In his latest update, Greg Mannarino discusses the fiscal cliff, stating that the market is currently anticipating some sort of another temporary solution, meaning that neither large tax hikes nor spending cuts will go into effect in 2013- we will simply have a continuation of the status quo and indirect deficit monetization by Ben Bernanke.

Mannarino recommends investors use their enemy’s system against them by creating wealth from the fiscal cliff crisis/negotiations by acquiring physical silver ahead of the upcoming can-kicking which will send all markets, but particularly silver higher.

  1. One of the last things that any stacker wants to do is get embroiled in the paper frenzy that is in control of the US markets.  Yes, it IS possible to make money in paper.  It is also possible to lose money there.  Been there and done both.

    Like many other things in life, those who have the most knowledge will make the most money.  Those who know the least will be there to provide that money.  There is an old saying along these lines and it is, “5% of the fishermen catch 95% of the fish”, and the reason for that is… THEY KNOW HOW!  Options, futures, puts, calls, etc.  All exist for the purpose of funneling money into the hands that created these methods for fleecing others and if you think for a moment that you can benefit from them, look out!  Perhaps you can… for a while.  But like casino odds, they WILL catch up with you.  Because of this, look to real physical silver as the best way to profit from the coming hard times.  It is not flimsy paper.  It IS solid and real… and so will be the profits that come from it.

    As to ETFs, yes, there is a place for them in an investment portfolio.  An ETF is a solid legal claim on assets, unlike ETNs, even if it is a paper asset.  ETFs can be bought, sold, and traded at any time during market business hours… unlike mutual funds that only trade at the daily close.  Best of all, IMO, is that ETFs, like stocks, can use various stop orders to help limit downside risk.  Precious metals ETFs can also be used to help create wealth.  They can be bought or sold with just a few mouse clicks, so trading in and out of them for profits that can then be used to fuel a nice stack of physical silver works for me.  🙂

    I understand what people are saying when they suggest buying gold and silver mining stocks but also know that these shares can stay low in price for years and years before they take off like rockets.  A lot of people in the PM arena have been suggesting that we buy the junior miners, yet for sometime now those shares have gotten cheaper and cheaper with only occasional brief and temporary surges to higher prices before falling back again.  I suppose that if one had LOTS of money, having some of it in these miners would be fine.  Although I do have some financial resources, I prefer to deploy them in other places that offer more predictable opportunities for capital growth.

    • Ed_B…agreed, but with a philosophical twist.

      I understand what you are saying about ETN’s, but I like to use my gambling money on them because of the leverage.  You can set your clock by the timing of the PM take downs these days.  Easy way to make fiat dollars.  Inside a self-directed Roth IRA brokerage account you avoid the taxes, too. 
      Here’s my take on ETF’s like GLD and SLV.  They can be sold short.  Meaning they are in direct violation of their prospectus which states they have the gold/silver.  By definition when you sell short 2 different people have a claim to the same gold/silver.  In effect the short selling of GLD and SLV is part of the gold /silver price suppression scheme. So, in my mind stacking and owning an ETF like GLD and SLV are polar opposites.  I think we should avoid GLD and SLV out of principle.  Just my opinion.

      ETN’s are just notes.  Just a play on the price. Can’t be used by the boyz to suppress PM prices.

      Mining stocks are interesting, but fraught with peril for the non-professional.  I stick with royalty plays like SLW for the most part. 

    • That’s the beauty of it, Mary.  We can all do what seems best for us or that fits our situation best.  In spite of the on-going rant against investing in stocks and ETFs, no, I am NOT giving back the $800k or so that I made via those investment vehicles.  😉

  2. By buying physical silver, you will get rid of the banks’ powers little by little because they won’t be able to control you anymore with their fake wealth that loses values over time and as for silver, it will gain more than gold and its value will even stay after the collapse. There are no banks who have physical silver stockpiles so they won’t be able to manipulate the physical silver’s price.

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