Silver & Gold For Insurance, Not Profit. Use Market Manipulation to Your Advantage.

in #silver8 years ago

It is clear to just about everyone except the SEC that the Silver and Gold markets are being manipulated by the banks. If YouTube, Facebook and Steemit are any indication, this is almost universally infuriating to silver and gold investors. I humbly suggest however, that these investors ask themselves why they are upset, and why they are investing in this asset class in the first place.

Broadly speaking, I see three types of silver and gold investors (it is possible you might fall into more than one). 1) Investors looking to make a profit from trading, 2) Investors looking for a long term, low volatility, inflation defeating store of wealth, 3) Investors looking for insurance against economic disaster.

If you fall into #1, you might be able to use the predictability of price manipulation to guess the peaks and valleys in the market and profit from them, however, I think there are plenty of other volatile assets types to trade in. It is probably better for your mental well being to give up the frustrations of a manipulated market and go somewhere else (e.g. crypto).

If you fall into #2, you are not as concerned with short term price fluctuations. You want stability and a hedge against inflation. Generally speaking, silver and gold have performed decently in this area, although it is true that the absence of manipulation, performance would be better.

If you fall into #3, you should hope for low prices, and you should look at market manipulation as your friend. If silver and gold are insurance to you, do you want to buy cheap insurance, or expensive insurance? Of course you want cheap insurance, and that's exactly what market manipulation is giving you. Silver and Gold are on an all time, bottom of the barrel, fire sale. Buy as much as you want whenever you have the reserves to do so. When manipulation ends, the cost of this insurance will skyrocket and you'll regret not having bought more. I dare say, you'll miss the manipulation.

I tend to fall into category #2 and #3. I'm probably 1/3 for long term wealth storage, and 2/3 for insurance. To me, the short term fluctuations in price don't bother me much, although I would be concerned with a long term downtrend affecting my net wealth. Mostly, I see price manipulation as a gift. I feel like I've gotten into gold and silver fairly late in the game and an economic crisis is just around the corner. The more time I have to buy low cost insurance the better prepared I will be. As far as I'm concerned, the price can stay this low until the economic crisis does happen. At which point, I think the manipulation will fail, and the price of silver and gold will explode - exactly when I need it, no earlier.

If you're like me, don't sweat the market manipulation, use it to your advantage.

p.s. There's a 4th type of investor. One which sees economic failure as an opportunity to create new, life-altering wealth. Market manipulation is their friend as well. Should the failure happen and they've bought large quantities of gold and silver, they'll be able to use their silver and gold to great benefit for themselves and others.


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Life altering wealth. Want some. 😅

Hah! You and me both. Why limit yourself to surviving an economic crisis, why not position yourself to thrive at the same time?