How to Survive a Silver-Gold Sucker Punch / Commodities / Gold and Silver 2021
Anyone who owns precious metals, mining shares or metals' ETFsknows the drill.
First, gold and silver begin toestablish an uptrend on the charts. Analysts (like us) start writing about howprices are getting ready to make an upside run.
Then "out of nowhere" thousands of highly marginedfutures contracts hit the market on the short side, "re-painting" thecharts, sending terror into the hearts of stackers and those who believe in"honest money."
The reality is that honest money is being manipulated forpersonal gain by dishonest traders, enabled by "regulators" who, toput it charitably, look the other way.
It can be disheartening. It can make you feel helpless.
And worse, it can knock you off what David Morgan, DougCasey, and others believe is destined to become the biggest precious metals andmining stock bull run of our lifetimes.
But you can get back up again and persevere on the path to theWinners' Table.
Years ago, when I was moving through the Dan ranks in martialarts' study with my revered Sensei (who unexpectedly passed away last December,ending – at least on this plane – our 33-year relationship), I was given anassignment.
"Choose two or three self-defense situations you've been inwhen you felt unable to respond, and design effective, multiple-responsecounter attacks," he said.
Remembering how in third grade I had beensucker punched by a supposed friend when I reached out to shake hands, and howterrible that felt, I went to work on a solution.
I trained full-out for five minutes, then stopped, breathed outfully – and held my breath to see what kind of offensive response(s) I couldexecute.
Surprisingly, even though my lungs were oxygen-deprived, I wasable to perform several powerful empty hand and kicking techniques.
In the event, these would have provided an effectiveself-defense solution, even before breathing in to refill my lungs. (Thiscapability also holds true for run, stop, draw-and-fire sidearm practice.)
Not long ago, when silver was dropping$2.50 an ounce, with gold down $75, a metals dealer had this to say:
"The Big money always moves wayahead of the crowd. And if you look at what sophisticated money on the planetis doing; they're using price as a cover; manipulated price as a tool ofmisdirection, to accumulate.
Today, silver and gold aregetting crushed like I've never seen (yet) our phones have been ringing off thehook for the past couple of days, as the price has dropped...and no one isselling anything... This is nothing more than a function of a paper pricehit-and-run; a paper price drive-by shooting. As soon as the Commercials get towhere they can cover, the price will turn around.
The whole concept of the art of war is misdirection.
They (the "Floor traders") realize that people are soinundated with life that they don't have time to look under the hood.
So how do you control price or sentiment? You beat the heck outof the price and espouse negative rhetoric across the gamut of big-business-controlledmedia...
This allows big money to accumulate gold and silver in copiusamounts without being crowded out of their trade.
Why did central banks reclassify gold as a Tier 1 (good as cash) asset?Why have central banks been massively accumulating? (Bloomberg reports, that in the last two years, central banks have acquired more than 1,300 tonnes of gold, which they've termed "the biggest gold-buying spree in half a century.")Why are the most wealthy and influential people on the COMEX – the "Others" – pulling record amounts (physical gold and silver) off the COMEX?In a daily column titled, "This is No Time to Give Up onGold," Rick Ackerman, of Rick's Picks, commented about the metal's swoon:
With gold's gratuitous, 4% plunge onFriday, bullion has once again affirmed its reputation as one of the nastiest,most frustrating assets an investor can own. Its chief enemy is a globalnetwork of shamans, thimble-riggers and feather merchants who make their livingborrowing bullion from the central banks for practically nothing, then lendingit to everyone else for slightly more.
They are always looking forexcuses to pound quotes so that they can replace what they've borrowed at alower price. Helpful to this goal is a story that, however ridiculous, spooksgold bugs into dumping their holdings.
The massive selling of metals is an illusion. And yes,it's been going on for quite a while.
During a 2010 CFTC hearing, CPM Group's Jeff Christian testifiedthat: "Precious metals trade in a multiple of a hundred times the amountof the underlying metal." In other words, prices are manipulated andsuppressed with bets placed on tons of imaginary or non-existent metals.
In his book "Rigged: Exposing the Largest FinancialFraud in History, Stuart Englert concludes that "Moreimaginary gold and silver is traded in a few days than is mined in an entireyear.
Such large-scale trading is at the heart of the pricesuppression scheme. This supply illusion causes the paper metals' price to bemanipulated lower, even if demand is rising!"
So... how can YOU respond to these periodic"shakedowns"?
Ideally, as Master Miyagi in The Karate Kid moviewould say, "Don't be there." You can sidestep a lot of the action bynot trading on margin, buying your physical in tranches rather than all atonce, and saving some capital to deploy during one of these take downs.
Of course, if you have a position, you'll need to suffer throughsome short-term pain while prices get back to recognizing true supply/demandreality. But now that you know what's going on, it should help you dial downthe emotions – and certainly not give up!
One of the core principles that David Morgan at TheMorgan Report teaches is that "The market is ultimately biggerthan any attempts to subvert it." Keeping this in mind can enable you to"stay long and strong" while the inevitable sorting out takes place,and metals prices bounce back quickly thereafter.
David Smith isSenior Analyst for TheMorganReport.com and a regular contributor to MoneyMetals.com aswell as the LODE Cryptographic Silver Monetary System Project. He hasinvestigated precious metals’ mines and exploration sites in Argentina, Chile,Peru, Mexico, Bolivia, China, Canada and the U.S. He shares resource sectorobservations withr eaders, the media and North American investment conferenceattendees.
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.
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