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Not quite an “ode,” but certainly a commentary; and a VERY important one at that. The difference between success and failure – or in this instance, SAFETY and BANKRUPTCY!

In recent years, the central tenet of my writings has been thus – PAPER PM investments are speculation, while PHYSICAL gold and silver are money.  Unless you purchase bullion on margin, or must sell it to meet near-term financial obligations, NOTHING can pry it out of your hands.  Even when gold falls $100/oz in a day – as it did two weeks ago – your “account” doesn’t decline, and your assets go nowhere.  No margin calls, no changes in your holdings, and no lost sleep worrying if and when GLD, futures, or mining shares will rise anew.  In ten years of being 100% invested in the sector, I’ve done it all, and experienced every negative emotion to man – none of which have plagued me since I went 100% PHYSICAL last year.

It’s not just about the riskiness of PAPER securities or the fact that neither GLD nor COMEX futures are backed by the gold they purport.

It’s not just about the MASSIVE underperformance of mining shares these past five years – and not just compared to bullion, but the entire market.

It’s not just about the naked shorting that exponentially increases the floats of GLD, COMEX futures, and mining shares, or the algorithms that suppress them each day.

It’s not just about inevitable capital gains and dividend tax increases, windfall taxes and/or mine nationalizations.

It’s not just about Canadian investment banks diluting share counts to oblivion, or American banks partnering with miners to short future production.

And it’s not just about the systemic risk of holding significant assets in the banking system, i.e. brokerages that can jack up margin rates, pilfer your account, or be subjected to stock market or bank holidays.

Cumulatively, these factors make failure nearly CERTAIN in this sector, for essentially every outlet except “the source,” PHYSICAL gold and silver.  It took me a decade to learn this, including nine years investing in PM miners, closed-end funds, and ETFs, and five working as an officer or consultant to three dozen mining companies.  But I learned it well, particularly when I realized gold and silver are not “investments,” but “money.”  This is why I no longer value my metal in terms of day-to-day net worth (although I certainly am mindful of it), but by the number of ounces in my possession.  And it won’t be long before billions of others do as well, as is already the case in “gold cultures” such as China and India.

To the traders, portfolio managers, and investors of the world that still think PMs are a “sector” to be traded up and down, back and forth, based on “news”, “technical trends,” and other short-term variables, I can assure you this – in 90% of the cases, YOU WILL LOSE.

How you lose I’m not sure, nor how much it will cost you.  But I do know this – the Cartel wants PM investors DEAD – and I don’t just mean figuratively.  At the least they want you financially (and mentally) destroyed, and frankly, they believe the world is a better place without pesky “goldbugs” mucking up their plans of domination via fiat serfdom.

This is why I am imploring you to surrender what you have learned about “portfolio theory”, “technical analysis”, and “momentum.”  I was a Wall Street analyst for 15 years at some of the nation’s most prestigious firms, with a finance degree, CFA, and legion experience in all matters stock market and Precious Metals; and I am telling you this – YOU WILL LOSE if you continue using such obsolete skills.

I know, it takes time to wean yourself of the sacred arts of “fundamentals analysis” and “chart reading,” but I’m telling you they DO NOT WORK in rigged markets.  In fact, it used to only be Precious Metals where diabolical forces were manipulating prices, but in today’s advanced stage of economic collapse, ALL PAPER markets are controlled.  It was extremely difficult to give up on stocks – and frankly it took three years from the time I bought my first metal (in 2008) to finally giving up the ghost.  However, I have never been happier, as I know PHYSICAL gold and silver will rise more than 99% of all investments in history, with NONE of the associated risks.  Not only that, this is the best I’ve slept in more than a decade, and $100/oz Cartel attacks no longer faze me.

So the next time you see gold “on the move” – even due to major “news” like the overt initiation of QE3 or commencement of an Iranian invasion – RESIST the urge to buy GLD, GDX, or GDXJ, and instead purchase the real thing.  There are an UNLIMITED number of unregulated, naked shorted shares and contracts awaiting even the largest of orders, versus a scant, declining inventory of PHYSICAL gold and silver bars and coins.  Or, put into more understandable terms – if you do, you will WIN, and if not, you will LOSE.