Before getting to the topic of “all in!”, I have a story for you which may be of interest. All the way back in 2002, I travelled out to Colorado Springs for the shareholder meeting of a very small and obscure royalty company named Golden Cycle Gold. While there, we did a tour of the Cripple Creek mine and its operations. The nearby town, Victor, looked nearly like a ghost town 30 miles off the beaten path. The only industry was the mining operation and a little bit of tourism. During my trip, I met a long time Director of the Golden Cycle Gold Company, “Frank,” he had a different view of economics than almost anyone I knew. He believed the U.S. was bankrupting the country with armaments manufacturing, just as did the old Soviet Union and that the U.S. would eventually meet the same economic fate during a currency collapse of the dollar, as had happened to the ruble. ..
Frank and I spent almost two days together and I furiously picked his brain. He was a fountain of information as I learned more about the mining industry from him than any other source.
He said; ” gold was an immutable object,… it didn’t do anything,… it just sat there….. it was just one ounce of gold,… it was paper money that historically depreciated in terms of the yellow metal.”
Frank was drawn to the Golden Cycle Company by a statement made by famous financier Charles Allen of Allen &Co., who said: “If monetary conditions were right, the Company could make stock market history, “(the Allen family had escaped Europe just prior to the worst of the Holocaust and understood the value of gold money).
As time would have it, the Company was sold. He said; never ever did anyone ever believe the conditions we are witnessing today could have been extended into the hereafter, with printing press money, without a major economic collapse and depression. Symbols for the theft of the public’s buying power by banks, such as QE, were not even part of the financial lexicon. The only analogy he knew had relevance to today’s financial situation was during the days of John Law and Fiat Money in France in the 1700’s… He now says; “Those conditions, or happenstance, so well understood by Charles Allen, exist today, ….. for Gold and Gold shares to make market history,……. (in this poker game of International Finance), he says; ALL IN!
After the first day in the field, we met for dinner and a few beers (where we met a 6′ 9” Australian with long blonde hair who put Rambo’s physique to shame …turned out he was an international (legal) arms dealer!). This is where I first heard of the concept “re set”. He talked about gold demand outstripping supply, manipulation and many other topics which I was aware of but only scratching the surface at that point. The biggest thing he talked about was “collateral”, or lack of it. He posited the system was nearly at full margin in a sane world, the only two outcomes could be some of the debt being cleansed, or exactly what followed. Namely interest rates being crushed with anything and everything not nailed down being used as collateral for margin. In retrospect, he was early but very correct how this would all unfold.
The reason I relate this story is because back then I needed something or someone to “strengthen my knees”. Gold and silver would get smashed when logic said otherwise. Very little information was available on the internet to that point other than a few websites including GATA. Jim Sinclair had just begun posting for another website and had not even gotten his own up and running. Back in those days, the biggest shot of adrenalin was when John Embry who worked for a mainstream Canadian bank wrote publicly about blatant manipulation. John’s writing was sorely needed by the gold community to confirm their thought process. It is in good part this very reason I began to write in 2007, to hold shaky hands and to calm the fearful. Most of all after this trip, many of my thoughts were confirmed and cemented. To Frank, my mentor, I owe a huge debt of gratitude!
As for my topic “all in”, should you be? My answer to this is to be as fully invested in precious metals assets as you are comfortable with. Please understand this, because central banks, sovereign treasuries and behemoth financial institutions are already “all in and then some” with their support of paper assets …when the dam breaks you will most probably not have the chance to go “further in” with precious metals. Bad money will chase good money into hiding and be met with “not for sale” signs.
This concept of “all in” has been personified, only in reverse by the world’s central banks, treasuries and financial institutions. They have created $ trillions upon $ trillions of new currency, they have borrowed even more $ trillions while the institutions play in over a $1 quadrillion casino. Any thing “marginable” has been used and already borrowed against. Interest rates have been crushed to zero and below by the necessity to be able to pay the interest while stock markets float higher with little to no volume as the HFT algos swap some spit back and forth. Real gold and silver have been sold 100 times over and are fictitious in pricing and availability.
If you did not understand the meaning of the above paragraph, I will spell it out. The world is one giant and collective margin call. “Net worth’s” that are calculated, relied on and believed in today could be seriously cut, wiped out or even become negative overnight. “This can never happen” you say? It already has in many instances for those long euros or short francs on margin …and this was only the tip of the iceberg. Do you suppose some oil traders, or even some drillers and producers have gone belly up? We know they have. EVERYTHING paper has the very same affliction as oil and this FOREX cross, the values are skewed! Not only are they skewed, this has been purposely done. The problem is with the “manner” in how it has been done. Derivatives, or leveraged paper, has been used to paint a picture necessary to retain confidence. As this picture morphs from true realism to more and more abstract, confidence ebbs with it. As more and more financial soldiers fall, other troops begin to worry, drop their arms and turn tail. This is how it works. Panics occur because confidence decreases.
Looking at the real economy, how much more can we expect out of it? Corporations have supplanted small business and in their quest for profits are cutting jobs and expenses to the bone. Can young people afford to buy entry level homes to help push current owners to the next level? Can the working population support a 50% and growing portion who collect benefits? How long can parents support 25 and 30 year old children who cannot afford to provide for themselves? Who will support the parents? It never “was” like this because it could not be, it was not and is not sustainable. What Washington and Wall Street have forgotten is oh so important yet ignored. In order to have truly healthy financial markets, the real economy must function and function well. The real economy is just as far over the cliff as the federal fiscal situation with no one left able to either pass the baton or to save the day.
Let me finish with these thoughts. It used to be the real economy would generate cash flow in excess of what was needed to fund current operations and to pay debt, this is no longer so. The necessary “cash” is now coming from the central banks because the economy is no longer sufficient to do so. This is why it “feels bad” out there, there is little money making it to the streets. Soon it will feel even worse because even with bogus and fudged numbers, an official recession is again arriving. How much further can the central banks go? Further than “all in”?
What’s farther than “all in”? If they can keep playing poker for toothpicks, more “toothpicks” will come forth – and they control the toothpick production. T’was ever thus. Perhaps the French were right….I KNOW that our leaders are looking for blood in the streets. GET ON YOUR KNEES!
Bill, thanks for taking the time for your writings & insight. You probably read yesterday’s article on Zero Hedge about “Audit the Fed”. Listed were 100 reasons why, all hit the bulls eye, but #64 stood out for me: “The Fed decides what the target rate of inflation should be, what the target rate of unemployment should be and what the size of the money supply is going to be. This is quite similar to the “central planning” that goes on in communist nations, but very few people in our government seem upset by this.” The most powerful group of people, appointed, not elected, in this world, dictate how the world should turn. This will not end well!
central planning never works.
“The governments of the world need to declare bankruptcy. It is the only way to create a fresh start from which to move forward. Unfortunately, too many people and businesses rely upon government largesse to survive. Too many do not appreciate the importance and difficulty of generating a net income. For them, the money comes from government. Budgets are a thing of the past, and the austerity or abundance of the “bottom line” is a lost concept.” by Robert Fitzwilson
Bill, Do you suspect that our apathy as a people is also a key reason for this horrible mess we are in?
Bill
I don’t “suspect” it, I know it!
Bill, Good read. Finally the armaments industry is mentioned, and just think that was before the invasion of Iraq with all the continual wars since then. I am not a fan of Obama care in any way, but just cringed when the Republican party railed against it but support the armaments industry and all the wars (by the way, I dislike both parties equally). The other day you mentioned the lack of coverage of ISIS killing the Christians? I honestly did not see it that way because all I saw in the news was constant coverage of all the beheadings. I have felt it is all being used to get public support for more war, and guess what, it is working to the greatest degree possible. Just when I think the public is fed up with wars, they get lead by the nose to another war.
Like we have agreed on, DEBT is the weight that is taking us all down together, therefore “all in” is the safest way, and we are just waiting for the “river” card as the “turn card” has made our hand look bad!!
All in, 2001 @ 270 🙂
I’ll bet I know the exact day and why.
Bill,
This is one of your best.
thank you Dan.
Bill,
According to the article below we’re too negative:
http://www.mauldineconomics.com/the-10th-man/i-heart-capitalism
regards,
Ken
oh well, it is what it is.
Central banking = controlled stagflation + financial repression. How long can they kick the all in can?
no one knows but we do know the outcome.
Did you drive the Phatom road?
Phatom road???
It’s a gravel road made over an old narrow gage RR bed running between Co Springs and Cripple Ck. Great drive..
I have made that trip maybe 5 times and never once drove a gravel road?
Google Phantom Canyon Road Colorado
been there a few times and never knew it existed. I’ll bet you did not know the stock exchange in Colorado Springs was at one point (1880’s?) the most active in the U.S.?
Nope, didn’t know that, but heck I was only 10 yrs old then.
maybe your great grandfather
Phantom Road – F-Zero Wikia
fzero.wikia.com/wiki/Phantom_Road
Phantom Road. An area covered in mysterious secrets.
=========
I listen also to Andy, and it aint a secret no more.
We know exactly what these totalitarian socialist fascists are up to. The problem is that Americans have been pandered for 100 years, losing our way of freedom from government, honest money, honest markets, and our REPUBLIC for which the Flag should stand, with no living memory of freedom, hard money currency, and states rights, and now, most accept willingly our enslavement.
because we were given everything on a platter, worked and fought for nothing.
If they succeed to knick the can another 5/10 years, perpetual QE and negative rates will be seen as completely normal.
If you had said a man on earth before 1970 that not so distant in the future the whole wearth will be on a fiat basis and in the west nearly 99% of people would consider gold as a “crazy” thing, they would certainly have not believed you !
Time for a Jubalee Year; 2500 years ago they understood how to handle the end game of debt creation. Wisdom from the Bible. Think of the economic growth after the elimination of all existing USA debt?
Shemitah.
I think US growth will dramatically reverse into severe contraction after debt is wiped clean. That debt has served in the US’s favour for decades to bring in cheap stuff from the rest of the world via the trade deficit. It is classic empire building. After treasuries become worthless then any manufactured good will skyrocket along with energy. Goodbye consumer. With 70% of us GDP coming from consumption I cringe to think of the carnage to come.
absolutely correct Mark.
Bill – Be Careful
MF has championed the “ALL IN” philosophy for many years, but this is the first time I have seen YOU present it in a favorable light. I bought in to the philosophy in Aug 2012 to Apr 2013 – $760,000. I’ll let you calculate my loss now that I must convert metal to cash to pay the bills.
Please do your readers a favor and write a piece on your statement
“as you are comfortable with” and discuss the short range implications
of “ALL IN”. We all know the long range story – big crash – $ worthless – da daa da daa da daa.
PS – Don’t shake your finger at me for making a bad decision – I know I made a bad decision and it is my fault – not MF – that I am now taking huge losses. I just want you to know that although I made the decision, I had some expert help.
Please read my piece for either Monday or Tues. “gold has NEVER been more valuable than it is today”.
Robert,
I feel for you man. I too, have been following all the guru’s for the last few years. Bill talks about loss of confidence being the straw that breaks the economies back. I agree that confidence is everything. Well how about the loss of confidence in all the metals ‘experts’.
I’m not the sharpest tack in the box, therefore I rely on others to help me out. Only I am responsible for myself, but like you, I do rely on the inciteful thoughts of others. I, like you, have lost confidence in the nearness of a collapse. I have also lost all confidence in the metal ‘experts’. How many of those charlatans were PROMISING $2000 gold LAST YEAR. Off the top of my head: Turk, Sinclair, Organ, Sprott, Embry, Polny. Not only were they wrong, they were BIGTIME wrong. The collapse is mathematically certain. That said, I’ve come to realize that it took Rome hundreds of years to collapse. We are going to take DECADES.
All this gold/silver safety stuff will happen….unfortunately I’ll be six feet under when it does.
I cringe when I hear someone say it’s only ounces and you only lost money if you sell…….Yes it’s not value or money, it’s just ounces. (Yea sure!) Well riddle me this: If I hadn’t made such a dumb decision to begin with why shouldn’t I be upset that I could now have 3X the number of silver ounces if I waited…..that in and of itself is a tragedy. Not to mention, like you I lost it all. I lost my investment business over it, my retirement funds, and my life. Bare survival now. No cellphone. No cable. No car. No discretionary income.
I worked at it for 14 hours a day, for years. Knowing that I could only make a BIG mistake once. I tried like hell to keep this from happening. Well listening to these ‘experts’ I made that BIG mistake and destroyed myself in the process (this during a time frame when the market TRIPLED!)…….How DUMB could we all have been?????? I understand your situation, even if some just lightly brush you off. God Bless!
Regards,
Icarus
I’ll let you calculate my loss now that I must convert metal to cash to pay the bills
====
oh meh … If you still have the metal, you have lost nothing. If you reconvert to paper, then you may lose. If you are forced to sell metal to pay bills, then you are a trader hoping for paper profits to pay bills. Trading in these manipulated times and using metals for general paper profits was your mistake. You buy metals to preserve wealth, and over the time-average long term, you do just that. Metals ARE money. You buy metals to preserve wealth, not to create paper profits. Think of measuring all in terms of the number of MONEY UNITS you have, and that means, the number of bullion coins. Think in terms of the number of coins, weath preservation, and protection from the paper pushers. Buy the metal for their inherent immutable purpose and utility, and not for trading them for profits in the con-job fiat paper.
think in terms of ounces.
Owning ounces is still better than holding cash anytime.imho
I am much much more concerned about the long term buying power of my cash than I am of my PM holdings.
If I could convince my wife I would buy more PMs and hold less cash but unfortunately she is still not convinced that PMs are safer than cash.
Hard to change someones mindset after years of indoctrination so to speak.
Lets see what our cash buys us 10 years from now compared to what our gold buys us.
it will be different cash in 10 years.
I too was ahead of the curve in getting all the precious metals I could get my hands on. I road the silver wave from $20 up to $50 and back to today. Nothing like the amount the above poster did, but to each is own.
With that said, I don’t consider anything a loss. That would be like purchasing insurance and thinking because you did not total your car, the insurance you paid was a loss.
No, my insurance is well in tact and the only thought that crosses my mind is can I afford more.
Insurance is not about getting Rich. It’s about financial survival after a crash.
Hope that helps.
Peace.
yes.
At these “once in a lifetime” prices, grab as many ounces as you can. I’ve personally made the decision to go 10:1 in favor of silver. I also closed out all of my mining stocks in 2010 which, in retrospect, was one of my best investment decisions. I personally feel that since the Rule of Law and Bill of Rights have been relegated to the dustbin, all paper assets will go to zero, and common shareholders will be wiped out. This will be especially true for mining stocks. When, and if the SHTF, there is nothing to stop governments from nationalizing or expropriating resources; in fact in the US, the NDAA has already accomplished this, both de facto and de jure at any time POTUS decides. All for national security, dontcha know. Other mining countries will immediately follow suit. The theft of PM deposits, even in ground, will be too tempting to the criminals.
it’s possible
It says the Central banks are all-in. I get it. They r in a box they built w/o an escape route. They need a ‘reason’ for what comes next (reality crash)…war, bank failures in Europe, or…?
Central Bank of Japan buying Cdn Banks, Euro Banks, US Debt…sure and it works both ways as the Banksters keep the scam going.
If u and me could print money and the world said it was we would be laughing, eh what? Irresponsible guardianship over the world’s ‘reserve’ currency has set up the world for horror. Unless….
yes.
Its the same bullshit this site has been doing for years its in their interests to get you to buy gold its their business!! Wake up sheeple..
so you are saying that gold and silver are “bad money”?
This site has had it right for years.
Anybody that says they can time everything perfectly should be immediately dismissed.
Yes, MF has through this blog suggested to many that there is good reason to hold a position of PMs.
I do not believe that they have in any way mislead anyone.
Promoted their product line…ABSOLUTELY
I think that have done so in a honourable way.
To say that MF has spewed BS is simply just not true.
Have Bill and Andy expressed their point of you…YES
Have they supported their statements with references and data… I say YES.
Do I agree with everything they state….NO However, I will state that they provide a great service to people with less knowledge than they do and even if gold and silver went to ZERO bid, I would not fault them.
Nobody knows the when.. everybody should however know that fiat money fails in two ways. Loss of buying power and eventual loss of confidence.
Gold and silver does fluctuate in value. Always has always will but in the long haul it is still real value.
There are many many billionaires all over the world who are now saying holding a portion of your net worth in PMs is a smart move.
Everyone has an agenda in life. The question is who maintains integrity while delivery knowledge.
Bill and Andy are both class acts.
I appreciate their knowledge but I make my own decisions and only I am accountable for my decisions.
thank you Mike, being “trolled” comes with the territory and considered an honor as we strike a nerve from time to time.
Your welcome Bill.
Will you be writing anything in the next few weeks on the meaning of this news from Andrew McGuire…..if not might you express a few thoughts on the subject here.
TIA Mike
Basically Maguire is saying the physical exchanges will take the game away from the paper baggers. I agree, he has insight as to when these things will go live and have no reason to disbelieve him.
My understanding is that within 1 week there will be a public announcement of the name of the new system along with further details.
As I see it this system will totally undermine the paper game as the awareness of the true physical price of PMs will render the present price fixing mechanism as nothing but noise.
It sounds like they have taken precautions to deal with effort to undermine the new process before it gets in full swing.
This could be a major game changer that could take hold extremely quickly.
This could get real ugly if you are the one caught on the wrong side of the paper game.
Keep an eye out for the paper game exit doors. The might get blown off their hinges.lol
Bill, I posted for Andy; but posting for your comment as well.
The budget for 2015 in India came out earlier today. It has been a severe disappointment, and that’s an understatement. Many in “honesty” department were eagerly waiting for it, to see the gold import tax being abolished. It didn’t happen. The Modi government finance minister has spoken in a “He speaks with forked tongue” manner. Exactly like their earlier opponents Congress. So much for the “Hope and Change” landslide election victories.
India is part of BRICS, but the governments in India (doesn’t matter which party) look like are playing a slimy game. This gold import stance they’ve stuck to is straight from the Rothschild playbook.
disappointing but not a huge surprise.
Maybe this was one of the “conditions” Obama brought to India, when he was there few weeks ago….so they don’t experience yet another new terrorist attack in Mumbai.
Bill,
Living in canada I will tell you what is going to happen here we will become a legal liability to the banking system..legislation already written. The government here will go after us boomers cash assets, the banks have been conning folks into mutual funds, encouraged us to invest in tax free savings accounts, more free money for the banks, and now the revenue Canada people are chasing investors having TFSA’s if they seem to be making too much profit. Just sayin’
Bill,
Forgot to mention I do own a silver mining claim that has proven reserves of between 5,000 to 20,000 oz’s per ton…So besides my bullion collection my other reserves are “in the ground”
The claim is one of the many silver mines closed in the late 1900’s when the price of silver collapsed. The only mine in Canada that Lord Stanley from England visited. Same guy that hockey’s Stanley Cup is named.
As far as I know no other dedicated silver mines in Canada..this one has it on the surface and can be an open pit operation!!
A real fan of your thoughts!!
…”20,000 ounces per ton”? Really, this would be 60% pure silver ore?
Bill,
Yes the mine contains rich veins over 18″ in diameter and the silver was mined to a depth of 400′ I have the latest report from a geologist 1997/98 (J.W. Redden) who examined the mines workings main drift, about 1500′ long. There are 4 main working levels. Average would be 2000 to 5000 oz’s a ton. Have all the history and assay reports from 1887 to 1998. On my computer we scanned all the old documents I keep in a box. Silver mining in thunder bay district disappeared pretty much by the 1930’s in Ontario, Canada. Have specimens too.
Do you own the mining rights or are these patented claims..
Challenge in Thunder Bay area is getting mine approval. I know of some other very high potential properties in the area but the challenge is getting funding and permits.
Some day silver we be the new gold but when that happens you will have people trying to steel your silver.
Might need some lead to protect that silver.
Yes I own the 4 unit mining claim, too expensive & too many hoops to jump through right now to get permitting and open. We will apply for aggregate permit first, but we can’t legally sell pure silver per say but can market specimens. A prime example is the ring of fire in ontario and the failure of a mining company with some deep pockets to succeed here!! I have spoken with a handful of junior miners but reality is they are keeping their $$$ in a mattress!!
Ya we have some lead to cover the silver!! Surface silver needs a large excavator and the rest is in the mine itself…Take a very small mouse to get in & out for us not to know. We also have hidden electronic security.
I have been into most all the other mines in the area other than silver mountain which is flooded. They are mostly mined out as the veins ran only for a short distance.
I do tell my friends to get into silver bullion as silver percentage wise will be a better investment than gold…Me having burned through 3 mil gonna hang on to what little I have left. Never said I was ever a wise investor..LOL
Hi Bill – I’m back.
I just took your advise and read your Value of PM article. I could not agree with you (and Turd) more, but it does not address the thought expressed by me above. (Sorry my comment started negative posts – that was not my wish. Please reread my post – “ALL IN” is the topic. ALL IN is the message I am asking you to avoid because following that phiiosophy can place a person in a bad way. “ALL IN” is presented by MF as ALL available funds should be used to buy PM, leaving nothing to fall back on when unusual cash needs arise. In my case, an unforeseen medical expense arose. Being “ALL IN”, I had to sell some PM – taking a large loss. OK – My fault for placing all my wealth in PM. I should have, let’s say, bought 70% PM and kept 30% in cash. A reasonable plan. If I did that – problem solved, but – and here is my message – I was convinced to go “ALL IN” because PM MAINTAIN WEALTH. I believed the MF message was that I would not increase my wealth (PM not an investment), but PM would preserve my wealth. Well, I agree it will, in time. Time, however, will not help now. I had to sell one Silver Mint Box last year and must now sell another. ~ 50% loss. I should have kept $100K in cash. Inflation costs for the retired are negligible.
No hard feelings Bill. You all at MF are still the best, but I will sell at least 30% of my Gold and Silver back to MF if the spots ever get near my costs.
I have written you should own as much as you are personally comfortable with.
Yes you did – and Thank you –
Please note that my message to you was “be careful”.
Not an admonition, just a polite request.
Enough said on this topic.
Be well and may the Lord be with you.
and with you!