Silver Shakeout - What does Mike Maloney think??

[Captain Kookaburra]

Ok... Here's my take.

This video is essentially the predicted outcome of a discussion I had with Mike Maloney, and Dave Morgan in Singapore. This was when silver was in the 20s.

The previous pullbacks are greater than this one, and this one was pretty much "on the RADAR". I'm not sure if Mike sold any of his position before the drop, but I know that Dave sold his investment silver, sticking to his core position only. Dave pretty much predicted this downturn in his subscription newsletter. Would have like to be on that mailing list.

Both these men agreed that it was likely that there would be pullbacks of this magnitude. This is the "Climbing the wall of worry" that is often spoken about with reference to bull markets.

Bullion dealers, from my experience, profit MORE on buying back than on selling. So for a dealer to be discouraging selling back to him, he is committing to buy silver from suppliers like PAMP, etc, at higher prices than he would buyback from us.

If he was biased in favor of his bullion business, he would be encouraging you to trade out during the dip and buy back in later. He isn't.

Mike Maloney is NOT god! But he is a genuine person, whom I admire for his quest to educate others...

Ck.

 

[MelbBrad]

I can't believe this bloke gets put on a pedistol the way he does.

Imagine the reaction a property spruiker with a vested interest (buyers agent or developer with something to sell) would get from people here.

They'd be howled down in protest and vested interests would be pointed out in no uncertain terms.

Yet the vested interest silver spruikers get elevated to some higher statis when in reality they are no different to anyone else pushing something for their own benefit.

It all comes back to what people want to hear.

Taking advice to buy silver from someone who sells it........fair dinkum.

All this bloke ever did was write a good book.


C

Couldn't agree more. It amazes me the number of people who will bag anybody who mentions R/E but get someone who sells silver to say that the price is going to the moon and everyone is calling him the greatest sage on earth. No recognition of the conflict of interest.

malachii

To be fair, MM does acknowledge that he sells silver. It's not like he's being unethical for failing to disclose. Again, it's buyer beware.

 

[unfunkable]

yky..stop rolling..i mean trollin'

 

[renovator]

Well no need to put my 2cents worth in im sure everybody knows where i stand i will anyway Profit = cash..... I love cash . :

 

[pmstacker]

Well no need to put my 2cents worth in im sure everybody knows where i stand i will anyway Profit = cash..... I love cash . :

And why wouldnt you Last time i checked, thats what you used to buy food and get them hot cars to roll in

Gold and silver is just a way to get a better standard of living, its its silver right now , bring it on, if its gold right now, OK, if its potash or dirt or land next time ... im fine with that too :lol:

 

[Yippe-Ki-Ya]

It's this fear of losing ounces that could result in holding too long and getting caught out. At the end of this bull market the winners will be the people with the most fiat profit, not the ones
left holding the most ounces because eventually silver will crash bigtime.

I agree that there will come a point in time where PMs will become overvalued, but we're pretty dam far from that point right now.
Your next point is contentious at best and downright wrong at worst. Under the current fiat system which is on a destiny with collapse i seriously doubt that holding fiat will ever be a good idea in the years ahead. if you dont hold something tangible - you aint got shit!
Also, people holding real money - gold and silver - will never LOSE ... simply because it will hold its average value throughout time. it always has and it always will.

I've just been through the same process with property. I loved to be able to drive around and look at my "portfolio". Not that is was huge but I worked hard to build up a few properties and was reluctant to part with any of it. Eventually I convinced myself that if I was going to stick to my strategy then they had to go.

The situation with property is wildly different! Those who followed Steve Keen's advice in 2009 will be seen in years to come as geniuses.
Those still stuck with property a this point - myself included are bluddy fools

At this point in time I'm much better off holding the profit instead of the houses. Sometimes the same will be true of silver.

Profit is first and foremost in my opinion. Silver, like houses, is just another vehicle that you can use to turn a profit.

Again - it's what you do with that profit which is important. Neglect to protect that profit (by leaving it in fiat form) and pretty soon you'll end up being a loser to the thieving bankers and government who thieve from people through their engineered inflation.

 

[Yippe-Ki-Ya]

...

 

[Yippe-Ki-Ya]

yeh sure - those who traded out near $50 are are no lookin to buy back in look like geniuses. i can assure you that you will lose more times than you win when trading.
trading will tear you a new asshole! then you'll know what real gambling is all about...

Do let us know how the trading works for ya!

What you are trying to say is that you don't know how to trade. That doesn't mean others don't know how.

Trading is very similar to buying petrol. You know what a good price and a bad price is. You may not get it exactly right but I'll bet most of you can tell me what price to fill up at and what price to drive on by. This is a very basic trading lesson.

The other advantage with trading is if you sell and the price goes up - so what - you enter a new trade at a higher price IF it makes sense. If you buy, hold and pray - you are in the lap of the gods - as silver has proved this week. It didn't take a genius so work out that some profits should be taken off the table. Nothing (and I mean nothing) goes up that rapidly without a fairly large pullback. The higher it ran, the more sure the pullback and the greater the pullback would be.

malachii

lol

 

[Yippe-Ki-Ya]

Right now CASH is not zero, go to the freaking store and pay for your groceries with silver/gold or go and pay your kids school fees using gold/silver, doesn't happen. Cash is worth something right now so if you can gain more of it to live your days better then that's the goal.

actually you're wrong about that. i've been buying silver a couple of years now and can see that it has increased my purchasing power by a long way. selling bits of silver now and then when i need cashflow buys me a whole heap more than if i had just planted the money in my mortgage. if you havent figured that out yet, you're slow

Do people really think cash will go to zero overnight, like one day you will wake up you go to the store and they will say, sorry your moneys not accepted ?! Really ..

It probably wont happen overnight, but it could happen quick enough to catch you with your pants down!
it will certainly happen quicker than what your salary will go up ... and you can take that to the bank!

 

[Yippe-Ki-Ya]

I can't believe this bloke gets put on a pedistol the way he does.

Imagine the reaction a property spruiker with a vested interest (buyers agent or developer with something to sell) would get from people here.

They'd be howled down in protest and vested interests would be pointed out in no uncertain terms.

Yet the vested interest silver spruikers get elevated to some higher statis when in reality they are no different to anyone else pushing something for their own benefit.

It all comes back to what people want to hear.

Taking advice to buy silver from someone who sells it........fair dinkum.

All this bloke ever did was write a good book.


C

Thanks for this post. To think that I had almost given up on this forum. bias is one thing, ignorance is another.

So you're saying that those who agree with Maloney (and many other great minds including Faber, Schiff and Chapman) are ignorant and biassed??

Mate- you've gotta be a couple o cans short of a sixpack ...

 

[malachii]

Again - it's what you do with that profit which is important. Neglect to protect that profit (by leaving it in fiat form) and pretty soon you'll end up being a loser to the thieving bankers and government who thieve from people through their engineered inflation.

YKY - the rest of your quote is pure unbased BS but this statement is exactly right. If you actually believe this statement you will get a long way but my suggestion is that you look outside of PMs and think "what if I'm wrong - what if fiat does not collapse in the way I think". The one thing I have learnt in all the time I've been investing is that it never works out the way you expect and you need to plan for backups.

If the US $ collapses - something will replace it and I will guarantee it wont be silver. The original reason silver and gold were replaced by bits of paper was that they were too cumbersome to use in everyday life. That is why EVERY society has created some form of money - whether that be paper, coin, rocks, shells, bags of wheat or pretty much anything else you can think of.

If you are right and THEY scrap paper money and replace with money backed by bales of wool or oil or other hard commodities - where will your silver stand? Sure - it wont be at the bottom of the pile but it will still be just another industrial metal but this time trade in bales of wool instead of US $.

malachii

 

[malachii]

yeh sure - those who traded out near $50 are are no lookin to buy back in look like geniuses. i can assure you that you will lose more times than you win when trading.
trading will tear you a new asshole! then you'll know what real gambling is all about...

Do let us know how the trading works for ya!

What you are trying to say is that you don't know how to trade. That doesn't mean others don't know how.

Trading is very similar to buying petrol. You know what a good price and a bad price is. You may not get it exactly right but I'll bet most of you can tell me what price to fill up at and what price to drive on by. This is a very basic trading lesson.

The other advantage with trading is if you sell and the price goes up - so what - you enter a new trade at a higher price IF it makes sense. If you buy, hold and pray - you are in the lap of the gods - as silver has proved this week. It didn't take a genius so work out that some profits should be taken off the table. Nothing (and I mean nothing) goes up that rapidly without a fairly large pullback. The higher it ran, the more sure the pullback and the greater the pullback would be.

malachii

lol

Seriously - how long did it take you to think up this high quality response?

malachii

 

[Yippe-Ki-Ya]

Lets say I take profit all the way up throughout this bull market and put the money into other worthwhile trades, investments or businesses. I'm profiting from silver and reducing my exposure to it the higher/crazier it goes. If I've done the right thing hopefully my other trades/ investments will do well also.

To your way of thinking we should be continually accumulating silver so that by the time we reach the dizzy heights, (remembering though that no one rings a bell at the top) all your eggs are in the one big silver basket at an average cost that is continually rising and you just have to hope to god that you get out before it's too late. But hang on, you wont want to exchange all these valuable ounces of precious silver for dirty old fiat so you might just hang on a bit.........BANG.......too late.

SAVVY ?

And what other assets would you be trading into which would outperform silver ??

 

[Yippe-Ki-Ya]

But ultimately its gold that should go in the bottom draw not silver which is a speculative industrial metal.

BULL **COUGH** SHIT! **COUGH*-*

I don't agree with 'profit is profit is profit' necessarily. There is such a thing as selling too soon and the old saying that you can't go broke taking a profit is stupid. Because good investments can go up a lot, and you need big winners to balance out the losers and get an overall good return.

glad to see something i agree with

 

[renovator]

Yippee im afraid you suffer from the "all your eggs in the one basket " syndrome & quite a bit of narrow mindedness towards other investments.which could well be your downfall

 

[malachii]

But ultimately its gold that should go in the bottom draw not silver which is a speculative industrial metal.

BULL **COUGH** SHIT! **COUGH*-*

As I've challenged you before on a previous thread - show me ANYONE with credibility that thinks that silver is not an industrial metal.

malachii

 

[fishball]

But ultimately its gold that should go in the bottom draw not silver which is a speculative industrial metal.

BULL **COUGH** SHIT! **COUGH*-*

As I've challenged you before on a previous thread - show me ANYONE with credibility that thinks that silver is not an industrial metal.

malachii

Well it's definitely used the most in industry NOW no doubts about that.

However history has told us that Silver and Gold have been historically used as 'currency' for exchanging goods and services alongside with cupro-nickle or bronze coins I believe.

Romans used silver coinage; chinese used silver coinage; US dollar bills; we used silver coinage before in Australia etc
(not pure silver always but there'll be a mix of silver in the coins)

Even up until the year 2000 there were central banks around the world that used Silver as the base for currency.

http://en.wikipedia.org/wiki/Silver_standard

I found this interesting, never thought about it myself (has nothing to do with this discussion just thought it was interesting )

China's use of silver as a medium of exchange is reflected in the name for bank "" (literally "silver house" or "silver office") and for the precious metal and jewel dealer "" (literally "silver building" or "silver shop").

http://en.wikipedia.org/wiki/Currency

In most major economies using coinage, copper, silver and gold formed three tiers of coins.

 

[Yippe-Ki-Ya]

the question is ... how much did you sell so you can buy back more AG so that with the same amount of $$$ you started off with you can get more of your beloved ounces ?

I didnt sell any, but i've bought some more during the dip and i'll probably buy some more this week again.

The important thing is my stack is growing month by month...

 

[malachii]

It has been used for money for millennia - This doesn't change the fact that it is still an industrial metal and always has been.

malachii

 

[fishball]

It has been used for money for millennia - This doesn't change the fact that it is still an industrial metal and always has been.

malachii

Has it really always been an industrial metal? I can't find anything on Wikipedia or the net to suggest so.

It really was only in the past century that Silver's unique properties allowed it to be used with our technology and industries such as bombs, mirrors, medical equipment, stuff that requires high conductivity etc

Throughout history the only uses of silver have been either as:

Currency
Disinfecting food/water
Wound treatments
Keep liquid potable
Ornaments & Utensils

Source: http://en.wikipedia.org/wiki/Silver#History