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We’ve Called All the Big Gold & Silver Downturns This Year…But Our Next Call Will Be the Most Important One

In our last two postings, we warned you repeatedly of the fact that gold and silver prices were ripe for a pullback in price. In fact, I clearly stated that “danger in gold and silver [was going to be] elevated for the next couple of weeks” on October 26th, and since then gold has fallen more than $60 an ounce and silver has rapidly fallen a whopping -5%. In fact, we hope you heeded our warnings as we’ve been repeatedly short paper gold and short paper silver this entire year in order to maintain our year-to-date positive yields for all of our fee-based membership services this year. Because gold and silver mining stocks, as represented by the Philadelphia Gold and Silver Index and the HUI Gold Bugs Index, have both tanked by -40% since their highs in January to begin this year, it has been absolutely necessary this year to short gold and short silver into these banker raids to maintain positive yields. Having my clients short paper gold and short paper silver does not contribute to downward pressure on gold and silver dollar prices as some critics will maintain, because there is no way that even all of our cumulative fee-based clients have the resources to compete with the billions and billions of dollars Wall Street banks have at their disposal to raid gold and silver derivative markets, as they have again done these past couple of weeks. When bankers devote hundreds of millions of dollars to knocking down gold and silver prices in paper markets, we can’t compete with that volume of money working against our best interests. Rather, we need to take the necessary actions to combat this fraud and crime, and that often involves shorting paper gold and paper silver derivative products. I’ve never understood the stance that one should be passive in the face of massive banker fraud and criminality. I choose to fight against that fraud. I never, in a million years, would ever recommend anyone buy paper gold and paper silver instead of physical gold and physical silver, and I would never recommend holding any physical gold and physical silver within the banking system. But when it’s necessary to short paper gold and paper silver when I see a bank raid coming, I don’t have a problem doing this.

 

If you review every single free newsletter (access the archives here) that I’ve released this entire year in 2015 from January 1st, you will see that not once this year did I ever release a newsletter in this forum in which I stated “Gold and Silver Ready to Explode Higher!” Not once. On August 20th, I posed the question “Have Gold and Silver Finally Bottomed?” and answered that question with the following: “we are truly entrenched in a situation where gold and silver mining stocks are at their lowest valuations of this entire bull market. We are getting very close to the time go long ago, and whether this time is in days or weeks or a month or two, our clients will know when the time to go long in gold/silver assets will be again for this once in a lifetime opportunity.” Again, we have not yet gone long in gold and silver mining stocks, and now is two months later from the release of that comment. So now what? The same still holds true. We are close, but not there yet. For those with the vision to have stayed out of gold and silver stocks for nearly the entire this year, we have preserved our assets this year, grown them a little, and will now be poised to take advantage of what is indeed a “once in a lifetime opportunity”, or at a minimum, a “once in a decade opportunity.”

 

Remember, all the way back in March, I emphatically stated that this year was going to be a very volatile year in US stock markets and in gold and silver markets when I provided my “Two Key Strategies to Making Money in 2015”. The first key, I stated, eight months ago, was to “remain extremely agile and nimble.” As we have shorted gold and shorted silver several times already this year, we have taken our own advice and remained extremely agile and nimble, frontrunning the banker raids in gold and silver each time they have occurred this year. Secondly, I stated, “the need to be patient is perhaps equally as critical and important as the need to be nimble.” Legendary manager Bill Ackerman of Pershing Square hedge fund’s year-to-date performance of -19% is a fine example of what happens when one merely depends on Central Banker fraud, ZIRP, and QE to keep levitating every US stock higher. The “Central Bankers will artificially keep every stock rising” mantra and investment strategy simply doesn’t work, especially when fraud is at all time historical high and entrenched in all global stock markets. Instead of holding positions that have lost -62% in price rapidly, like Valeant Pharmaceuticals, it would have been much better to have been extremely agile and nimble in response to companies that don’t have the blessing of US Central Bankers for fraudulent price levitation. This year has been one for being cautious, being happy with smaller positive yields, and patiently waiting for the low-risk, high-reward opportunities to arrive.

 

So what could be more important than avoiding the huge -40%+ losses mining stocks have suffered this year, thus far? Identifying when the turning point to go long will be. And when it arrives, you will want to be long in this asset class to reap the spectacular gains that will be coming. Again, you can review every single free newsletter I’ve released since January 1st of this year, and you will discover that this is the first time I have stated that I am on the verge of turning aggressive in this asset class. “On the verge” does NOT mean this week or next week, but it does mean sometime within the next few weeks to next few months. And if you want to discover when I will turn positive in this asset class for the first time this year, just click here and here for the fact sheets regarding the services in which I provide this information. Below, you will see 4 times this year when chatter has been high about gold and silver mining stocks being ready to “break out and soar.”

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And all 4 times, you can see that gold and silver mining stocks crashed shortly after these calls. The first two times in the chart, in the periods I’ve circled in green, were the only two periods we have been long in the mining stocks for our fee-based services this entire year. In periods 3 and 4, we have remained out of the market, and as you can see, after periods 3 and 4, the mining stocks were sold off quite rapidly again.

 

If you look at the chart below, you can see the reason for my coming excitement with this asset class.

hui10yr

As an asset class, in late 2008, these stocks rose +325% very rapidly, with the best in class stocks rising 1,000% and more. There is no more undervalued asset class in the entire world than PM stocks right now, while on the other hand, the US stock market is overbought and due for a downward trek very soon again. And this is why, when we tell our fee-based members, it is time to go long again in this market, with what stocks and at what prices, this will be our most important call of the entire year. This is one uptrend you will not want to miss.

 

Currently, you can presently lock in one of our flagship maalamalama services for as low as $49/month. Just a couple of years ago, we were offering this service at more than $75/ month. However, since we price our fee services off of a gold standard, and stick to this standard even when gold prices have fallen, as they have since 2011, this service is now at the lowest price we have offered in years. In a few months to a year, this monthly fee may easily rise to $60, $70, or even to the $90 a month levels that it has been in the past. For our platinum members that also have access to all of our top junior mining stock picks, you can see below, that even in a year when the junior mining stock picks have crashed in price collectively, our picks have still led to some enormous gains of +121.0%, +75.6%, +64.9%, 60.1%, and 53.3% earlier this year. When the turnaround happens in earnest, we expect a spectacular ride higher as these were the returns we produced this year in an absolutely terrible environment for gold and silver mining stocks.

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