Today’s message is “positive” for long-suffering precious metal holders; albeit, decidedly negative for the vast majority of the world’s seven billion denizens. Clearly, we are amidst an “historic inflection point” – both economically and geopolitically; and here at the Miles Franklin Blog, our aim is to enhance your personal due diligence process in the hope you to PROTECT YOURSELF from what’s coming.
In a nutshell, Central bankers have been forced into the “Hobson’s Choice” of allowing their cancerous fiat currency regime to instantaneously implode, or commit financial suicide by printing endless amounts of currency and using it to manipulate markets in unprecedented manner. Such madness has been compounded exponentially by “weapons of mass financial destruction” like derivatives and high frequency algorithms; which, incredibly, have pushed Western interest rates to all-time lows and equity valuations to all-time highs – amidst the worst economic environment since the Great Depression, and the worst geopolitical instability since World War II.
Notice, I specifically used the word “Western,” as the New York/London led “Axis of Financial Evil” clearly focuses its manipulative efforts on American, European and Japanese interests – with no regard for, or collusion with Easterners. This is why even the vaunted “BRICS” are amidst dramatic economic carnage, as the only “benefit” they receive is the massive imported inflation from the hyper-inflation of “reserve currencies” like the dollar, Euro, pound and Yen. To wit, since the dollar started “strengthening” last month – amidst the comical assumption of a tighter Fed in the coming years – the ongoing global currency crash has dramatically accelerated. As you can plainly see below, since the aforementioned Western money printing/market manipulation spree accelerated when the “point of no return” was reached following 2011’s “Global Meltdown II,” the average currency has fallen 21% against the dollar, whilst the “Fragile Five” currencies – where more than a quarter of the world’s population resides – have lost a whopping 37%. This is why global unrest and geopolitical tension is exploding, and why Eastern hatred of the West is reaching epic proportions. You know, the type that causes it to create its own currencies, political regimes and military alliances.
As for said Fed “tightening,” just read this morning’s comments from 2015 FOMC voting member Charles Evans, President of the Chicago Fed, if you still have a shadow of a doubt how the Fed really thinks.
Yes, U.S.-led chicanery is drawing the world closer – in all conceivable manners. Its economic data has become such a joke – such as Friday’s upward Q2 GDP revision based on a “definitional change” – that quite soon, truthful analysis like John Williams’ will become mainstream.
The horrifying 47 hours of secret tapes by Federal Reserve/Goldman Sachs whistleblower Carmen Segarra – not to mention, the Fed’s promoting its new “market manipulation office” in Chicago – puts an exclamation point on how rigged financial markets have become; and Obama’s admission this weekend, just weeks after commencing massive bombing raids in Iraq and Syria, that the U.S. has “underestimated ISIS” underscores how Westerners are not only destroying the world but have not a clue what they’re doing. To wit, George Bush announced “Mission Accomplished” less than two months after the March 2003 Iraqi invasion; but here we are in 2014, having destroyed countless trillions of dollars, millions of lives, and America’s international reputation and we’re as deeply ensconced in Iraq than ever.
To that end, the culmination of such lies and deceit has been the all-out destruction of paper precious metals prices since the April 11th, 2013 “closed door meeting” between Obama and CEO’s of the top ten “TBTF” banks, just one day before the infamous “alternative currencies destruction” raids. Since then, PM holders have endured a manipulative infamy that has plunged sentiment back to 2002’s levels – when gold and silver traded at $300/oz. and $4.50/oz., respectively. However, the relentless suppression has also caused physical demand to explode, yielding all-time high global purchases in 2013 and somewhere near those levels in 2014. Given the resultant losses and capital starvation of the mining industry, supply is in the verge of all-out collapse at a time when the aforementioned factors promise to catalyze still greater – potentially parabolically increasing – demand. And all amidst an environment of plunging exchange inventories, such as the measly 80 tonnes of silver remaining on the world’s largest physical PM delivery mechanism, the Shanghai Futures Exchange.
To that end, I wasn’t surprised in the least to read the great Andrew MacGuire’s commentary this weekend, of how amidst an “historic capitulation” of PM investors in September, an astonishing 650 tonnes of physical gold was purchased in the London OTC markets. We agree completely that the latest Cartel raids have been as demoralizing as any we’ve seen. However, holding physical metal instead of “paper PM investments,” we don’t feel the same need of “resolve” technical analyst Bo Polny warned of in May when he correctly predicted a horrific PM crash – bottoming in late September, with the June 2013 low of $1,182 decidedly NOT being breached.
Why do I bring up Bo Polny? Not because I am a believer in his work; or, for that matter, technical analysis in today’s rigged financial markets. However, he is one of the analysts Jim Sinclair looks to in his call for a year-end PM super-spike; along with fellow “cycle theorist” Charles Nenner – who purportedly called the September 2011 top and predicted a September 2014 bottom. Jim Sinclair is on record saying this summer’s correction will be the last before a late year surge towards $2,000/oz., per this analytical conclusion – “Gold’s long-term cycles are in the process of turning long-term positive. There is a strong possibility that this is the last take down before gold trades at new highs.” Moreover, on June 21st the great Richard Russell proclaimed, “The bear market in gold is over, and gold is again in a bull market”; whilst just last week, Bix Weir shouted, “Yay! It’s time to celebrate, as we have finally arrived at the bottom.”
Will they be right? Who knows, but as discussed above, the list of PM-positive factors has become so long and broad, that it’s difficult to believe something won’t shortly “give” in history’s most onerous market suppression scheme. Heck, Andrew MacGuire ended his interview by saying, “I give it until the first of the year before we see the first signs of a major (precious metals) derivatives blowup” and from my experience, NO ONE understands the global physical markets better.
Of course, the beauty of the situation is that care of said suppression, gold and silver prices have NEVER been cheaper on an inflation-adjusted basis, relative to the costs of mining, and countless fundamental, technical and sentimental factors. In other words, NEVER has such valuable insurance been priced so inexpensively; and likely, NEVER will it be again. In fact, if you haven’t purchased it when the “big one” inevitably arrives, you may NEVER get another chance. And by the way, if you want to read an incredibly concise description of the economic tragedy the world faces, there’s none better than this.
Andy,
Good news doesn’t seem to exist any more. I have never in my 60+ years seen so many daily lies !!! The governments of the world are the biggest liers of them all, or should I be nice and call them “Spin Doctors”.
If you decide to write a history book, you had better get some help.
If Washing DC says the sun is shinning I’m going to go outside and look for myself!
I don’t know how you can keep up, but I am thankful that you do and put out your excellent articles to keep us informed (those of us that want to know the truth).
Thank you.
I have some new friends who moved from Korea hoping to avoid what their parents and grandparents warned them was coming to Korea. As I got them involved in the M-F blog materials, they have become aware of a chill that it could possibly be happening here as well as over there. They are beginning to understand that there is nowhere left to run! Fortunately, they and I have a faith that can sustain in all events. They understand the concept that God made silver and gold, while man has made paper and electronic blips.
Bing
Yet another fine article, Andy. Thanks for taking the time to publish your thoughts for all the see and consider as we all try to make our way in this increasingly crazy world.
If I had one quibble about your comments, however, it would be from the title of one of the James Bond flicks… Never Say Never! lol
I agree that buying wealth insurance in the form of gold and silver is a wise move for most people, yet so few of us actually do that. I know a lot of people, yet none of them own any gold, other than a few pieces of jewelry and perhaps some dental work, and only one owns any silver, again, other than jewelry. Further, if one does not own a respectable amount of gold and silver when the Big Red Reset Button is pushed, it is extremely unlikely that they will then have the opportunity to do so because, in fiat terms, these metals will be rising in price VERY quickly. Because of this, most of the Johnny Come Latelys will be priced out of the market while those of us who had a bit of foresight and bought PMs at reasonable prices will have our stacks to sustain us and our life-styles.
So, what’s the bottom line? The bottom line, IMO, is that PMs are not an investment per se but are a few things of major financial strategic importance. First, PMs are real MONEY that provides wealth insurance of a kind that only PMs provide. Second, PMs are a long-term inflation hedge. And finally, PMs are a way to avoid the collapse, devaluation, and hyper-inflation problems that all paper currencies have or soon will have. PM ownership is not about bouncing into and out of them to scrape up a little more fiat. It IS about being able to live reasonably well in the event of financial catastrophe.
People often talk about FDR calling in the gold via his infamous EO #6102. As a part of that, once the gold was unconstitutionally collected, IMO, its “value” was then changed from $20.67 per oz. to $35 per oz. While this is always said to be a revaluation of the gold price, it is more accurate to say that FDR devalued US currency by almost 70% or over 2/3. Those who turned in their gold got a major loss of buying power for their efforts while those who hid their gold and then sold it later retained their buying power. So much for trusting the US government to do the right thing and watch out for the interests of the American people. Neither of these seems to be much of a priority these days and they haven’t been for decades.
Just remember, folks, the only person in this world who truly has
your best interests at heart is YOU. You can choose to own paper or you can choose to put some of your wealth into something that is outside the current financial system. Considering all the chicanery going on in the financial world these days, having all you own in manipulated paper is taking a LOT of risk. Choose wisely.
Amen!
It will not surprise me to see gold go below $1180.
I am not saying it will but its not looking good in spite of what gold buyers believe about manipulation,shortage of supply etc
Where is Bo Polny’s stop level ????
It is way below his triangle breakout north level.
If it closes below $1155 it could well hit $680 in a big capitulation. Then we will see some smart buying.
$680, huh, for “smart buying?” Yes, an industry on the verge of collapse at $1,200 – yielding surging physical buying, amidst the most PM-bullish fundamentals of our lifetimes – will fall 50%. OK, if you say so. Or is it the “charts” talking?
Obviously the charts are talking…the same one that has telling everyone with an ounce of brains that that gold is in a downtrend,having a bit of consolidation and…well everyone can read what I said above.
As for bullish fundamentals…doesn’t seem to be helping those who bought higher up and who will certainly capitulate when the bottom is in…after a 6 or 7 day run of straight down sell offs of about $80 a day.
Bo, “I do not care where it has been only where its going”…$2000 by the end of the year” Polny, should refund his subscribers in full if it doesn’t get back to $1400 by then.
Sorry, “charts” no longer talk, they are just manipulated. And remember, owning ounces is “saving,” while owning securities is “investing.” I couldn’t care less if the bottom is here, or a few bucks lower, as my ounces aren’t going anywhere. And the lower the paper price is manipulated, the more physical demand will increase – accelerating the Cartel’s demise.
As for Polny, I have no interest in his views, just curiosity if his conclusion will bear out.
Gold priced around $1200 and silver at $17 are absolute gifts. All we need do is accept them. Having been an investor in the US stock market since 1980, I can truthfully say that buying at a market bottom or selling at a market top are possible but HIGHLY unlikely. When it happens, it is merely luck. Yes, I have done it a couple of times myself and know this to be the case.
Once we get past the idea that PMs are mere investments to be traded, we come to a much better place in financial planning. I treat my PMs like any other insurance policy. I buy them, put them somewhere safe, and then basically forget about them. I don’t worry about the daily price moves. I buy on a routine basis. When prices are up, I buy less. When they are down, I buy more. When the dips come, I buy even more. This is a long run and not a sprint. In the end, it will be ALL about the ounces and not a bit about the prices we paid.
One other thing… I do not see buying PMs as spending money but as converting one form of money into another form of money. This is no more “spending” than changing a twenty for two tens. After the exchange, I still have the same amount of wealth, it’s just in a different and better form. It is then hard money rather than soft money. Cheers.
Have you ever thought of writing a book on the history of Fiat Currency, the current problems, manipulation and where you think this is headed based on where it ended up in the past?
Might get more people aware of this if they see it doing well on Amazon.
Thanks, but I write a book each week! No one would buy it anyway, and there’s precious little time left to protect people before the “big one” hits.
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