astounding chart that illustrates how much upside is still left in the rise of gold and silver and gold/silver mining stocks. Read the rest of this entry »

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New SmartKnowledgeU Vlog #13 and Podcast #14: Gold & Silver Price Pullback and Confirmation Bias?

April 5th, 2016
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Here are a couple of links below to SmartKnowledgeU Vlog #13:  Get Ready for Another Banker Raid, and SmartKnowledgeU Podcast #14: Confirmation Bias and Emotional Neutrality, that we’ve released in the past few days to bring you-up-to date with our opinions in the gold and silver sector. Please don’t let these last two opinion pieces of possible short-term gold and silver asset price movements overshadow the fact that we’ve consistently stated, not only in these two opinion pieces, but in statements earlier this year that we are bullish gold and bullish silver for 2016 after nearly five years of banker price suppression downward.

 

skuvlog13s

 

skupodcast14s

to listen to the above pieces, click on the image and then click on the link “Watch this video on YouTube”

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Is Banking the New Slavery? (And is This the Real Source for Escalating Tension Between Banker-Sponsored States and Russia?)

February 15th, 2016
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Here is SmartKnowledgeU Vlog #11: Is Banking the New Slavery? (And is the Real Source for the Tension Between Banker-Sponsored States and Russia?). Here we discuss how even in the early 1800s, famed Russian author Leo Tolstoy recognized the potential for bankers to enslave humanity by subjecting all citizens around the world to a global banking system and his amazing prescience in writing extensively about this subject in the 1800s. We further discuss Tolstoy’s recognition that the State would use nationalism or patriotism in false manners to conjure up support for their actions while furthering such concepts to foster group/herd thinking among the people and to prevent critical thought.

Though many believe today that Russian President Vladimir Putin is part of the New World Order, his actions don’t agree with this view, as he has evicted George Soros’s NGO, the Open Society Foundation from Russia, as NGOs are often used as fronts to spread and organize dissension and opposition in nations and to overthrow governments. Though no one knows for sure if Putin is in cahoots with Western banking partners, I tend to believe that he is not, and the whole world will know the answer soon enough by how and if Putin chooses to use Russia’s considerable gold reserves in the future to stop the free fall of the Russian ruble and provide stability to the Russian ruble.

In any event, we can be sure that if Leo Tolstoy were still alive and running Russia, that undoubtedly Russia would be under attack by every single nation that has a Rothschild Central Bank running its monetary policy. Click the link below to watch the vlog.

https://www.youtube.com/watch?v=4yGPK1y9jfs&feature=youtu.be

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Forget the Year of the Monkey. Will 2016 Be THE Year of Gold & Silver?

February 15th, 2016
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Below is a message we sent out to our newsletter subscribers (free version, not subscription) on 4 February, 2016. To receive notification of this news in a timely manner, please click on our homepage link above and sign up to our free newsletter.

4 February, 2016

To all of our Chinese subscribers, we wish you an early Happy Chinese New Year and a happy Year of the Monkey to you. However, from what we’ve been hearing, most of our subscribers, whether they are Chinese or not, are more interested not in knowing if this year will be a good financial year for those born in the Year of the Monkey, but rather in knowing if this year will finally be the Year of Gold and Silver. And by this question, we mean, “Will this year be the year gold and silver finally rise in USD?”, because last year, gold rose in almost every other global currency but the USD! In fact, as we’ve stated multiple times over the past several years, the real valuation metric for gold and silver is its weight, and ultimately everyone will understand this as the global currency wars reach their final stages. But since people tend to obsess over the wrong valuation metric – the price of gold in fiat currencies – we will address this question.

Last year, our CIO newsletter outperformed US stock markets by a wide margin of more than 8%+, and this year, we are easily outperforming US markets once again as US markets began the year with a horrible decline.

How We Provided a Positive Yield Last Year When the Gold Mining Stocks Tanked by More than -30%

Buy and hold was fatal advice last year in stock markets, and will continue to be fatal advice moving forward. In fact, the one year we did not follow our own advice and were tricked by falsified, banker-provided (JP Morgan) data in 2013, we consequently wrongly decided to buy and hold for the duration of that year. And guess what? 2013 turned out to be, by leaps and bounds, the worst performance year in our nine-year history. Not many investment newsletters focused on gold and silver assets are still around after the last 5-years of relentless Western Central Banking price suppression schemes executed against gold and silver assets. So how did we survive? Most are still not around because most had to do two things to survive during this time period which are unheard of as a matter of practice at all commercial investment firms. (1) Fund managers had to actively manage portfolios and not just buy and hold for the year. The myth that actively managed portfolios cannot beat an index is exactly that – a myth created by the commercial investment industry to trick naïve investors into always holding and never selling. Do you know why commercial investment advisors always want their clients to hold stocks and never sell? It is because they make money based upon AUM, assets under management. Consequently, the larger percentage of their portfolio that is held in cash, the less money they make. So it is much better for commercial investment managers to tell their clients to remain vested in the stock market, have their clients lose money, but take home a bigger paycheck, then it is to instruct clients to move to cash, save clients from losses, and take home a much smaller paycheck. Read the rest of this entry »

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The SmartKnowledgeU 2015 Year in Review

January 8th, 2016
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2015 was the year in which many SmartKnowledgeU predictions came true. In this article, we’ll post just a small sample of the free newsletter archive predictions from 2015 provided by our Managing Director, JS Kim. Early in the year, JS Kim wrote an article titled, “The Two Key Strategies to Making Money in 2015”, in which he stated these two key investment strategies for success in 2015. (1) The need to remain extremely agile and nimble, and (2) The need to embrace the virtuous quality of patience. In other words, JS predicted that one could no longer employ Warren Buffet buy and hold strategies because Central Banking fraud was going to cause unprecedented volatility in global stock and capital markets. Regarding the need to be patient, this strategy was directed specifically towards gold and silver investors to address the possibility that, after a strong open to 2015 for gold and silver assets, bankers would suppress gold and silver asset prices and force a downward trend (in USD) for another year. With these as our leading thoughts to start 2015, how did we actually employ these strategies for our fee-based client services? We strategically shorted US stock markets multiple times throughout 2015, even once opening a short position that gained about +75% in two days, and though we indeed remained patient in our gold and silver strategies, patience did not equate to passivity, and we shorted banker raids of gold and silver (in USD prices) multiple times throughout the year to retain our positive yield all year long.

On 20 August 2015, here is the chart I posted on my blog titled “The Only Graph You Need to See to Understand the S&P 500 is Already Broken and Ripe to Break Further”. Note that in the graph below, I warned about the US stock markets, “Failure is imminent”!

smartknowledgeupredictsUSstockmarketcrash

Over the next 3 trading days immediately following my post, the US Dow Jones Industrial Average plummeted by more than 11% and lost nearly 2000 points before rebounding from the intraday low on the third day. During this same time period, the S&P 500 also crashed by 10%. And during this time, we warned our paying client members ahead of time of what strategies they should utilize to short the US stock market so they were able to profit from this crash.

On 26, October, here is the article I posted warning of an imminent banker raid in gold and silver prices titled, “Danger in Gold and Silver Elevated for Next Couple of Weeks.

smartknowledgeugoldcrashprediction

What happened next? As you can see on the graph, again as with my S&P 500 crash prediction, the HUI gold bugs index started a nasty crash the very next day after I posted that article.

Finally, on 9 December 2015, I released a podcast warning about future failure of the US stocks that the mass media were constantly selling to the public as “stocks that cannot fail”, the FANGs (Facebook, Amazon, Netflix and Google). What has happened since? Facebook has dropped -7.78%, Amazon has plunged -10.33%, Netflix also has plunged by -10.29%, and even the almighty Google has fallen by -4.32%. Other momo stocks that the mainstream financial media has tried to convince the public could never fail, such as Chipotle and Apple, have also plummeted respectively by -23.89% and -18.01% since JS Kim broadcast a SmartKnowledgeU podcast warning of imminent failure in US stocks again at the end of last year.

So with the 2015 year behind us, our CIO newsletter yielded positive returns in 2015 to bring our yield from our inception in 2007 to YE 2015 up to +61.60%, further outpacing and nearly doubling the +32.15% yield of the US S&P 500 over the same time period, and these statistics do not even include the strong performance of gold mining stocks and the strong declines in US stock markets during this past week. The big question now is, What lies ahead for 2016? We think that our outpacing of the S&P 500 index will grow even greater, as we were able to return a positive yield to our clients last year in a year in which the price of gold in USD dropped -10.53%, silver dropped -14.87%, the HUI gold bugs index dropped -30.35% and the Philadelphia Gold & Silver Index collapsed by -33.80%. Consequently, even if you don’t believe that gold and silver will preserve your wealth as the Central Bankers currency wars escalate and you want to ignore the large rebounds that will eventually happen in gold and silver assets, the advice we provided last year in shorting US stock markets last year would have been worth the price of our newsletter to most investors without the additional guidance of how to avoid all the banker-induced gold and silver raids.

The message for 2016 is that no matter what happens this year, there are always ways to earn positive yield, even when most asset prices are plummeting due to Central Bankers’ massive distortion of ALL asset prices in ALL capital markets. Central Bankers have massively distorted asset prices in many global stock markets undeservedly higher and massively distorted asset prices in gold and silver markets tyrannically lower. It is critical that you understand the direction in which Central Bankers have distorted asset prices, and if you do, you can adequately develop strategies that benefit from the period when asset prices inevitably revert from Central Banker distortions back to the mean. Please note that despite the predictions we provide in public forums from time to time, these predictions provided by our Managing Director, JS Kim, are literally just the tip of the iceberg as far as information and strategies we provide to our paying clients, with the most detailed information and comprehensive strategies provided in our Platinum Membership in which we discuss the opportunities in an asset class nearly universally hated by most at the current time, that of junior gold and silver mining companies. From December 2014 to December 2015, our SmartKnowledgeU Platinum Membership gold and silver mining stock recommendations roughly returned a +31.60% cumulative yield, including the stellar performance of 15 junior gold and silver mining companies we select strictly based upon our Managing Director’s research. At SmartKnowledgeU, we once again recommended buying a handful of junior gold and silver mining companies to our Platinum Members at the end of last year, so we will publish the results of these recommendations at some point later this year. However, up or down, as you know, volatility of asset prices will likely accelerate this year. In 2015, as we demonstrated by the yields of our SmartKnowledgeU investment services, increased volatility of asset prices means that gains can be captured regardless of which direction asset prices move. As long as you are correctly positioned short when asset prices collapse and correctly positioned long when asset prices rise, you can still lock in positive yields by the end of the year.

However, as positive yields are always muted by uncertainty, we expect that in future years, when gold and silver asset prices finally reverse and start moving higher, our yields will continue to positively diverge from the yields of all major global stock markets. Consider that since our inception in 2007, our cumulative yield at YE 2015 for our Crisis Investment Opportunities newsletter was +61.60% while the cumulative loss of the Philadelphia Gold and Silver index over the same time period was a whopping -66.50%. For anyone that merely bought and held all during this period, the losses continued to build every year. Our divergence in yield from gold and silver indexes demonstrates that plenty of times, from our inception in 2007 until today, we have taken adequate measures to profit from banker-induced declines in gold and silver prices. In fact, though we could choose to hide our past mistakes by only discussing our cumulative yields since inception, we instead of list the REAL annual yield of our CIO newsletter every year since inception in our fact sheet (just check the links to our fact sheet at the end of this narrative). Almost none of our competitors are willing to provide REAL returns every year based upon specific buy and sell prices of every single open AND closed position, but instead either just list misleading returns on open positions, or returns “since first recommended”. If we used the “returns since first recommended” model, our returns on more than a few gold and silver assets that we first recommended in 2007, 2008 and 2009 would easily be more than 200% to 800% in some cases. However, we firmly believe in transparency as our transparency about past mistakes we have made enhances the level of comfort our clients have with us. It is a fact that no one in our business is perfect and that every single Chief Investment Officer, no matter how intelligent or how talented, has made mistakes at times during these super volatile markets. However, by demonstrating over the past two years our ability to avoid repeating that mistake and in returning a positive yield last year in a year in which gold and silver mining stocks, as an asset class, performed terribly overall, we believe that we have restored the confidence of our clients in our ability to manage banker fraud and mis-priced, distorted capital markets moving forward. Of course, we would have preferred to have avoided making any big mistakes first and foremost, especially for clients that joined us for one year only in 2013. As long as we are transparent about our past mistakes at SmartKnowledgeU and we demonstrate the capacity to learn from our past mistakes moving forward, as we capably did in 2015, mistakes can be and will be overcome, especially over the more realistic time period of several years versus one of just 2 or 3 years. And perhaps even more importantly, being able apply what we’ve learned from our past mistakes to reap successes in the future provides us with the necessary confidence, as we move forward in these Central Banker currency wars, to successfully navigate our clients through the Central and Commercial banker implosion of various global capital markets that lurk on the not-so-distant horizon. We understand that often people discard narratives that paint a gloomy but realistic narrative of the current global financial system, but again, merely check the predictions our Managing Director, JS Kim, made in 2015, and how quickly his predictions materialized after he made them, to understand the level of digging and fact-checking about the truth we perform as our standard operating procedure at SmartKnowledgeU.

In the meantime, mainstream US financial media websites continue to ask stupid questions today like “Can a Strong Jobs Report Stop Carnage on Wall Street?”, even though a possible ramp up of US stock markets on a fabricated jobs report with made-up numbers later today will never last long term. Perhaps, if the US Bureau of Labor releases particularly ludicrous data points today, they may provide a breather for US stock markets today, but they will not stop the fact that US Central Banker fraud has now come home to roost in US stock markets. I guess it’s only a matter of time before we’re bombarded by the same tired “buy the dip” stories about still over-bloated US and Chinese stock markets. In any event, before you fall victim to any further mass media and government/banker propaganda, whether it’s regarding global stock markets or gold, silver and oil markets, here’s our recommendation for the best way to do separate the wheat from the chaff. Go check the author’s predictions from last year, and if he or she got more predictions right than wrong, then go ahead and continue to listen. However, if the overwhelming amount of his or her predictions were wrong and badly wrong, like Harry Dent’s call for $700 gold in 2014 and once again in 2015, then it’s probably time to completely tune that analyst out. Number two, go check that person’s long-term track record if they have one. Look for real returns of all opened and closed positions since inception, not just cherry picked returns of current open positions, or cherry-picked unrealistic returns that have been framed during a specific time frame as to make returns look unrealistically brilliant. To drive home my point, look at this index that soared by 203% in little over a year’s time just 6 years ago? Please fathom a guess of what asset class this index comprised before continuing to read.

goldstockssoar

I would fathom that very few readers, other than those that have followed us for years and therefore have already seen the above chart in previous posts of ours, correctly guessed the asset class represented by the “framed and biased” +203% gain correctly. The index above that soared by 203% in just over a year was an index comprised of intermediate to large cap gold mining stocks, the HUI gold bugs index. Yes, the same asset class that is universally hated today by all commercial banking financial consultants and that, according to them, will never ever make a comeback. Do you ever remember the mainstream financial media lauding the tremendous rise of this index in one press release, one article, or one interview, when it happened in 2009? Of course not. The mainstream financial media are employed by the same bankers that will frame and report unrealistic 200% gains in US stock markets in recent years but never tell you about 200% gains in gold mining stock indexes when they also happen. Hopefully we are all smart enough to realize that no one in the world has the ability to repeatedly time market bottoms perfectly and to sell at exact market tops in addition to moving to 100% cash during every significant price drop. But these are the parameters assumed by the mainstream financial media every time they report that US stock markets have soared by a couple hundred percent since the S&P 500 bottomed at the apropos level of 666 in 2009. If the mainstream financial media flooded the world with news of the US stock market’s 200% gain in 7 years, then shouldn’t the leading headlines of every single mainstream financial media outlet in 2010 have been the remarkable 200%+ gain of gold mining stock indexes? If one were to only pay attention to mainstream financial media, one would have been led to believe all commercial investment industry adviser achieved real, net cumulative 200%+ gains in US stock market indexes for 100% of their clients within the past 10 to 15 years.

However, what is the reality of this falsely depicted situation? Studies, like this one, have repeatedly illustrated that 89% of fund managers underperform their benchmark index over a period of 5 years, and that 82% of fund managers underperform their benchmark index over a decade’s time. This means that more than 80% of fund managers were likely to fall short of the performance of the S&P 500 index since mid-2007 to YE 2015, and most likely did NOT even achieve the index’s performance of +32.15% during this investment time period. Reality in the commercial investment world is often hugely different than the perceptions they create of false 200% gains in US stock markets that the mainstream financial media repeatedly narrates. In any event, the purpose of the graph above is to help investors to steer clear of the framing bias continually employed by Wall Street and the commercial investment industry when they discuss returns of the US stock markets. After US stock markets eventually replicate and exceed the 2008 US market crash and markets once again start a new recovery from the ashes, I have no doubt that the mainstream financial media will once again pretend as if every single commercial investment adviser advised their clients to move 100% to cash before and during the entire duration of the crash, and will only report yields of US stock markets as if they all started investing at the exact bottom of the market crash. The lesson we need to understand is this: If one were to pretend to perfectly time all exact market tops and market bottoms 100% of the time, one can literally frame the returns of any asset to look spectacular, even assets that have not even come close to producing spectacular returns over the last 15 to 20 years by any stretch of the imagination.

In conclusion, in addition to staying alert and nimble and to remaining patient but NOT passive this year, at SmartKnowledgeU, we recommend that one spend more time reading alternative media to become much more aware of reality and less beholden to the deception of the commercial financial industry.

cioperf2015

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Fraud Eventually Always Loses, Smart Money Prepares, Dumb Money “Hopes”, & Mainstream Media Mimics Wall Street Memes

December 28th, 2015
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In recent weeks we have discussed the downfall of top hedge fund managers this year that have yielded greater losses than -20% year-to-date because of the simple fact that they had been able to ride the back of fraud for several years now and did not understand that fraud always eventually loses. Even though the success of fraudulent artificial, and non-fundamental, inflation of US stock market indexes lasted much longer than most people thought possible, the talking heads that you always see on mass financial media always speak of the “massive” gains that they’ve made in the US stock market in recent years even though virtually none of them were “smart” enough to avoid being out of the US markets when they crashed, so the reality is that their long-term records are not impressive when you factor in the massive down years in the US stock markets that preceded the recent fraudulent up years. Furthermore, the worst part of their braggadocio is that they believe that riding the fraudulent wave of momo stocks higher was a skill, and as they are all discovering now, when the fraud no longer works, their “skill” as money managers evaporates faster than a puddle exposed to a high-noon sun in the desert. Read the rest of this entry »

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Gold Performance, Wealth Preservation, and a Pending US Stock Market Crash

December 21st, 2015
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A couple of weeks ago, we released our SmartKnowledgeU Podcast #13: Gold, Wealth Preservation and a Looming Stock Market Crash, on December 9, 2015. If you would like to receive notification of our important vlogs and podcasts when we release them, please subscribe to our SmartKnowledgeU YouTube channel here.

As we promised in that podcast, for our non-native English speaking subscribers, here is the accompanying article to that podcast. We’ll take a look at the important talking points of that vlog as well as some of the predictions our managing director, JS Kim, made in that vlog.

Gold

Most people erroneously believe that gold has not preserved wealth at all this year. This only applies if you have no perspective and only look at the world through American, US dollar-denominated eyes. From 7 December 2014 to 7 December 2015, yes, gold denominated in USD has fallen a significant -9.34%. It is important for bankers to control the price of gold in US dollars because, for the most part, the price of gold is reported to the rest of the world in US dollars. However, step away from this tunnel vision for one second, and gold has performed its job exceedingly well of preserving wealth for the majority of the world. During this same one-year time period, gold, priced in the Hungarian forint, has appreciated considerably by 4.03%; in the Canadian dollar, gold has risen +5.75% ; in the Malaysian ringgit, by +9.84% and in the Syrian pound by +12.07%. In countries where Central Banker wars have resulted in more rapid destruction of currency purchasing power, in these currency denominations, gold has absolutely soared, For example, against the Ukranian hyrvnia, gold has skyrocketed by +30.17% in the past year; against the Brazilian real, gold has soared by +31.32%; and against the Belarusian ruble and Kazahkstani tenge, gold has gone absolutely parabolic by +49.33% and +51.23%. Thus, once we step away from the shroud of the US dollar, gold has performed its job exceedingly well this year, a point the mainstream media will never cover. Instead, they only report how gold has fallen when priced in US dollars this year, a remarkably short-sighted manner in which to consider the global performance of an asset as important as gold to one’s wealth preservation strategy. Read the rest of this entry »

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To Thrive During these Currency Wars, Don’t Believe Your Own Hype (Lessons Learned From Rousey v. Holm)

November 17th, 2015
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To thrive during the currency wars, we can’t become a victim of believing in our own hype. Today, markets demand flexibility and adaptability to cope with extremely volatile asset price behavior. Believing our own hype will lead to a rigid refusal to adapt and an unhealthy adherence to failing strategies. Today, I’d like to take an opportunity to incorporate one of my favorite topics, mixed martial arts and the recent “stunning” upset of Holly Holm over Ronda Rousey at UFC 193, into applicable lessons for the global currency wars. For those of you that don’t follow mixed martial arts, Ronda Rousey was widely considered to be the best pound for pound MMA fighter in the world, by far, before she recently lost to Holly Holm, a 19 time world boxing champion, last week in a UFC sanctioned title match in Melbourne, Australia.

Before you tune out if you have zero interest in the fight game and mixed martial arts, even if this is the case for you, there are incredibly important lessons for an investor that can be extracted from analyzing why Rousey lost to Holm. In a subject as dry as global finance, many of you that have followed me for years know that I like to extract lessons from other areas of interest and relate them to investing strategies to turn typically dry subjects into a more compelling and interesting read. In the past, along these lines of combining seemingly disparate topics, I’ve written articles titled, “7 lessons I learned from a Navy SEAL”, “7 More Lessons I Learned from a Navy SEAL”, and “How Bruce Lee Made Me a Better Investor”. Additionally, for those of you that are Rousey fans, don’t tune out of the podcast in the first 5 minutes. My admiration and respect for Holly Holm does not mean I am disrespecting Ronda Rousey, though I am sure that those that lack critical thinking skills (see the Problem with Education Today for further explanation here) won’t be able to understand that it is possible to respect and admire both Holly Holm and Ronda Rousey, and that these two opinions are not mutually exclusive events. Furthermore, it is still very possible to point out flaws in Rousey’s game plan against Holly Holm, while still retaining the utmost respect for Rousey as a fighter. I have nothing but respect and admiration for Ronda Rousey as the female trailblazer in the UFC and as a champion, and I have no doubt that Rousey will return stronger and better than ever. Read the rest of this entry »

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The Problem With Education Today…And How to Win a SmartWealth Academy Scholarship

November 13th, 2015
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We will be introducing the SmartKnowledgeU SmartWealth Academy before the end of this year as an alternate and competitive education choice to not only all college and university business and all graduate MBA programs but also as an alternate choice to typical professional continuing education programs such as Certified Financial Planner and Chartered Financial Analyst programs, all of which we believe have very low utility in contributing to sound financial plans to cope with the ongoing Central Banking currency wars.

What is the SmartWealth Academy? The SmartWealth Academy is an online academy that I designed to make much of the current traditional business curricula taught in brick and mortar classrooms today entirely irrelevant. Education is one of the most important determinants of financial success in life. Yet, even though I attended an Ivy League university in America and earned two Masters degrees, an MBA and a Master in Public Policy, were I 18-years-old again and just entering college, I would quite happily choose to forego both my Ivy League university education and any knowledge I gained during the course of my two Master degrees. Why? Today, academia has devolved into much more of a business and a social conditioning lab experiment than an education lab that produces educated young men and women. I designed the SmartWealth Academy to return education back to a purpose that is has not served in over a century– preparing boys and girls, young men and young women, and adult men and adult women with all the requisite knowledge necessary to understand, cope with, and prosper from the extreme socioeconomic paradigm shifts we are experiencing today, a mission that traditional academia miserably fails to accomplish. Today, my understanding of financial markets is so superior to my level of understanding at the time I earned my MBA, that I now realize that no traditional schooling at all would have left me in a far better position to understand how global financial markets truly operated and how to truly preserve and build wealth during the course of my lifetime. Instead, I had to waste several years of my life just deprogramming myself from the ridiculous garbage I learned in my MBA program and to rid myself of the inflexible mindset that my professors had programmed into me before I could even truly start to learn the truths I am aware of today. Read the rest of this entry »

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