Studying Gold and Silver ’s Past Gives Us a Glimpse of Where We’re Heading in the Future

The banking-government industrial complex has been pulling the wool over investors’ eyes for years when it comes to getting the masses to keep their savings tied up in ever rapidly devaluing fiat currencies instead of intelligently converting them into the only real money out there – physical gold and physical silver – that has no counterparty risk. Just note the massive 50% collapse of the Argentine peso in less than 5 years, the 40% collapse of the Venezuelan bolivar in one year, and the Ukranian hryvania’s collapse of more than 50% against gold just this year, and the fact that Ukranian banks are now limiting withdrawals to about $100 a day now. Hard as it is to believe, and by now most people have forgotten this fact, but back in 2006, the bankers tried their hardest to sell the world on the notion that the gold bull was dead when gold had climbed to just $620 an ounce. Bankers attempted to misinform people by releasing a flood of anti-gold articles and banker predictions that gold had peaked and that it was going to crash to $250 to $300 an ounce later that year.

In reply to this banker disinformation campaign in 2006, I released a number of emphatic opinions that all the anti-gold propaganda was just that – propaganda – and I even called out the head commodity analysts at some global banks as I waged war against their disinformation campaigns. I believe we can learn a lot about the future of gold and silver today by taking a step back in time to re-visit the bankers’ propaganda campaigns in 2006.

On 3 September, 2006, I released the article: “Gold’s Glitter is Genuine”

Here is a short excerpt from that article:

“In the past month, I’ve seen stories on MSNBC’s website about the demise of gold. I’ve read stories in major media about the demise of emerging markets. And this was literally just weeks after the major media was touting gold as the asset to buy and saying that if you weren’t in emerging markets you were missing out on great opportunity. Every day, the major media has bandwagon syndrome. Just look at some of the major financial websites online. Their headlines literally change in the course of a single hour, especially during the volatile global markets in mid-2006. I’ve seen headlines change from “Bulls lead recovery in stock markets” to “Bulls lose stomach, bears turn market sentiment downward” in literally an hour. No wonder the average investor is confused. Gold has bumped up to $620 an ounce since we invested at $570 an ounce, so are we patting ourselves on the back? Hardly. I know that gold is likely to see a steep correction before it goes higher, so if it pulls back all the way to $570 an ounce again, will we panic? No, because we’ve done our homework and understand exactly what drives the price of gold and why even short term, steep corrections won’t change our opinion of it.”

Just two weeks later, when the predictions I made in my September 3rd article came true and the global banks stepped up their anti-gold, anti-silver propaganda campaign, I released an article titled, “Has the Commodities Bubble Burst? No, No, No!”

Below, is a short excerpt from that article:

Everywhere in the media, you have pundits saying that the commodities Bull Run is over – including even chief global economists of major investment firms like Steven Roach of Morgan Stanley. They’re all wrong. This is a case of everyone panicking from sharp corrections that no doubt have caused millions of people world wide some mental anguish and hand wringing. But not me. I’ve dug deep enough down into the rabbit hole to know that gold will rise much much higher in the future. In fact if you go back and read my earlier blogs and [free newsletters] you’ll see that when gold was at over $625 an ounce I said that gold was heading lower than $600 to test its June lows of $570 and possibly head lower. And I still think that we haven’t seen the end of the correction in gold. Yes, oil has slipped to below $60 a barrel but again, this doesn’t mean that oil is done either.”

The above 2006 article was very similar to the response I published on my blog at the end of last year in 2013 titled “All the Big Banks are Saying Gold Will Crash in 2014 But That’s Now What Will Happen”, which I published before gold and silver assets truly started to rise significantly higher again.

On 16 September, 2006 gold pulled back below $590, then pulled back slightly below $570 in early October 2006 just as I had predicted, then bottomed and rocketed to $800 over the next year. In 2010, I wrote about the increasingly diminishing returns of an institutional business education due to the massive propaganda that bankers spread in this system that has virtually zero utility in the real world. In May of that year, I scripted, “Delaying a College Education in this Environment is the Right Choice”.

In that article, I opined the below:

“Since college students are already likely to end up living back at home with their parents after they graduate as the job horizon will appear no better in four years than it is today (unless you believe the drivel of government officials and economists), why not spend that time immersed in self-education of how the financial and monetary systems really work? In the process, students will save their parents tens of thousands, or even hundreds of thousands of dollars, in tuition and save themselves the fate of being a sheep led to the slaughter by banking shills like Joseph Stiglitz, Paul Krugman and Jeffrey Sachs. Furthermore, students will be much better prepared to face the ongoing global economic crisis from not only a financial perspective but also from an educational perspective.”

I followed that opinion up with my article in October, 2010, “The Astounding Failure of the US Education System.”

I was ridiculed in 2006 for stating that gold would continue to rise much higher in price from $570 an ounce, even though it had already more than doubled in price in five years from $250 an ounce. Likewise, when I wrote these articles that stated that a college business education was a poor use of savings when job markets would be worse in 2014 than they were in 2010, I was ridiculed by all the financial “experts” that stated the banker-government industrial complex meme of recovering economies in 2010 and who stated that global economies would be flourishing in a few years. Well, here we are, four years later and according to the latest figures by the US Bureau of Labor Statistics, there are twice as many college graduates in minimum-wage jobs in the US as compared to just five years ago. Furthermore, more than half of all 18-24 year olds in the United States are now living at home with their parents due to the inability to secure a high enough paying job that allows them to move out of their parent’s home.

“Studying Gold and Silver’s Past Gives Us a Glimpse of Where We’re Heading in the Future”

So the next time gold and silver take a dip in price in the markets and bankers react by telling you to sell gold and silver, or a politician goes on TV to announce to you the strength of the “recovering economy”, trust your history first over the mass media.

About the Author: JS Kim is the Managing Director of maalamalama, an independent consulting & research firm that focuses on the best ways to buy gold and silver in preserving wealth.

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