Tuesday, July 5, 2011

SIlver and Gold Miners:Helping you keep the food down

Though I’ve been blogging about the merits of gold and silver for almost six years now, the one characteristic that most investors fail to understand, by far, are the reasons behind the periodic volatility that afflicts gold and silver every year. In the commercial investment industry, thousands of financial consultants worldwide try to manipulate their clients into making terrible decisions through the use of two emotions – fear and greed. Through appealing to clients’ greed, financial consultants are able to deceive their clients into believing that overvalued stock markets propped up by computerized, rigged HFT algorithms and the Central Bank QE program by-product of inflated currencies are instead, really undervalued. Through appealing to clients’ fear, financial consultants are able to keep their clients out of volatile but profitable asset classes such as gold and silver by selling them on the erroneous principles of beta and by convincing them that increased volatility means increased risk. Thus, financial consultants are able to convince clients to engage in behavior that is a winning proposition for their companies but a losing proposition for their clients – remain invested IN general stock market indexes and paper gold and paper silver products (largely ETFs), but remain OUT of physical gold and physical silver assets and OUT of mining companies that own physical gold and physical silver assets.

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