Print

The following article is more than 7000 words and greater than 50 pages in length.

The full article is only available to website Members and subscribers to one or more of our investment publications as well as other clients who have previously establish business relations with us. Below we have provided some excerpts.

Among the endless number of myths that have been spread by gold dealers and their equally deceitful underlings over the years, there are a few myths that stand out above the others.

One of the more notable myths being propagated by gold-pumping charlatans is the claim that China has been selling U.S. Treasury securities. This myth has been spread repeatedly by thousands of doomsday clowns ever since 2008.

Note that 2008 was the year when the doomsday, gold-pumping fear mongering industry was officially born.

The motive behind this and other preposterous claims made by these charlatans is to convince their victims (i.e. those who would be foolish enough to pay attention to them) that the U.S. dollar is headed to zero and Washington will be unable to finance its debt.

Positioned along side of these myths are additional absurd claims such as the "US will face hyperinflation" and "the "US is facing a debt crisis."

Of course there are many other comical myths that have been spread by these same charlatans, such as the "US stock market is goung to collapse by 80%" and the "bond market is in a bubble."

The criminal media allows these charlatans to make these outrageous claims without truly questioning them because their sensationalism generates more opportunities for the media to sell ad spots to precious metals dealers and vendors of doomsday products.

These claims have been specifically designed to cause less informed individuals (and others lacking a reasonable level of common sense) to purchase gold as if somehow owning gold will save them from the "apocalyptic bogeyman."

I have already debunked these and many other myths. Not once have any of the doomsday puppet masters so much has even attempted to counter my assessment because they know they cannot. The best strategy when you are outmanned is that of strategic retreat.

You might want to refresh your memory by reading the first series of articles I published on gold back in July 2009, called "Fool's Gold." You will see that I actually reiterated my forecast from America's Financial Apocalypse whereby I predict a top in gold at around $2000, then a hard crash followed by many years down.

Excerpt from Fool's Gold (Part 2) published on July 7, 2009 when gold was less than $1000/ounce.

"So the main question becomes…where along the bubble is gold?

It’s impossible for anyone to determine, but if I had to make a guess, I’d say it’s in the middle stages. If that is the case, it’s likely the bubble still has a few more years left. And I’d expect gold to go higher from these levels. I have no reason to alter my gold price forecast made in 2006.

Although there are many variables involved, generally speaking, you’re not likely to do particularly well investing in gold unless you bought it at for under $600, you trade it regularly, or your holding period is only a couple of years (depending on when you bought it).

For any period beyond this, you face the risk of holding the empty bag when gold corrects, much like those who bought it in 1980. If that happens, you’ll have the added effects of inflation eating away at your principal. The modified chart below illustrates this.

No one knows where gold is headed or when the bubble will burst. The gold bugs are unwilling to even acknowledge that there is a gold bubble forming. Just remember this - the higher it goes, the harder it will fall. This is how all asset bubbles play out. And if you get stuck holding gold when the bubble bursts, you could end up losing a lot of money, especially since gold fails to keep up with inflation over long periods; periods that typify post-bubble corrections.

While you’re waiting years to break even before you sell, inflation will gradually eat away at your principal.

The lesson is—buy-and-hold doesn’t work. It never did; not for stocks, not for oil, and certainly NOT for gold. Timing DOES matter, but so does valuation. If you’re good at one and not the other, you can still do pretty good. If you’re good at both, you’ll join a very elite group of investors whose names you probably don’t know.

Now if you still doubt what I say, check back with me in say 15 or 20 years. By then, gold will likely have come down (from whatever high it makes) to $400, and maybe $300 per ounce. I’m willing to bet on it.

Until then, gold is likely to go higher. But unless you really understand the dynamics of gold price movements, or unless you trade the volatility, you’ll most likely get burned if you buy gold at current levels.

Remember, the higher price you pay, the more risk you add because this bubble WILL eventually burst. Only by understanding the realities about gold can you plan for a profitable exit." Fool's Gold (Part 2)

Maybe now you know why the last thing the guys running the gold scam want is to let people know about me.

The gold-pumping machine was pretty much left for dead after I completely steamrolled John Williams' hyperinflation claims in 2011. Dismantling John Williams' Hyperinflation Predictions

Here, I provide a followup to an article I wrote more than two years ago, proving that China was not only NOT selling US Treasuries, but it was in fact BUYING them. Debunking The Myth That China Is Selling U.S. Treasury Securities

The main problem with investors today is that very few bother to take the time to verify claims and examine data. This is why most people are sheep. Instead they tend to believe everything they read, everything they see, and everything they are told. This is especially the case when the same lines are repeated by different individuals. This is a common brainwashing tactic used by the media on a daily basis.

The Washington PR machine also makes use of this tactic regularly. Perhaps you recall the "weapons of mass destruction" scare tactic repeated over and over several years ago by the puppets in Washington and their agents in the media as a way to gain support and approval for a military strike against Iraq.

Despite what you may have heard, China is NOT selling US Treasury bonds and has NEVER DONE SO on a net basis.

In fact...

China Has Increased US Treasury Holdings by Over 2000%