In my November 12th RANT – “HOLY GRAIL OF THE FINANCIAL WORLD”; I explained “the MOST IMPORTANT WISDOM I CAN IMPART ON YOU”; i.e….
PHYSICAL gold and silver are REAL MONEY, and all else fiat. Or – again referring to Arthurian legend, gold is the Once and Future King. In other words, by holding your wealth in PHYSICAL PMs, you are not “investing,” but saving. Over time, only PHYSICAL gold and silver have maintained purchasing power against Central bank generated INFLATION; while fiat currencies have not only failed to do so…
…but don’t even come close to the true DEFINITION of MONEY…
Then, in February 13th’s RANT, “PM BULLION CLOSED-END FUNDS – HELPING OR HARMING?” I explained how even the Sprott and Spicer funds have numerous – potentially lethal flaws; such as their ability to be NAKED SHORTED to levels below Net Asset Value…
To that point, I have a confession to make; that is, that over the past two years, I have made a handful of “trades” in these funds; under the mantra of “supplementing” my income.
None of said trades were of more than a few hundred shares; as frankly, I simply wanted to dabble in the “game” I long ago disavowed. Plus, PAPER PMs have been attacked so viciously since hitting ALL-TIME HIGHS in 2011, there have been numerous opportunities to buy at fire sale prices.
I would NEVER short such funds, as who knows when the “Big One” will hit; but then again, all five funds are deemed “hard to borrow” – so unless you’re a CRIMINAL banker exempt from SECURITIES LAW, I couldn’t short them anyway. For the record, “hard to borrow” means owners are not willing to lend shares to potential short-sellers; and thus, the BLATANT, ALGORITHM-BASED SHORTING observable to even the most novice viewer is NAKED – executed illegally by those given a PASS to circumvent the law.
Once again, the absolute amounts of such trades represented no more than 1% of my entire PM holdings at any given time; and thus, were no more than “chump change,” having essentially ZERO impact on my financial well-being. Moreover, I NEVER touched a mining stock, only the aforementioned closed-end funds with dramatically less risk.
And the result of these trades, you ask? In roughly 90% of them, I lost money; and unlike holding PHYSICAL gold and silver – which sits inertly in vaults (mostly Miles Franklin’s Precious Metals Storage Program in Canada), I really did LOSE MONEY; which will NEVER be recouped.
In reviewing the reasons why I lost on these trades – particularly last year, when my PHYSICAL gold and silver ended rose by 6% and 8%, respectively – I realized the “SECOND HOLY GRAIL OF THE FINANCIAL WORLD”; that is…
The masses buy “PAPER PM Investments” high and sell low, principally due to Cartel ATTACKS that scare them into selling. However, when buying PHYSICAL PMs, they “BUY LOW, BUY HIGH, and SELL NEVER.”
In other words, if you invest in “PAPER PM Investments,” you are bound to have the same short-term focus that plagues nearly all investments…
…and following 2008’s Global Meltdown I, when GOVERNMENT ALGORITHMS essentially commandeered equity markets – said “time horizons” have declined exponentially…
Jeff Kleintop of LPL Financial writes, the average holding period of a stock has fallen from eight years in the 1960s to around five days today.
Then again, per the FIRST HOLY GRAIL OF THE FINANCIAL WORLD, PHYSICAL PRECIOUS METALS are not investments, but savings. Thus, PHYSICAL holders NEVER worry about short-term declines; and in fact, utilize them aggressively to add to holdings – as I did last week, when I purchased more junk silver…
“MUST OWN JUNK SILVER – REVISITED”
Remember, we purchase PHYSICAL PMs to PROTECT our net worth from the inevitable destruction of fiat currencies; particularly in today’s world of exponential increasing “QE to Infinity.” By understanding the two HOLY GRAILS OF THE FINANCIAL WORLD, we can avoid the PAPER deathtraps erected by TPTB; enabling us to survive the oncoming storm, and thrive in its aftermath.
PROTECT YOURSELF, and do it NOW!
Call Miles Franklin at 800-822-8080, and talk to one of our brokers. Through industry-leading customer service and competitive pricing, we aim to EARN your business.