Before starting, I want to share a comment from “Reader Ed” – which
frankly, is one of the nicest compliments I’ve received in my career. In my
view, the Miles Franklin Blog is one of the best sources of
information about the global economy, financial markets, and Precious Metals
fundamentals around – in large part, because we focus on, plain and simple,
on the unvarnished truth. Yes, the truth can set you free – which is
why I take great pains to instill this concept into my three-year old
daughter; and why, per the comment below, the entire world – and certainly
the opaque Precious Metals community – would greatly benefit from more of it.
Which, by the way, I am 1,000% confident will occur in the coming months and
years.
“These Hoffman articles are among the most well thought out and
intelligently articulated of all the internet commentators who deal with
economics and the PM’s. If all the other people in the PM business were as
reasonable and balanced, there might be less skepticism among readers of the
other sites who appear to have grown weary of all the unfulfilled
predictions.”
Again, per yesterday’s must hear Audioblog,
we are not making “predictions” of financial market performance; even, for
that matter, gold and silver over the “short-term.” Conversely, we simply aim
to spread truth; which, hopefully, you will, too. The world is a very
big place, with close to seven and a half billion denizens. That said, the
Internets reach continues to grow exponentially; and thus, nearly everyone
will soon have access to alternative views. And given the power of our
particular message – of the inevitability of fiat currency depreciation, and
real money appreciation, we have no doubt our work – and yours, if you
help to spread it – will be fruitful.
That said, let’s move on to today’s very important message. That is, after
a brief discussion of today’s “horrible headlines” – which sadly, will worsen
with each passing day, until the inevitable, and perhaps imminent, collapse
of history’s largest, most destructive fiat Ponzi scheme. After which, life
“as we have known it” will disappear; for a time, to be replaced with a far
scarier existence – but eventually, a more stable, productive global economy,
based on sound money. To that end, it is not the Miles Franklin’s Blog intent
to guide, advise, or prepare you for such unknowns; but instead, to simply
make you aware of what has always occurred to fiat currencies under
such scenarios – and conversely, what has always been the demand
response of real money.
OK, so let’s start with political lunacy – like the U.S. House of
Representatives voting by the horrifying tally of 348-48 to arm the Ukrainian
government, in what borders on an implicit act of war against Russia. Last
year, we
warned of just how dangerous the situation in this extremely troubled
geopolitically important region could get. And now, with the currencies of
both Russian and the Ukraine having collapsed; countless failed cease fires;
expanding casualties; non-existent peace negotiations; aggressive Cold War
rhetoric; and outright nuclear threats – such as Russia delivered yesterday –
we can only say this. To ignore the potential for significant global
geopolitical instability, particularly given the consternation caused by
plunging oil prices – is to, at least financially, “whistle
past the graveyard.”
Meanwhile in Europe, Greece – and the entire European Union – edges closer
to the abyss. In what has become a cross between the worst Greek comedy and tragedy, we’re now
told Greece has until Monday to submit details of the ridiculous, ambiguous
“reforms” that emerged from the February 20th funding
deadline crisis; which, as it turns out, weren’t even written by the
Greeks! Frankly, I don’t think anyone is even paying attention anymore – as
no matter how much can-kicking is attempted, it is a mathematical certainty
Greece will fail in the near future; and when it does, the resulting “Grexit” will be
financially – and psychologically – devastating to the world’s second largest
currency.
But the scariest part of all is that it’s not just the “PIIGS” in imminent
danger, but all of Europe; and for that matter, the entire world,
given the ubiquitous financial ties in place. That said, Europe is clearly
the epicenter – which is why yesterday’s news that France plans to unveil a
broad swath of currency
controls is so terrifying – like the limitation and surveillance of
nearly all cash transactions, and the required reporting of gold transportation
throughout France. Yes, my European friends, we could not be more urgent
regarding just how small your window of opportunity to protect financial
assets has become – and when the Euro does inevitably collapse, that window
will likely be permanently closed.
Already, our Mexican readers – suffering from the inflationary effects of
a plunging Peso – are telling us of how difficult it has become to source
Precious Metals, let alone at a reasonable price. Well, guess what’s coming
soon to Europe? And for that matter, American, and the rest of the world?
This is why you must act now to protect yourself from draconian
government acts – which only occur in response to calamity. Clearly,
the French government senses calamity now. And thus, we ask, would you
rather own “priceless
precious metals or worthless fiat currency?”
Here in the United States of Collapse, this morning’s horrifying February
durable goods orders number (-1.4% versus expectations of +0.7%) continues a
relentless stream of “2008-like” data, completely invalidating the fraudulent
“PMI Manufacturing” diffusion index figure I railed about yesterday. I mean
geez, what part of the biggest annual plunge in global trade volume since
mid-2011’s Global Meltdown II do people not understand? Or, for that
matter, yesterday afternoon’s American Petroleum Institute data, revealing
the largest inventory build in 34
years? Or heck, the pathetic “benefit”
of $11 trillion of global economy on the dying U.S. economic empire – which
trust us, would look far uglier if real, “apples to apples” accounting was
utilized. Consequently, the 10-year Treasury yield is trading – as I write
Wednesday morning – at a paltry 1.86%, compared to 2.26% in the moments
following last month’s historically
fraudulent NFP employment report. For the millionth time, as I wrote in
last year’s “most
damning proof of QE failure,” Treasury rates are plunging because the
entire world is front-running
the inevitable launch of QE4 – which frankly, would not surprise me if it
occurs this year. Nor would it surprise Whirlybird Janet herself, how last
month delivered the “most
unequivocally dovish FOMC statement in memory” to Congress.
And now, for today’s principal topic; i.e., the “worst precious metal
sentiment in two decades.” That said, let’s start by saying “sentiment” is a
very ambiguous concept; and thus, constantly miscalculated, misinterpreted,
and misunderstood. Let alone, by newsletter writers seeking to generate
trading activity, by insisting it can be quantitatively harnessed. Which, by
the way, is particularly dangerous in the Precious Metals sector,
given how it is the most manipulated (read: suppressed) on the planet, with
“Cartel traders” well aware of everything from sentiment readings to
technical resistance and support levels.
However, the physical gold and silver markets are entirely
different animals, for a variety of reasons. To start, nearly all buyers – of
physical metal, not “paper PM investments” like mining shares, ETFs,
and closed-end funds – do so for the right reasons; i.e, long-term protection
against and fiat currency inflation, and insurance against political,
economic, and market calamity. Secondly, the time, effort, and cost of
selling gold and silver is a considerable deterrent; i.e., the polar opposite
of owning, for example, GLD or CEF, in which one click of the mouse, and
you’re divested. And finally, as pertains to the current situation, never
have the fundamentals for Precious Metals ownership – both monetary and
economic – been so powerful; let alone, with prices trading below the miners’
respective costs of production, making it that much more difficult to pull
the trigger on a sell order.
That said, this is unquestionably the most terrified I have seen the
Precious Metals community since entering it 13 years ago; as is the case with
Miles Franklin, which has been in the Precious Metals business for two
decades. The reason, of course, is the relentless Cartel attacks that, while
ongoing since the PM bull commenced at the turn of the century, accelerated
exponentially when TPTB went “all in” to market manipulation in mid-2011, and
berserk following the infamous April 2013 “closed door” meeting
between Obama and the “TBTF” bank CEOs (just one day before the hideous
“alternative currency destruction” raids). Things have gotten so bad, we have
now witnessed psychology-destroying “Sunday Night
Sentiment” raids on 91 of the last 92 weeks; “2:15 AM” EST raids on 405
of the past 464 trading days; “Sixth
Sigma” declines in thin aftermarket trading; and of course,
unconscionably blatant silver
waterfall declines. And this, amidst some of the most violently positive
PM headlines of our lifetimes.
Consequently, Miles Franklin is actually seeing the first material selling
activity since going into business in 1989. Not that the total volumes are
particularly large – or that such supply has a material impact on prices
(likely, it’s already in China). However, we have not seen material selling
activity since the PM bull market commenced nearly two decades ago; and
again, this is occurring amidst the most bullish PM news flow of our lifetimes
– much less, with prices so low, the mining industry is on the verge of collapse!
Obviously, Americans have become so frustrated – and jaded to the expectation
of new Cartel attacks – that seemingly no news prompts them to action. And
clearly, since people like myself are already fully invested, the U.S. market
requires new buying leadership to restart it. Of course, this is hardly the
case overseas, where plunging currencies have caused gold prices to surge in
foreign currencies. However, to secular Americans, such reality isn’t even on
their radar screen yet.
Consequently, the charlatans financial opportunists characterized as
“deflationists” are having their 15 minutes of fame, making ridiculous
predictions like sub-$1,000 gold and sub-$13 silver, in the hopes of
generating readership and trade commissions. Remember, not only is
“deflation” a myth in fiat currency regimes (how’s your cost
of living doing?), but even if it were real (other than gasoline prices,
which constitute a very small, albeit high profile, portion of one’s budget),
Precious Metals have always been the best performing asset class
during such periods. Let alone, when prices have already been pushed
well below the industry’s cost of sustainability; and for the majority of
mines, the actual variable cost of production.
As they say, “buy low and sell high.” And if today’s historically low
prices – relative to worldwide fiat currency outstanding; mining economics;
and political, economic, financial, and monetary uncertainty – can’t convince
you today’s prices are “extremely oversold,” I don’t know what will. And, as
always, if you do decide the time is now to protect your assets with
the only real money the world has ever known, we hope you’ll call Miles
Franklin at 800-822-8080,and “give us a chance”
to earn your business.
PROTECT YOURSELF, and do it NOW!
Call Miles Franklin at 800-822-8080, and talk to one of our brokers.
Through industry-leading customer service and competitive pricing, we
aim to EARN your business.
