Here are some cheery facts to start your day with: Gold topped out 25 months ago in September of 2011. It has been 30 months since silver briefly bested the magical, mystical 50 dollar mark in April of 2011. To put it another way, Gold has been down for the last 759 days, while the high in silver took place 916 days ago.
Nine hundred and sixteen days. That’s a long frickin’ time, folks. Why are you still here? Don’t you know that the S&P has gone from 1100 to 1750 during that time? Don’t you know that the Wall Street Journal says gold and silver markets are dead? Are you not aware that every single major investment class is positive over that time period while the metals have been smoked? Wouldn’t any rational person have given up long ago on this dead and rotting carcass of a market and moved on to better investments?
Well, many have. Those who cleverly bought silver using the JPM credit card with 0% interest for the first year found themselves down 20-30% with the interest kicking in. Bad move. Many of those who overextended to buy every ounce they could during the dip to the 40’s have been forced to sell at a loss. Those who greedily bought on the way up with the idea that this was going to be a quick and easy score have learned the hard way, and most of them are gone now. So why are you still here? Are you just too stupid to comprehend what a dolt you have been, that you should have just bought Netflix like your brother in law? Too blind to see that you have been taken in by charlatans and hucksters?
My guess is that you are none of these things. The last nine hundred and sixteen days have effectively winnowed all of those upon whom these arguments and personal attacks would have any effect. The people trying to make a quick score are long gone. The people who really didn’t understand what the phrase “The end of the great Keynesian experiment” really means left this market some time ago. Those who simply couldn’t withstand the mental pounding these markets have delivered are certainly long gone. If you are still here it is because you 1. are mentally strong enough to withstand a truly harrowing investing environment, and 2. You have genuinely embraced the long-term approach to wealth preservation and investing.
We have separated the wheat from the chaff in this market. The only people who are left are the ones who truly get it, who understand the macro forces at play and who know what it really means to be a stacker. They are the thick skinned folks who really do not give a rats ass what snarky traders with the shortest of investing horizons (and attention spans) say about them, nor do they care about the shills on CNBC. They know the difference between trying to make a quick score in the bubble-de-jour and building genuine wealth over time. They are people whose vision extends beyond today, who see what is on the horizon, and are well prepared to get themselves and their families through what is coming. They see this nine hundred and sixteen days for what it truly is- an extended grace period in the midst of longer-term financial chaos, a precious gift of time to be used for accumulating real wealth, denominated in ounces, before the chance to do so runs out.
The only people left in this market are stubborn, tough, unshakable veterans of the wars, and are more than just a bit ornery. And they know what to do during times like these.
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