Once again, I’m going to describe “First Delivery Day” in the fraudulent COMEX trading pits. Tuesday was “Options Expiration Day” for the October gold and silver contracts; that is, when PAPER gains and losses were determined – on contracts backed by nothing but empty promises. However, today (Thursday) is “First Delivery Day”; i.e., when the few buyers in this PAPER Ponzi scheme are seeking PHYSICAL metal must give notice of their intention to take delivery. For PHYSICAL buyers, it matters not if contracts are “in-the-money”; as typically, they are not seeking “profits,” but metal. However, the further out of the money such contracts are the less likely long contract holders are to take delivery.
For years, I have watched PM commentators focus inordinately on Options Expiration day; when they should be focused on First Delivery Day. The latter is what the Cartel fears most; which is why all week I spoke of waiting until after today for it to be in the rear view mirror. With registered inventories near record lows, the threat of COMEX default looms each and every month. Just a measly $1 billion each of gold and silver inventory remains, respectively; and sooner or later, it will be scooped up like a trout in an osprey’s talons.
Consequently, the past 18 hours’ post-non-taper “market action” has absolutely ZERO relationship to “technicals” or “fundamentals”; but instead, TPTB’s desperate attempt to prevent the inevitable run on the COMEX’ scant PHYSICAL inventory. Wednesday 3% HUI bashing – whilst the Dow and PM markets were flattish ahead of the FOMC meeting – were a key “tell” that the Cartel planned to attack PAPER gold and silver after the meeting. And clearly, when their initial attempt was foiled yesterday afternoon, they resorted to even more draconian tactics this morning.
For the record, the Fed announced EXACTLY what the entire world expected. That is, not only are they continuing with full-out QE4, but have essentially no timetable for its conclusion. And yet, we have been told all year that PMs are down because “tapering” was to start this Fall, and end by the middle of 2014; you know when the most dovish Fed Chairman EVER takes office. Even Larry Summers knows QE can’t end; and with the upcoming budget battle, the catastrophic Obamacare launch, and RECORD LOW Presidential approval ratings, even the most financially unsavvy must realize such an event can’t even be considered at this point.
Within seconds of the FOMC announcement – and I do mean seconds, gold was attacked for $10/oz.; yet again, pushing it below the VERY KEY ROUND NUMBER of $1,350/oz. – where no doubt, countless “in the money” futures contracts were held. Fifteen minutes later, with the Dow literally unchanged from the -10 level it held before the announcement, gold was $20/oz. lower, and silver a ridiculous $0.50/ounce lower. Only then did the PPT allow the Dow to fall to the harmless range of -50 to -100, where it traded the rest of the day; of course, closing near the low end of this range care of a prototypical “HAIL MARY” rally. PMs then rebounded, with gold closing unchanged for the day – at $1,344/oz. – and silver up $0.20/oz., to $22.70/oz. This represented a major failure for the Cartel, as with First Delivery Day the following day; prices were still too high to discourage enough potential PHYSICAL delivery takers. Thus, they attacked at 2:15 AM for the 105th time in the past 117 trading sessions; and subsequently, just after the thinly traded New York “pre-market” session opened at 7:00 AM EST, took gold down nearly $10/oz. whilst Dow futures literally didn’t budge from that same, harmless -10 level.
Just as the COMEX opened at 8:20 AM EST, the Cartel attacked again; with, I kid you not, PAPER silver taken down nearly 2% in the first ten seconds of trading. And this, just after it was disclosed that U.S. Mint Silver Eagle sales are headed for a RECORD YEAR. If this is not proof enough that the government is suppressing silver prices, let me put it into perspective. Since my “mind-blowing silver manipulation” article last month – in which I disclosed that PAPER silver has had at least one 2% intraday decline on 45% of ALL 2013 trading days – things have only gotten worse.
To wit; during a month featuring the government shutdown, end of the debt ceiling, the “unexpected” continuation of QE, horrible economic data, a falling dollar, and the third quarter mining earnings catastrophe I warned of (featuring dramatic capital expenditure reductions), silver has endured a 2% intraday decline on a whopping 68% of the 22 trading days. Better yet, the price is actually 1% higher than a month ago – as is gold; essentially, making a mockery out of what are purported to be “free markets.”
As for said fundamentals, yesterday afternoon’s Fed MONEY PRINTING announcement was followed by the Bank of Japan maintaining its maniacal QE program – in light of a report that Japanese wages declined for a record 16th straight month. Moving Westward, Europe literally “stunned” the world by not only revising August’s RECORD HIGH unemployment rate of 12.0% to 12.2%, but reported that September’s unemployment rate was even worse – particularly in the all-important youth segment. And this, as Germany reported a 0.4% decline in September retail sales, compared to expectations of a 0.4% increase. Consequently, ECB officials followed the Fed and BOJ’s leads, in promising further “liquidity injections” if required.
On to the United States of Economic Misery, where the day started with perhaps the tenth straight “miss” of the week – as jobless claims were again higher than expected. Next up, the lowest “consumer comfort” print of the past 12 months, and weak earnings from perhaps the best REAL gauge of consumer confidence – i.e., Visa; leading up to the 9:45 AM EST publication of perhaps the most blatantly manipulated government publication outside the NFP employment report; i.e., the “Chicago PMI.”
Whether its methodology is flawed is immaterial; although, for the record, I have been crystal clear in my views that such “diffusion indices” are as misleading as they are statistically insignificant. Irrespective, at least its trend should be relatively close to other, flawed diffusion indices – particularly as it is common knowledge that the Midwest is perhaps the nation’s weakest, most desperate economic region, as symbolized by the near insolvency of Chicago itself. And thus, when it printed an utterly comical 65.9 versus last month’s 55.7 and the expected 55.0, you can see why I literally threw up my arms in disillusion.
Of course, a full half of said “gains” were due to the ubiquitous “seasonal adjustments” that only seemed to work in one direction. However, such an “eight-sigma” beat of expectations is so ridiculous, it makes JP Morgan’s three straight “.000” deposits into its gold inventories look like a common event. The odds of a “seven-sigma” beat of consensus expectations are one in 1.07 billion years; and even on the internet, I couldn’t find the odds of an eight sigma beat – which clearly, are vastly lower.
Which brings me to today’s topic; which frankly, I had hoped to get to sooner, as only once in my lifetime will my mother get to meet her new granddaughter. Oh well, such is the life of a Precious Metals commentator, amidst the most vicious Precious Metals attacks of our lifetimes. The financial soul of the world is at stake; and until it is saved by the inevitable return of the gold standard, the Miles Franklin Blog will be here to keep you apprised of the TRUTH.
Per the title, the MSM has always portrayed the process of purchasing, selling, and/or storing PHYSICAL Precious Metals to be onerous, expensive, and somehow scary. They’d much prefer you bought PAPER proxies like COMEX futures and options; the GLD and SLV ETFs; and, of course, mining shares. They may be fraudulent, volatile, and rigged; but at least they’re “easy” to buy and sell. To the contrary, I’m here to tell you that nothing could be easier – so long as you are motivated to convert speculative investments into the long-term savings vehicles that are PHYSICAL Precious Metals.
Back in mid-2008, I held nearly 100% of my liquid net worth – i.e., aside from my home – in mining shares and closed-end bullion funds like CEF and GTU. I had held this position relatively constant since May 2002, based on fears the dollar would decline, taking Precious Metals and mining shares higher. However, with the onset of Global Meltdown I in mid-2008, I realized the actual collapse of the global financial system was imminent; and thus, started reducing my “PAPER PM Investments” in lieu of the real thing; i.e., PHYSICAL gold and silver. By early 2011, I was up to roughly 30% PHYSICAL/70% PAPER – when I realized that not only was the END GAME more “imminent” than I had anticipated, but most “PAPER PM Investments” were financial death traps; i.e., preyed upon by the Cartel to destroy those attempting to “profit” from their demise. In other words, I discovered the “second holy grail” of the financial world; and thus, converted all PAPER PM Investments to PHYSICAL gold and silver.
Initially, I had ZERO knowledge of how to do so. Thus, I started with small purchases on eBay; eventually, finding my way to established bullion dealers like Miles Franklin. By 2009, I was fully cognizant of just how easy it was to purchase metal; and when I joined Miles Franklin in 2011, such knowledge increased exponentially. Along the way, I cashed out my IRAs – happily paying taxes and penalties; and last year, shipped my metal to our Brink’s storage facility in Montreal, Canada. Each of these transactions required motivation to record, pack, postmark, and track. However, all were rendered seamless by the time-honored processes of Miles Franklin; which, for the record, has NEVER lost a payment or package in 24 years of business.
For example, for those considering rolling an IRA into one capable of holding PHYSICAL Precious Metals, our brokers can guide you to several, equally seamless alternatives. Most readers understand my personal belief that all government-sponsored retirement plans should be cashed out. However, for those that trust them, our brokers can guide you through the numerous, equally attractive options. As for the “big, bad” process of shipping coins in the mail; specifically, if you intend to send them to Brink’s or another storage facility, the process could not be easier. I did this very thing a year ago; and frankly, was surprised at how simple the process was. Properly packaged, there is no way of knowing what’s inside a package; and care of a unique insuring process – in which the post office itself is not aware of how much a package is worth – there is essentially ZERO risk that a “rogue letter carrier” will take your metal.
Again, I’m only asking you to consider what’s best for your family’s assets. We are amidst an historic period, in which the global financial system is breaking down whilst history’s ONLY true safe haven assets are being offered at fire sale prices; in essence, below their respective costs of production. Do not be put off by PROPAGANDA that says Precious Metals are “illiquid,” “volatile,” or “difficult” to ship; nor the current lack of transparency that pervades the highly under-marketed bullion industry. Despite weak Western Hemisphere demand (my guess is the Chinese are buying the Silver Eagles from the U.S. Mint), Miles Franklin is gaining market share because it is educating the public of these supposed “taboo” topics. Utilizing the internet – as well as investment conferences and other “face to face” vehicles – we will continue to do so each day; or at least, until supply dries up when the inevitable “tsunami wave” of demand swamps it. Feel free to contact us any time, at 800-822-8080; or email our “education team” of David Schectman, Bill Holter, and myself!