For 13 years, I have watched one of North America’s largest bullion dealers – with unquestionably, the most viewed website – spew anti-gold propaganda day in and day out, going out of its way to bring every imaginable negative viewpoint to bearing. And not only fundamentally, but technically as well – including, to the delight of Cartel traders no doubt, daily commentary of where COMEX “stops” reside. Moreover, their equivalents of myself and Bill Holter have consistently denigrated not only the outlook for Precious Metals, but those who believe in their virtue. To a man, it is nearly impossible for anyone of sound mind to not wonder why they would do this; when not only have they been decidedly wrong in their decade long negative outlook for their own product, but perpetually alienated their own clients. In my 25 years in the business world, I have never seen anyone make such counterintuitive statements to their own best interests; much less, when such statements are so obviously erroneous. After all, we are living in a world where gold and silver demand is not just rising, but surging to record levels; with seemingly each passing day, new, dramatically PM-positive developments emerging.
However, even in a financial world gone mad, in all conceivable ways, even I wasn’t prepared for one of its top executives calling 25% of all physical gold buyers “crazy.” Of course, the fact that MSM lackey CNN – record low ratings and all – interviewed him doesn’t surprise me at all. That said, it’s almost as if Lloyd Blankfein, Ben Bernanke, and Warren Buffett collaborated to pen his answers – like “these (‘crazies’) buy the metal and it just disappears under their mattress. They want to use it when the world ends.” And by the way, I’m not writing this article to “denigrate the competition” – even if this particular competition’s history is less than stellar, objectively speaking. Instead, I’m just pointing out that in an unregulated business like bullion dealership (other than in, oddly, our home state of Minnesota), Miles Franklin not only distinguishes itself with a spotless customer service record; competitive pricing; and a tireless commitment to financial education; but its principals “put their money where their mouth is,” and treat its clients – and our product – with the respect that they – and it – deserves.
That said, no word better describes what the “markets” and “economy” have devolved into than “crazy” – as a small group of “1%” sociopaths attempt the impossible task of usurping “Economic Mother Nature” by printing endless amounts of money; manipulating every market with computer algorithms (including recent, blatant efforts to “save” crude oil); and spewing relentless, Goebbels-esque propaganda. Heck, “NIRP” and “QE” announcements – like Sweden’s “one-two punch” yesterday – are actually becoming commonplace; as seemingly each day, the “final currency war” intensifies.
Fortunately, economic reality is causing fewer and fewer people to watch, and pay heed to, such manipulations with each passing day. However, at this unique snapshot of time, the algorithm-bearing manipulators have the upper hand; at least, regarding their ability to maintain a semblance of market “calm” amidst a violently stormy political, economic, and financial environment. That is, in “last to go” markets like Cartel-suppressed paper gold and silver; PPT-supported equity indices like the “Dow Jones Propaganda Average“; and of course, QE-supported sovereign bonds. Elsewhere, “TPTB” are decidedly losing to the “unstoppable tsunami of reality“; as global economic activity is objectively in freefall, whilst commodity and currency markets have collapsed, and social and geopolitical unrest surged to post-War highs.
Yes, as I write Friday morning, it’s utterly “crazy” to see Greek stocks and bonds surging on the prospect of a bailout resolution before Monday’s Euro Group ultimatum – despite comments from both sides citing a gaping chasm between Europe’s and Greece’s demands. Yes, I know – said “powers that be” always come up with something to “kick the can” one more mile; and likely, in true “Sunday Night Special” fashion, will do so again, despite the angry rhetoric. Not to mention, the passionate promises of Alexis Tsipras and Yanis Varoufakis – who, just two weeks ago, were elected on a platform of repealing austerity and writing off Greece’s debt.
In fact, none other than Syriza’s “Chief Economist” yesterday proposed perhaps the most ludicrous “solution” to the European debt issue imaginable – which is probably why it just might happen. Which is, if you can believe this, for the ECB to buy all Euro Zone debt of one to five years maturity. Yes, to monetize EVERY bond issued by EVERY Euro Group member; which – no problem – will be “recouped” through “profit retention” by the year 2040! Frankly, I don’t even know how to “analyze” such lunacy; particularly as, if the assumption is that the European economy will recovery by then, interest rates will likely be much, much higher than today’s record low levels – yielding massive ECB bond portfolio losses!
That said, nothing would be more bullish for gold – and bearish for Europe – than such a can-kicking deal; as essentially, all it would “accomplish” would be a more clearly defined path of explosive debt accumulation and monetization; which ultimately, must come crashing down. Such world-destroying decisions by the world’s “leading” bankers are politicians, whilst temporarily putting off the day of reckoning, could not be more favorable for those supporting the virtues of real money.
And yes, we must be “crazy” for worrying that the world’s second most dangerous geopolitical hotspot, the Crimean Peninsula, threatens to destabilize the delicate diplomatic balance between the Russian-led “Eastern Bloc” and the U.S.-led “NATO Bloc.” To that end, why anyone would believe yesterday’s suspiciously negotiated “cease-fire” would be any more successful than previous, failed attempts is beyond me – particularly because, as I write, fighting ahead of said “cease-fire” is as intense as it has been since the Ukrainian conflict commenced last year. Better yet, in watching on CNBC Europe this morning an EU official claiming Europe doesn’t trust Vladimir Putin – he, who holds the key to their natural gas supplies; one can only wonder if an actual “deal” was negotiated at all, other than cosmetically.
Or how about the record high level of the German stock market, despite the potential for the Euro to collapse, amidst the worst economic environment of our lifetimes? To wit, today’s Euro Zone 4Q GDP growth of 0.3% continues a long line of economic misery; and yet, care of ECB QE, PPT-support, and some of the most ridiculous “recovery” propaganda ever, the DAX surges day after day. Incredulously, Germany’s 0.7% GDP result – by far the Euro Zone’s best, but pitiful by objective standards – was lauded by the MSM as if it were 7.0% – with Reuters calling Germany’s GDP result a “thunderbolt,” marking a “return to solid expansion.” Huh? 0.7% is solid expansion?
Here in the States, yesterday alone we saw a massive, 0.9% plunge in January retail sales – which was not only double the projected decline, but represented the largest two month plunge since late 2008! Not only that, jobless claims “unexpectedly” surged; the Bloomberg Consumer Comfort Index plunged; and business inventories rose at their slowest rate in nearly two years, yielding the highest inventory-to-sales ratio since, yep, late 2008; thus, threatening to decimate GDP and employment. Not to mention, this weekend, a potentially economy-crippling strike of West Coast dockworkers is set to commence, with the Baltic Dry Index already at a record low. In other words, real U.S. economic data has plunged toward levels last seen in 2009; which, if it weren’t for said (unsustainable) market manipulation, would yield plunging equity markets and surging gold and silver prices. Let alone, a ten-year Treasury yield closer to Japan and Germany-like readings of 0.3% than today’s Fed-goosed war at the key round number of 2.0%.
Of course, the combined impact of the aforementioned events – again, from yesterday alone – don’t hold a candle to the “crazy” comment of Tesla CEO Elon Musk, in claiming Tesla’s market cap could reach Apple’s record high level of $700 billion within just ten years. Frankly, even I’m speechless at this idiocy; as not only is Tesla’s product far behind the practical capability of your everyday Chevy; but with gasoline prices plunging, no one will even consider buying hybrid cars for the foreseeable future. Let alone, the fact that without a massive, multi-billion dollar network of recharging stations, Tesla’s have as much use as plane without jet fuel. And trust me, I know as much as anyone about the issues with hybrid cars, having worked for nearly three years as head of Investor Relations for a mining company attempting to develop a massive Cobalt deposit in Cameroon, Africa (cobalt being a primary component of the lithium-ion batteries used in hybrid cars). No Elon, Tesla is not going to be the next Apple; and despite your technical brilliance, it won’t be long before the bloom is entirely off the ill-fated hybrid rose; just as it will shortly be off the ill-fated fiat currency “rose,” in lieu of time-honored real money.
And speaking of real money, recall that in last week’s “PM Mining Armageddon” Audioblog, I predicted utterly cataclysmic fourth quarter mining results – and, more importantly, 2015 expectations. Earlier this week, I wrote of how Kinross, the world’s fifth largest gold miner, kicked off the horror-fest with an appalling write-down of 20% of its reserves (despite no change in its $1,200 gold price assumption, and re-classifying of some reserves to the lesser resources category, utilizing a ridiculous $1,400/oz assumption) – as well as expectations of a 4%-11% plunge in 2015 production; which by the way, resulted in KGC stock plunging 8%, to a new all-time low. Well, yesterday it was the turn “at the woodshed” for the world’s seventh largest producer, Goldfields – which hasn’t yet released updated reserves, but expects a roughly 1% decline in 2015 production. And wouldn’t you know it, GFI stock plunged 8% as well, to a level nearly 80% below its 2006 high.
Next week, said “mining Armageddon” will really heat up, when the world’s four largest gold producers report on Tuesday and Wednesday – with the remainder of leading PM producers staggered in the ensuing two weeks or so. And thus, as highlighted in yesterday’s “tale of two commodity markets” Audioblog, the supply/demand outlook for gold and silver will not only continue to diverge from essentially all other commodities – in that demand is rising, whilst supply is falling; but will likely do so, in both aspects, dramatically so.
And thus, to all you “crazies” that simply seek to protect your hard-earned savings with the only assets that have proven to maintain their value over time, we salute you – and hope that if you decide to act in such manner, you’ll give Miles Franklin the chance to earn your business.
PROTECT YOURSELF, and do it NOW!
Call Miles Franklin at 800-822-8080, and talk to one of our brokers. Through industry-leading customer service and competitive pricing, we aim to EARN your business
Andy,
Don’t know if you have seen Mike Maloney’s latest at his site titled; America Is Choking: Operation Chokepoint.
Could Miles Franklin be in danger here? Link below. The Mike Maloney video is just 7 minutes long and is in my estimation a MUST VIEW by ALL who have an interest in precious metals.
http://www.hiddensecretsofmoney.com/blog/america-is-choking-operation-chokepoint-mike-maloney
p.s. I think the above linked info goes right along with your article today! “”CRAZY”” indeed!!!
Thanks, haven’t seen it. For the sake of readers, it is much more effective to say what’s in an article, rather than to simply say to read (or watch) it.
a
Andy I agree. Why in the world would Kitco continue to spread lies and talk so negatively about the product they sell unless Kitco has an alternative agenda for doing so?… To make certain non of us sheeple end up being able to be self reliant.
Been going on as long as I can remember. Frankly, I think they are a “front” for something very anti-PM.
Thanks for all the great info Andy.
In regards to crazy,
“First they ignore you, then they ridicule you, then they fight you, and then you win.”
― Mahatma Gandhi
It would be nice if we win via peaceful resistance.
a
Makes you kinda’ wonder where those who are calling us crazy are putting their own personal cash– bet it’s not T Bills!
The most viewed website made its agenda quite clear to me back when Jon what’s-his-name trash talked PMs every single day without fail *years* before PMs peaked in 2011. http://goldprice.org/ runs circles around the most viewed website. Among other things, goldprice provides real time market data on coins. As far as I’m concerned, whatever goes on in the COMEX can just stay in the COMEX.
But, I’m crazy. Actually I’m a loner, which is about the same thing as being crazy to the make-believe crowd.
So be it. The crowd can live in it’s make-believe televised world where websites trash their own product. Meanwhile I’ll continue to live in my real world.
Thanks Andrew.. I love your work… They are getting desperate.. Ian
Agreed! They will lose, it’s just a matter of time.
I for one am pleased to see signs that people all over the world are slowly waking up to reality.
Knowledge is power. Power often can corrupt.
Knowing how some use power and knowledge prepares one to understand that we can empower ourselves to be better prepared to live with the consequences of living beyond our means.
The sooner you can release yourself from SLAVELANDIA the sooner you can take back control of your self respect.
I no longer have to answer to any banker.
What a feeling of empowerment that can give you.
How have I achieved this you ask.
Sold my house…paid off my bills and live the life that I can afford…not the life that I yearned for based on what the rulers of SLAVELANDIA wanted me to desire.
One has to not forget the Dodd-Frank act and the 2008 amendment that includes reporting requirements and such. Gold that is void of these requirements is old gold, thus pre-FED. It is in the coin that one has the safest (held) hedge.
Tesla cars are NOT hybrid cars, they’re all-electric lithium-iron battery cars.
But for the record, Tesla model S lithium-iron battery uses nickel-cobalt-aluminum (NCA) chemistry. So as far as cobalt dependency is concerned, your point may all be the same. Or maybe not, I’m not 100% sure.
My bad, but my point is that people will have no use for electric (or hybrid) cars in a low gas price environment. Also, that the lithium ion battery (containing cobalt) is no match for a fuel combustion engine at this point, both technically and logistically.
Andy, I love listening to your audio blogs when they are available. Delightful style! Great information. Thank YOU
You’re very welcome!
Quote Maurice Samuel , ” We **** are the Destroyers ! We **** will always be the Destroyers , no matter what you do ! “
Spot on about everything, as usual…except Tesla! It may never exceed Apple’s market cap, but go to talk to other car brands in the $100K price range and ask them who is stealing their market share. After that, go for a test drive. 0-60 in under 4 seconds, with zero lag time, is something $300K Italian cars can’t do.
I guess we’ll see. However, if they think they’re going to get a $700 billion market cap selling $100,000 products in a world where the “1%” will soon be the “0.1%”, all I can say is LOL.
I do believe they are at risk of only being a high-end niche player. Competing for the Camry, Accord, Taurus and Malibu market share is much more difficult…for the reason you mentioned of it being impractical versus a gasoline engine. (Have you heard the new rumor of an Apple car? Maybe Apple will be the big winner if Tesla fails in the sub-$50k mass market)
Perhaps they should build a car first, before competing with Toyota, Honda, and Ford.
Here’s crazy, millions of Americans leaving their hard earned money ,taking decades to accumulate , in their Ira’s and 401k’s and having no clue what this blog talks about daily and little to they know they could loose it all overnight. I have asked numerous times to my company to let me have my 401k money but no one answers me, my labor hours are being stolen from me and nothing I can do unless I quit my job. I notice no one angry about what’s going on in the world . This must be what it’s like when going insane. You think your right but 99% of people you work with think your a conspiracy theorist . I’m not crazy , just aware of this sick world we live in, lucky things worked out this good so far in my 44 yrs, not to sure of next 3
Amen!
Keith, you may not need to quit your job to preserve most of your 401K. Continue working, but stop making any further 401K contributions. And after certain grace period (check with your employer/401K trust), take a taxable distribution of your entire 401K converting it to physical precious metal. Yes, I know it sounds harsh paying high taxes upfront. But those taxes may seem little in hindsight, compared to what you may end up losing. And you don’t need to quit the job, letting your current cashflow going on as well.
Great article as usual.
Every day the schiess dollar inch’s closer to the fans.
What’s going to happen when the shit hits the fan and the electricity has been turned off ?
Sound money, as we were founded to use, is the most important tool
to keep an individual free and strong. Those in favor and behind fiat
currency will do anything in their power to prevent a reverting back to
gold and silver as legal tender. They are using governments, news media,
cooperations, etc, any means they can, to remain in control of free born
people.
I am having a hard time not with gathering precious metals but with people. I go on news sites and talk about owning primarliy silver and copper. I do like gold but can’t afford it. Anyway they all come back at me about physical metals not giving dividends, the stock market will go on forever, I am a fool for acquiring precious metals etc. I feel bad because these people have no idea of what is coming. Fiat is all they know.
I even hate having a 401k because I am afraid I will loose it. Been thinking about getting aloan from it and getting a 500 ounce monster box of silver eagles. I want to have something before its too late. I have been slowly adding to my silver pile but I think a box to go with it would protect me good overall. Am I over shooting here? What if my 401k gets clobbered in the market collapse. Anyone have views? Talk to me,
The more silver you have, the better. However, do not take significant financial risks to get it – like borrowing money you may not be able to pay back.
My company allowed me to take 50 percent out in a loan . This way the money is in my local credit union. Just figure little easier to get than in fidelity with millions of accounts . You can just pay the loan back with the proceeds or put some in silver since the downside is low . And take out some cash for emergency or better yet buy some pre 65 dimes for barter. That how I’m playing it, the other 50 percent locked up is in sprotts gold and silver etf since nothing I can do to get it
Irrational Exuberance? The Writings on the Wall. Just Read.
The US dollar has closed higher for 30 out of the past 39 weeks. Currently amongst currency traders, 93.7% are dollar bulls, an all-time record high.
Large forex speculators in USD futures and options, hold an all-time record net-long position of 72,897 contracts. Only one other time has the US dollar increased in value by so much, in such a short time period. In 2008 just before the crash!
What could go wrong?
http://www.econmatters.com/2015/02/the-currency-war-has-expanded-to-new.html