This morning, I have several important topics to discuss – which, when today’s historically manipulated reality returns from the Bizarro World where PiMBEEB events result in higher stock, and lower Precious Metal, prices – will cumulatively, yield dramatic market “resets” unlike anything previously witnessed. Which in due time, must inevitably occur – given the gross, and patently unsustainable, financial, economic, and monetary distortions caused by the final stage of history’s largest, most destructive fiat Ponzi scheme.
To start with, a topic many of you are undoubtedly interested in hearing my take on, given that not only am I the only Precious Metal commentator to address it objectively; but given my considerable “experience” in this still nascent, but unquestionably world-changing technology, make me a “grizzled veteran” of the space; i.e., crypto-currency.
In June 17th‘s “Precious Metals vs. crypto-currency and mainstream investments,” I discussed the risk/reward profiles of various investment classes. In crypto-currencies’ case, specifically discussing how its investment risk, in terms of the potential for near-term, dramatic price swings, higher than all other asset classes – irrespective of the massive long-term potential it holds. Subsequently, June 30th’s “another near-term reason to own Precious Metals – crypto-currency,” discussed the very large, potentially imminent risk factors in the entire crypto-currency space (most of which, in my very strong view, is inherently worthless), given not only its massive second quarter surge, but near-term uncertainty regarding the cantankerous Bitcoin scaling debate – which likely, will come to a head by the end of July.
For those watching, the sector has endured a massive sell-off in recent weeks – culminating in the “bloodbath” that, for now, bottomed last night; during which, the sector’s “market cap” – which I write in quotes, as so many “altcoins” have massively overstated valuations – plunged by more than 30%. Which is itself misleading, given that – per this table – whilst Bitcoin, which as of this morning accounts for nearly half of the entire crypto-currency market cap – fell just over 20%; whilst the average altcoin, including #2 Ethereum (which I despise), plunged by more than 50%.
I could probably write five pages on the myriad dynamics of today’s crypto-currency space – which must be paid attention to, given the unquestionably dramatic role it will have in the world’s political, economic, and monetary future. However, in the interest of brevity – and the the Miles Franklin Blog’s raison d’etre – suffice to say, even if you are well-educated of the rapidly changing landscape of crypto-currency technology, trading, and politics, the risks to investing in it are extremely high. As for me, I continue to believe, with every ounce of my being, that Precious Metals and Bitcoin – not “crypto-currency” in general, but Bitcoin – will ultimately be the “twin destroyers of the fiat regime.” However, they are decidedly different asset classes; with gold and silver still holding the title of history’s best wealth storage provider; with far less volatility and, particularly in light of the recent, historic Cartel suppression’s, pushing gold and silver to their lowest-ever inflation-adjusted prices, far less risk.
Next up, we have tomorrow’s semi-annual “Humphrey-Hawkins” Congressional testimony from Janet Yellen – per Ron Paul’s description, the “false prophet of prosperity.” If she continues to proclaim “economic strength” amidst the reality of the recession-bordering-Depression that has only been masked by historic market manipulation, she will only increase the odds of catalyzing the “Big One” we all know is coming. To wit, the interest rate increases the Fed’s false “hawkishness” have caused, on a worldwide basis, are having a significant negative impact on economies already drowning in debt; including ours, where essentially all “hard data” is at its lowest level since the 2008-09 crisis. For once, Deutsche Bank has it right – in proclaiming “once the carnage from higher rates hits, we move to helicopter money.”
Looking at the past week’s retail sector news, it’s unfathomable how investors – historic manipulation aside – can avoid the Retail Armageddon that was already at Defcom 1 before Amazon announced its shocking acquisition of Whole Foods; i.e., “the most PiMBEEB transaction of all time.” In a world of historically high individual and government debt; unemployment; and entitlement program demand; nothing is more deleterious to a dying fiat regime than mass job losses. Thus, when I read articles – in the space of days – like the following, it couldn’t be clearer that not thousands, but millions of jobs are about to be lost.
- “Packaged goods companies slash marketing spending, as Amazon makes selling all about price”
- “Amazon Prime Households on track to exceed Cable TV subscriptions next year” (I am a perfect example, as I LOVE Amazon Prime – which I paid $79 for an entire year for; and HATE my DirecTV – which I pay $750/year for, to the point that I will likely be getting rid of it shortly)
- “How Amazon killed Department Stores, in Five Charts (including one showing how online sales will surpass retail store sales in 2-3 years)
- “Mall stocks hammered, as even cheap make-up fails to lure customers”
- “Dead Mall Stalking” – in which the best way to describe the unprecedented carnage to come, is to simply display the below chart, of just how massively overbuilt the U.S. retail industry has become
- “Bank of America stunned by gasoline demand drop – where is the driving season?”
- While not in a specific article, am I the only one who has noticed how “shrink-flation” has become so obvious, it’s laughable?
- And by the way, did anyone notice that, yet again, following Friday’s LOL, “better than expected” NFP jobs report, the Fed’s own “Labor Market Conditions Index” declined in June, to a barely positive reading of 1.5?
Moreover, if you think the retail jobs outlook is bad, consider that the only manufacturing sector to have produced net job growth since the 2008 Financial Crisis is energy. Which, given the accelerating plunge in crude oil prices, amidst an historic glut that, in light of rising energy efficiency and advanced drilling and production technology, may never be alleviated, may result in equally massive layoffs, on a worldwide basis, for years to come. This, in the sector with, by far, the most debt attached to it. Which, if it doesn’t stabilize – and rise – soon, could take down countless political regimes. Like, for instance, Saudi Arabia – which, due to its dire financial situation and increasingly unstable politics, I last week deemed my “newest most likely to catalyze that Big One.” To that end, crude prices again fell below $44/bbl this morning, following a Goldman Sachs report that oil could plunge below $40/bbl absent OPEC “shock and awe.” Which decidedly will NOT occur, if this morning’s news that Saudi actually exceeded its June production quota, after having worked so hard to institute it, is any indication.
Frankly, I have several other topics I’d love to go into further detail about today – such as the accelerating political chaos tearing America apart; the catastrophic implosion of Obamacare – as Congress sits idly, with not a clue how to “repeal and replace” it; and the insane “common knowledge” that the Japanese Yen is considered a “safe haven” asset. However, they can wait – as today, I want to focus on the “perfect storage options to capitalize on historically undervalued gold, silver, and platinum” prices.
Last week, I wrote how the “historic valuation anomalies” we are witnessing in the Precious Metal sector suggest we are at, or near, significant long-term lows. Like for instance, the lowest-ever platinum/gold ratio; nearly the lowest-ever silver/gold ratio; and the lowest-ever numismatic premiums in the 28 years Miles Franklin has been in business. Consequently, yesterday’s “ultimate Precious Metal high-grading opportunity” discussed how such an unprecedented environment since the global Precious Metal bull market commenced at the turn of the Century – particularly overseas, where the world’s 180+ non-reserve currencies have dramatically weakened versus the dollar – enables Precious Metal investors the ability to optimize their portfolios, to capitalize on said anomalies – as well as tax loss realization and changing personal preferences.
Today, I’m focusing on the storage aspect of such decisions – as for many investors, third party storage is either desired, or required. Particularly, the unique options available at Miles Franklin – which in my view, amongst other reasons, stand us apart.
First off, our segregated storage program with Brink’s Canada, in Montreal and Vancouver, which is described in detail here – including a link to an interview with Miles Franklin’s President and Co-Founder, Andy Schectman, discussing all aspects of the program. Among other things, what makes this program unique is the fact that, unlike nearly all other storage programs – whose fees reflect a percentage of bullion value – we charge on a per-ounce basis. In other words, if bullion prices double, your fee remains flat. Additionally, Miles Franklin Officers accompany our third-party Auditor, Inspectorate, to the periodic audits; and of course, as a Miles Franklin product, you have the word of a company that not only owns the program, but has operated 28 years without a single registered complaint. Not to mention, one domiciled in the only State, Minnesota, that regulates bullion dealers; which includes, I might add, the requirement of its officers – i.e. Andy and David Schectman – to post a very large surety bond.
In my view, this program is optimal for the storage of silver – given that, at such historically undervalued prices, you can get a lot of ounces for your money. Storing silver at home isn’t so easy if you want to buy large quantities. However, at Brink’s Montreal or Vancouver, we can accommodate as much as you desire, in specifically segregated accounts – which you can either purchase from Miles Franklin, or ship from other storage locations, including your home. If, or should I say when, silver prices return to…let’s just say, equilibrium…Miles Franklin can sell some or all of it for you; swap it into other products – like gold and platinum; or deliver it, or said other products, to your home or other designated storage locations.
For gold; platinum; and cash – in the form of U.S. dollars, Canadian dollars, or Swiss Francs; we, as of last November, offer the decidedly unique “Private Safe Deposit Box” solution, at Brinks’ Toronto and Vancouver locations. Or, as I deemed it when the program was launched last Fall, the “most unique alternative in the global bullion and cash storage industry” – which you can learn about in this article, or this interview with Andy Schectman. In the program, only you have the keys to your private lockbox; and only you can open it (personally) – unless you send the keys to Brink’s, with explicit instructions to open it, for the purpose of either accepting a new gold, platinum, palladium or cash deposit, or making a withdrawal. The way we understand it, without having any legal expertise or authority, the Private Safe Deposit Box program adheres to U.S. FBAR and FATCA regulations, to the letter of the law.
In other words, not only are we amidst a potentially historic Precious Metal buying opportunity – featuring valuation anomalies not before witnessed; but through Miles Franklin, you have the ability to utilize the most cutting-edge storage programs to safeguard them. To that end, if you are considering the purchase, sale, or storage of Precious Metals, we humbly ask you for the chance to earn your business – by either applying for an online trading account at milesfranklin.com, or calling us at 800-822-8080.
P.S. As I’m about to hit “send,” a headline crossed the tape that Russia will be expelling 35 U.S. diplomats, and seizing certain U.S. assets. Precious Metal prices promptly surged, whilst stocks and Treasury yields plunged. After I see how this shakes out, I’ll dutifully report on it tomorrow.