Stack Smart, Not Hard, Pt. 2: Make the Golden Pendulum Your Ally

The last silver parabola was breathtaking, as it went to nearly $50, nearly 150% higher than its previous peak of $21.50, in 2008.
Now ask yourself this question: what if that pattern simply repeated the next time they lose control?

 

Submitted by The Wealth Watchman

Two Dreaded Words

The two words that I’ve learned to dread more than most, are:  “Watch this!”

Now, sometimes those can be fantastic words, right?

Sometimes, following those words, we are shown something truly magnificent, surprising, or even hilarious!

But when you have a 2 year-old (like the Watchman has)….those two words can induce some sheer, agonizing, teeth-grinding terror!  

Each time I hear it, I smile and nod at my son, while my mind plays through all the possibilities of which physician we might have to visit once this scenario plays out.

You laugh, but adults are the exact same way though, are we not?  I’m sure most of you have read stories about those crazed alchemists in the Middle Ages.  Those poor, misguided souls, determined to play god, by locking themselves up in the dark tower of some castle or keep, pouring over ancient manuscripts, and even dabbling in forbidden “studies”.  They’d stare, eyes twitching at the latin or egyptian texts, whiling away the hours,  as they determined to turn lead into gold.

Time after time, they miserably failed!

Sometimes, many of them would think they were so close,only to be left with nothing in the end, every time.

Years and years were pitifully wasted this way.  Whole lives expired, chasing a terrible and pointless dream.

A few of these folks suddenly realized they chose the wrong career, when something went horribly awry:

Ratio 11

We chuckle at these people now, but we’re just as ridiculous!

For modern central bankers are very much like these alchemists,  in that they all believe they’ve found a way to “turn debt into gold”.  Yet, astonishingly, most well-educated individuals in the West, hang upon every word that these fools utter!  

And, just like the poor, unfortunate soul in the painting above, I promise you that it will end  in a fiery, monetary explosion.

That is, after all, why we’re stacking, is it not?

We’re all being forced to stand in said laboratory, while some “sage” tells us:

“Watch this!”

Just because we’re all being forced to watch another terrible, alchemical experiment gone wrong, doesn’t mean that we can’t do it safely from behind our silver and golden shields! Right?

Their Folly is Our Opportunity

Yet, strangely enough, this ill-advised alchemy in our time(coupled with the market rigging in gold and silver), has created some enormous opportunities for our stacking armies.

Most of the brothers here that I’m speaking to are hardened, grisly warriors, who know what they’re doing and why:

You know of the unsustainable nature of the global ponzi, which we call the international monetary system.

You know of the real nature of the bond markets, the stock markets, money printing, and the global derivatives disaster-waiting-to-happen.

You know of silver’s excellent value relative to these paper, pyramid schemes.

You know silver’s excellent value relative to other real assets, including real estate.

You know silver’s historical role as both money, and a means to store wealth.

You know of silver’s excellent current value relative to gold.

You’ve planted your feet, fought like heroes, and have taken blow after blow from your enemy, and you’ve given them blow after blow in return.

Yet, consider the fight we’ve been forced into: over 3.5 years of decline in silver, from $50 to $14, is a difficult length of time to be under assault, with no price relief to speak of, isn’t it?

That’s a 72% reduction from its top price(with possibly more to come).

Put another way, the enemy has made us all wait a period of well over 1,200 days, to bring about a dollar devaluation of nearly 3/4 on our stacks.

Now, many of us (myself included) are busy making hay, and turning this downdraft into more and more ounces(or even pounds) of silver, and that’s excellent, but there is something you must consider.

Hear me well on what I’m about to lay out, brothers:  

Each time the enemy has finally been forced to let silver fly to the clouds, each new silver spike upward has been higher than the last, right?

Here’s what the last two big silver peaks looked like on the charts:

The last silver parabola was breathtaking, as it went to nearly $50, nearly 150% higher than its previous peak of $21.50, in 2008.

Now ask yourself this question: what if that pattern simply repeated the next time they lose control?

What if we repeat that 150% price gain from the last spike of $50?

That would put the next price point of the spike-to-be, at about $125 or so.   Again this is not a price prediction, but merely a way to make you consider what might happen on the next up leg.

That’d be amazing to watch!

But then, ask yourself this:

What if our foes could, once again, paint another painful, multi-year correction on the charts after that spike to $125?

What would that look like?

Well, if it looked like this downdraft, it would mean that you’d watch your stack’s dollar value soar over 700%…Only to watch it descend for over 1,200 days again, by 72%…..taking it down from $125…to $30.  That’s how ridiculous this whole process has become.

Would you be able to mentally handle that kind of assault again?  Even if you knew that $30 would be your new “floor”?

You see what I mean?  These questions have to be asked right here and now.

Let me ask you one more question:

What if there was a way to “lock in those gains” at $125, and take profits,   without going into dollars?

What if there was a way to make that entire process not only less painful, but far, far more profitable than even directly stacking new silver would be?

What if there was a way to ensure that your ounces actually worked harder for you, and became insanely more profitable, the longer the downdraft continued?

There is such a way, and I’ll attempt to give a simple summary of how to “stack smart, not hard”.

The day is coming soon, in which the cartel will finally lose control of silver and gold’s price(for awhile, anyway), and when that day comes, you’re gonna face some mighty exciting days, but more than that, you’re going to face some difficult choices as well.

Now, keep in mind, that these strategies I’m laying out are simply for your consideration and education, these are not “advice”(whether financial, tax, or otherwise).   When you’re on the battlefield, trying to formulate your plan of attack, it’s a great idea to consider as many strategies as possible.

“The Golden Pendulum”

For thousands of years, silver’s monetary value, relative to gold, was roughly 15 to 1.  Meaning simply, that for every 15 ounces of silver you possessed, you could trade them for 1 ounce of gold.

Now, of course, there were brief periods when it was much lower, and also abrupt times when it was much higher, but from the days when the Greeks were fighting Xerxes on the Peloponnese, to the age when mighty Roman legionaries dominated Europe, through Medieval times, and on up until the early Industrial Revolution, silver’s ratio stayed amazingly stable to gold’s during those epochs.

Now however, due to the age of market rigging which silver has been subjected to, it hasn’t come anywhere near those valuations for a very long time.(except in 1980, when it briefly touched about 16 to 1) 

In fact, currently, the silver to gold ratio is over 73 to 1!   

During the spike low to $14(just after the Swiss Gold vote), the silver to gold ratio spiked upward even worse, and blew a kiss at nearly 80 to 1!  Due to this insanity, you were literally able to trade one troy ounce of gold for 5 pounds of silver! That was roughly the peak point the SGR reached in the downdraft in 2008!  Take a look for yourself:

Ratio 6

See the top of that spike there?  In 2008, JP Morgan put paper silver into the meat grinder, and ground the price so low, that it took 83 paper ounces of silver to equal 1 paper ounce of gold. We’ve nearly reached that clinically insane valuation once more!

For all you fellow silver-lovers out there…..it sure would be nice to have some gold to deploy into the fight, to take some serious silver prisoners right now, wouldn’t it?

Well, what if you’d acquired some gold ounces back in 2011, when silver took off, relative to gold? What if you’d picked up some gold coins, and were now gleefully able to swap them for 2.5 times as much silver as they’d have bought you just 3 years back?

There are some folks who are doing this very thing right now, by masterfully using embracing the swings of the  “Golden Pendulum”(some call it the “silver to gold ratio”) to their great stacking advantage.

When Silver “Took No Prisoners”

Back in 2011, when silver’s spike was a devastating onslaught, destroying every entity who tried to short it, the pendulum swung in the other direction as  the ratio of silver to gold went from roughly 70 to 1…….to the lowest ratio to gold in many years!

In fact, to be precise, this is what it did:

Ratio

Look at this glorious spike low in April of 2011!  The SGR took a flying leap out of the airplane at 70 to 1, and sky-dived 

All.The.Way.Down….to less than 32 to 1!

I’m going to phrase this right now, in a powerful way that I’ve seen no one else do!

In 2011, my silver brothers, the SGR/Golden Pendulum swung to one kilo to one!

You had the opportunity to trade one kilo of silver for one ounce of gold!  

You could’ve traded this:

Ratio 13

For this:

Ratio 14
As many times as you could stand it!

Brothers, let me say this right now: it will happen again!

We will most easily reach the point again, where one kilo of silver can be traded for an ounce of gold.  I know it sounds crazy right now,   but this will most assuredly happen.

So, let’s take a quick overview of the past few years(using only the most extreme swings of the Golden Pendulum, in order to powerfully make a case).  This is an encapsulation of how the swap can work, in theory:

In 2008, 1 ounce of gold could’ve been swapped for 5 pounds of silver(when the SGR touched 83)!

In 2011, just 3 years later(shorter than the duration of this current beat down), that 5 pounds of silver could’ve been traded for nearly 2.5 ounces of gold!

Last week, when the SGR touched nigh upon 80 again, that 2.5 ounces of gold, could’ve been swapped for nearly 200 ounces of silver(almost 14 pounds!).

That 14 pounds(or well over 6 kilos of silver), will one day be able to be swapped again for over 6 ounces of gold.

So, right there, we see that you could’ve(theoretically) started out with 1 ounce of gold, and now been sitting with roughly 200 ounces of silver…waiting to turn that back into 6 ounces of gold!

Now, to be sure, in reality, it wouldn’t quite work out this way.  Because this assumes that you could’ve called every bottom and every and top perfectly, which no one is able to do!  It also discounts the taxes involved in many of these transactions.   But, let’s say, you caught all bottoms and tops within, say, 20%.  Even then, you could’ve used that Golden Pendulum’s swing, in the wake of this market rigging, to take even more silver off the retail market.

The potent point remains: those who are brave enough to embrace the swinging pendulum of the silver to gold ratio, can leverage these attacks to do even more damage to the enemy.

The biggest danger of using this strategy thoughis that one day, when “the big one” comes, and the cartel loses total control of silver, the  Golden Pendulum is going oh-so-much-lower than even one kilo of silver per ounce!  Much lower!

The danger here being(other than tax considerations involved, do your own study, and consult your tax professional before consideration), is that when “the Granddaddy-Spike” comes, you’ll be left holding gold, rather than silver.  That’s definitely something to keep in mind, as well, when considering this strategy.  At least though, you won’t be left holding dollars.

 Conclusion

This strategy isn’t for everyone, and I’m not advising anyone to try it, I don’t give advice.

What I am doing, in this “stack smart, not hard” series, is  just reviewing a few ways that can be considered by our shield brother community, to make every ounce count as much as possible.  Everyone here must make up their own minds, about how to stack and attack the enemy. Consult with tax professionals, and do your own research, before you make your decision.

Right now, you’d have to trade roughly 2 and a half silver kilos to acquire one ounce of gold.

In other words, if you’re going to consider this strategy, this is the time to load up on silver, rather than gold.  The Pendulum could continue to swing even more in favor of silver than it currently is, so beware. 

With the historical ratio of silver to gold at roughly 15 to 1, this makes the ratio we’re currently at(over 73 ounces of silver to just 1 ounce of gold) an amazing opportunity to snag pounds more of silver at a price point which can give you some amazing leverage, once the pendulum swings the other way.

If you like silver, as I do, this is literally the best juncture to buy it at in the past 1,200 days!

I’ve never used the Golden Pendulum strategy, but I must admit, I am strongly considering dipping a few toes into it the next time that silver’s valuations become compelling against gold’s, in order to stack even more silver.

While I totally understand those who are afraid to take dollar profits, due to the dangers inherent within the dollar, there are ways of locking in gains, without going back to toxic U.S. dollars. Embracing the Golden Pendulum swings in the silver/gold ratio, is one way of doing that.

I understand that most of the folks here will simply continue to stack silver, and wait for the Great Reset, and that is probably safest.  This is simply for your consideration only.

The banking cartel has made our warriors pay dearly for being in the right place with our cash for the past 3.5 years.  That’s a long time to sustain their attacks.  

Embracing these “ratio swings” can be a way to return the favor,  and make them pay dearly, as well.

Since we know that alchemy is a non-science, and a totally discredited field of study, this is also a much safer way to “make gold”, without playing with alchemical explosives in a laboratory, or in a central bank(but I repeat myself)!