The purpose of today’s very brief article is just to reassure everyone that this current pullback in gold and silver prices is not anything to worry about, but will just provide another opportunity to buy some of your favorite gold and silver stocks that perhaps you do not yet own.
On 14 July 2016, after we purchased many gold and silver stocks in early June to add to very solid positions in physical PMs we’ve established since 2007, I sent this bulletin to our Platinum Members: “We may receive some weakness in the share prices of many of the stocks we hold now as they have increased quite strongly in a fairly short period of time, but we will continue to hold them unless stronger evidence arises in the immediate future that the support levels above for gold and silver prices may not hold.” Indeed from 15 July to 26 July, many gold and silver stocks pulled back in price to a fair degree.
On 26 July 2016, after the HUI Gold Bugs Index had pulled back by 9.4%, silver had pulled back 8.8%, and gold had pulled back 4.7% in a month’s time, there was chatter in the mainstream media, as always, of a much greater possible fall in gold and silver prices. In response, I wrote Part 1 of this article to dispel that notion, in which I stated my belief that the pullback we were experiencing at the time was only a temporary lull in a continuing uptrend in gold and silver prices that started at the end of last year.
Indeed, gold and silver prices started rising again the very day I published that article, until the beginning of August.
On 9 August 2016, I sent a bulletin to my Platinum Members, once again warning of another temporary decline in gold and silver prices, and I provided specific price levels at which I believed gold and silver would rebound and rise again.
However, just as I stated back on 26 July 2016, when this current downtrend in gold and silver prices ends in due time, as we are not going to see the $150 to $200 drops in gold prices of past years, this ongoing gold and silver bull is going to resume strongly higher again. Again, much is being made about the upcoming Janet Yellen speech at Jackson Hole, Wyoming, but personally, I could care less if she expresses a hint of “hawkishness”, for the reasons I provided here. Despite whatever mind-bending picture of “reality” Yellen attempts to present on Friday that causes whatever immediate knee-jerk price reactions in markets that her words always create, the one constant is that no hare-brained Central Banker speech is going to derail my long-term strategy and commitment to gold and silver assets as the way out of this Central Banker-created currency war of fiat currency devaluation to the bottom.
In addition, the one prediction in which I have confidence as well, is that when this Central Banker, artificially price-distorted creature they call the US stock market finally rolls over and implodes in one glorious disaster, whether this event happens before or after the US elections, the descent is going to be very disorderly and on a grander scale than the crash of 2008. If you would like to read a much longer article about the topic presented today, please follow the link to Part 1 provided above.
About the author: JS Kim is the Founder and Managing Director of SmartKnowledgeU. Subscribe to our RSS feed here as we often release articles a few days before posting here. Come by our website to receive sample issues of our gold and silver focused newsletter or to subscribe to our free weekly newsletter.
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