The Miles Franklin Newsletter
|
|
From The Desk Of David Schectman
|
|
“Powell knows negative interest rates would be death to the system, and instead is banking all his chips on QE forever. It is a plan doomed to failures, as the lesser of two deadly paths. Images of chips hauled in wheelbarrows could soon be appropriate. Central bankers of the world are left with a clear choice. They will refuse to pay the US banker criminal camp a ransom for managing the global King Dollar Court, in the form of negative yields. As the USFed is forced into the solution of hyper monetary inflation gone totally out of control, chaos will result. The USGovt is guilty of self-dealing via monetized debt, which the world watches in disgust and dismay. They observe the Pure Reich Economics, resulting in financial suicide. The central bankers will opt for selling USTreasurys in favor of Gold bullion. The process has already begun, certain to accelerate in volume as well as publicity. –
Jackass
“For a glimpse of what the future might bring for Gold & Silver, observe the explosive moves in both palladium and rhodium, members of what is referred to as the Platinum Metal Group. They have no tight control mechanisms working as negative levers. When the shackles are removed from precious metals, expect similar explosive upward moves in the Gold & Silver prices.
- Jackass
It’s important to remember that the big commercial shorts in COMEX gold and silver have never collectively bought back shorts on higher prices. Never. In fact, this is prima facie proof that the commercials have manipulated (suppressed) gold and silver prices for decades. -
LeMetropole Café
|
|
David's Commentary (In Blue):
The last three days are confusing, to say the least. Gold has bounced around from a high of $1,690 to a low of $1,630 and is now slowly moving back up above $1,645.
|
|
Now $1,645 isn’t bad and the bull market is still alive and well.
|
|
The
Corona
Virus caused a knee-jerk reaction that propelled gold up $30 in a matter of hours, but the Gold Cartel put a quick end to the move. I mean the big 7 shorts were losing some seven billion dollars on their gold and silver shorts BEFORE this move and they could ill afford to let things get even more out of control. Rule number one is to curb enthusiasm at all cost. And so they did. But now gold and silver are moving back up again, albeit at a more measured pace. I wonder what will happen when the Corona Virus starts showing up all over Europe and here in the US? Will we see a repeat of Monday’s panic into gold again? Could happen. And from all reports and common sense, the Corona Virus will become a Pandemic.
Of course, it wasn’t just the gold and silver markets that reacted to the burgeoning Pandemic. The stock market has been decimated. In the last two sessions, the Dow is down nearly 2,500 points. Do you really think that this is just a normal “correction” and, depending on what you consider to be “normal” it will level off with only a 10% or - God forbid - a 20% loss? I guess that depends on whether you believe that the drop is only due to the Corona Virus – or if you think that the stock market is a bubble and the Black swan event has burst it, in which case the fall will be much more severe. How severe? According to Harry Dent (who has missed on gold so badly that I wonder why anyone reads him anymore?) or Peter Shiff, pretty damn bad. Bad enough that it could only take a handful of ounces of gold to “buy the Dow.”
The way the stock market reacts has a real impact on the price of gold (more so than silver, in the short-term, but silver will catch up and then some). One of the headwinds facing gold for the last few years has been the stock market. As long as investors feel safe in buying and holding onto stocks and as long as they believe the stock market will continue to provide beefy returns, they avoid precious metals. But when the stock market is falling and their capital is at risk, gold suddenly looks like a worthwhile option, which it is.
This presents a choice to investors. Do you want to continue to hold a very pricey, (make that over-priced) long-in-the-tooth asset or should you exit with your profits and move some into an underpriced but rapidly rising alternative like gold and silver? Everyone knows the saying, “Buy low, sell high” but doing it goes against human nature and few can or will. It was just a decade ago when many of us held onto over-valued gold and silver and avoided undervalued stocks only to see the two trends reverse. Just as they are set do reverse once again now. It’s not different this time. Those (few) who sold gold and silver and bought stocks in 2011 made a killing just as those who sell stocks now and buy gold and silver will also make a killing. Few did it then, and few will do it now.
Whenever I want clarity, I ask myself what would Richard Russell say now? I think he would say the DOW/GOLD RATIO is way out of line and the odds now favor gold over stocks. The ratio stands at 16.5 to 1 and Russell always maintained that the ratio would return to 2 to 1 or 1 to 1. So, ask yourself, are stocks still on the “pricey” side? Is gold too cheap? I guaranty you; Russell would be selling stocks now and pouring money into gold and silver. (If you want to visualize what that ratio could mean, how about the DOW at 5,000 and gold at $2,500 or $5,000?). Impossible you say? Russell would disagree.
But the DOW/GOLD RATIO is just a number. What’s happening that supports the move toward 1 to 1? For starters, how about the arrival, finally, of a Black swan – the Corona Virus. It probably won’t kill you (unless you are one of the unlucky 2%-3%) but it will very likely kill the global economy (for a year or two?) and what are the odds of the stock market stabilizing as the economy tanks? Not very good, that’s for sure.
But that’s only half the story. As for gold, the only reason it is as cheap as it is now is because of the massive and long-lasting manipulation on COMEX and LBMA (London Bullion Exchange). Shorting and use of leveraged paper investments (Derivatives) where there is only one ounce backing promises to deliver 100 ounces, keep the price in check – until is doesn’t. We are on the verge of one of those “It Doesn’t” moments. We started to see this unfold on Monday. We will again. Once the move up gains enough strength, the paper manipulation game is toast and those with the foresight to load up on gold and silver while divesting of dollar-denominated paper investments will be rewarded, big time.
And don’t overlook the fact that for the first time, gold has been classified as a Tier One asset, on the same level as the US Dollar and Treasuries. Banks can now hold their reserves in gold without a penalty. And the result is clear to see- Central banks are now accumulating gold by the tons. And paying for it by dumping US Treasuries for dollars which they use to buy the gold. Big news. Don’t ignore it.
I remind you – think like Russell, thing BIG PICTURE. Don’t get lost in the minutia. Don’t lose sight of the forest for the trees. With Bernie Sanders still in the picture (a disaster in the waiting for the stock market and economy) and if the economy and stock market tank before the election he could be elected, and the Corona virus becoming a real threat right now, the trend for stocks (down) and gold (up) have wind behind their sails.
|
|
|
|
Ed Steer
The Big 7 shorts are certainly out and about trying to save themselves from the approximately $7 billion unrealized margin call hole that they've dug for themselves, so things could get pretty wild and woolly going forward. But when the Fed lowers interest rates, they'll be toast in short order.
“Of course, dumping US Treasuries would impede China’s economic growth if dollar assets were sold and converted back into renminbi (which would appreciate). But China could diversify its reserves by converting them into another liquid asset that is less vulnerable to US primary or secondary sanctions, namely gold.
Indeed, both China and Russia have been
stockpiling
gold reserves (overtly and covertly), which explains the 30% spike in gold prices since early 2019.”
While the general level of prices is an economic concept, it is not measurable; a fact which allows the Bureau of Labour Statistics, along with all other nations who use “standardized” CPIs to effectively goal-seek an official figure for its rate of change. Two independent analysts, Chapwood Index and Shadowstats confirm each other that a more realistic rate for monetary depreciation of the US dollar is not 2%, but about 10% annually.
|
|
Watch this Peak Prosperity video on what is really happening with the Coronavirus
|
|
|
|
LeMetropole Café
Cartel’s Gold Problem Intensifying / Gold Moon Shot Just Delayed
"Central banks stand ready to lease gold in increasing quantities should the price rise." … from Alan Greenspan's testimony to the House Banking and Finance Committee on derivatives in 1998.
GO GATA!
Yesterday was as aggravating and infuriating as it gets. And, as ALWAYS, the gold world will ignore what occurred, even though a cave man would acknowledge the charade and how unnatural the gold/silver takedown was.
Gold was trading in fear trade sync with our stock market futures on Friday afternoon, Sunday night, and yesterday during the Comex trading hours. Despite a double sell off from $1684 plus, gold finished the regular trading day with nearly a $28 gain, not bad at all. The worst trading market in history, silver, finally came to life … breaking one downtrend after another; surging into new high closing ground; and moving higher on its own without ANY gold support. Silver has not traded like that in recent memory.
Then about 50 minutes after the Comex close, The Gold Cartel/JPM struck, and struck with a vengeance, selling billion dollars of futures contracts. It was as blatant a cartel attack imaginable. Meanwhile, at the end of the day, the DOW and NASDAQ closed on their lows of the day. What a farce, as Harvey Organ says.
Clearly, the bums are petrified about what is going on. First, because the gold price surge was creating mega attention to the growing coronavirus problem and potential economic disasters all over the place. Headlines such as "Gold at seven-year highs" makes them cringe. And second, because they are getting buried financially, a situation which has been worsening by the hour and day these past weeks.
All that said, the BUMS are desperate and just showed how desperate they are.
THEY wasted little time last night using their reinforcements to implement another attack on gold and silver last night. Gold was bombed down to $1632 and silver disappeared to $18.15. Both then began to recover.
Any market, like gold, which has risen 15 out of 16 days is due for a reasonable correction, no matter how bullish the set-up is. In the end no matter how the gold correction plays out short term, it won’t last very long as the physical supply situation is not going to be any less dire for the bad guys. Once again, all dips will be bought.
Meanwhile, silver remains the cheapest and worst acting asset on the planet. It was slaughtered overnight all the way back to $18.13, before recovering to $18.35 this morning, if you can call that a recovery. Sure enough, JPM is doing what was mentioned by James Mc last week, taking the price of silver down as much as possible going into its March option expiration today, targeting the $18 calls as its main target.
The gold/silver ratio roared back above 90 early on today.
The gold situation is fascinating. Any market which was just traumatized as the gold price just was, usually takes some time to compose itself. That is only natural.
At the same time, if THEIR physical gold shortage is as dire as thought here, then the gold price won’t take as long to recover would as if it were a normal market. And gold is anything but a normal market.
The daily gold chart is a tell about how dire that situation is:
|
|
|
|
Until yesterday, anyone shorting gold over the last three weeks has been slaughtered in one of the most dramatic price rises imaginable, with the gold price soaring into one all time high after another everywhere in the world except the US (Switzerland?). If correct here, the cabal’s win via their hideous bombing outrage will be short lived. THEY not only have a physical shortage problem to deal with, but a spreading coronavirus fostering the fear trade.
Silver has been, and is, another story at the moment. JPM continues to maintain its iron fist control over this market. Their problem is that with an out of control gold price taking off, the best they can do with silver is keep its price under control, which they continue to do.
The triple top in silver is quite noticeable:
|
|
|
|
After yesterday, silver ought to struggle going into first notice day for the March contract. That said, once gold begins its next assault towards $1800, it will be only a matter of time before buyers go after silver, as it is SO cheap compared to gold. When that happens, JPM will be forced to give up the ship and today’s aggravation will fade away.
Meanwhile, "criminal enterprise JP Morgan, took the price of silver right down exactly to their $18 target today to rip off any of the owners of the $18 calls. JMP’s criminal operations are off the charts. Maybe one day, WHEN the silver price blows up, with a world in economic turmoil, they will be taken to task.
Putting gold in perspective. If we go back a week ago Friday, the gold price finished the week at $1582.70. If someone had said, that price would be $1650 days later, rejoicing would have been a normal reaction.
It Was a Dive Bombing, Not a Carpet Bombing
Tuesday, 25 February 2020
Gary Tanashian
I went out in the afternoon with gold screaming upward on COVID-19 hysteria. I see something like that and I mentally prepare for the "volatility violence" we talked about in last weekend’s edition of NFTRH (#591).
Maybe some of you old hats like me remember the last bull market, from 2001 to 2008. Yes, of course you do. Massive "attacks" on gold were routine, and they seemed to come at highly sensitive times for another manipulated asset class, stocks. How on earth can you calm the herds down and tend them back into stocks if gold is flying around way up there signaling ‘all’s not well!’?
Is gold manipulated? Why, of course. Policy makers and their agents stand ready 24/7 to shall we say influence the financial markets. Does gold get the shit end of the stick while stocks get the err, golden end? Why, of course. Deal with it, and don’t cry about it. One thing I have noticed over the years is that reversals in the gold price like yesterday, seemingly out of thin air, come more often in bull markets than bear markets. It’s a fact of life in a gold bull market.
Is someone strategically taking down the metal at a sensitive moment by jiggering the futures with a multi- billion-dollar sale? Yeah, probably. Is it related to the BIS? Probably. Is it planned, coordinated and executed by scumbags trying to keep the paper and digital debt edifice from burning to the ground? Yeah, probably. Much for the same reasons they so desperately try to defend and pump stock markets.
Don’t personalize it! So, they dive bombed you (assuming you are a gold booster) yesterday. If you were prepared mentally it did not mean anything. "Volatility violence", remember? It’s easy to read someone write something like that but not so easy to sit through it when it comes about.
Yesterday it came about. The damn thing was getting overdone, anyway. It was a dive bomb, not a carpet bombing. 2 o’clock Charlie. He was a feature of the last bull market. Laugh at him, deride him, but don’t let him distract you and don’t let the Gold Bug hierarchy get you too pissed off and emotional. They are famous for excuse- making.
Gold is bullish. Silver is at support. The miners are bullish. The violence came and may not be done. For some, it may even represent opportunity.
As a final note, I am not comfortable with COVID-19 as the stimulant for gold. Insofar as this exogenous event becomes an economic event then fine, it’ll be a proper fundamental (and it looks like that’s the way it’s going). This may not turn out to be the usual gold hype that turns out to be ill-fated. But if it somehow does, no damn excuse making. Okay? Gold was doing just fine grinding out a cyclical bull market before the flu hysteria hit. Now it’s in the grip of other forces.
You can interpret that last sentence any way you’d like.
End of screed.
Gary Tanashian
|
|
|
|
Jim Willie
Jim Willie’s views on gold.
We are in the late autumn of the Kondratieff cycle. Gold will respond very favorable to the upcoming bond crisis.
Wuhan has 48 plants which supply 80% of the US pharmaceutical components. Present inventory is about three weeks and starting to run down. China will effectively shut down the US healthcare system within months, since a principal supplier of Intermediate drug components. The virus outbreak in China has exposed America’s heightened dependence on Chinese production of pharmaceutical and medical supplies, including an estimated 97% of all antibiotics and 80% of the active ingredients needed for domestic drug production.
One could look across the rough bond waters and conclude that the rush for Gold bullion is on, with USTreasurys rejected. Foreigners have abandoned the USGovt debt support for almost ten years, as in, they have stepped away since the Lehman event. They learned not to go deeper in commitments to a fraudulent crime scene, which uses extortions (Swift weapon) to force allegiance in addition to military coercion.
USGovt debt, which swelled by $17 trillion since 2014, has only been bought by the USFed, US pension funds, various government administrations and US banks. It is safe to conclude that the USGovt bought its own debt by creating money and transforming both funds at the banks and the capital of the retirees into sovereign bonds of the Treasury. The practice comes with a nasty backlash. Since these debts have been bearing a yield of less than 2% for several years, the pension funds are on the verge of bankruptcy. The primary motive for low rates is to avoid high borrowing costs for floating the $22 trillion in total USGovt debt.
The gold price will rise when the bond crisis blossoms with full recognition. Foreign sellers of USTreasurys, either for motive to buy Gold or for domestic purposes, will push up the USD value.
China will devalue the CNY significantly (a Black Swan event) that will do great damage to US equity markets, sending the US Economy into recession. The result will be to force the USFed to print like never seen before in modern history. It will ultimately lead to collapse of the US Dollar and the RESET of the Gold price multiples higher, like with an extra digit added.
China has signaled that it is done selling USTreasurys and has enough Gold to transition to the new trading system. The Net settlement of Trade will be in Gold and no longer USD/UST.
Gold is breaking out to all-time highs in almost every currency. Beware the CNY devaluation Black swan event. The Yuan comedown from the virus impact could be a major backfire in the US-UK elite faces. A global gold rally has begun, with gold rise in USD terms the last Hurrah. China lights the fuse.
Gold in Japanese yen terms is not just breaking out, but in a long-term gigantic event. With the gold moves in major Asian currencies, the backlash for the corona-virus has begun in earnest. The Japanese are abandoning and dumping the USD in size. Full panic mode has hit. The following sequence might be fantasy, might be reality for years 2020-2021. The corona-virus hits Asia. Their regional economy slides, and their currencies decline. Gold price in their currencies rises to set all-time record highs. The weakened currencies trigger a Gold price rally on a global scale, with the Gold/USD rally last. Vengeance of Asian virus will be seen in the gold market explosion, which will take down the COMES and LBMA.
The Gold price has finally broken out after the November-December correction. The chaotic repo bond market and infinite QE forever assure a multi-year gold market rise. Expect gold to soon reach $1,800.
|
|
|
|
Mark J. Lundeen
I believe now in 2020 the potential for profits in the precious metals far exceeds what is possible in the stock market.
Should the coronavirus upset the current worldview now operating at the NYSE and NASDAQ exchanges, the stock market could deflate quickly into deep double-digit percentage declines in an amazingly short time.
|
|
Private Safe Deposit Boxes
|
|
Unencumbered / Segregated Storage
|
|
About Miles Franklin
Miles Franklin was founded in January, 1990 by David MILES Schectman. David's son, Andy Schectman, our CEO, joined Miles Franklin in 1991. Miles Franklin's primary focus from 1990 through 1998 was the Swiss Annuity and we were one of the two top firms in the industry. In November, 2000, we decided to de-emphasize our focus on off-shore investing and moved primarily into gold and silver, which we felt were about to enter into a long-term bull market cycle. Our timing and our new direction proved to be the right thing to do.
We are rated A+ by the BBB with zero complaints on our record. We are recommended by many prominent newsletter writers including Doug Casey, Jim Sinclair, David Morgan, Future Money Trends and the SGT Report.
For your protection, regardless of where you live, we are licensed, regulated, bonded and background checked per Minnesota State law.
|
|
Miles Franklin
801 Twelve Oaks Center Drive
Suite 834
Wayzata, MN 55391
1-800-822-8080
|
|
Copyright © 2020. All Rights Reserved.
|
|
|
|
|
|
|
