We have seen massive gains in precious metals and the companies that mine those metals. Many are asking “Did I miss it?” and what can we expect going forward.

While I have spent most of the last 15 years following this space, I have learned over that time that whatever you might expect- be ready for surprises.

In the past, most of the surprises came to the downside. I attribute this to the fact that the major banks and the Fed were manipulating the price of gold in particular down to keep the illusion of “strong US dollar” alive. This worked for an extended period of time as paper trading made it appear that there was FAR more supply than actually existed and sales of PAPER at the most inopportune times (times when there is little participation) to ensure that the desired outcome was achieved.

In most cases, an INVESTOR would want to sell to get the best price- when most traders would be there to buy. One of the first clues I had that this was a total fraud was the fact that the beatdowns always took place in the middle of the night to have maximum downside leverage. How many of US would trade to get a LOWER price?

Other central banks were probably also in on the scheme- particularly European banks. This also allowed those “in charge” to get the asset at a DEEP discount- basically cheating the PRODUCERS out of what would likely be a FAR higher price.

As we speak, the central banks are buying record amounts of gold, and it appears that the Fed is the last central bank that looks to be attempting to keep the price down- EVEN NOW.

The reason I mention this is that many are looking at gold and silver as trades. A lot of people are using charts and graphs to determine when to buy and sell. For many years this was pretty successful- BUT NOT TODAY.

The entire paradigm has changed and what the “TRADERS” don’t get is that the paper games are no longer having anywhere near the effect they have had in the past because the physical metal is being demanded and counterparties don’t want paper promises anymore- they want the goods.

I have to admit that even though I have been calling for this for 10 years I am still surprised at the relentless rises that make it difficult to determine when to buy for new money coming in.

I can’t help but believe that there will be a major pullback at some point BUT I believe that will be a move that will shake out weak hands on the way to highs that will likely stun the masses.

Many people ask me for price targets. I believe that is a fool’s game. What we need to remember is that gold, silver, and hard assets DON’T CHANGE. All that changes is the amount of fiat dollars you need to buy whatever it is you are buying. The REAL question SHOULD be “How Low Can the Dollar FALL”?

One interesting point I heard recently is pertaining to real estate. It was on King World News where they said that after World War 2 a home was Built for $4500.00. By the 1970s that home cost $45,000.00. By 2025 the average new home is $450,000.00. These could be the same homes with the same materials. The home hasn’t changed but it gives you a clue as to how far the dollar has fallen already.

We also have to keep in mind it is not just the dollar falling but 50 YEARS of price suppression, in particular, in gold and silver have to be reconciled. I have long said that this is like a beachball underwater and when it is released- watch out!

So, what can we expect going forward? My best guess is FAR higher prices with a lot of volatility both ways. I believe that the right move today for those holding these assets is to enjoy the ride. There will be ups and downs but at the end of the day I see no way for the USA to reverse course and stop “printing.” This would cause a collapse- at which time most paper promises would be broken and people would demand hard assets. Supply and demand suggest FAR higher prices for those assets. It would also cause a collapse in confidence and history suggests that GOLD and possibly silver would be used to instill that confidence again. If the “printing” continues- each dollar conjured up out of nowhere has NO INTRINSIC value. It has to get perceived value from all of the other dollars that have been produced.

The game has changed and still only a VERY few (mainly at the top) are aware of it. Of course, those “in charge” want to keep all of us in the dark for as long as possible so they can amass the assets that normal people will be chasing at FAR higher prices down the road.

Because of all the price suppression most people are still expecting major pullbacks like we have seen in the past. While there may be violent moves in both directions, I believe that the pullbacks will be of short duration and the upside looks exponential at this point to me.

The companies that mine these assets have also seen MASSIVE gains. It is a fair question to ask, “Did I miss it?” You may have missed phenomenal gains in the last year, but my calculations still show the miners as GROSSLY undervalued.

Of course, miners have more risk associated with them than the actual hard asset and may not be suitable for all situations but for many- if not most- they might be worth a look.

Be Prepared!

Any opinions are those of Mike Savage and not necessarily of those of RJFS or Raymond James. Expressions of opinion are as of this date and are subject to change without notice. The information in this report does not purport to be a complete description of securities, markets or developments referred to in this material. The information has been obtained from sources deemed to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct.

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