hi i wanted to talk about this pullback
that we're going through right now in
silver
a lot of people are selling out of their
positions right now or they're thinking
they bought in at the wrong time and i
just wanted to show you some of the
history of this first of all
silver is a roller coaster and i said in
my book that it's a wild ride and if you
don't have the tolerance for it don't
get into it it's it's it's a roller
coaster of a ride
but this is the entire bull market of
silver and what you've got to look at
here is the trend
and this pullback that we're going
through this has all happened before uh
here there was a major drop from 850
down into the uh
high fours
and then it goes up to about 15 and
drops again to like uh nine
up to 21
down to 9 bucks
so
there's
silver is a roller coaster but you've
got to look at the average trend you
have to look at the supply demand
fundamentals and you've got to look at
how much silver is there uh on the
exchanges and in the dealers for
investors to buy compared to gold and
where is the dollar going ultimately
uh if you look in my book
you'll see that there's a there's a very
very detailed analysis and one of the
conclusions that i come to is there is
no scenario in which gold and silver do
not rise
ultimately they are destined for far far
higher prices than this
and one of the things that is happening
right now is all of the people that use
leverage
if you
read my chapter beware the pitfalls
there's
leverage is the first thing i caution
against this is a professionals game so
if you are using margin
or
gold and silver purchased on margin
if you are using
futures and options
if you're using
etfs
there's a whole bunch of ways that you
can be scared out of gold and silver
very quickly and this is one of the
things that causes the rolex coaster
effect
but you got to stop measuring your
wealth in dollars and start measuring it
in ounces
this goes up and down i have been buying
during this entire bull market and i
have bought on these peaks
and i don't care let me show you
something right here
this is gold
and this is from
early 2002
through the end of 2003
when i first started buying gold the
very first time that i went in to a
dealer and i bought a bunch of gold
eagles and stuff
i bought at 3 15 in october of 2002 so i
bought way down here
and then immediately the day after i
bought gold started to rise and it
started going up and up and up and it's
going past 325 i'm going
should i buy no no no i'll wait for a
pullback should i buy now and it rises
and it rose all the way to 392 and i
went in on that day and made a purchase
of gold right on that peak
the very next day it starts to fall and
it didn't stop until it fell all the way
down to 325 and it took close to a year
to get back into new highs
and i punished myself for that entire
year but you know what
i would give anything to go back and
make that same mistake 100 fold today i
would go all in on that peak right now
if i could go back and do that and
here's one thing i know if you look at
what they're doing to the us dollar
ultimately
gold and silver have to be at far far
higher valuations they're just buying
the amount of stuff that they purchase
today is too little
they uh they have to go to far higher
prices the dollar
is sick and we've got a maniac named ben
bernanke running the federal reserve
intent on trying to save the economy by
destroying the dollar which will destroy
the economy
so
if you're thinking about selling
think twice i mean i don't want to tell
you what to do what you do is ultimately
up to you
but for myself
i am still buying and i am hoping for an
even greater pullback than this
this on a percentage basis that we're
going through right now is not as great
as the pullbacks of 2004 in the pullback
of 2008. the pullback in 2008 from 21
down to below 9. that was thrilling
but guess what
i was able to buy down on that even
though i bought up at this peak
if you take the same amount of money and
you buy on a peak
and then you take the same amount of
money a few months later and currency
i'm sorry dollars and you buy on a dip
you're going to get a whole lot more
ounces on that dip so these pullbacks
are just other buying opportunities
and
the people that call tops you know i've
i've i it's it's
doing
people a disservice if i try to call a
top and say now is not the time to buy
because there's going to come a day
where this goes north and it doesn't
stop
and if you don't have if all you've got
is digits instead of ounces you're going
to be in trouble that's the way i think
and so i am not worried about buying on
a peak and experiencing a pullback like
this that personally i consider a little
pullback after being through after going
through some of these big thrill rides
myself
so here's what's happening right now my
sales team in there is deal are dealing
with some of these calls are with
customers that just bought a few days
ago or a few weeks ago and they're
selling back at a loss and you know if
we have to
we will make a purchase from a customer
a dealer makes a tiny tiny little
microscopic spread either direction so
it doesn't matter to us but we strongly
feel that it's in the public's best
interest that it's in your best interest
to
take a position and ride it through the
entire bull market and don't sell at all
loss because there are some big gains
coming just based on history based on
the fundamentals of how much gold and
silver purchase
so anyway
that is my take on the current
pullback
and
again if you're thinking about selling
study the situation think twice and and
selling at a loss
is letting the big boys play on your
greed and your fear the big boys know no
greed or fear they trade solely on
numbers and right now there is an
enormous wealth transfer getting
transferred out from the hands of the
public
to the big banks like jp morgan and the
other people that go short silver uh and
and so
letting them win at your expense
is very
uh to me short-sighted thinking
do what ultimately what you feel is best
for you that i'm still buying thanks
i wanted to introduce you to the
managing director of goldsilver.com
james anderson
james has been experiencing firsthand
this pullback
and the reaction
that the public has and a lot of people
get scared on this kind of stuff
especially if they bought like the day
before the pullback started
so what's your take on this well yeah i
mean there's uh when the price rises
like this you get a lot of people a lot
of attracted investors who want to come
in and
you know on a pullback like this as
violent as it is it scares a lot of
people and it's shamefully
sadly it scares a lot of the the people
you know to actually sell at a loss at
times so
you know it's just it's disheartening to
see the big boys win and then you know
we don't want them to sell and we can't
tell them what to do obviously so some
people are gonna they're gonna do what
they want to do um
but uh you know the key in this whole
thing like you said earlier you told me
thousands of times it's the question of
how many ounces you got it's not about
how many dollars because
ultimately the dollar is going to run
its course you know like all the fiat
currencies so
i mean it's it's it's just to keep it in
perspective this is a bull market and
it's going to last for years so just
keep it in perspective and this is just
one of the little
jags in this roller coaster and it's
like painful to see somebody take a loss
isn't it yeah because
you don't lose anything until you make
that sell back when you're scared out of
your position that's when the loss
occurs the loss doesn't happen
when the dollar measured against silver
changes
or measured against gold it's it's when
the that change occurs and then you
confirm it and set it in stone
so
yeah i mean
and you know there's people who bought
you know in the teens and who are even
selling now and it's this isn't just a
one or two year this is a longer term
investment you want to hold this as your
safe haven asset you know for the long
haul so don't be shaken out on a
two-fold or three-fold of your
investment i mean this is something that
can be a tenfold investment down the
line yeah so you know long-term
perspectives are the key and to stay as
unemotional as possible right and
also
measuring
the purchasing power of gold and silver
is very different than measuring the
price and people see this little price
drop and to me it's little because i've
been through
much much larger ones in the past
and
so
basically
don't let the big boys shake you out
don't let them scare you don't let them
take you for a ride
average of about
four ounces of gold and if you start
back in 1900
up to 1929 got out of whack it went into
a bubble to 28 i'm sorry 18 ounces of
gold
however
that was just the stock market moving it
was stocks moving but not gold gold was
20 and 67 cents an ounce then the
markets crashed and it reverted past the
mean down to just two ounces of gold in
1932
then we went up in 1966 to about 28
ounces of gold
and then the stock markets went sideways
but gold began to move because it became
free