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In my recent RANT, “PM BULLION CLOSED-END FUNDS: HELPING OR HARMING?,” I discussed seven specific risks inherent to “PAPER PM Investments” – as follows…


  1. Systemic Risk
  2. Taxation Risk
  3. Naked Shorting Risk
  4. Redemption Risk
  5. Confiscation Risk
  6. Proxy Risk


…and the topic of this RANT…


    7.  “Trigger Risk” 


What prompted this article was the psychological impact of the past month’s Cartel attack; engendering, according to Bill Holter, “the most “fear” amongst investors I have seen since the year 2000.” In fact, we have seen some of the weakest “GOLD SENTIMENT 101” recordings of the entire 12-year bull market…


Bearish Futures Sentiment “A Contrarian Sign to Buy Gold” – 26 February 2013


…fostered by ignorant (and/or compromised) “MAINSTREAM (miles franklin)” analysts…


Goldman Sachs: The Gold Market Selloff Is About To Accelerate


…and of course, the utter annihilation of mining stocks…


So far, so mediocre


As someone who not only held his entire portfolio in junior PM miners from 2002 through 2008 – and worked for them from 2006 through 2011 – I fully understand the utter misery of watching one’s wealth disappear; with the added ignominy of seeing it happen knowing I was RIGHT in my forecast of higher gold and silver prices.


My story is well-documented; of how I started converting “PAPER PM Investments” to PHYSICAL gold and silver in 2007, finishing the task in 2011 when I went 100% PHYSICAL – NEVER to turn back. Consequently, my lifehas been saved in myriad ways – more than you can imagine.


Each time I watch the Cartel attack PAPER PM prices, I look at my Schwab account and see it UNCHANGED; as I no longer own any PAPER Investments. My coins aren’t going ANYWHERE; and in fact, most are in Montreal, at Miles Franklin’s Brink’s Canada storage facility.


Conversely, the people Bill Holter speaks of most likely (let’s face it, definitely) own positions in PM ETFs, mining shares, and the aforementioned closed-end PM bullion funds. For them, the latest attack has been so demoralizing not so much due to its scope – a pittance compared to Fall 2008 and Fall 2011; but the relentlessness of the Cartel’s tactics – attacking essentially EVERY DAY, amidst a slew of PM-bullish news items like QE announcements, plunging economies, currency wars, debt ceiling breaches, and fiscal cliffs. Not to mention, an equally relentless PPT rubbing it in by taking the “DOW JONES PROPAGANDA AVERAGE” higher each day; usually via the same “DEAD RINGER” algorithms.


“Trigger risk” refers to the tendency to sell “PAPER PM Investments” during sharp declines; as unlike PHYISCAL bullion, the ease of selling with the “click of a mouse” often proves too tempting; no matter how bullish one is. In fact, the Cartel knows this, and uses this psychological “fear factor” against you; as it did when the “FOMC minutes” were released at 2:00 PM EST on February 20th; as well as the commencement of Bernanke’s “Humphrey-Hawkins” Senate testimony at 10:00 AM EST on February 26th.


In both cases, the Cartel WATERFALL DECLINED gold by at least $10/oz within seconds, prompting capitulation selling that clearly inspired MAXIMUM FEAR into already bruised and battered “PAPER PM Investment” holders. I’ve been there countless times before; so TRUST ME I know what I’m talking about!


I can only SCREAM so loudly of the religion I found in the “HOLY GRAIL OF THE FINANCIAL WORLD“; that is, that only PHYSICAL gold and silver are REAL MONEY. However, knowing this is not enough to get you to the promised land of asset PROTECTION. Once you have experienced the full brunt of “PAPER PAIN”, you will hopefully be inspired to escape that masochist, Cartel-dominated world, to the “PHYSICAL PLEASURE” of actual gold and silver.




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.  


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