Today, I received an email from someone I have known for over 20 years. He made his first – and a quite substantial silver purchase from me five or six years ago. He does his own reading and research and tries, against my best advice, to trade gold and silver. Fortunately for him, he has a lot of money to lose.
His views are not all that uncommon. Most people fall into the category of non-believer or perpetual doubter. The true believers are few and far between and a bunch of them take refuge at Miles Franklin.
Here is Mark’s email and my reply:
David,
Guys like Russell have been talking inflation long ago. He has no clue so far and does not understand investors and the “big picture: of real market. Watch out if Romney get’s elected. Gold will fall and the market will see policy coming toward a balance budget. This may be the last stand for gold before new leadership is sworn in . . . MG.
A HAIL MARY POLICY PUT IN PLACE TO BALANCE U.S. BUDGET IS NOT ON THE RADAR! ROMNEY GET’S IN WITH CONTROL OVER BOTH HOUSE’S OF CONGRESS!
This I think is where a Man should focus his energy. Guy’s like Russell / Sinclair are generations removed from the reality of understanding day-to -day Market Direction!
Close analysis of daily market chart movements, allows one to see real starts and stops in market direction; Timing to get in or out! To compound profits . . .
Mark
Mark,
Russell, long ago coined the phrase INFLATE OR DIE! That is what you do NOT understand and that is precisely what one needs to understand to survive the fiat currency crisis that is at our doorstep. The growing mountain of debt is very “deflationary,” but the response by governments and central banks is predictable and it is geared to counter the deflation that you worry about. Central banks WILL inflate as they try to keep the collapse from happening. What do you think QE is all about? If you invest on the premise of “deflation,” you will end up with a net worth that will reflect your mis-reading of what is happening. You should know better!!!!! I certainly have done my best to open your eyes for a number of years. You constantly mock Russell and Sinclair in your emails to me. They are my mentors. One of us will be very, very wrong and so far, for 13 years is has NOT been me.
You have been shaking in your boots and negative on gold and silver – and Russell and Sinclair for as long as I can remember. You have been wrong since the beginning. You will continue to be wrong. In fact, you don’t even understand the definition of “inflation.” Inflation it is NOT rising prices, it is RISING MONEY SUPPLY. Check out the Fed’s balance sheet before you make unfounded statements.
Really, Mark – does this look like DEFLATION to you? Get real!
As much as I would like to see a change in our leadership, the truth is no one will be able to fix the problem. Mathematically, we are beyond the “fix” window. QE to infinity is guaranteed and with it, the demise of the dollar and all of the fiat backed-by-nothing currencies. If you believe otherwise, you will blow your entire large inheritance.
You will see just how foolish your gold prediction is when gold tops $3k, $5k and God knows how high. You were certain Larry Edelson was correct too, but where is Larry’s $1300 or $1200 gold? Your nature is to see the worst in things, including financial. I have been on the right side of this for the past 12-years! There have been pullbacks – that’s natural, but the bull trend is alive and well. If you took the time to read Russell, you might learn that bull markets never end with a whimper… they end with a blow-off stage and we are far, far from anything resembling a blow-off.
For one who has followed my newsletter for years, you have learned so little. But – it’s your money to blow any way you please. The shame is, it’s really so easy to win this game. Just get out of dollars, buy physical gold and silver and sit back. That’s all it takes, but very few people will figure that simple truth out until it is too late.
David
Elijah Johnson recently interviewed Andy Schectman over at UnconventionalFIN.com. Here is the link, if you are interested in hearing him interview Andy:
David,
I agree with you. Jim Sinclair is an idol of mine and I trust him. There is one thing that I am unclear of though. If gold and silver are going to be so valuable and fiat money is going to be worthless why are you selling gold and silver to me in exchange for my worthless cash? It seems to me that you would want to hold on to every ounce you could get your hands on and then exchange it when the time is right.
Please don’t take this the wrong way, I know it is your business to sell PM. I just don’t understand the whole concept.
I read you guys every day and have conversed with Andy Hoffman on several occasions. He is extremely smart and does a fanastic job. He has been a tremendous asset to me as I am sure he has been for you as well. Hope you can help me with my question.
Regards,
Chuck
Chuck,
The gold and silver that you buy from us is not ours. We order it for you and your money pays for it. We make a SMALL commission on the transaction. The profit I make from Miles Franklin is used to buy gold for myself. And yes, I do buy every ounce I can afford and hold very few dollars.
Andy is an asset. When I discovered him, I immediately arranged for him to come to work for me. I know greatness when I encounter it, be it Sinclair, Russell or Hoffman.
Sincerely,
David Schectman
Hi David, Im a first time poster to you my friend, but Im a regular follower of Ranting Andy, so G’day. I thought your response to your mate was perfect. It must frustrate you to no end trying to burn into peoples heads the simple fundamentals, and to not get brain fried by all the nonsense around it trying to only confuse you enough to lose confidence in the PMs. If only people stuck to basics. Other than when is the next dip to buy again. Im no achademic like you boys, but Im not studpid. Its kind of the same for my profession. Im an artist of motorsport helmets and I follow the same princables, just keep to the fundamentals and there is know knowing of what can be achieved. Yet for others they only look at the complexities on the surface rather than the basic structure of the piece and then it looks incredibly simple. Sinclair and Russell are the ones I also go to for confindence when I get super frustrated from the Cartel strikes. So I appreciate your efforts as you have a believer here. I buy from Ainslies here in Brisbane otherwise I would definately be a customer if we were closer suited.
Thanks for your time
Ant
You said: ” Inflation it is NOT rising prices, it is RISING MONEY SUPPLY” and acknowledged the deflationary effect of the collapse of debt. But debt IS money supply, no? When a bank creates a loan, it CREATES (most of) the money blips that were transferred to the lender. POOF. So when these loans and all the other financial jiggery pokery go bad, poof money disappears. Yes QE is money created to replace the money destroyed but if the banksters and Fed are skillful enough, maybe they can make
money created = money destroyed
If so there should be no net inflation.
Just sayin’, not that I can see any evidence of such competence and honesty. LOL.
Methinks we’ll all need an incredible dose of luck before this all ends. WW3 anyone?
Continued global QE weakens all of the currencies vs. gold. Housing is the main deflationary arena and commodities have been and will continue to be the main inflationary area and look for significant rise in price as soon as the dollar starts its move down toward 70 on the USDX and lower. It will happen.