It was a pretty rough day – gold got clobbered again AND it was Income Tax Day. They got us both ways.
They’re not only trying to break the price, they’re trying to break the credibility of our industry. We – the newsletter writers – are the only ones warning you where we are headed. Our credibility is at stake here. The price will move back up again, but if they are able to discredit us, or dull our resolve, then the “engineered correction” will have been worth it to them. Based on what we experienced on Friday and Monday at Miles Franklin, I can assure you that our readers are buying gold and silver, not selling. I don’t remember the last time we were this busy. Joel did 34 trades by himself for nearly $700,000. All of the staff were swamped. Our readers know an opportunity when they see one.
Here is what I think is happening. Most of the weak hands, the sellers, have already bailed out. Margin calls have seen to that. I could be wrong, but we have to start somewhere, with an understanding where this is headed. Once the landslide dumping of paper settles down, the market will stabilize. The strong demand for PHYSICALS will slow the fall, then the price will stabilize and finally it will reverse and move back up toward $1,500. A “price” on Comex is established when someone is willing to sell at that price. When the sellers disappear the buyers will take center stage. The lower the price, the greater the demand for physical gold and silver. There is a good chance that the price will bottom in the next day or two and then it will reverse. When the newly added (last two days) “short” contracts, come under pressure by rising prices, due to increased physical demand, both retail and from Russia and China, the technical funds will have to cover by going long. The Commercials, who are almost always on the right side of the trade, will sell their longs, book their massive profits, and the price reverses. It must end this way because the fundamentals have NOT changed! All the issues that led to gold’s “safe haven” status are still in tact. Only the MOPE changed. Only the paper price on Comex changed. Only fools (or people in desperate need of funds, now!) sell PHYSICALS at these prices
Is the low in now? My friend Trader David R thinks so. Last week he told me when $1,550 broke, gold could easily drop to $1,350. That is a “back up the truck and buy with both fists” event. Alf Field thinks this is the bottom. I like his analysis – it is very clear and concise. This collapse in price is 100% technical analysis and paper driven. Alf makes a living with technical analysis. So does Trader David R. Things are very different in the real world, of physical metals. As the price on Comex is falling, the premiums on gold and silver are increasing. Many products are not available at all. Others are on allocation. There is no junk silver around! It is quoted at $30 an ounce (there really is none out there to buy). No one is selling at these prices. There are delays on Silver Maple Leafs and Silver Eagles. Here at Miles Franklin, no one is calling to complain or sell back. Quite to the contrary, our business is as strong as it has ever been. Check out Eric King’s KWN interview with Bill Haynes. We are seeing the same thing. I will keep you posted on delivery delays and premium changes as this unwinds.
April 13, 2013
Today 41-year market veteran Bill Haynes warned King World News that we are already on the verge of seeing major shortages of available retail bullion products. Haynes also said gold and silver buyers are outpacing sellers by a stunning margin, and he is now seeing premiums on physical products that haven’t been seen in decades.
Haynes: “Eric, last week we sold more gold and silver than we normally sell in a whole month. On Friday alone it was astounding because we sold as much physical bullion as we would normally sell in an entire week. There is a great deal of big money coming into the market on this decline.
If buying continues at the rate we saw on Friday, there will be immediate shortages of product…
Continue reading on KingWorldNews.com
Be sure and read Bill Holter’s comments from yesterday. His insight is outstanding!
Meanwhile, if you missed Alf Field’s comments yesterday, be sure to read his article today:
By: Alf Field
Late Friday afternoon in New York (April 12, 2013) gold plunged through the critical support level around $1525 level that has held resolutely since the start of this 19-month correction from $1900 in September 2011. In the process of this sudden drop, confidence in gold by long-term investors has been badly shaken.
The sad thing is that this late afternoon selloff was an orchestrated event by people wishing to see the gold price lower so that they could cover short positions in the paper gold markets. Proof of this is that London PM fixing on Friday was $1535. Once the London physical market closed, the orchestrated selling in the paper markets gathered momentum. By the close of the Comex paper gold market, gold had dropped $60 in just the last couple of hours on very high volume.
This is not something new. Observers of the gold market have been aware of many other occasions where similar events on a smaller scale have taken place on Friday afternoons. There is little point getting one’s knickers in a knot about this because every short sale in the paper market has to be covered by a corresponding purchase in due course. Thus if people who bought into the selling spree simply hold onto their positions, a short squeeze will eventually develop as the short sellers try to cover their positions, causing the gold price to rise.
Continue reading on GoldSeek.com
I want to point a few things out to our new readership. After working for seven years for someone else in the industry, in 1990 I started Miles Franklin. My main motivation was not financial. I wanted more freedom, which you only truly have when you work for yourself, and I wanted less stress. The new company had to be small and had to have low overhead. I wanted to create a company that would treat others the way I would like to be treated. Here, at Miles Franklin, the client does come first. And the small clients are as important to us as the largest clients. An order of any size, small or large, is appreciated.
As Miles Franklin grew into a big company, our cash flow allowed us to expand and we hired two of the best writers that “money can’t buy.” Andy Hoffman and Bill Holter write for us because we are all of a like mind around here. We all strive to educate and help our readership. Andy and Bill are well paid and they deserve it. We keep our mark ups as low as any firm in our industry but we offer you so much more. All of the other firms that offer low mark ups are just order takers. They don’t have trained brokers who out call and help clients manage their purchases. They don’t offer “free” daily high quality information. We put out two newsletters a day. Many other dealers take your money and say, “Thanks, that’s all.” For the same price, we offer so much more!
We have small group of brokers and they’re all decent human beings. They were all carefully hand picked by me personally or my son Andy, who has been at my right hand side since the beginning. Many of our brokers have two or thee decades of experience in precious metals.
The precious metals industry is unregulated and all too often you get unsavory characters behind the phones. Most of the firms in our industry that outcall use brokers that are entirely profit-motivated in their recommendations and sales techniques. But not at Miles Franklin. Our people treat their clients like family. Doing what is best for the client comes before our bottom line – and I really mean that. It starts from the top with me and Andy. It flows down through Andy Hoffman and Bill Holter who genuinely care about our readership, passionately so, in fact. I worked with Mike, Bob and Kathie in the mid-1980s. I grew up with Ross. Andy grew up with Joel. I knew Johnnie for half a decade. Derek has been here for 6 years. You couldn’t find a more highly qualified and moral group of sales people at any firm in our industry. We have been in business since 1990 and have not received one single complaint with the Better Business Bureau. We proudly sport their highest rating, an A+.
The reason I bring this up is because we have been bullish on gold and silver since late 2000. We have encouraged accumulation of gold and silver all the way up to and through the “manufactured correction” in the fall of 2011. I have personally bought a fair amount of gold, silver and platinum during this period, including a significant purchase last week, before the carnage on Friday. I have no problem buying gold anywhere in this price range. When it tops $2,000 on the way toward Sinclair’s $3,500 and higher, purchases at $1,650, $1,550 or $1,450 will all look pretty darn good. Do not fall into the trap of viewing your precious metals as INVESTMENTS. Mining shares are investments. Speculative investments with a high risk/reward element. Physical coins and bars are not. They are your financial lifeboat and your financial life insurance policy. You don’t sell them; you don’t trade them; you buy them and hold them until such time as you need them. I’ve been doing just that since gold was $252 and silver was $4.50. And I will be doing it all the way up from here too. I count ounces, not dollars. The “price” will take care of itself. All you need is a bit of patience and understanding.
Andy Hoffman, Bill Holter and my son Andy Schectman also add to their positions at every opportunity. We do exactly the same things that we suggest you to do. We believe in what we say and we believe in what we do. We understand the reasons why owning precious metals is vital, make that critical, to wealth preservation. It may not always seem that way, and the last couple of years have required patience and understanding, but the bull market is not over, in fact it has yet to really get started.
If I have learned anything in the last year or two it is that NO ONE has a functioning crystal ball. Not even Jim Sinclair, and honestly, I am really disappointed that his “feel for the market” failed him lately. I don’t hold that against him. It is not possible to be 100% correct when the market ignores the big picture, the fundamentals and is totally and completely manipulated and controlled by the Federal Reserve and it’s cohorts over at JPMorgan and Goldman Sachs.
Posted April 15th, 2013 by Jim Sinclair
My Dear Extended Family,
I deeply appreciate the many kind emails today.
I have no doubt that gold will perform to the levels we have anticipated. The action in this market has been the product of two firms that act as gold banks selling paper in amounts that exceed any imaginable long position. The means of the sales have been vicious and clearly intended to depress the price.
Personally, I am horrified that markets are in the hands of such people, but more so that I did not fully appreciate how disorderly they would act in markets that now have no rules for the Banksters. For this I offer my heartfelt apology.
You and your financial affairs are precious to me. I feel your pain. Your positions, and mine are on the same side.
There is no doubt whatsoever that gold will perform exactly as we expect now to enrich the Banksters, just as it occurred in the 1970s bull market.
Posted April 15th, 2013 by Jim Sinclair
Goldman and Merrill cannot keep gold down. What these greedy bastards have done is given us (an extremely unruly) market.
Gold will go to new highs as soon as they have all they can get in the physical market. Of course there will be buy recommendation made by these same dirt bags.
Continue reading on jsmineset.com
They can only control events over the short-term. There is a way to beat these guys – buy only physical gold and silver; pay cash, no margin or leverage; take possession; buy on the takedowns; have patience. That’s a pretty straightforward and easy formula that will pay off handsomely over the next few years.
I think ultimately, there will be two categories of investors – those who made a lot of money “outside of the dollar,” and those who lost a lot of money by staying with dollar denominated assets. All of us here at Miles Franklin will fall into the first category. What about you?
So before you raise your voice and say, “I lost a lot of money following your newsletter,” just remind yourself that we are in this with you. We are not financial advisors. We share our personal views with you and we do what we say. And remember, the Fat Lady hasn’t sung yet.
We measure our wealth in ounces, not in dollars. No one will ask you how much you paid for each ounce of gold and silver you end up with, when they have become the most desired asset on the planet. But they will definitely notice the size of your stack of coins.