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.

 

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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.

As an investment newsletter publisher, we don’t care if your entire portfolio is 100% cash, 100% in stocks, or 100% in physical PMs, because if it’s the right thing to do, it’s the right thing to do. Last year, we beat our benchmark XAU Philadelphia and Gold and Silver index by +37.84%. And it’s not just last year that we’ve accomplished this. Over the past nine years, we’ve beat our benchmark index by a whopping +128.10%, a feat that would have been impossible had we just bought and held PM mining stocks every year. In fact, this feat destroys the second myth of which anti-gold bankers are always falsely accusing gold advocates. Because nearly 100% of advisers that work for commercial investment advisers tell their clients to keep holding their stocks no matter if their clients should buy, hold or sell, they also falsely accuse gold advocates of practicing the same terrible guidance with their clients when it comes to gold. Obviously, if our cumulative yield over nine years beat our benchmark yield by +128.10%, this cannot possibly be true, and during the past nine years, there were plenty of times that we believed it was a terrible time to buy gold and silver. In fact, as we stated above, the only year of our nine years of operation in which we performed as poorly as our benchmark index is the one year out of nine in which we foolishly allowed ourselves to be bamboozled by falsified banker data into adopting the even more foolish banker strategy of buying and holding for the entire year in 2013.

That one year in which we embraced a standard investment industry strategy is the one year out of our nine years of performance that we admittedly made huge mistakes. However, after realizing the folly of our ways in replicating such a foolish industry-wide standard, we have never replicated that strategy since then, and never will embrace such a foolhardy strategy ever again moving forward. This adaptability that we’ve embraced is why last year, in a year when our two benchmark precious metal stocks indexes tanked by -30.10% and -32.81%, we were still able to return a positive yield of more than 5% to our Crisis Investment Opportunities newsletter members. And how will we perform if gold and silver assets finally rise this year, after five years of price declines (in USD)? Even though those in the investment industry always state that past performance is not an indication of future performance, the last two years that gold and silver assets performed very solidly in terms of USD pricing were 2009 and 2010. During those two years, despite soaring gold and silver prices, we still cumulatively outperformed our benchmark indexes by more than +33% over those two years. Thus, moving forward, we strongly believe that our margin of outperformance, even in an up year, can be just as solid as our margin of outperformance last year.

So, as many are asking today, will 2016 finally be the year gold and silver prices finally rise significantly? Honestly, it’s too early to tell. All the pieces in place from a fundamental perspective were in place last year in 2015 for last year to finally be “that year”, and it did not manifest. At SmartKnowledgeU, as you are likely aware by now if you’ve been following us for years, we don’t make such price predictions. Why? Predicting precise gold and silver price behavior only has one possible outcome – to make the price predictor look foolish. Just look how foolish Harry Dent appears after predicting a $700 price close for gold in 2014, in which gold closed at $1206, and then reappearing in 2015 to state that his 2014 gold price prediction was not wrong, but just his timing, to reiterate his firm belief that gold would close 2015 at $700. Well guess what? In 2015, gold closed at $1,060, meaning that for two consecutive years, Dent’s predictions missed the mark by an astonishing 72% and 51%. If one is off the mark by 5% or 10%, then this wouldn’t be so bad, but miss the mark by 72% and 51%, and you should lose all credibility in the prediction game. Furthermore, by now, many people have realized that the big names that boldly make such predictions often do so only to benefit themselves. Often there are ulterior motives driving such predictions that only become apparent after people act on these public figure’s predictions. For example, just recently, famous billionaire oil investor T.Boone Pickens very publicly predicted that oil prices would double from their recent low of $26 to $52 a barrel later this year. And how committed was he with his prediction? He was so committed to this prediction, that as soon as oil moved higher on his prediction, he sold all of his oil holdings just 4 days later after making this bold prediction.

Consequently, instead of trying to predict exactly where gold and silver prices will end up at the close of every year, or what price oil will close at by year-end, both of which are impossible feats to accomplish, we let the market trends dictate our decisions. Last year, gold and silver trended lower for most of the year so we remained in cash and on the sidelines when it came to investing in precious metal stocks for most of the year, except for two brief periods last year when we believed gold and silver stocks would rise, and we were able to buy and close out our positions with decent overall gains both times. And what about the time in-between? Well, last year we shorted US stock markets three times and earned cumulative profits all three times as well. Back when we used to tweet with regularity, before twitter asked me to confirm my phone number and other personal information every time I logged in during my business travels and I became fed up with their invasion of privacy, here are three examples of tweets we sent out in the second half of 2015 that all served as prescient warnings that came true.

 

 

This year if US stock markets appear that they will trend higher for most of the year and gold and silver prices in USD will rise most of the year, then guess what? We will be long most of the year in gold and silver stocks and short most of the year in the US stock market. And what if a repeat of last year happens? Then we will apply the same strategies from last year that earned us a positive yield. We don’t think that will be the case as US stock markets appear to eventually fall to a much greater extent than it has already fallen ytd, and gold and silver appear primed for sustained rises higher this year. However, if this situation doesn’t manifest, we have learned to react and adapt to market trends rather than trying to force feed clients a strategy that does not work. And as it was last year, that will be the key to success this year. Adapt and bend to market trends instead of adopting a singular strategy from which you will not veer. Buy and hold is dead, and has long been dead as an intelligent strategy. Don’t die this year by refusing to adapt and by clinging to a buy and hold mentality. So far, this strategy is serving us well again this year. As of yesterday, our CIO newsletter was sitting on +4.96% gains ytd while the US stock market continued to fall another -4.83% over the same time period.

So will gold and silver make bold moves higher this year? Beware today, but long-term, we think they will. More importantly, even if they don’t, we can employ strategies that will maximize our chances of yielding positive gains. For more information, please visit us at smartknowledgeu.com. And if you are a believer in investing in truly beaten down value plays, then there are no better value plays in today’s market then junior gold and silver mining stocks. Please click here to read about the various types of available Platinum Memberships that focus on such opportunities that paid off at an even higher clip for our Platinum Members last year. I believe that this year will be the year for valuation plays, and there are no better valuation plays in the world than beaten-down PM mining stocks. But as I stated above, even if I am wrong, and it takes a little longer for valuation plays to pay off, as long as one is adaptable and flexible, it is still possible to reap positive yields by changing strategies with changing market trends as long as one does not become so enamored with one’s strategies that one is unwilling to change them when they are not working.

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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.

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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

To learn more about our Platinum Membership and Crisis Investment Opportunities newsletter, please click on the links in this sentence to download our fact sheets about these memberships.

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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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A Critical Warning to Indian Citizens About the Newly Introduced Indian Gold Programs. Could Bankers Be Duping Us Into a Reverse Alchemy Program?

November 9th, 2015
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Indian Prime Minister Narendra Modi launched a 3-pronged scheme to allow gold to become an important part of the Indian economy – a gold monetization and bank deposit scheme, the issuance of bank and federal gold-backed bonds, and a gold coin and bullion selling program, in which an initial 15,000 5gm gold coins, 20,000 10 gm coins, and 3,750 20gm bullion bars will be made available to the Indian public.

 

The only aspect of this 3-pronged program, however, that I deem trustworthy at this point, until proven otherwise, are the gold coin and bullion selling program. Why? The answer is simple. The other 2-aspects of this 3-pronged program advocate against our advice at SmartKnowledgeU to specifically hold all of your physical gold outside of the global banking system. Both the gold monetization scheme and the gold-backed bond scheme require depositing physical gold at a bank and receiving digital credits and paper in return. If bankers never commit fraud and always keep 100% of the gold allocated specifically to the depositor, and we can be 100% guaranteed of this stipulation always being enforced at all times, then I would not have a problem with India’s gold monetization program and gold-backed bond program. The only problem is that history tells us that bankers will always commit fraud under these circumstances. Consequently, why should we take their word this time around that they will not commit fraud again and use the gold deposits to undermine and suppress the price of gold against the gold depositors’ best interests?
 

For example, we already know, beyond a shadow of a doubt that the gold derivatives futures markets in New York and London are entirely fraudulent and that pricing mechanisms in these markets literally have zero relationship to the supply and demand determinants of physical gold. The UK Financial Conduct Authority fined Barclays Bank £26 million and banned Barclays banker Daniel Plunkett for artificially engineering a gold “puke” in gold futures markets to plunge gold prices on a specific day to ensure that they would cheat their client out of a payment of £2.3 million. Furthermore, this fraud would not even have been exposed had it not been for the client’s sophistication in understanding and identifying the fraud executed by the Barclays banker. I literally have witnessed other bankers execute the exact same pattern of fraud executed by Barclays banker Plunkett dozens of times in the past, and for which no banker was arrested or prosecuted. Given the history of banker fraud in gold paper derivative markets in which banks use paper markets to plunge gold prices, Indian citizens must ask themselves this pressing question, “Do I really want to give up the security of holding my physical gold outside of the banking system and then deposit it with the very bankers that have been repeatedly proven to execute fraud against my best interests?” Read the rest of this entry »

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Is This the Gold and Silver Mining Stock Washout for Which We’ve Been Waiting All Year Long?

November 6th, 2015
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In the past two days, gold has dropped only -1.7% but the HUI gold bugs index has tanked a far greater -8.25% in just the past two days! Individual gold stocks, over just the past one to two weeks have tanked by an even much shocking margin, exceeding -20% and -30% losses, as you can see in the charts of Goldcorp, Alamos Gold, and Anglogold Ashanti below.

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As I stated in my last two free newsletters (subscribe here), I expected these selloffs in the gold and silver mining stocks to occur, and I am on the verge of turning bullish again in gold and silver mining stocks. As I stated in the last newsletter, the two periods circled below are the only two times we’ve been invested in gold and silver mining stocks the entire year in 2015 thus far, and we’ve were fortunate enough, both times, to exit before the mining stocks started tanking again.

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So is this the gold and silver mining stock washout for which we’ve been patiently waiting all year? Unbelievably, even though we started out the year with some of the lowest valuations in decades in gold and silver mining stocks, and it looked like a can’t lose opportunity for buying and holding gold and silver mining stocks the entire year, if you had done exactly this, you would now be sitting on huge loses year-to-date. In a highly banker-manipulated asset class, as is the case with gold and silver, there is only ONE thing that matters to formulating a solid strategy – understanding manipulation. Read the rest of this entry »

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This Event Should Serve Notice to the Clear and Present Danger that Exists to Our Bank Accounts

November 6th, 2015
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Today, bankers all around the world are making it more and more difficult to withdraw more than $3000 or €3000 per day, and simultaneously making it impossible to pay for, in cash, any item with a price tag in excess of these levels. Though most people are not questioning why this is, this global banker movement to ban all cash transactions should be interpreted as a clear and present danger to the purchasing power of everyone’s lifetime of accumulated savings. If you’re still not convinced, then think about what the Carbanak theft of $1 billion from global banks truly means. If we investigated how this hacking group accomplished their theft, we would discover that, at times, they even hacked into bank servers to create currencies out of thin air before transferring this newly created currency to themselves.  The fact that these hackers could create currency that did not even exist on the bank’s books and then steal it should compel all of us to ask ourselves, “Do we really want to hold the earnings of our cumulative lifetime of labor in digital currencies that have intrinsic values of nearly nothing?” If we realize that bankers can store tens of millions of currency literally on just a few bits on a hard drive on their bank server, and if we understand that we can purchase a 5 Terabyte Western Digital hard drive that can hold 40,000,000,000,000 bits on Amazon for just US$179, then we really should question why we believe that digital bits will ever preserve our lifetime of savings for the next 10 years, or even for just the next 2 years.

 

It seems that most of us have already forgotten, quite conveniently, that banker digitalization of payments for our labor allowed bankers to easily steal 47.5% from all Bank of Cyprus accounts greater than 100,000 just a couple of years ago.  With our compliance with such actions and our and acceptance of digital bits for our labor, Bank of Ireland bankers were recently able to ban withdrawals of less than 700 from all of its branches with little protest and relative ease. While most of us would realize that something sinister is afoot right now in the global banking system if we merely diverted our attention away from the Sunday football game or the Game of Thrones episode on our TV for just 10 minutes to think about these issues, unfortunately, the vast majority of us still do not ever stop to think about the meaning of such events. In an attempt to prod everyone to really consider the meaning of such events, without further ado, I present to you, our latest SmartKnowledgeU_Vlog_0010: “If This Doesn’t Convince You to Exit the Global Banking System, Then Nothing Will!”

 

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We’ve Called All the Big Gold & Silver Downturns This Year…But Our Next Call Will Be the Most Important One

November 5th, 2015
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In our last two postings, we warned you repeatedly of the fact that gold and silver prices were ripe for a pullback in price. In fact, I clearly stated that “danger in gold and silver [was going to be] elevated for the next couple of weeks” on October 26th, and since then gold has fallen more than $60 an ounce and silver has rapidly fallen a whopping -5%. In fact, we hope you heeded our warnings as we’ve been repeatedly short paper gold and short paper silver this entire year in order to maintain our year-to-date positive yields for all of our fee-based membership services this year. Because gold and silver mining stocks, as represented by the Philadelphia Gold and Silver Index and the HUI Gold Bugs Index, have both tanked by -40% since their highs in January to begin this year, it has been absolutely necessary this year to short gold and short silver into these banker raids to maintain positive yields. Having my clients short paper gold and short paper silver does not contribute to downward pressure on gold and silver dollar prices as some critics will maintain, because there is no way that even all of our cumulative fee-based clients have the resources to compete with the billions and billions of dollars Wall Street banks have at their disposal to raid gold and silver derivative markets, as they have again done these past couple of weeks. When bankers devote hundreds of millions of dollars to knocking down gold and silver prices in paper markets, we can’t compete with that volume of money working against our best interests. Rather, we need to take the necessary actions to combat this fraud and crime, and that often involves shorting paper gold and paper silver derivative products. I’ve never understood the stance that one should be passive in the face of massive banker fraud and criminality. I choose to fight against that fraud. I never, in a million years, would ever recommend anyone buy paper gold and paper silver instead of physical gold and physical silver, and I would never recommend holding any physical gold and physical silver within the banking system. But when it’s necessary to short paper gold and paper silver when I see a bank raid coming, I don’t have a problem doing this.

 

If you review every single free newsletter (access the archives here) that I’ve released this entire year in 2015 from January 1st, you will see that not once this year did I ever release a newsletter in this forum in which I stated “Gold and Silver Ready to Explode Higher!” Not once. On August 20th, I posed the question “Have Gold and Silver Finally Bottomed?” and answered that question with the following: “we are truly entrenched in a situation where gold and silver mining stocks are at their lowest valuations of this entire bull market. We are getting very close to the time go long ago, and whether this time is in days or weeks or a month or two, our clients will know when the time to go long in gold/silver assets will be again for this once in a lifetime opportunity.” Again, we have not yet gone long in gold and silver mining stocks, and now is two months later from the release of that comment. So now what? The same still holds true. We are close, but not there yet. For those with the vision to have stayed out of gold and silver stocks for nearly the entire this year, we have preserved our assets this year, grown them a little, and will now be poised to take advantage of what is indeed a “once in a lifetime opportunity”, or at a minimum, a “once in a decade opportunity.”

 

Remember, all the way back in March, I emphatically stated that this year was going to be a very volatile year in US stock markets and in gold and silver markets when I provided my “Two Key Strategies to Making Money in 2015”. The first key, I stated, eight months ago, was to “remain extremely agile and nimble.” As we have shorted gold and shorted silver several times already this year, we have taken our own advice and remained extremely agile and nimble, frontrunning the banker raids in gold and silver each time they have occurred this year. Secondly, I stated, “the need to be patient is perhaps equally as critical and important as the need to be nimble.” Legendary manager Bill Ackerman of Pershing Square hedge fund’s year-to-date performance of -19% is a fine example of what happens when one merely depends on Central Banker fraud, ZIRP, and QE to keep levitating every US stock higher. The “Central Bankers will artificially keep every stock rising” mantra and investment strategy simply doesn’t work, especially when fraud is at all time historical high and entrenched in all global stock markets. Instead of holding positions that have lost -62% in price rapidly, like Valeant Pharmaceuticals, it would have been much better to have been extremely agile and nimble in response to companies that don’t have the blessing of US Central Bankers for fraudulent price levitation. This year has been one for being cautious, being happy with smaller positive yields, and patiently waiting for the low-risk, high-reward opportunities to arrive.

 

So what could be more important than avoiding the huge -40%+ losses mining stocks have suffered this year, thus far? Identifying when the turning point to go long will be. And when it arrives, you will want to be long in this asset class to reap the spectacular gains that will be coming. Again, you can review every single free newsletter I’ve released since January 1st of this year, and you will discover that this is the first time I have stated that I am on the verge of turning aggressive in this asset class. “On the verge” does NOT mean this week or next week, but it does mean sometime within the next few weeks to next few months. And if you want to discover when I will turn positive in this asset class for the first time this year, just click here and here for the fact sheets regarding the services in which I provide this information. Below, you will see 4 times this year when chatter has been high about gold and silver mining stocks being ready to “break out and soar.”

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And all 4 times, you can see that gold and silver mining stocks crashed shortly after these calls. The first two times in the chart, in the periods I’ve circled in green, were the only two periods we have been long in the mining stocks for our fee-based services this entire year. In periods 3 and 4, we have remained out of the market, and as you can see, after periods 3 and 4, the mining stocks were sold off quite rapidly again.

 

If you look at the chart below, you can see the reason for my coming excitement with this asset class.

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As an asset class, in late 2008, these stocks rose +325% very rapidly, with the best in class stocks rising 1,000% and more. There is no more undervalued asset class in the entire world than PM stocks right now, while on the other hand, the US stock market is overbought and due for a downward trek very soon again. And this is why, when we tell our fee-based members, it is time to go long again in this market, with what stocks and at what prices, this will be our most important call of the entire year. This is one uptrend you will not want to miss.

 

Currently, you can presently lock in one of our flagship SmartKnowledgeU services for as low as $49/month. Just a couple of years ago, we were offering this service at more than $75/ month. However, since we price our fee services off of a gold standard, and stick to this standard even when gold prices have fallen, as they have since 2011, this service is now at the lowest price we have offered in years. In a few months to a year, this monthly fee may easily rise to $60, $70, or even to the $90 a month levels that it has been in the past. For our platinum members that also have access to all of our top junior mining stock picks, you can see below, that even in a year when the junior mining stock picks have crashed in price collectively, our picks have still led to some enormous gains of +121.0%, +75.6%, +64.9%, 60.1%, and 53.3% earlier this year. When the turnaround happens in earnest, we expect a spectacular ride higher as these were the returns we produced this year in an absolutely terrible environment for gold and silver mining stocks.

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How to Properly Value Gold?

October 27th, 2015
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As I write this article, at about 11:30AM Singapore time, on 27 October 2015 (11:30 PM New York time on 26 October 2015), the probability of another banker raid in the paper gold and silver derivatives markets increases and remains elevated. Yet, every time bankers raid paper prices, if indeed this happens again sometime over the next few trading days, their raids on the fiat currency prices of gold and silver always trigger a lot of frustration on behalf of physical gold and physical silver owners due to an improper equating of fiat currency price with real value and improper equating of “perceived” value with “real” value. In fact, it astounds me when I witness intelligent people repeatedly make the mistake of pricing a sound money in terms of unsound money and then equating this fake price to physical gold’s (or silver’s) value.

 

A huge reason we all tend to make these types of sophomoric mistakes is due to the fact that the bankers erased all real knowledge about sound money from textbooks and the collective conscience of society long before any of us living on this planet today had even been born. Therefore, we were raised to believe that valuing gold and silver in terms of fake fiat currencies is acceptable, whereas if you transported a 5-year old child that lived during a period of a real gold standard persisted to the present day, that child would laugh at our foolishness regarding the manner in which we value physical gold and silver. During periods of true gold standards (and not anti-gold standards like the Bretton Woods system, that was still truly a US dollar standard), the only accepted way of valuing gold and silver was by its weight, in grams or in troy ounces. The reasons why the Bretton Woods system was much more of an anti-gold standard as opposed to a true gold standard is beyond the scope of this article, but something we explain in fully and in great detail in our upcoming SmartWealth Academy. Any paper note that simultaneously circulated with gold and silver coins during true gold and silver standards only represented that standard monetary unit of gold and silver weight. And when governments and bankers reneged on their promise to redeem these paper notes into a pre-specified precious metal monetary weight, the paper notes depreciated against the precious metal. Read the rest of this entry »

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