During the past 10 trading days gold has risen 5%, while silver rose 15%. During the past 72 trading days (going back to July 27/10), gold rose 20%, while silver added on 53%. On July 30, I wrote an article titled: “Meet someone who is 90% invested in gold and silver.” Gold was trading at $1181 on that day along with silver at 17.98. My advice to my subscribers was: “Hold onto core positions and add on during pullbacks.” The blue arrow points to the day the article was published. On Aug 23, I wrote an article: “Trading gold using Kitco traffic as a guide.” Gold had risen to $1227 by then but silver was virtually unchanged at 17.99. Silver was still being suppressed by the cartel (consisting of a number of bullion banks with large short positions). My advice to subscribers remained the same: “Hold onto core positions and add on during pullbacks.” The green arrow points to the day the article appeared. On Oct 4, I wrote: “Gold and silver, it could well be a whole new ball game!” Gold had risen to $1319 and silver advanced to 21.95. My advice to subscribers was changed slightly to: “Traders with heavy exposure might consider taking partial profits in overbought positions, but long-time investors should simply hold on to core positions.” The black arrow points to the day the article made its appearance. Note: All three of these articles are available in the archives. From the time I wrote that article on July 30, and throughout those 72 trading days, (17 calendar weeks), I encouraged my subscribers to hold onto their core positions and add on during pullbacks. I did that because a number of analysts were calling for gold and silver to suffer serious setbacks, and I did not want my subscribers to fall for that erroneous advice. My personal investment portfolio remained at 84% or higher throughout this period. The Stock Pick of the Week, updated weekly on my website, is in its 62nd week and the success ratio there is 52 to 9. I have received many thank you letters as a result and some of them have been posted on my website under: “Testimonials.” Several subscribers have called me “Mr. Consistency,” - hence the title for this essay. You’re probably wondering what advice I’m giving my subscribers now that gold is trading at all-time high prices in U.S. dollars, while silver is trading at its highest level since the 1980’s. The higher this index moves, the more we will see people sell their bonds and buy gold. Gold is rising not only in U.S. dollars (which would mean a lack of confidence in the U.S. dollar), but rising against virtually all of the major currencies (indicating a lack of confidence in ‘paper money’ – actually fiat money). The rise of gold in Euros shown here, is a good example. The trend is up and the 50DMA is in positive alignment to the 200DMA (green oval), while both are rising. Why then, is gold the unmentionable, four letter word of economics? ... The answer is threefold: A misunderstanding of the role of money; a misreading of history; and finally, visceral revulsion to the notion that a metal can do a better job of guiding monetary policy than a gaggle of finance ministers, central bankers and well-degreed economists." … Malcom Forbes.

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