Mental Training for the Fight: Concerning Price Action

post dateSeptember 17, 2014  •   post categoriesEconomy, Freedom, Silver & Gold  •   post comments number15 comments

Caught in the Storm

Training for the Fight

At the conclusion of my “Silver Noose” series, I encouraged all of you to hold the line, and play the hero.  It feels good to be the hero, doesn’t it?  The catch is that being one is seldom easy.  Especially in our case, when you consider the banks’ changing strategy for price management over the last several years.  So, I’d like to share some tips and insights with you, that I’ve found have helped me to mentally train to fight like the warrior I encourage others to be.

Most of the silver and gold stackers have been financially and mentally able to “hold the line” for the last 3 years.  It hasn’t been easy, but through the blood and the guts, the false break-outs and the new lows, they’ve defied this contrived cyclical bear that the banks have painted on the charts. Many have done so with gusto. There are others along the way though, who sadly have not fared so well.  For the last several years, I’ve been attempting to figure out why those who’ve sold out their positions did so, and what they might’ve been done differently to weather the storms until the worst had passed. The following series will be address some observations I’ve made about the characteristics of both types of folks, some of which are a bit surprising.  I hope, shield brother, that you’ll find them helpful to you in this fight.

The Importance of Focus

You’re probably expecting me to say that those who’ve been able to ride out the rough waves so far, were those who had razor sharp focus.  I’ve seen some suggest that the folks who sold their gold and silver, and tried to go back “into the matrix”, to buy S&P stocks(all at record high prices and PE ratios) were simply not focused enough.  That’s not true in the least.  

On the contrary, I’ve found that many who sold their positions, and who became the most angry, impatient, or the most bitter, were stackers who had razor sharp focus.  The trouble is that they either focused on the wrong things, or(even more commonly) they focused on the right things the wrong way, and it cost them dearly. I’ve found in my own experience, that a great secret to easily weathering the worst precious metal attacks, has not depended merely upon what I chose to focus on, but how I chose to focus on it.  It has made all the difference.

How NOT to Focus on Price

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For example, repeatedly, almost without fail, most of those who have given up on their own financial protection in silver and gold, were narrowly focused upon silver’s lack of positive price action.

I cannot possibly stress this enough: please do not merely focus on price direction.  Do not do it. That’s the quick-and-easy, sure-fire, fastest, one-way ticket to the funny farm!

Ok? Price is a short term factor that the banks have nearly complete control over, and it’s their main mechanism for managing your emotions, your thoughts, and most importantly, your behavior. Remember when the banks manage prices, they’re not trying to manage price so much as they’re trying to manage you.

Silver and gold don’t mine themselves.  Silver and gold don’t buy themselves.  They don’t place themselves neatly into random homes or storage facilities.  Silver and gold don’t actively do anything.

When banks hammer these prices over long periods of time, it is with the intended effect of conditioning your behavior.  Silver isn’t the real target, you are. They want you to self regulate. They do this because they know that when it comes to finance and investment, human beings are utterly fickle things.  We get naturally excited about  the prospect of increasing our net worth, but we only seem to get really energized by an investment when it is sky-rocketing in value.  In other words, we don’t get excited about buying something, until it’s already too late to profit from it, which is precisely why so few ever make truly enormous investment profits.

How can you possibly make great financial gains in anything, if you’re only moved to buy when price is in an upswing?

Using the Enemy’s Greatest Weapon Against Them

If you must focus on price, I suggest doing so in the way I’m about to lay out.  Since, I believe the manipulation strategy changed a few years ago, I’ve adjusted my expectations accordingly.  For instance, now instead of frantically checking my computer every 15 minutes, to see if that long-awaited price moonshot has happened yet, I’ve actually come to expect and embrace relentless attacks, and even lower prices.


It’s because I’ve embraced the fact that the silver rigging cannot end as it should, unless silver is not merely held down, but actively throttled lower in a consistent fashion.  We just spent quite a bit of time looking over the many ways that the banks only beat themselves when they beat silver’s price down too low.  From reduced recycling, to mining difficulties, to endless investment and industrial purchases, a constantly lower silver(and gold) price = market rigging suicide.   Please understand that the inverse of this is also true: in times past, a higher silver price has enabled the silver manipulation to continue and thrive!  Think about it.

A rising silver price has allowed them to ramp up silver mining production.

A rising silver price has allowed a heavy increase in silver recycling(especially during the 2011 spike).

A rising silver price has allowed the banks to meet worldwide deliveries.

A rising silver price has allowed the central bank gold leasing, and the high frequency trading slaughter-fest on Wall Street.

A rising silver price has allowed perpetual London Fix(and now CME Fix) price cave-ins.

A rising silver price has allowed silver and gold price contango.

And most importantly….

A rising silver price has greatly reduced the ability of stackers to suck silver off the open market!

The Banks are Literally Arming us with Greater Firepower

That last point above deserves special attention, because it has become the most critical.  I know that Western silver investment demand is a bit on the low side, but you have to remember: we’re no longer the center of the universe, are we?  The East is the power that now dictates what will happen, and the blessed truth is that right now, the East has never before in history, been buying as much silver as quickly and as plentifully as they are right now.

Remember all the way back in April 2011, when price action was getting really fun, and stackers were feeling all-powerful?  Silver was literally moving up $1 a day, for crying out loud!  For weeks!  JP Morgan was running for the hills, we were literally unbeatable, right?

There was only one problem: buying more silver was getting a little costly!  A crisp, new $100 note only allowed you to walk away from your local coin shop with two measly coins!

But now?  Haha, now that same Benny Frank note will allow you to walk away with 5 coins!  This is astounding, JP Morgan, who is subsidizing your silver purchases, has increased your firepower to obtain this timeless treasure by 150% in just 3 years!

Because of these reasons, and many more, I no longer fear lower silver prices, I welcome them.

I know that the lower silver goes, the worse that silver prices will dislocate and decouple in other global silver exchanges(as is happening in Shanghai right now). I know that the longer(and lower) that JP Morgan and their co-horts can make this last, the less silver they’ll have to dump onto the market when it all finally snaps. I know that the lower silver goes, the more firepower that the resolute silver stackers have.

In short, I’ve turned the enemy’s “greatest weapon”, into one of my greatest comforts!

Instead of playing into their hands, by pointlessly looking at the hourly silver chart and doing this:


Now I literally do this:

 “Price Support” is a Mirage

Allowing yourself to be glued to your computer or smartphone screen, day after day, hoping that “maybe today will be the day that the silver moonshot begins” is a guaranteed recipe for being sapped of all your energy and your joy.  What a waste of your precious time and peace of mind!

Expecting that you can somehow change the enemy’s plan of attack and criminal behavior by staring at the hourly price candles, and just wishing hard enough for upward price direction, is not only foolish, but self-defeating.

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 lesson: that 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.

There is no “strong support”.  It doesn’t exist, because there is no “silver market”, and hasn’t been one for several centuries. There is only a “long silver con”.

The only thing that matters is the question: how many 1,000 ounce, good delivery bars are still out there somewhere for the enemy to use?  That’s it.  We can’t fully know the answer to that, but we don’t have to, either.


If you don’t remember anything else I’ve said in this article, please remember this: you are not the powerless one in this equation, the banks are!


Because, contrary to how it appears, you hold all the cards, in the end.

You aren’t the one who was just stripped of a AAA credit rating.

You aren’t the one with $18 trillion in interest-bearing public debt hanging over your head.

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You aren’t the one who has to perfectly rig every market, every time, every day, in order to simply survive.

You aren’t the one who is running out of silver.

You aren’t the one over-leveraged, roughly 50 or even 100 to 1, in the quadrillion dollar derivative market.

When these banks rig the silver and gold prices, they aren’t doing this from a place of strength, but from a place of desperate weakness! They are the ones begging you: “Please, dump your silver and gold, please!  Just walk away, sell your silver, and don’t buy anymore of it!”  

The great secret in all this is: they aren’t the ones controlling your behavior with price action, you are now the ones controlling theirs!  They’re having to do this because of people just like you!

Don’t be pitiful, be powerful!  Be grim, and undeterred in this fight.  Retrain your mind to use the enemy’s “great weapon” of price rigging against him in a gruesome and merciless way!

You surely won’t regret it.


Enjoy the Watchman’s insights?  Want to join one of the fastest-growing precious metal brotherhoods on the web?  Then be sure to enlist here  as a shield brother, to guarantee you never miss out on any of the action!