Mental Training, Part 4: Avoid these Mistakes when Buying Silver

If the banks fear silver, if the globalists fear it, if the U.S. government fears and loathes it, then it stands to reason that silver’s exactly where we need to be.
Yet, there are many who’ve made mistakes along the way in how they attempt to acquire their silver.  I will address some key mistakes below, so that you can avoid these pitfalls.  If you’ve made some of these mistakes yourself, don’t feel badly.
Whatever you do though: please don’t use margin.   Just buy the hard stuff.

Heidi Wastweet

Submitted by The Wealth Watchman

fight smash

Timely Words

Before I even begin this final part of the “Mental Training” series, I want to briefly re-post something I wrote in part 1, on September 17th:

“Expecting that you can calm all your fears about lower silver prices, if you can merely identify where the “strongest price support line” is on the charts, is a recipe for heartbreak and disappointment.  It is a false comfort that will leave you cold.

Every. Single. Time.

At this point, after the last 3.5 years, thinking: “It’s ok, because “X” price support will never be broken, it’s just too cheap beneath there”, is the stupidest thought you could possibly allow yourself to entertain.

It was a heartbreak for silver stackers at $32. It was a heartbreak at $26. It was a heartbreak at $22. It was a heartbreak at $20. Unbelievably, I sadly still see many who are referring to $18 as “unbreakable support”.

Don’t you dare let yourself be one of the few who refuse to learn the invaluable lessonthat the enemy doesn’t simply control the chart, they own the chart.  They are the chart.  They will take it wherever and whenever they believe it will do them the most good, and you the most harm.”

Uncanny, isn’t it?  I wrote that just two days before the enemy broke the “strong support” at $18.  In fact, I started this entire “pep-talk” series back then, because I had a feeling in my gut that the banks would break that line.  Just two days later, that’s exactly what they did.  Again, you are the real target here, not silver.  Do not allow their crimes to crush your spirit, but rather make their weapon your great comfort.

How to Buy Silver(and Gold)

Throughout this series, I’ve spoken of ways to train yourself to withstand a long, drawn out siege by the bullion banks.  For the most part though, it’s been a series about how to properly defend yourself.  There are steps you can take to manage your expectations in the face of continued price slams, as well as false alarms on the world scene.  This is necessary if you’re going to maintain composure and focus, as the bankers and politicians attempt to draw out the economic collapse in the West.

In this final installment of the “Mental Training” series however, I’d like to address how to go on the offensive!  After all, silver and gold are the recipients of constant bombardment by HFT trading algorithms in Wall Street, because they are the best competitor to the fiat/debt system that those who run the financial system have set up.  The big banks would prefer you not own any precious metals, especially silver.

Many in our community have called silver the “Achilles Heel” of the banking system, because it is such a tiny market, that it takes literally trillions of dollars to control it, and hold it down.  It is the jugular vein of this teetering monetary system, because if adequate supply isn’t available for delivery, then the banks lose control of its price, and the masses lose faith in the US dollar’s and treasury market’s viability.

Remember though, if the banks fear silver, if the globalists fear it, if the U.S. government fears and loathes it, then it stands to reason that silver’s exactly where we need to be.  Yet, there are many who’ve made mistakes along the way in how they attempt to acquire their silver.  I will address some key mistakes below, so that you can avoid these pitfalls.  If you’ve made some of these mistakes yourself, don’t feel badly, as I myself have made one of them(keep reading to found out which one).

Avoid Debt

Credit Card slavery

I cannot stress this enough: please avoid all debt if you intend to buy silver.  There was a campaign which started in early 2011 (when silver was screaming higher by the day) to open up a new credit card (or two), and charge those cards to buy as much silver as possible.

This is a terrible idea.

Sure, it was fun while silver was rising, but as silver was napalmed in early May of 2011, and the good times were gone, all that those poor folks were left with, was a pile of high-interest loans, and depreciating underlying capital.  As the scheme backfired, some were forced to liquidate their silver holdings in order to pay off as much credit card debt as they could.  This didn’t always help.

In a worst case scenario, let’s say they’d opened a line of credit for, say, $10,000, and they’d bought silver at roughly $50+ an ounce, only to see it whacked to as low as $26 within a few months.  In such a case, even the act of selling all the silver they’d bought would’ve raised only $5,000 to $7,000, leaving them a sum of $3,000 to $5,000 to repay, with nothing to show for it.

I know of some who managed to hold onto the silver they’d bought with a credit card during that price run-up, and opted to simply pay off the entirety of the debt (with a painful lesson learned).  Yes, they still have the silver, and I’m glad for them, but they spent many months making interest payments to the same banks responsible for devastating their investment in the first place.

Don’t put yourself in a compromising situation.  Don’t be beholden to these same financial powers that you’re opposed to.  Only buy the silver you can afford, with cash or other freed up capital you can raise.  Silver should be your shield, not your chains.

Avoid Buying Options or Futures

I’ve often read statements on precious metal forums that went something like this:

“Ok, yeah, I know that I lost all that cash last time, but this time, I’ve picked the silver price bottom for certain.  The banks can’t hold the price down here for long, and they certainly can’t take the price of silver any lower.  So I bought a swarm of call options/futures on silver.  I’m gonna make out like a bandit!”

I always sit there, thinking the same thing:

Owl serious

Make no mistake, someone will make out like a bandit in that equation, but it won’t be him.  Take it from a guy who’s made this mistake myself.  Unless you’re an experienced, professional trader, or you have paid thousands for regular trading instructions, then don’t fool around in this rigged casino.  The House will win, and you’ll just look silly.

Whatever you do though: please don’t use margin.  Don’t buy a highly risky position, with borrowed money.  There are plenty of folks who’ve done that in the paper silver market, who have lost their shirts for the last 3 years.  All it takes is one decisive move in the opposite direction that you bet on, and you’ll be getting calls from your broker, telling you to put up even more cash.

The best way to avoid this pitfall is simply to buy physical silver.  Don’t try to get sneaky, and think you’ll skim some cash by betting on which direction the banks will move the silver price in the short term.  Just buy the hard stuff.

Do Not Buy From Someone who Advertises on TV.

Precious metals sales is a low-margin industry, the good businesses, who do it right, don’t make alot of profit per ounce.  Yet, there are some companies you’ve probably seen on TV, who have lovely vixens sporting headsets, telling you in a soothing voice:

“Hey there, if you’ve ever wanted to vaporize your bank account   flush your money down the toilet   burn all your dollars in a bonfire  ask questions about gold or silver, please talk to one of our specialists by calling our toll free number.  I’ll be right here, waiting for your call.”


My brother, that sultry voice is that of a Siren! She will gently and sweetly take the cash in your hand, and smash it upon the rocks!  

Do not call these people!

Those companies have spent huge budgets on advertising.  Remember what I said about reputable precious metals businesses not making alot of profit?  How do you think these companies on TV pay off that advertising budget in an industry like that?  That’s right, they pay it off by playing the suckers who call them.  So many have been scammed by these companies into buying “collectibles” at outrageous mark-ups (sometimes 100% or more), or by simply purchasing ordinary bullion at very unfortunate prices.

Do not trust them, do not call them.  Do not look at the lovely face on the screen, and think:

money heart

That’s why she’s got the job that she has!  Don’t get played.  Don’t watch your cash disappear beneath the waves.  Buy from a reputable dealer.

Don’t Go “All In” All at Once

Let’s be honest, when we first learned about the silver story, most of us wanted to put everything into it immediately, didn’t we?  I sure did.  This is the most common mistake that many make.  Though I’ve spread my purchases out over time, I’ll be honest here: I wish I’d disciplined myself to spread my purchases out even more than I did.  

For roughly the first ten years of the precious metal bull market, buying “all at once” might’ve been a decent idea.  For the last 3 years however, it has spelled disaster for anyone who tried it. Here’s how I’d start, if I had it to do all over again.

First, I’d just look to establish a starting position.  Whatever amount of cash that I ultimately wanted to deploy into silver, I’d only put in enough to get my feet in the water.  Don’t dive in headfirst, you might find that the water is too shallow!

The ultimate amount of silver or gold you think you need is different for everyone.  It depends on your circumstances, net worth, cash flow, etc.  However, let’s say you’ve already decided how much protection you want for yourself, that’s wonderful.  That’s a great start.

Let me just put this right out here: we’re already pretty low in the silver price arena.  Actually, it’s the lowest it’s been in 4 years.  So for those who’ve worried that they “missed out” on the chance to get involved, you haven’t missed it, you’ve been given a 2nd chance right here and now. This in no way means though, that the banks can’t take the price lower.  They most certainly can!  It just means the risk of more downside has been diminished.

A good strategy in precious metals that I’ve noticed has been:buy some, hold, wait to see if the banks will take it lower, and repeat.  Set a regular time interval at which you’ll step in and buy more. Some call this “dollar cost averaging”, and for many, it has worked out rather well.

A Quick Thank You

By the way, I’ve now been patrolling the streets here at the Truth HQ for over 6 weeks.

I love doing what I do here! 

This growing band of shield brothers, gathering in this abode, has been a pleasure to watch, and an honor to be a part of.  The quality of the people here is remarkable.

I certainly enjoy writing and helping others navigate these treacherous times we live in.  To be completely honest however, it is a bit costly, in terms of both time and money.  For instance, this Watchman is up before the crack of dawn nearly every day, researching and writing for over 20 hours a week!  Make no mistake though: it has been worth it, every minute of it!  You’ve given me strength through your outpouring of constant support and goodwill!

Let me say, that if you’ve received encouragement or have found value in the time you’ve spent here, then I invite you to consider either donating, or(to make it literally painless) simply making a future purchase of precious metals from the ads you find here.

I have received solicitations and various offers to put ads within this site, from businesses that I knew nothing about, but turned all of them down for that reason.  I will never, ever advertise something on my site unless I both know it, and trust it myself.
This Watchman personally sought out the Doc at about advertising, because I regularly do business with them, and trust them.

Several of you in our community have either generously donated or purchased from the ads (you know who you are), and it has been humbling to receive such gifts and compensation from you.  Thank you!  You can be sure right now, that any proceeds from gifts given, or purchases made, will be used to help keep me patrolling this Truth HQ, and perhaps even help me expand into other media as well.  Every gift enables me to keep doing what I love to do: arming you with knowledge and confidence!

Thanks in advance, for your support, and for being a part of our merry band of warriors here.


Maintain your focus on the right things, in the right way.  Don’t allow price direction to control your actions, to defeat you.  You can maintain your composure.  You can stick to your personal stacking goals, you can do this!

If you’ve already met your goals, and you’re just barely hanging on, then just hold the line!  I know what you’re feeling, believe me, but the pains you’ll experience if you watch the great price run-up after dumping your position, will greatly exceed what you’re going through right now. Hang on, brother!

If you buy the timeless money of kings and gentlemen, you’re in good company.  Stack on, slow and steady, like the big players do. Use the enemy’s over-zealous price beatings against them, and to your great benefit.

-Wealth Watchman

The Last Coin in the Silver Shield Banksters Collection:
End of the Line– On a Long Enough Timeline, the Survival Rate Drops to Zero!