MINING STOCKS Vs PHYSICAL GOLD & SILVER - Mike Maloney

[networksport1111]

bollocks- There are many well run gold companies, cash rich, debt free, unhedged, low cost, active producers of gold, with top quality multi million ounce resources. Now if the price of gold is going to rise to or go above and beyond 20k USD (as suggested in some of his videos), then such companies stand in good stead. Gold miners like African Barrick and Centamin egypt have been battered recently much more than spot gold. Dont put it all in physical, expose yourself to some solid producers

[TWSceptic]

@networksport1111 Like he said you introduce yourself to many dangers including political instability among others. I wouldn't want to take the risk.

[999silverrush]

@TWSceptic So you buy one or a few of the hundreds of US/Canadian/Australian located mining companies instead.

[networksport1111]

@TWSceptic As if i was completely unaware of that (LOL). But you have to understand, he wants people to buy physical, because his company sells physical gold, And he makes a healthy commission off every sale. Actually, now im even seeing google ads from his business. I own gold, And i own gold stocks (which im up on a lot since my last message). But im not going to go 100% Physical just because this guy says you shouldn't buy well run, Unhedged, Low cost producing, Resource rich mining stocks.

[TWSceptic]

@networksport1111 Now I can say as if I'm not aware ;) Of course I know he is a dealer but I think he is a dealer *because* he believes that's the best choice for people and he wants to help them the best he can. Don't you think he would start a new company or simply give stock advise if he thought mining stocks would be a great addition? I'm sure he could make more money that way. But he choses not to add the risk factor to both him and his customers. I don't see what's wrong with that.

[networksport1111]

@TWSceptic Nothing to do with stock advice. What im trying to say is He sells people gold and silver, therefore, he wants them to buy the physical. In this video, he is technically giving advice NOT to buy mining stocks. And he has some valid points, What im saying is, Mining stocks are better than holding the physical in many instances. They're (Majors) more liquid, Have (Unhedged) better upside as the price rises amongst other things. Do what you like mate, this is all IMO.

[999silverrush]

This is total BS, a slewed perspective. and one that promotes his own business selling physical silver. The Baron's index? LMAO.

"and these are the largest of the stocks, good stable stocks..."

TRANSLATION: The value of their resources have been priced into their market cap. and its pointless investing in them to get leverage to gold.

When silver was at $9, US Silver was .05, Silver is back down to $30 now at US Silver is still over .50 cents.

[TWSceptic]

@999silverrush I trust Mike more than *random guy calling BS in YT*

[999silverrush]

@TWSceptic Trust? You dont need trust, you just need an internet connection. Go look at US silver on yahoo or google finance. .05 to .50. $9 to $30 on silver. You don't need to take my word for it, anyone knows you can look it up.

It is the same across the board. That is the leverage when you go for the real undervalued junior miners. Even larger ones perform the same too, look at First Majestic silver. Silver stocks are the way to go, outside U.S., in Canada with good econ. stability.

[TWSceptic]

@999silverrush We'll speak again in a few years we'll see who's right.

[HornetUK1]

mikes all in. all or nothing

[duke1duke1]

Why is he comparing the price of gold and gold mining stocks? People buy companies for dividends. He has to take into account dividends + prices, not prices alone.

[kcirdrab]

I'll keep this simple & brief.

What I'm making is a macro-economic statement, not a micro-market timing prediction. Gold could go up another $19,000 per oz in the next 4 weeks, or it could totally crash & burn tommorrow afternoon, I don't have ability to time that at all, but at some point, in the near future, regardless of market fluctuations. I believe there's going to be a systemic event followed by a macro deflationay collapse, which Gold will be hit by.

This isn't a stock call. ok? : /

[Hyperborea2012]

Marc Faber and Peter Schiff and Bob Chapman are very bullish mining stocks. That's good enough for me.

[clearasvodka]

A great point. If we look back at the last depression and the gold surge that coincided with it - we notice that it was precious metals stocks that increased even more than the spot price of gold and silver! Consider that even though most precious metals investors are somewhat against stocks and paper. OK. But if you are confident with your knowledge of mining shares and the opportunity is there - take it! Swap out your shares for physical metals when the time it right. 

[1IIIIIIIIII1]

WHAT DOES MIKE THINK ABOUT THE IDEA THAT SOME GOLD MINING STOCKS SOAR TO CRAZY HIGH PRICES IN A DEPRESSION????

[dowhatuwill]

David morgan said silver would only reach $40 this year

[dmgoddard]

Great video Mike, very thought-provoking as always!

Keep 'em coming!!!

[ILovelisanova]

Junior miners should outperform the HUI and XAU

[aqeel3344]

what about leverage but not stock, the silver XAG against USD for at least sometime to make good gain on leverage, then divide the profit into cash and physical silver? can you comment please.....Thanks

[101simar]

Where can i see a proof that most of Mike's Portfolio is in Physical Silver/Gold and Mines?

[whygoldandsilver]

@101simar Here's some proof. He wrapped his whole life around gold and silver. He spent two years writing a book about it. He built a precious metals dealership. He spends most of his time trying to educate people about what is happening. That's pretty good proof.

[felixdov]

Thanks for that advice as it does seem the zeitgist is all about the minor miners...

[MrGunAddiction]

SOOO what if you only have $5,000???

[vambo13257]

@MrGunAddiction Is your $5000 going to be worth more or less in 5 years? Against inflation it will be worth way less. If you buy 120 oz. of Silver you may be looking at over $100 an ounce in 5 years.

[dowhatuwill]

@vambo13257 $100 an ounce in five years? It will reach that next year. Mark my words

[vambo13257]

@dowhatuwill I hope you are right, I was just making a point! I could have said $200, $300, or $500, but even the most esteemed PM experts cannot tell you exactly where the price will be next year. I hold a lot of physical so I am happy and gettin happier every day, $45+ as I write!

[Equity213]

I ♥ my TFSA

[2leet2cheet]

Its also worth mentioning that the stock indexs used in relation to gold may be alittle unfair as it takes into account many exploration companies that have no production. Not to mention those are nominal terms, not real terms(real as in dividend re-investment)

[2leet2cheet]

This video is completely backward. The reason mining stocks have not preformed as well as gold is because THEY ARE LESS VOLATILE NOT MORE.The large majority of mining stocks hedge against the volatility of gold to increase their earnings at a steady rate, therefore taking the volatility AWAY from their business. BY being 100% in physical gold you are forgoing any hedges and are taking on MORE RISK NOT LESS RISK. Being 100% in gold is just as insane as being 100% in any other asset class.

[ytgv3fc7]

@2leet2cheet indeed being overweight in gold increases one kind of volatility. There's many flavours, to do with money supply, cyclic behaviour & management issues. Companies have management-issue volatility, exploration failures that once looked promising, production issues in equipment problems no matter their locked in prices for some term. My analysis is higher price volatility in silver mining shares vs silver spot & both higher vs gold spot. I have lots of videos up showing precisely this

[2leet2cheet]

@ytgv3fc7 Does your analysis take into account Dividend re-investment? I understand where you are coming from, but I think if you forget about a mining index and focus on good companies, with confirmed and expanding reserves you'll be much better off then placing your money in a box under your bed(VIA PM's) I think buying exclusively into PM's brings about some unnecessary risk, not to mention you are trading your "management-issue volatility" for political volatility.

[ytgv3fc7]

@2leet2cheet no, my analysis is purely a price-action mathematical pattern. So if DRIPs are contributing back into price action they are accounted for, otherwise they are not specifically looked for. I do, however, feel that holding cash in a bank account is more risky at this point than a locked box of gold+silver. Company management risk vs national currency risk vs box of metals hidden away: I'll take the box every time.

[2leet2cheet]

@ytgv3fc7 When interest rates are low, Im a huge fan of gold. When interest rates start to raise, I'll be a huge fan of cash. When a national currency starts to crash I'll be a huge fan of guns NOT gold.

[ytgv3fc7]

@2leet2cheet that's a big IF but of course in the math I agree. With a real positive interest rate actually above real inflation gold price should go down but volume of fake paper posing as gold still can't be ignored. Like cash velocity, if no one actually tries to take physical possession its impact on gold price will be none. When a currency crashes & people with guns are shot at, you might think a golden handshake out of dodge is the key. It worked for the Jews.

[Wittmann73]

thanks Mike!

[KORKONEASDOLOFONOS]

Very nice Mike, thanks. You are really honest and intelligent. But I think USA goverment will confiscate the 2 medals using a crisis as an excuse and they will come after you. I think this will happen sooner than 2013, but you know better, so when do you think something "big" will happen?

[ytgv3fc7]

@KORKONEASDOLOFONOS If you're begging for change among the homeless they will not think you are someone to steal from. If you are constantly applying for / using food-stamps while in the USA & acting like there is no money, you won't be sniffed out so easily for silver & gold. You have to understand nature's purpose for CAMOUFLAGE. Or get the hell out of Confiscation Land.

[KORKONEASDOLOFONOS]

@ytgv3fc7 You are an interesting person.

[ivangrozny27]

got burned recently on Randgold Resources thinking it had bottomed out (forgetting the old 'top pickers and bottom pickers' adage) after a 30% sell off. Mike's right, mining stocks same as any other stock and prone to volatility, panic, exhuberance, etc.

[martialarm]

I think Mike is one of the brightest guys around, but I have a confusion in what he says. Housing down, Stocks down, Oil down.. So it seems like he is saying massive deflation? Even Silver stocks will go down. I think he is saying only PM will hold ground and go up, but will they dip with all other asset classes or does he believe they are immune?

[martialarm]

Or what is his time line for these drops and what recovers and what does not. Because the US dollar has cancer yet is it better to own than everything other than PM?

[ytgv3fc7]

@martialarm The US dollar is nowhere near as good to own as silver or gold. I ditched every US dollar I ever had and I have never taken a loss on that.

[ytgv3fc7]

@martialarm physical asset classes in-hand or in-storage (eg. even oil stored in barrels under your control) is not the same as a paper-asset such as stock shares. One class can move the opposite direction of the other.

[mari0228504]

LOVE him...we watched a few videos and read his book. Quickly we changed our fake currency paper and followed his advice. So many people still have no idea.

[charlesfuchs]

Buy it now.

[chandler22]

Thanks very much Mr Maloney! Very helpful!

[me2995]

Bob Chapman recently told that in contrary to 2008 the hedge funds are now short mining stocks. This will make a difference if we see the market collapse, since they have no shares to sell, like they had back then.

That being said, I agree that one should bet on bullion (gold AND silver imho) rather than stocks, to avoid counter party risk. I only trade stocks rather actively.

[999silverhk]

thanks! looking forward to your silver/dow ratio vid!!! Yoo~~

[Valhalla1]

Fantastic video Mike, great charts on stocks vs physical

[hstone39]

The economy can go back to normal and silver and gold will continue to rise because the supply will be low and the demand will be up. So all of the talk about gold and silver is going up because of the dollar falling is only small part of the reason why these metals will continue to rise.

[prudentinvstr]

Love that volatility  in the miners. I make money to buy more physical.

[Tasadaru]

Jim Roger's Hot Commodities supports Mike's claim that the actual commodities do better on average than the stocks themselves. He also advised to only go after the stocks if you are that good. I'm not that good.

[kcirdrab]

Gold's in a huge bubble

[ytgv3fc7]

@kcirdrab how can gold be in a bubble when prices are so low and when there's no over-supply? Bubbles always produce really high prices and oversupply, like with dot-coms and housing and such. Most people jump in on a bubble - hardly anyone's jumped in on gold. I see no evidence

[kcirdrab]

@ytgv3fc7 - Gold price per oz in:

1979 = $300

1985 = $317

1997 = $331

2002 = $309

2011 = $1430

Spot the bubble.

This $1000 boost just happens to have occurred exactly in line with the greatest credit bubble in history from 2002 to 2011? Get real. The credit funny money goes (now on its last legs with Q.E.) gold returns to its pre-bubble value, i.e 2002

[ytgv3fc7]

@kcirdrab No bubble to spot. I can see these prices & many more in the entire gold price chart.

Again, no bubble to spot. The actual pricing is related to VOLUME which you have ignored in your list. The real truth is that at 331/oz the amount of traded gold somehow is much more quantity than actually does exist. period. Once the PHYSICAL demand is higher (it is now) the price goes up because the paper is unwanted. Do you know what gold LEASING is?

[ytgv3fc7]

@kcirdrab currently the lowest future price for gold is around 2500 / oz and the fair valuation of gold price is 50 THOUSAND per ounce. That's just matching currency supply to the gold supply. No bubble required, same as what boosted gold from 35 / oz to 250 - a PERMANENT increase. Gold did not return to 35 nor can it. Gold will not return below 1300 nor can it. Once gold his 2500 it will never go lower again in all history. All prices from 1981 to 2000 are fraud.

[ytgv3fc7]

@kcirdrab Just so we are clear on fraud, when I say the prices are fraud, I mean 99 ounces of gold are sold which do not exist and will never be delivered, yet still affect the price, because some fool didn't realize if they actually demand their gold they will get none. Banks constantly want to push paper certificates for gold. If you pay money for one you get nothing in return. Same for futures contracts: they can't ALL be delivered. Real supply is very low. No bubble is possible by ONLY that

[kcirdrab]

@ytgv3fc7 - I think you've got a touch of gold fever. Gold has no inherent value at all other than what some1 is willing & can pay for it

Talk of a commodity "never being able to go below a price" that's the highest its ever been unnerves the hell out of me as an investor

I stand by my analysis above, the New Depression hitting the Anglosphere's economy now will remove a lot of surplus dead economic weight, the current price of gold being 1 of them

We'll see who's right in due course.

[ytgv3fc7]

@kcirdrab Absolutely not. This is all math no fever. The math is not an opinion. Gold has inherent value nothing to do with what people are willing to pay for it: it is a conductive, reflective metal with nuclear properties, malleable, and does not corrode. That is inherent value unrelated to what people are willing to pay for it & of high value given its rarity. Your analysis again has no matching to facts. Gold can't go down to 35 ever again, never did. You know this.

[kcirdrab]

@ytgv3fc7 - I meant price value

[ytgv3fc7]

@kcirdrab you meant price value.

How do you figure I meant something else?

Gold price value jumped over the existing currency level around 800 in 1980 & then interest rates were spiked to deflate the currency so it gained value per unit issued. This couldn't drop gold lower than 500 / oz or so. The entire operation to push it down to 250/oz was fraud: issuing paper, pretending it's gold, delivering none. Gold SUPPLY is a currency SUPPLY having inherent value vs non-gold goods by just existing

[kcirdrab]

@ytgv3fc7- U gave me a lecture on gold's properties other than price value, ie. 'conductivity, malleable, corrosion resistant', etc?

Gold left its real price of $20-30 per oz in 1971 when, to address the USA's economic decline, Nixon scrapped the Gold Standard & the USA began 40 years of currency manipulation to try & pay its way; in 2002 that game was running out so the banks went nuts with credit causing a ballistic gold bubble which we're now at the peak of

QE stops=gold price goes POP!

[ytgv3fc7]

@kcirdrab 20 to 30 is not gold's real price. Everything in ratio has its own price compared to gold, gold itself is a currency. For example 0.1 g gold = 1 loaf of bread. For gold to be 20 dollars per 31.10345 g this means bread must cost no more than 64 cents. Your math is not very good. Real goods cost energy to produce & scale with each other, gold & bread included. QE can stop any time - gold price can not go down again. Gold price can never pop: only currencies can pop.

[ytgv3fc7]

@kcirdrab Hahahaha 5 months later, you said the gold bubble was at the peak, there is no bubble! We're several hundred dollars more per ounce of gold now and no end in sight because gold itself is money. Gold isn't in a bubble, PAPER Is. Paper is failing, the bubble bursting, bonds collapsing, and soon the Euro itself and the dollar will be vaporized. Shows what you should have learned 5 months ago. The real price of gold is 16 to 20 barrels of oil, no matter the paper tickets on offer.

[kcirdrab]

@ytgv3fc7 I didn't say gold had peaked 5 months ago, I said gold was a bubble, which has continued to inflate over the last 5 months even bigger (which'll make the P-O-P!!! even louder when it comes

Q.E. hasn't stopped & the Big Default hasn't happened yet.

No Q.E. & Big Default = gold collapses.

Keep an eye on Italy/Spain, it looks like it's going to be sovereign debt that kicks it off ; )

[ytgv3fc7]

@kcirdrab You did say gold peaked 5 months ago. You wrote: "in 2002 that game was running out so the banks went nuts with credit causing a ballistic gold bubble which we're now at the peak of"

NOW at the PEAK OF. Your words.

You're full of shit & you know it. It's dripping out your ears. Gold is immune to all bubbles: it is priced using fraud-paper and that is what's in a bubble. Big default = gold at 20 thousand or more per ounce. Bigger the default the more valuable the gold.

[kcirdrab]

@ytgv3fc7 You want to debate ideas with me keep a civil tone in yr voice when u do it, if you can't manage that go away.

[ytgv3fc7]

@kcirdrab You want a civil tone then try not lying. I quoted your words, you said you didn't use them, so that leaves us at a bit of an impasse. What's worse, an uncivil tone or a lie?

[kcirdrab]

@ytgv3fc7 How did I "lie" to u exactly?

[ytgv3fc7]

@kcirdrab first you wrote that we were at the peak of the gold bubble, then you say you didn't. One of those 2 statements invalidates the other so one of them must be a lie. Doesn't matter to me which one. 5 months ago's price was certainly not a peak for gold and where are we now? Still rocketing up.

[ytgv3fc7]

@kcirdrab gold can't go down to 35, gold can't go down to 250. This is nothing to do with an opinion: this is math. The math of the situation is that prices are inflating with money supply for everything at the same time. For gold to deflate down to 250 requires that wages deflate by the same amount, requires that such a gigantic imbalance happens it would be like 100 great depressions piled on top of each other, which can not be done. The proper gold price is 50 thousand on volume.

[felixdov]

@kcirdrab

Do you have any recollection of prices in 1979? Things were a lot more affordable than in 2011!

Your list is interesting but does not show a "bubble", it shows that between 1979 and 2002 there was a rigged and successful manipulation of the Gold price...

[davincij15]

I invest in myself and save in gold and silver only.

[vinny1010]

Mike is wrong 4:39 - When stock market crashes, legit mining company stocks will not fall, but rise tremendously! You also cannot compare physical bullion prices to mining indexes because there are so many crappy non-stable mining companies, many of them are a sham. Therefore I do not agree with Mike's analysis. Furthermore, with mining company stocks, if you do the right things, there is a big chance you will pay lower taxes than bullion. Govt will increase gain taxes on bullion holders

[boipinoi604]

@vinny1010 What's a good book to read about silver mining stocks? say for the layman

[vinny1010]

@boipinoi604 I have no idea, I've never read a book on mining stocks. I personally used my intuition to select a few, in addition to physical metal, but most of my money is in stocks. My portfolio is risky because I leverage and I also purchase options on SLW when JP Morgan crashes silver and then sell when silver goes back to the normal price it was before, however, all this is very risky. I would say if youre a beginner, put more money in physical silver than stocks.

[boipinoi604]

@vinny1010 That is very risky.. JP Morque can not perpetuate their systematic silver take down forever... Smart money are realizing now and treating the take down as a buying opportunity.. Meanwhile, investors are asking for their SLVs deliveries...Good luck to you and hope everything turns out great...

[vinny1010]

@boipinoi604 Thanks and same to you! Let me know if I can help. Check out APMEX for nice bullion prices; I think Mike Maloney also has a bullion store as well

[vinny1010]

@boipinoi604 Also, if you do buy mining shares, be sure to tell your brokerage firm to transfer them to the Transfer Agent so the stocks are in your name. Many people do not know but when u open an acct with a firm, it's in their name and if they crash, it may be possible SIPC insurance will not cover it, but if its transfered to the agent, then youre safe if the firm crashes. After collapse, transfer shares back to a brokerage firm that is existing and sell shares into new currency. Waalah!

[boipinoi604]

@vinny1010 Interesting... Would that apply to a Canadian resident as well?

[vinny1010]

@boipinoi604 Yes, usually the mining companies are canadian based so ComputerShare is most likely the transfer agent. Usually when one has a huge portfolio and request the firm to transfer it to the agent, the firm will try and use many techniques so they do not lose your business. I hope those in this situation stay firm and continue with the transfer. Each company has a transfer agent, in this case, these companies usually deal with ComputerShare. Go through the firm to make the transfer

[smiles12331]

buy physical...its the real thing!......nice vid :)

[solojam]

in your chart are u evaluating it in US dollars? what about canadian dollars?

[ytgv3fc7]

@solojam my model charts are in US dollars as well. As it happens it was easier to find the math pattern this way & to get the data in that format. The TSX index & ratio of CAD/USD are tightly correlated. You can put the data together, get an equation & it will show you a mapping from tsx_input to cad_ratio_output

[TechHost]

also you dont have to pay taxes on your gains if you own the physical metal

[ytgv3fc7]

@TechHost if you sell your physical metal to take the paper cash you definitely have to pay tax on those gains in most places. USA, for sure, UK, for sure, Canada, for sure.

[TechHost]

@ytgv3fc7 you wouldn't have to pay capital gains tax though

[ytgv3fc7]

@TechHost in Canada the bullion tax is 28% so if you had to pay capital gains of 28% in Canada typically that's your marginal rate x 0.5 of your gains or half your marginal rate, meaning equivalent of an income bearing 56% taxation. Capital gains is sliding with your income level, bullion sales ARE NOT. So in Canada above radar you MUST pay 28% on your gains in gold or silver bullion, period.

[chiefjusticecoke]

not to stray too far off point, but it also seems that buying precious metals, especially silver, is the very best protest vote against the endless war we are presently experiencing. it may seem an indirect approach, but i believe those dots are more closely connected then is normally realized.

[silverfuturist]

Very good video, answers a lot of questions I get!

[continuityofliberty]

There's also the fact that every ounce of metal you take off the market removes its ability to be magically turned into over-leveraged and routinely manipulated paper trading vehicles.

You assist in shrinking the supply and increasing the price when you buy and hold.

[WealthCycles]

@continuityofliberty GREAT point

[ytgv3fc7]

@WealthCycles re 1 min 20 seconds, ratio charts: while helpful, I found they are lacking a special detail. I put up videos for correlation charts, such as /watch?v=g8JlrZ23Hpk or /watch?v=KtOv3ufQeB4

In these charts, unlike ratio charts, you see flat out, % for %, the real change in the same time period for one price vs another, say gold vs silver or silver vs First Magestic corp. It is here I have shown the rapid gains directly & trending for gains of stocks over spot price changes.

[ytgv3fc7]

@WealthCycles please feel free to review my videos on the price correlations & the "sample download" video because it shows everyone, free, how to produce their own correlation charts & to determine the real time-frame-matching change-gains comparisons without any guesswork. It's all math.

[ytgv3fc7]

@WealthCycles re 2 min 48 sec graph: this is precisely the kind of graph for which I'd like to run a correlation chart to generate a single equation matching one price to another & also log-scale showing the real % gains of one vs another. Once the 1st graph is made another is possible: post-tax gains on sales because tax on bullion sold in fiat is not the same as tax on shares sold. Example: I pay 28% on bullion gains in fiat, I pay 0% in a new TFSA Canadian brokerage account (lucky me)

[ytgv3fc7]

@WealthCycles I don't know of any other country having such a program, but there is a contribution limit per year & a penalty for over-contribution. Within the contribution limit which started at $5000/year cumulative (e.g. $10,000 for me this year) my tax free savings account TFSA brokerage account shields me from Capital Gains taxes. I can face volatility in shares using it but pay no capital gains on upside gains, while holding bullion's lesser risk but also 28% tax to sell (I have both)

[ytgv3fc7]

@WealthCycles re 4 min 50 sec to get professional advice: I also did email my brokerage with my charts asking them to assist me in automating the process, such as getting selected data faster or producing the correlation charts or time-prediction charts with prices as I presented them (you can check: I have been deadly accurate weeks in advance on my prices in gold & silver). Their response: sorry, we have no such tools at this time. So at the very least Waterhouse & Thinkorswim can't do it

[ytgv3fc7]

Professional advice is always good.

Learning to do math is good as well.

Mike Maloney ditched a "professional adviser" once and learned on his own what money really was.

We too should be aware of how math works, how to correlate stock prices to underlying assets that are involved (e.g. silver to silver stocks) to ensure despite fundamentals we aren't betting the bank on an underperformer

[wwood14]

Could you give us a name or address of a good coin operation that will buy back our silver or gold if we want to sell when the market goes up, without sticking us with a punishing percentage markup? The vigorous is sometimes pretty steep when you want to sell..

[gtiapr3]

Bob Chapman's stock picks have been working nicely.

[NicosMind]

Endeavour Silver have been doing really well. Ive got some shares in that though i dont remember how much :S

[ytgv3fc7]

@NicosMind I've been watching Endeavour, Great Panther, Silver Wheaton, First Magestic very closely. The gains correlation that was so good with GPR / GPL isn't there anymore, they issued another 21 million shares to finance something. A new correlation equation is required. Endeavour looks very nice in this context, as does First Magestic. Silver Wheaton's gains are impressive, of course. In a very close comparison of gains the lower share price also looks good, diluting fees.

[NicosMind]

@ytgv3fc7 Nice i bet youre doing well. I didnt even find Endeavour i just had someone recommend it to me.

"In a very close comparison of gains the lower share price also looks good, diluting fees"

What exactly do you mean by this? I still havent had any real time to study investment. At the minute im still very much stuck on economics and now politics :S

[ytgv3fc7]

@NicosMind on a chart you can see the price difference from a low to a high and compute a % gain. This is not really useful in your trading as you must pay fees to buy & sell. The fees are usually constant: e.g. $29, $30, $4.95, whatever. So the more shares you buy the less the price needs to move to WIPE OUT the fees you paid which are like friction in the machine. at $10/share and 100 shares a $1000 buy with a $9.95 fee x 2 (1 buy 1 sell) = $1019.90 ($10.199 per share)

[NicosMind]

@ytgv3fc7 Well for now(and a long time probably), im going to be a buy and hold "trader". Whenever i have enough savings and that margin of safety i buy silver or something simular. In the future though being a trader is where i want to head though i have far too many distractions at the minute...

[ytgv3fc7]

@NicosMind so at $10.20 rising from $10.00/share for 100 shares with a 9.95 fee to buy or sell, it's break-even. Diluting fees across more shares with the same or better gains over time is optimal. First Magestic, Silver Wheaton, Great Panther & Endeavor Silver all more proportionally to each other: the price curves are the same in log-scale x some factor.

[tommylutzjr]

how do you feel about forex? i try buyin a contract after theres been a correction in gold or silver. i put in enough money to where if gold or silver drops 20% i wont be knocked out. Then just sit on the contract long and cash out after a big move, wait for the next dip and repeat. Also when the fed makes anouncments i normally buy another contract (the fed announcments are normally good for the precious metals) Any advice?

[dbztiki]

So what you are saying is that the miners need to up their dividends.

[FreeRE1]

Many of the indexes don't work in my experience (especially the Xs ones). It's seems like there is more money slipping out of the indexes than just the fees and expenses disclosed in the Prospectuses. Would the good people on Wall Street cheat us inevstors?

[radicalaccounting]

@FreeRE1 Boy is that right. It's how they do the calculations (reminds me of credit card interest). I've been watching 1 ETF for over 6 months, it finally "lost" so much money they did a reverse 4 to 1 split, that is to say the value, now getting below $10, was made to be $45. Just like that! Otherwise it would have gone to zero. You can win if there's an extreme movement of the stock market, but that's the only time.

[karthikraoa]

nice video... was waiting for this for sometime... ironically after all the research, the best investment is the dumbest one...

[headfakez]

I finally read your book yesterday Mike! (well, a bit late =p)

[sidkings]

I recentlybought mining stocks and amdlad I have done. the way I seeit is that Im 90% Physical and the 10% in shares is a risk but given that there will be growing demand for silver then surely silver mining stocks are worth a shot. :-)

[TruthOverFacts]

I have a question but first, I've been interested in mining stocks for about a month now, however, I have a question that I just cannot seem to answer. This isnt like the depression or the 70's bullrun. We can have a situation of hyper inflation. How do we play these mining stocks in a situation of hyperinflation? when the money we invested in the company is no longer good? Do we wait to cash out when the new currency arrives? Please explain. Thanks.

[edmack4me]

@TruthOverFacts That is the problem with paper as opposed to the metal.

[cedricalien]

keep up the awesome vids!

[dv2012]

Mike is a DEflationist. What is the deflationary case for gold? We've all heard only the inflationary case for it.

[whygoldandsilver]

@dv2012 Mike has been predicting this for a long time: SHORT TERM Deflation FOLLOWED by big or hyperinflation. See the Russian Banking speech for more detail, we'll also have a follow up video in the next couple weeks on Inflation/Deflation and what the effects are on the purchasing power of precious metals. You could also watch our video 'Dead Cat Bounce' in the meantime...

[ytgv3fc7]

@InTheSticks0001 to get out of the 200% trading margin you just stand for delivery. You can't be forced more than 100% for actual delivery, only the speculation contracts in the long or short. This hurt palladium traders intending to roll over for paper returns UNLESS they also had the 200% on hand, which still is worth it, just a hassle, friction in the machine so to speak.

[Joe11Blue]

Hey Mr. Maloney, think you could do a video of the silver to gold ratio that play's them both against the valuation of the dollar adjusted for Inflation?

[hc167]

using gold as example, gold mining stock can beat gold only when you buy a stock that have a lot of gold to mine and keeping the mining cost low. Since 2007, China has become the biggest gold mining country in the world. So in my view, buying a company that mine gold in China will be ideal.

[BigDelap]

this is a video i was hoping you were going to make, because i have a lot of friends that for some reason are a little timid about buying physical but are asking me about mining stocks. I'm with you i'm 90% invested in physical and it is all because of you and Robert Kiyosaki.

[WealthCycles]

@BigDelap Thank you, we've been meaning to release this for quite some time. It is one of the most common questions Mike receives so hopefully this clears things up. Why introduce counterparty risk to the only investment that has none, especially when it outperforms the riskier investment on average?

[ILovelisanova]

i heard Ron Paul and Peter Schiff own a ton of mining stocks

[Joe11Blue]

@ILovelisanova I couldn't tell you about Peter Schiff, but I know Ron Paul own's some. He's mostly into Physical though. He's been into it since the 80's as far as I know.

[GoldSilverMedia]

@ILovelisanova

This is true and it is also true that both own physical. Nothing wrong with mining stocks as long as you understand the risks.

[jahnotdead]

OK, now there's a SILVER/DOW ratio video.... you guys are just torturing us! :P That's brilliant.

[ytgv3fc7]

@jahnotdead you know you can go to freestockcharts.c om and download the silver & dow data yourself

DJ-30 is dow, XSLV is silver in their chart system, the cylinder icon is the DOWNLOAD data button, the Sample Download video I have up is that & the "tutorial gains" and such shows how to do this. The OpenOffice program is free, scalc inside is the spreadsheet. if you put d1/s1 into cell R1 and D for Dow data, S for silver, R for ratio, your R column is the dow/silver ratio

[puapake]

If you read Mike Maloneys' book, the basic theme is that all fiat currencies fail without exception. If you own mining stocks, and there is a global financial meltdown, there is a good chance that paper assets will be subject to the meltdown. Mining stocks are dollar denominated with counterparty risk (bank or broker holding your shares). However, those of us with 401Ks have our hands tied, so I would use my employers contribution but not my own money.

[WealthCycles]

@puapake Great points, thanks.

[WreakingHavoc1]

@puapake Excellent points. I've heard other investment gurus describe stocks as "super currencies" and it is true they would be superior to fiat in a collapse situation, but I still think it's too risky, especially considering how big this "currency extinction event" could be.

[boipinoi604]

@puapake But there have been numerous reserved currencies that have risen and fallen only to be replaced by another currency and yet stocks continue to function.

[puapake]

@boipinoi604 Like the pound sterling? It lost 80% of it's value very quickly. Reserve currencies that become obsolete tend to repatriate themselves very quickly. That is, they come back home to roost when other countries no longer want to use it. If I understand it correctly, about 75% of USDs are held outside the US. Can you imagine what would happen if suddenly the money supply increased by 4X and started chasing goods and services? Gold and silver is immuned from such disruptions.

[ytgv3fc7]

@puapake another point to consider, however, is that in a currency failure items of high value will be commodities so those who actually control mines or farms will be doing well, without other disasters in play (but of course they can be, do not be overly arrogant before the storm, right?). This being the case, how can you buy ownership into a stake of a mining company before the crash/failure and retain the benefits after? Is your ownership revoked? Is it significant? Are you swing-trading?

[puapake]

@ytgv3fc7 Don't get me wrong, I like good mining companies. Who's to say that the US government, Canadian, or Peruvian government wouldn't nationalize the mine or it's contents. A good balance between physical precious metals and mining stocks is ideal. One of Jim Rogers books said mining stocks and consumer staples did well during the great depression. I just buy and hold now, I'm bullish enough not to worry about the short term volitility.

[ytgv3fc7]

@puapake I only had 500 chars but ya, I was thinking of that Nationalizing component. All sorts of risk.

[texus221]

Thank you so much for these videos! I learn so much, I am only 19 and understand where the economy is headed, and how to protect myself. Keep making more videos!

[SlyToocan]

@texus221 Good or you young Man! You are ahead of the game, it took me until I hit my thirties.

[felixdov]

@SlyToocan  oh slytoocan you were soo young...;0)

[WealthCycles]

@texus221 Thanks so much for watching and commenting, it's great to see so many people awakening to how this stuff works and learning not only how we've been screwed, but what we can do about it.