The Phaserl


Avoid These Mistakes When Buying Silver [Mental Training, Part 4]

The enemy doesn’t simply control the chart, they own the chart. They are the chart.

from The Wealth Watchman:

Before I even begin this final part of the “Mental Training” series, I want to briefly re-post something I wrote in part 1, on September 17th:

Expecting that you can calm all your fears about lower silver prices, if you can merely identify where the “strongest price support line” is on the charts, is a recipe for heartbreak and disappointment. It is a false comfort that will leave you cold. Every. Single. Time.

At this point, after the last 3.5 years, thinking: “It’s ok, because “X” price support will never be broken, it’s just too cheap beneath there”, is the stupidest thought you could possibly allow yourself to entertain.

It was a heartbreak for silver stackers at $32. It was a heartbreak at $26. It was a heartbreak at $22. It was a heartbreak at $20. Unbelievably, I sadly still see many who are referring to $18 as “unbreakable support”.

Don’t you dare let yourself be one of the few who refuse to learn the invaluable lessonthat the enemy doesn’t simply control the chart, they own the chart.  They are the chart.  They will take it wherever and whenever they believe it will do them the most good, and you the most harm.”

Uncanny, isn’t it?  I wrote that just two days before the enemy broke the “strong support” at $18.  In fact, I started this entire “pep-talk” series back then, because I had a feeling in my gut that the banks would break that line.  Just two days later, that’s exactly what they did. Again, you are the real target here, not silver.  Do not allow their crimes to crush your spirit, but rather make their weapon your great comfort.

How to Buy Silver(and Gold)

Throughout this series, I’ve spoken of ways to train yourself to withstand a long, drawn out siege by the bullion banks.  For the most part though, it’s been a series about how to properly defend yourself.  There are steps you can take to manage your expectations in the face of continued price slams, as well as false alarms on the world scene.  This is necessary if you’re going to maintain composure and focus, as the bankers and politicians attempt to draw out the economic collapse in the West.

In this final installment of the “Mental Training” series however, I’d like to address how to go on the offensive!  After all, silver and gold are the recipients of constant bombardment by HFT trading algorithms in Wall Street, because they are the best competitor to the fiat/debt system that those who run the financial system have set up.  The big banks would prefer you not own any precious metals, especially silver.

Many in our community have called silver the “Achilles Heel” of the banking system, because it is such a tiny market, that it takes literally trillions of dollars to control it, and hold it down.  It is the jugular vein of this teetering monetary system, because if adequate supply isn’t available for delivery, then the banks lose control of its price, and the masses lose faith in the US dollar’s and treasury market’s viability.

Remember though, if the banks fear silver, if the globalists fear it, if the U.S. government fears and loathes it, then it stands to reason that silver’s exactly where we need to be.  Yet, there are many who’ve made mistakes along the way in how they attempt to acquire their silver.  I will address some key mistakes below, so that you can avoid these pitfalls.  If you’ve made some of these mistakes yourself, don’t feel badly, as I myself have made one of them(keep reading to found out which one).

Avoid Debt

Credit Card slavery

I cannot stress this enough: please avoid all debt if you intend to buy silver.  There was a campaign which started in early 2011(when silver was screaming higher by the day) to open up a new credit card(or two), and charge those cards to buy as much silver as possible.

This is a terrible idea.

Sure, it was fun while silver was rising, but as silver was napalmed in early May of 2011, and the good times were gone, all that those poor folks were left with, was a pile of high-interest loans, and depreciating underlying capital.  As the scheme backfired, some were forced to liquidate their silver holdings in order to pay off as much credit card debt as they could.  This didn’t always help.

In a worst case scenario, let’s say they’d opened a line of credit for, say, $10,000, and they’d bought silver at roughly $50+ an ounce, only to see it whacked to as low as $26 within a few months.  In such a case, even the act of selling all the silver they’d bought would’ve raised only $5,000 to $7,000, leaving them a sum of $3,000 to $5,000 to repay, with nothing to show for it.

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15 comments to Avoid These Mistakes When Buying Silver [Mental Training, Part 4]

  • Bobby

    $15 next support. $10 is your bottom…

  • Scott Wolf

    Just dollar cost average and buy it when you can without going into debt. Fiat price is irrelevent.

    • Ed_B

      Exactly, Scott. NOBODY can pick the top or bottom of ANY market. Even attempting that is a waste of time and effort. Slow and steady wins the stacking race. Buy slowly over time. When prices dip, buy a little more. When prices rise, buy a little less and stack some fiat for future price drops. But always buy a little. Buy what you can afford. Never borrow money to buy PMs. Buy from reputable dealers. Do not buy from those who advertise on radio or TV. Those ads cost money and lots of it. If you buy from those folks, you WILL be providing that ad money via higher prices.

      The only relevance that fiat prices have is that they determine how much we can buy at any given time. Other than that, it’s the ounces that matter most. Think back to when gold was under $200 an oz. Does anyone who bought gold back then worry about whether they paid $100 an oz. or $150 an oz.? Nope… and neither will we worry whether we paid $20, $30, or $40 an oz. for silver when it is $500 or more an oz.

      Some of us here remember when a silver dollar was… just a dollar… and no different in value from a US paper dollar. We could trade one for the other at most stores and any bank anytime they were open for business… and we often did. These days, a nice silver dollar is worth $30 in paper money. That should be a lesson for us all. It is for us stackers but it isn’t for the other 97% or so of the US population. But the funny thing about lessons in life is that they tend to repeat. There WILL come a time when everyone will understand the value of gold and silver as money. For most, the realization will come too late.

      • Scott Wolf


        It’s worked for me.I have been buying through the entire run up and back down. I truly believe what I am doing will pay off in the future. I’m a big advocate of pre-21 Morgans and Peace dollars, too. It’s all about the number of ounces. I have a new article published on HUB PAGES if you are interested.

  • Angel

    SGT, please keep posting these excellent Wealth Watchman articles.

    They contain great presentation, insight, and advice. They’re also a bit off the beaten path, which offers a certain freshness and a perspective that dedicated silver stackers can appreciate.

  • Nick

    Good article! Of course, it’s only retrospect one news that a corrupted system can last one more month, one more year, or?

  • FreeJack

    I agree that buying a speculative asset on credit is a very bad idea. However, if you’re dealing with a new company or it’s your first time buying from said company online, the 3% fee is worth the piece of mind in my opinion. I’ve never had a bad experience from any PM dealer but it’s better to be safe than sorry.

  • fej

    I bought my first silver at $4.oo . Unfortunately , not much.
    I’ve bought at 11 ,17 26 32 and even 48.
    I bought more when it dropped to 28 thinking what a bargain.
    I can now only hope they knock it back to $4.00
    It pisses me off that the slime balls that manipulate the price, reap profits when it rises five cents, and reap profits when it drops five cents.
    You just have to laugh at the game though. It hasn’t changed my feelings one bit.
    One sweet day this will end. lol

    • Ed_B

      On the other hand, were it not for their manipulations, silver and gold prices would be a LOT higher and all of us who stack would have a LOT fewer ounces. When one is acquiring an asset, one wants the price to be as low as possible so that as much as possible can be purchased. After one has their stack, THEN they want high asset prices… but not before then! 😉

  • The Truth

    Excellent post as always by the Watchman

  • andrew james

    15 dollar Silver would be like free money. It would be like Disneyland.

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