Chris Martenson
How to Play the Greatest Gold and Silver Bull Market of Our Lifetime
Wednesday, June 29, 2011
Executive Summary
- The extent and impact of price manipulation on current bullion prices
- How to build or increase your allocation to gold and silver (how much is right?)
- The best vehicles and storage options for owning precious metals
- Exit strategies: what indicators to watch to know when it’s time to start selling
- How high are gold and silver prices likely to climb by the end of the current bull market?
Part I – The Screaming Fundamentals For Owning Gold and Silver
If you have not yet read Part I, available free to all readers, please click here to read it first.
Part II – How to Play the Greatest Gold and Silver Bull Market of Our Lifetime
Market Manipulation
This brings us to the topic of market manipulation. As many of you are aware this is a topic of exceptional controversy. On one side, we might place the Gold Anti-Trust Action (GATA) organization, alleging constant official manipulation to suppress the price of both gold and silver, and on the other we might place Jeff Christian, managing director of the metals research firm CPM, whose position is that all price movements can be explained by ordinary market forces.
I happen to be in the middle of those views. I know for a fact that the price of gold is of official interest, and that gold has been actively suppressed in price in the past in order to affect one policy aim or another. The London gold pool of 1969 is one such example, but there are others.
I reason that anything that has proven to be a useful policy tool in the past is a likely candidate to be a tool in the present. It would be up to the detractors of this view to prove, from time to time, that gold is no longer of sufficient official interest that its price is not a target of official intervention or negligent oversight.
But even if manipulation exists, there’s only so long that official intervention can hold back the tide. This puts me in the camp with Erik Sprott of Sprott Asset Management, who recently told me in an interview:
How to Play the Greatest Gold and Silver Bull Market of Our Lifetime
PREVIEWHow to Play the Greatest Gold and Silver Bull Market of Our Lifetime
Wednesday, June 29, 2011
Executive Summary
- The extent and impact of price manipulation on current bullion prices
- How to build or increase your allocation to gold and silver (how much is right?)
- The best vehicles and storage options for owning precious metals
- Exit strategies: what indicators to watch to know when it’s time to start selling
- How high are gold and silver prices likely to climb by the end of the current bull market?
Part I – The Screaming Fundamentals For Owning Gold and Silver
If you have not yet read Part I, available free to all readers, please click here to read it first.
Part II – How to Play the Greatest Gold and Silver Bull Market of Our Lifetime
Market Manipulation
This brings us to the topic of market manipulation. As many of you are aware this is a topic of exceptional controversy. On one side, we might place the Gold Anti-Trust Action (GATA) organization, alleging constant official manipulation to suppress the price of both gold and silver, and on the other we might place Jeff Christian, managing director of the metals research firm CPM, whose position is that all price movements can be explained by ordinary market forces.
I happen to be in the middle of those views. I know for a fact that the price of gold is of official interest, and that gold has been actively suppressed in price in the past in order to affect one policy aim or another. The London gold pool of 1969 is one such example, but there are others.
I reason that anything that has proven to be a useful policy tool in the past is a likely candidate to be a tool in the present. It would be up to the detractors of this view to prove, from time to time, that gold is no longer of sufficient official interest that its price is not a target of official intervention or negligent oversight.
But even if manipulation exists, there’s only so long that official intervention can hold back the tide. This puts me in the camp with Erik Sprott of Sprott Asset Management, who recently told me in an interview:
This report lays out an investment thesis for gold and one for silver. Various factors lead me to conclude that gold is one investment that you can park for the next ten or twenty years, confident that it will perform well. My timing and logic for both entering and finally exiting gold (and silver) as investments are laid out in the full report.
The punch line is this: Gold and silver are not (yet) in bubble territory, and large gains remain, especially if monetary, fiscal, and fundamental supply-and-demand trends remain in play.
Introduction
In 2001, as the painful end of the long stock bull market finally seeped into my consciousness, I began to grow quite concerned about my traditional stock and bond holdings. Other than a house with 27 years left on a 30 year mortgage, these holdings represented 100% of my investing portfolio. So I dug into the economic data to see what I could discover. What I found shocked me. It's all in the Crash Course in both video and book form, so I won't go into that data here.
By 2002, I had investigated enough about our monetary, economic, and political systems that I decided that holding gold and silver would be a very good idea, poured 50% of my liquid net worth into precious metals, and sat back and watched.
Since then, my appreciation for and understanding of the role of gold as a monetary asset and silver as an indispensable industrial metal have deepened considerably.
Investing in gold and silver is still a good idea. Here's why.
Why own gold and silver?
The reasons to hold gold and silver, and I mean physical gold and silver, are pretty straightforward. So let’s begin with the primary reasons to own gold.
The Screaming Fundamentals For Owning Gold And Silver
This report lays out an investment thesis for gold and one for silver. Various factors lead me to conclude that gold is one investment that you can park for the next ten or twenty years, confident that it will perform well. My timing and logic for both entering and finally exiting gold (and silver) as investments are laid out in the full report.
The punch line is this: Gold and silver are not (yet) in bubble territory, and large gains remain, especially if monetary, fiscal, and fundamental supply-and-demand trends remain in play.
Introduction
In 2001, as the painful end of the long stock bull market finally seeped into my consciousness, I began to grow quite concerned about my traditional stock and bond holdings. Other than a house with 27 years left on a 30 year mortgage, these holdings represented 100% of my investing portfolio. So I dug into the economic data to see what I could discover. What I found shocked me. It's all in the Crash Course in both video and book form, so I won't go into that data here.
By 2002, I had investigated enough about our monetary, economic, and political systems that I decided that holding gold and silver would be a very good idea, poured 50% of my liquid net worth into precious metals, and sat back and watched.
Since then, my appreciation for and understanding of the role of gold as a monetary asset and silver as an indispensable industrial metal have deepened considerably.
Investing in gold and silver is still a good idea. Here's why.
Why own gold and silver?
The reasons to hold gold and silver, and I mean physical gold and silver, are pretty straightforward. So let’s begin with the primary reasons to own gold.
As expected, markets are beginning to act as if the world’s largest money-printing experiment, QE II (quantitative easing), is really going to end. My views here, first expressed in The Coming Rout (March 8) and reiterated since, is that commodities will get hit first and hardest, then stocks, and then bonds, beginning with weaker issues first before progressing towards the center.
This process is unfolding right in line with my expectations. The next few months may well prove to be far more interesting than your average summer, although my preferred time for real difficulties remains early fall.
To begin our coverage, the stock market was off to a truly horrible start today, plunging by a couple of hundred points (Dow) before finding a base, and then being ‘rescued’ by a late day rumor that the Greece situation had been resolved.
Here’s the rumor:
Oil, Greece, and a Bounce in the Markets
PREVIEWAs expected, markets are beginning to act as if the world’s largest money-printing experiment, QE II (quantitative easing), is really going to end. My views here, first expressed in The Coming Rout (March 8) and reiterated since, is that commodities will get hit first and hardest, then stocks, and then bonds, beginning with weaker issues first before progressing towards the center.
This process is unfolding right in line with my expectations. The next few months may well prove to be far more interesting than your average summer, although my preferred time for real difficulties remains early fall.
To begin our coverage, the stock market was off to a truly horrible start today, plunging by a couple of hundred points (Dow) before finding a base, and then being ‘rescued’ by a late day rumor that the Greece situation had been resolved.
Here’s the rumor:
"Straight Talk" features thinking from notable minds that the PeakProsperity.com audience has indicated it wants to learn more about. Readers submit the questions they want addressed and our guests take their best crack at answering. The comments and opinions expressed by our guests are their own.
This week's Straight Talk contributor is Frank Barbera, one of the top experts on precious metal mining companies and editor of the respected Gold Stock Technician newsletter. In his analysis for investors, Frank overlays a macro outlook on top of highly-rigorous technical analysis, and employs a market-timing based approach to reduce the inherent volatility within this high-beta sector. For many years Frank has also managed private equity capital, most notably for the Caruso Fund, with particular focus on precious metals, energy and currencies.
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1. How do you view gold and silver prices at current levels?
Gold and Silver both look to be in fairly good shape technically, with Gold still acting exceptionally robust.
Straight Talk with Frank Barbera: Time to Seek Defense Against ‘Hyper-Stagflation’
"Straight Talk" features thinking from notable minds that the PeakProsperity.com audience has indicated it wants to learn more about. Readers submit the questions they want addressed and our guests take their best crack at answering. The comments and opinions expressed by our guests are their own.
This week's Straight Talk contributor is Frank Barbera, one of the top experts on precious metal mining companies and editor of the respected Gold Stock Technician newsletter. In his analysis for investors, Frank overlays a macro outlook on top of highly-rigorous technical analysis, and employs a market-timing based approach to reduce the inherent volatility within this high-beta sector. For many years Frank has also managed private equity capital, most notably for the Caruso Fund, with particular focus on precious metals, energy and currencies.
p.p1 {margin: 0.0px 0.0px 6.0px 0.0px; font: 13.0px Verdana}
1. How do you view gold and silver prices at current levels?
Gold and Silver both look to be in fairly good shape technically, with Gold still acting exceptionally robust.
Today we’re introducing something new that we think you’ll enjoy.
From time to time, in between the long hours Chris spends compiling his in-depth reports or preparing for interviews, I’m able to coax him to put down the keyboard. These fun, fascinating moments are one of the best perks of my job: I get to chew the fat with Chris about interesting developments of the day and hear his unfiltered, work-in-progress thinking.
I feel kind of guilty about my good fortune here. I know there are many of you who would dearly love this opportunity to sit down informally, one-on-one with Doc M and just watch his brain run. So, we’re going to try to give our enrolled members the best substitute for this experience we can – actually, a bit better.
Better because we’re recruiting someone of Chris’ intellectual horsepower for him to spar with. My ego might be bruised if it weren’t another of my personal heroes: Mike “Mish” Shedlock, proprietor of the very popular and extremely well-regarded econoblog, Mish’s Global Economic Trend Analysis.
Introducing ‘Off The Cuff with Mish & Chris’
PREVIEWToday we’re introducing something new that we think you’ll enjoy.
From time to time, in between the long hours Chris spends compiling his in-depth reports or preparing for interviews, I’m able to coax him to put down the keyboard. These fun, fascinating moments are one of the best perks of my job: I get to chew the fat with Chris about interesting developments of the day and hear his unfiltered, work-in-progress thinking.
I feel kind of guilty about my good fortune here. I know there are many of you who would dearly love this opportunity to sit down informally, one-on-one with Doc M and just watch his brain run. So, we’re going to try to give our enrolled members the best substitute for this experience we can – actually, a bit better.
Better because we’re recruiting someone of Chris’ intellectual horsepower for him to spar with. My ego might be bruised if it weren’t another of my personal heroes: Mike “Mish” Shedlock, proprietor of the very popular and extremely well-regarded econoblog, Mish’s Global Economic Trend Analysis.
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