I happened to ask my son Andy about promoting junk silver in the newsletter. He told me that there was none available. There is a month or longer wait at the wholesale level. The premiums have jumped up enough where it costs as much to buy junk, per ounce, as a new Silver Eagle. Junk silver is only available on the secondary market; they don’t make it any more, not since 1964. That means people aren’t selling their bags of junk. Buyers of physicals usually don’t sell. They are not frightened by the lower prices, and in fact our business usually accelerates when prices are low.
Our business is strong now. You would never know that junk silver is unavailable from the phony “paper” price of silver over on the Comex, but this is the real world we’re talking about. It’s not about paper profits, it’s about being able to accumulate real physical ounces. If it’s tough now, it will be impossible when the price breaks free and silver rockets toward and through $50. I say it absolutely will happen.
I have reached a conclusion. I will not allow myself to fall for the slick video promotions that promote a new stock or technology. Many of these are very well done and quite compelling. I tried a couple. I felt I had to get some benefit out of spending 30 to 45 minutes watching the pitch. Like all “hyped” stocks, they go up, at first, and then they fall, sometimes by a lot. In a way, these promotions are glorified “pump and dump” gimmicks, except the people behind the promotions may not be pumping and dumping – no, they are just selling subscriptions.
I wonder how anyone selling paid for subscriptions, that advise you which mining shares to buy, can stay in business. It’s bad enough that the entire industry (mining shares) has been a disaster for the last 18-months, but to have to PAY for the advice is worse. It’s like having someone “kick your ass,” and then laugh at you.
One of the few industries that have thrived in good times and bad is the financial services industry. They are there, the money managers and financial advisors, to take a piece of your money. Some of these financial geniuses actually do a pretty good job. Finding the right ones is a bit more challenging. All I can say is they may know more than you do, but that and a buck won’t buy you a cup of coffee at Starbucks. We are a part of the industry, but we don’t charge for our newsletter, and our “mark-up” is miniscule. Our education and personal service and handholding is worth much more than we charge for steering you into the safest long-term holding you can find.
Money Manager? Financial Advisor? You could have subscribed to Richard Russell, one of the few paid for subscriptions that is actually worth the money, and learned all you need to do was stay in cash, physical gold coins and the Permanent Portfolio.
(Just for the record, I subscribe to many of the paid-for newsletters, including Shadowstats, LeMetropole Café, Ted Butler, Jim Willie, Bix Weir, Casey Research, and some of the Agora letters, to name but a few). I am not against paying for advice, but most of it hasn’t been very helpful lately.
On the other hand, King World News, Sprott, JSMineset and of course, our two newsletters, which are free, offer more than most of you can handle or will find time to read. The best sources of information focus on the Big Picture, the Primary Trend and education. The worst kind, the absolute worst are those, which makes you think short-term and buy and sell. Trading is a tough business even for the well-financed pros. Sinclair gives you the best advice – buy physical gold and silver for cash, no margin, and if you wish to trade, sell 1/3rd on the Rhino horn (sharp up-move) and buy 1/3rd back on waterfall drop. Russell, on the other hand says you NEVER sell your physical gold or silver. You buy it, put it away and save it for a rainy day – or leave it for your kids. That’s the approach I use, at least for physicals.
When the mining shares finally turn up, and at some point they will, I will participate, and hopefully be smart enough to know when to take some of the profits off of the table.
If you think there is safety in staying invested in the Dow or S&P 500, I say you are taking a risk, in order to make a profit. Is that what you really want to do? Most of our readers are baby boomers, in their 60s or older and the word “risk” is out of place in your portfolio. But you can no longer get enough return on interest bearing vehicles. And that doesn’t even touch on the bigger risk, the risk of serious inflation hollowing out the value of the dollars in your stocks.
Don’t look to me for timing advice, don’t look to anyone. Don’t think short-term. I really don’t know where gold is going tomorrow or next week, or even in the next few months, but I feel comfortable in saying it will sell for a multiple of today’s price in the next few years. That is good enough for me. I live by Russell’s statement, “It’s all about ounces.” That’s right, not dollars; not how much you paid for it, it’s about how many ounces you own when the “you-now-what” hits the fan.