Miles Franklin will be closed on Monday and my next daily will go out Tuesday morning. All of us at Miles Franklin wish you a Happy and Prosperous New Year.
The most important information I can send your way today can be found at the following two links:
|Land of The Freebies, Home of the Enslaved|
|The Coming Interest Armageddon|
Please check them out. We cannot survive another five years of this! After watching these short videos, you will understand why we keep urging you to buy gold.
Please read the following from Jim Willie carefully. In a nutshell, it describes what is going on now.
THE BIG SQUEEZE, THE BIG BYPASS
A major squeeze is on that capitalizes on the artificially low COMEX price and the higher honest physical price. A gold trader informed that some multi-$billion purchase Gold orders have been in the process of filling at or near the $1600 price per ounce. The price is forcibly being kept low so as to enable some significant completed deals ready at $1900 per ounce. They must clear. The true physical price is between $1900 and $2000 per ounce. Gold bars will change hands from certain loyal large banks to private hands in Asia. These banks are being pressured out of their gold, as they contend with deep insolvency, reserves requirements, falling sovereign bond values, depositors exiting, and more. The buyers are well funded and motivated. If the gold cartel insists on pushing the price down, then they open the door for major volume sales at the artificially low bargain price that will work to drain the COMEX. This is consistent with mining firms removing supply lines to the COMEX. Several months ago, the anonymous London trader offered some ripe information about the Chinese accumulating gold bullion from the major metals exchanges. He is back to offer an update. Credit again goes to King World News. The Chinese are removing bullion metal from both Exchange Traded Funds, the GLD and SLV. They will be gutted next year. Investors beware. Many large buyers are large Chinese sovereign wealth fund entities. The paper gold market based in futures contracts has diverged from the physical market. Credibility is being lost quickly. The divergence between physical and paper gold price is widening!!!
The rest of his article, The March To Irrelevance, can be found in today’s daily. In it, Willie discusses how the COMEX will fade away into oblivion and there will be a grand divorce between the paper price of gold and the price for real, physical gold. This is a “must read”.
Early on Thursday morning, I had a long conversation with Ranting Andy Hoffman. Andy and I are in complete agreement on the economy, precious metals and manipulation, but our delivery and style are different. We both understand the nature of the manipulation in gold and silver – and in all markets, for that matter. We both are absolutely bullish on gold and silver in the long-term. We both have sold our mining shares (and sleep a lot better, as a result) and stuff our portfolios with all of the physical gold and silver that we can afford.
Whereas Andy spent many years on Wall Street and developed a great hatred of everything that Wall Street stands for, I spent my last 28 years in the precious metals industry. I am, by nature, less emotional then Andy. I tended to focus my energy into accumulating very undervalued precious metals while at the same time writing to my clients and readers, on a daily basis, educating them and urging them to follow my lead. I think it’s a noble thing to do. Thomas Jefferson wrote, “Educate and inform the whole mass of the people… They are the only sure reliance for the preservation of our liberty.”Unfortunately, not enough Americans are interested in the message.
Andy really does hate the Cartel and everything that they stand for. There is no question that what they have done in the last 40-years has pushed America to the brink and caused untold misery for tens of millions of our friends and neighbors. I am much less emotional about this than Andy, but still see it for what it is and understand where it is all heading. (Actually, I don’t get too emotional about anything, much less a situation that I cannot control.) One could almost say that we got what we deserved. Most Americans are content to watch the NFL on Sunday afternoons, and American Idol and the Kardashians during the week and are oblivious to what is going on in the “real” world. As a country, we have sat back and voluntarily surrendered our freedom (Patriot Act) and our well being to the Wall Street banksters and our inept politicians. This should come as no surprise. Over 200-years ago, Thomas Jefferson wrote:
I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.
People like you, who read this newsletter, are in the minority, and probably represent less than one in ten of our population. Since I estimate that less than 2% of all Americans own gold, my 10% number is very high. I hate to say it, but I really wonder if our small group can change the outcome? We can do what is necessary for ourselves, but can we really change the system that is so heavily entrenched in New York and Washington D.C.? On the political scene, only Ron Paul offers any real hope for the kind of change that is necessary and he is a long, long-shot.
When I hired Andy Hoffman to become the Director of Marketing for Miles Franklin, I did so because he, more than anyone in our industry, shouts the message with a passion and strength of conviction that is unique. I felt that it was time to “take the gloves off,” and really shake people up. Andy is correct, time is fast running out and the end game is not far off. How far off is something no one can know for sure, and the powers that be have a strong track record of being able to “kick the can down the road” longer than one would think possible. Since we can never know when it all blows up, we have to act now, in advance since being early is far better than being even one day late.
I put no limits on what Andy should write. Even if I wanted to, he wouldn’t listen and that is what I love about him. Reading my daily newsletter is a different experience from reading Andy’s Miles Franklin’s afternoon Rants and you really should check him out. It is impossible to argue with the facts that he presents and you may find his anger is just what the doctor ordered to get you to see the light and act. He has a very strong and loyal following and deservedly so. I wouldn’t miss his daily Rants and from time to time, publish some of his thoughts in my newsletter for those of you who don’t have the time to read both of us.
Do not despair over the current (Cartel induced) volatility. It is now a fact of life. Only the strong and convicted will survive. We, Andy and I, will help you hang in there and believe me, you will need all the help and encouragement you can get.