On December 4th, Miles Franklin hosted a webinar titled “Post Election, Pre Fiscal Cliff.” We received more questions than we could answer during the webinar and decided to answer them here. In case you missed the webinar, here is the recording:
Your Questions Answered:
Q: How is it that you offer Swiss Annuities but yet recommend, at least Ranting Andy does, to not be involved with anything paper?
A: We are a “PROTECTION PROVIDER,” and not all our clients believe as strongly in bullion as we do. Some only fear the U.S. banking system, and thus feel more comfortable with “paper” in Switzerland. Also, Swiss Annuities are great for estate planning and liability reduction, among other things. I would not personally own “PAPER assets,” but others would disagree.
Q: Would it be safer to store in Canada, etc.? Rather than U.S.
A: I view the political risk in the U.S. – regarding the potential for draconian government action – as highly as nearly any on Earth. Nothing is certain, but in my view Canadian political risk is VASTLY lower.
Q: Do you foresee an LBMA/COMEX default? If so, what kind of timeframe in your opinion .months/years?
A: Eventually, the LBMA and COMEX MUST default; as they clearly don’t have the inventory backing their PAPER contracts. HOW and WHEN this will occur, of course, are impossible to determine. I’m hard-pressed to believe this charade can last another year or two.
Q: What allocation do you have Gold/Silver/Platinum/Palladium?
A: Personally, I own just one ounce of Platinum, and no Palladium. These are “precious” metals, but have ZERO history of monetary usage. I believe Platinum will directionally rise with gold and silver – especially if there is ever some type of controls or confiscation decrees – but Platinum is NOT gold or silver, and is too rare to ever be considered money. Palladium, in my view, is just another industrial metal. There is no “correct” allocation, but for most 50/50 gold/silver is a good start. Personally, I am 60 gold/40 silver.
Q: What do you predict for the ongoing status of the dollar as a world reserve currency?
A: It WILL not maintain that status, and eventually will be completely hyperinflated away.
Q: Regarding junk silver. How does MF obtain these.. do they only come from customers exchanging them, or do they come from the mint?
A: Only 1% of our business is customer buybacks; as nearly no one sells their metal – particularly junk silver. Thus, we source it through industry channels.
Q: Would you take buffaloes over maples or eagles since it seems only the number of ounces. Please respond taking confiscation possibilities into account.
A: I don’t put much heed into confiscation in the first place; and particularly, that if one was announced, it would apply to certain coins over others. All three coins are equally good, in my view.
Q: Do you have any thoughts on the ASIAN SILVER EXCHANGE, the PAGE replacement? Will it ever be a threat top the LBMA system?
A: Eventually, Asia will control the entire global PM market. However, I’m sick of hearing about every new exchange coming on line, as if all of a sudden the world will change. It will, but likely NOT simply due to new exchanges. When DEMAND swamps the Cartel, it will matter not where the exchanges are.
Q: Hi there! When Mr. Schectman retires, will Miles Franklin be ran by someone else? Who will continue to monitor the Canadian Storage program in the year 2030, for example?
A: MF plans to be an ongoing entity until there is no gold or silver left to sell! And as for Brinks, it, too, was created to last with our without Miles Franklin’s stewardship; and certainly, without Andy Schectman personally.
Q: At what point will China (and others) discontinue or substantially reduce buying US notes and bonds?
A: They have already slowed buying dramatically. However, it is a dangerous game of musical chairs they play. If they all of a sudden swamp the market, it could cause a selling panic, destroying trillions of their own dollar-denominated assets.
Q: It is my understanding that the Hong Kong Dollar is used for purchases coming out of China. If “that” currency one day becomes pegged to Gold or Silver and become depegged from the US Dollar, could the world not easily trade oil the the HK Dollar and then “puff” to the US Dollar, am I thinking logically?
A: Anything is possible, but the HK dollar is a peon in the current financial world. It will eventually flow with the same tides as the rest of the world; particularly its powerful neighbor and trading partner, China.
Q: Even though one cannot print gold, it has been devalued in the past. Clipping, diluting the gold content. Now experts talk about revaluing per ounce to the money supply. So if we get on a gold standard and come to a future fiscal cliff, why not revalue gold per ounce. How will this discipline the government?
A: The government will NEVER voluntarily recognize gold. If it did, the dollar would crash IMMEDIATELY. More likely, the markets will do it for them, driving the dollar into oblivion and them into exile.
Q: can you comment on the hidden enormous amounts of gold Asian gold confiscated by western allies during WWII and stored somewhere in Philippines. Since these “reserves” have never been counted what will happen when they will be “refound” to the market again? Thanks.
A: For one, it’s just “conspiracy theory” that they even exist. Secondly, even if they did, they will never see the light of day – just as my own personal stash won’t. Trust me, all “data” about gold supply is massively incorrect; some of it overstated, some understated. Irrespective, there will NEVER be enough to prevent prices from soaring when the fiat currencies die.
Q: Do you think this December will be similar to last year with a big dip in gold/siver price before year end?
A: I have no idea. However, with the fiscal cliff, debt ceiling, and potentially QE4; a big smash will likely be quite difficult for the Cartel to accomplish.
Q: As the dollar goes down in value, what currencies other than gold and silver do you recommend?
A: NONE, they are all equally fiat garbage.
Q: How quickly would my metal be shipped from Canada if I wanted part of it back?
A: We can do this very expediently; likely in a matter of days, or a week or two at most.
Q: How do I safely ship metal to Canada? Others tell me not to use USPS insured for metal…
A: Please call Miles Franklin, and we will assist you. There are various types of insurances that can be taken out; with some of its purchased by the receiver so as to not allow postal employees to know the packages are so valuable. I just did this myself.
Q: All the silver charts I see are either for long periods or a few days. Where can I see monthly, quarterly and other charts where I can set the time period?
A: stockcharts.com is a good place to go. Gold is ticker $gold and silver is $silver.
Q: Rumors have surfaced within the past week that the King of Saudi Arabia has passed away. If we assume they are true, what do you see as possible ramifications (e.g. regional, petroleum and precious metals)?
A: I have no idea. However, clearly the U.S. has a limited amount of allies in Saudi Arabia. If one of its enemies becomes King, the petro-dollar could be permanently destroyed; and with it, the dollar itself. And then, of course, war would be extremely likely.
Q: With the understanding that you would prefer purchase of precious miles directly from Miles Franklin, do you have an opinion on the use of Bullionvault as a platform for buying and storing physical gold and silver?
A: I do not know them. However, I personally mistrust any storage program where your only “proof” of holding is a computer screen entry.
Q: I am investigating rolling over an old 401k into a self-directed IRA for gold, how will the taxation on this be handled per 2013? I have no intention of cash out of trust for 15-20 years.
A: Please call Miles Franklin, as our brokers can answer all your questions in great detail.