Gold & Silver Will Rise During the Next 12 Months & We’re Willing to Make You an Unprecedented Offer by Betting on This!
In our last newsletter that you received, I said:
“We will put our money where our mouth is in discrediting the silly contentions from the financial mass media that the gold and silver bull markets are dead.”
Today, I am making good on that promise. With a more than 43% correction in silver prices and a more than 30% correction in gold prices, this year has been a tough year for gold and silver investors, and for us as well at SmartKnowledgeU thus far, even for those that used these huge discounts to add more physical gold and physical silver to their personal holdings. However, we believe that the next 12 months will mark a remarkable turnaround in the performance of gold and silver assets. Furthermore, some extremely important developments in gold and silver markets at the current time have reinforced the wisdom of maintaining physical positions rather than trying to time the highly banker manipulated tops and bottoms of volatile, violent, artificially created movements in gold and silver and constantly trade in and out of the market.
One of the most important developments only discussed within the gold community and entirely ignored outside of the PM community by the mass media has been the recent existence of negative GOFO (gold forward rates). Simply put, when the GOFO is positive this means that dealers are more willing to lend out gold in return for dollars than to lend out dollars. When GOFO is negative, this means that dealers are more willing to lend out dollars in return for gold than to lend out gold. In other words a negative GOFO means that dealers value having gold more than having dollars and that they view gold as a much safer haven than USDs at this point. Another explanation for the existence of a negative GOFO is a shortage of physical gold supply. Again, very simply explained, if there is a physical shortage of real gold, then dealers would be willing to pay a premium to own physical gold versus dollars on the expectations that these premiums will increase over time as physical gold supplies shrink even further.
As the financial system moves closer to collapse, and more sovereign countries and wealthy individuals stock up on physical gold (and physical silver), supplies will inevitably become tighter despite the lies of the mass media that want you to believe that there is a bear market in gold and silver and that physical supplies are abundant. Paper gold and paper silver may be abundant due to the criminality of the gold and silver derivatives markets that bankers invented but certainly the physical real PMs are in tight supply at the current time. It is not just a negative GOFO that attests to a tight physical gold market, but reports of Hong Kong gold export figures to China that averaged a couple hundred tonnes of physical gold every month for the past several months also confirm that physical supplies are tight at the current time. A couple hundred tonnes of gold being imported by one country alone (China) is not an inconsequential figure as the entire world only produces about 2,400 to 2,700 tonnes in an entire year. Thus, there are multiple data points that point to a tightness of gold supply at the present time.
As faith in the major world’s currencies plummet (and a negative GOFO already indicates less faith in the USD than gold), there was a very significant risk in assuming the strategy of selling one’s physical gold at the start of this raid on gold and silver and then trying to buy it back at lower prices near the bottom of this raid, as the dynamics of paper markets are completely different from the dynamics of physical markets, thanks to banker fraud. The risk of course, is if one would have sold substantial amounts of physical gold into the raid and then tried to buy back the same physical quantities at lower prices, that one may indeed not be able to buy back the same quantity for lack of availability, or be forced to perhaps even buy back the physical gold at higher prices.
Currently, we have witnessed in recent weeks the unwillingness of people to sell any real physical gold and buy back the same fiat currency amount in the form of futures contracts at lesser prices in future months, even though this strategy guarantees paper fiat currency profits. Why would anyone refuse to execute a strategy that guarantees locked-in profits? The answer is simple. Consider the hypothetical scenario whereby someone sold $5MM of real gold into the market, and then used the proceeds of $5MM in fiat US dollar notes to buy gold futures contracts at a lesser price per ounce. While this strategy guarantees him significant profits in fiat US dollar notes, when it comes time to convert his $5MM+ value of gold futures contracts and take delivery of $5MM+ physical gold, he may find that he can only settle in fiat US dollar notes and thus be left with $5MM+ in only fiat currencies. Thus, the unwillingness of people to execute strategies that guarantee them fiat currency profits but requires them to temporarily release their physical gold can only be interpreted to mean that people currently value $5MM of physical gold more than $5MM+ of paper gold.
Thus, this is the reason we have thought it wise to hold on to physical stores of PMs through this takedown in paper prices rather than try to trade in and out as there is no guarantee that one will be able to convert paper fiat back into real physical PMs again in the future if one takes the risk of converting physical PMs into fiat. And this is also the reason why performance wise, this has been a particularly difficult year for us. However, with precious metals, patience is the key to major gains. Temporary short and sharp downturns in paper prices in gold and silver are not to be feared, given the following three conditions:
(1) One fully understands the mechanisms of banker fraud that created the sharp downturns in PM prices this year, and because one understands the mechanisms, one knows that the price suppression scheme is unsustainable in the long-run;
(2) One has the prerequisite patience to reap the benefits of inevitable strong reversals in the price of PMs that will happen when the banking cartel’s mechanisms of fraud run out of steam;
(3) Heavy banker raids on gold and silver prices, though annoying, are not worrisome because one understands the proper time-frame for judging PM performance is not 1 year or 2 years, but more in the realm of 3-5+ years.
A negative GOFO is one just indication that the banking cartel’s mechanisms of fraud are running out of steam. In fact, we are so confident that gold and silver are now set to outperform in the coming year that we are willing to put our proverbial money where our mouth is, and in doing so, offer you a deal that we have never offered in our 7 years of operation. With gold, silver and precious metals investing, the investing game is all about getting in at low-risk, high-return entry points. Now is one such entry time and in our Crisis Investment Opportunities membership, we tell our members exact buy prices and exit prices for every new asset we add to our portfolio and for every asset we exit from our portfolio. We are so sure that gold and silver will perform incredibly well over the next 12 months that for those that purchase our annual Crisis Investment Opportunity membership (that is already priced at nearly a 25% discount from the beginning of year prices), here is our promise:
If our newsletter does not turn a profit during that yearly period of 9 August 2013 to 8 August, 2014, per the specific guidance we provide in our CIO newsletter, we will at this time, refund 30% of the annual membership fee to all members that purchased our CIO newsletter during the month of August 2013.
This is how confident we are that gold and silver, despite any interim volatility that may occur, will close significantly higher than current prices within 12 months from now. Traditionally we believe that 3-5 years out is the proper time frame for those that invest in gold and silver assets, but we believe that the likelihood is so high for positive returns in gold and silver assets over the next 12 months that we are willing to put 30% of our annual newsletter membership fees at stake. Please be sure to read, in full, the disclaimer and terms of our offer below.
Disclaimer: This offer applies only to annual Crisis Investment Opportunities (CIO) newsletter memberships purchased during the month of August 2013. Any CIO membership purchased after 31 August 2013 will NOT have this special one-time performance guarantee of a 30% annual membership fee refund should our newsletter performance specifically between the period of 9 August 2013 to 8 August 2013 be positive. Returns will be calculated on our portfolio in regards to a brand new subscriber that follows our guidelines exactly between the dates of 9 August 2013, to 8 August 2014 according to USD prices of the assets held in our portfolio. If one purchases an annual membership after 9 August, 2013, returns, as pertains to this offer, will NOT begin at the date of purchase, but still be calculated per the period between 9 August, 2013 and 8 August, 2014. Offer applies only to annual CIO memberships and not to monthly CIO memberships or to any other type of SmartKnowledgeU membership. After returns are calculated at the close of markets in NY on 8 August, 2014, if this return is not positive (greater than 0.00%), then 30% refunds on the annual membership price at the time of purchase will be granted within the next 14 business days. This offer does not apply to any other membership other than an annual CIO membership purchased during the month of August 2013 and does not apply to any annual CIO memberships purchased prior to 1 August, 2013.
Posted: Monday, August 12th, 2013 @ 6:25 am
Categories: General, Gold Investments, Silver investments.
Tags: euro crash, gold, gold forward lease rates, gold manipulation, negative GOFO, pound sterling crash, silver, silver manipulation, USD crash, yen crash.
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