The Miles Franklin Newsletter
|
|
From The Desk Of David Schectman
|
|
Liquidity Is a Coward
If long-term rates are in fact headed well below 1%, it would imply that a deep economic slump is coming. As for stocks, Doug thinks the eager buyers that have powered the bull market for 11 years are about to vanish from the scene. ‘Liquidity is a coward’, he notes, recalling an observation frequently tied to Ray Devoe. An
article on the subject
at Nasdaq.com explains: “Money will flow to where it is best treated. If the markets should be declining, then the potential buyers can step aside, allowing the markets to fall into a vacuum created by their absence. This process becomes self-actualizing as lower prices generate margin calls, which begets forced selling, more impatient (and frightened) sellers, and ever-lower prices.”
Just so. For Baby Boomers in particular, this could pose a serious problem. They have 75% of their liquid net worth in S&P 500 stocks, notes Doug, and the robust liquidity that rising markets have provided has gotten them used to treating their stock portfolios like cash. They could be in for a rude awakening if they have to raise money in a hurry by selling, say, Apple shares when they are falling. Doug thinks the S&Ps could come down as hard as Nasdaq stocks did when the dot-com bubble burst in 2001. If this happens, he says, financial advisors will be ruinously telling their Baby Boomer clients to sit tight. For now though, he says, ‘complacency is unbelievable.’
– Rick Ackerman
|
|
David's Commentary (In Blue):
Today’s daily is very important and should be read.
There is nothing here that I haven’t already covered.
Between the Fed’s open spigot monetary policies (Repo and lower interest rates) and the growing reality of a Pandemic, it is really time to baton down the hatch and pay close attention to what is happening. If you don’t take these events seriously, there will be consequences.
If ever, now is the time to stock up on food and necessities – and gold and silver - not as an “investment,” but because its real purpose is to serve as your financial life line. That time is here - NOW. Junk silver bags (while still available) and 1/10
th
oz or ¼ oz gold coins have never made more sense. Once the public figures out what is happening, supplies will dry up, as they have in the past. And, if I’m wrong, you will end up with gold and silver in the early stages of a bull market at very low prices. There is nothing to lose here, in fact, for some of you, it may just be the trigger to get you to accumulate metals now – with no downside.
The following article (Pandemic Crisis Will Probably Develop Over the Next Year) is worst-case, but the logic behind it is inescapable.
It is linked below.
I am not a reactionary, but I am taking this very seriously.
Check out
Tiller and Hatch
on the internet. They offer a sensible way to make sure you do not run out of food if/when the shelves are empty.
|
|
|
|
LeMetropole Cafe
Alarm bells continue to go off in the financial market world. They went off for me at 6:20 this morning at a Holiday Inn Express in North Palm Beach, Florida. The loudest alarm bell you can imagine began sounding, which meant my wake-up call to get on the MIDAS commentary was 10 minutes early. It went on for a half hour as all the guests poured outside. Turns out someone pulled a fire alarm clock. Get to know your vacationing neighbor day for 30 minutes. Then, once back in the room it went off for another 10 minutes due to a loose wire.
The Comex closes from yesterday: Gold $1642.10 -- Silver $17.15.
The DOW finished down 786 yesterday to 25,917. The DOG lost 268 to 8,684.
First thought for this day was about yesterday.
On Friday the gold market pundits were blaming the gold price collapse on margin call selling when our camp knew all the initial selling was Gold Cartel initiated, as a continuation of the blatant hit on silver all week. So gold soars yesterday while our stock market indexes gave back two thirds of what they made on Monday on their mega moves higher. What happened to the gold margin call selling yesterday? It is called a physical gold market on fire making the cabal forces tedious price suppression scheme dysfunctional.
Overnight gold rose to $1650, plunged close to $1630, and now has returned to $1645 with the Comex opening an hour away. Nothingberger silver is up a few pennies, as JPM yawns with its finger still on the control price button.
The DOW is due 650+ higher this morning.
The contrast between the gold and silver charts, one being incredibly unique and powerful and the other completely the opposite, is stark…
Gold:
|
|
|
|
The reason has been expressed here much, which you know all too well by now.
The Gold Cartel has blown up because they don’t have enough physical gold supply anymore to counter strong demand for physical all over the world. Yes, they have blown up because of this. On the other hand, criminal enterprise operator JP Morgan has dominated the silver price for nearly 9 years and buried the silver price last week to influence stunned spec longs to liquidate their futures positions so they can cover their shorts before the super cheap silver price takes off as gold has. So, it remains in the dumpster no matter what the gold price does.
It is difficult to concentrate after the loudest alarm bell imaginable shook my room for so long, but it could not be clearer gold is headed for the moon. The cabal tried to shoot down the GATA rocket. THEY nicked it, but that rocket is back on course.
Understandably, there is all kinds of commentary about the Fed rate cut, with much more of that to come. Many of the smart ones in our camp have been sounding their own alarms about the behind the scenes over worrisome status of our stock market and weaker than understood economy … that both have been boosted by excessive debt, excessive money printing, and the PPT, etc. Their fear and warning has been that a Black Swan would appear, as per 2008, and truly shake up investors … which is what has occurred due to the spreading of the coronavirus.
A very visible sign of that alarm is the yield of our 10 yr T note, which, already at historic lows, fell as low as .94% yesterday before bouncing back a bit.
The gold open interest rose 5,971 contracts to 691,985. The silver open interest rose 1,521 contracts to 196,909. The gold OI rise was VERY modest considering what the price of gold did on the upside. No surprise the silver OI went up, but it is still some 45,000 contracts off of its all-time high.
Just back from the funeral mass for my special buddy Senator John Langan at St. Patrick’s church in Jupiter, Florida. It was special and a bit emotional. Afterwards the sizeable attendees went to Trump’s National Country Club down the road for a most fun lunch.
Didn’t miss much in the gold/silver scene today. No surprise they quieted down after yesterday.
|
|
|
|
Mike Savage
74 billion in Repos- DOW still loses over 800
I am writing this on Tuesday afternoon and am watching the US stock markets fall for a second day. What most people are likely unaware of is that even though the Fed pumped $40 billion into the “markets” on Monday the Dow fell over 1000 points and the major averages all lost 3% +. Everyone knows about the market drop but most are still unaware of the Fed’s interventions. This is in ADDITION to the $60 billion per month in Treasury buying.
|
|
|
|
LeMetropole Café
After watching and exposing their precious metals price suppression schemes for more than 20 years, it is a pleasure watching The Gold Cartel continue to blow up (a gradual process now) because they have run out of enough physical gold to use as ammo as they did that whole time. It is both mindboggling, and par for the course, that no one in the gold world will discuss that development, one of the most important ever in the history of the gold market.
What a day to get out of here early! Gold popped further to $1643 and silver climbed to $17.37. Both then set back. The Gold Cartel is in such bad shape that the gold price has now recovered all of its losses inflicted last Friday. Such a recovery is UNPRECEDENTED!
The gold price kept on rising like the energizer bunny, making a high of $1649.
Gold has never recovered like this so quickly from a raid ever in history (to my knowledge)…
|
|
|
|
Even as gold made that high, JPM sat on silver and it downticked. Beyond sickening.
Most likely JPM has not covered enough of its shorts yet, so they backed off the price of silver this morning some 35 cents. They had better cover those shorts in the near future as silver is a ticking time bomb waiting to go off…
|
|
|
|
Chris Vermeulen
Weekly Gold Price Pattern from 2007 – 2017
This chart, below, highlights the downside price rotation that took place just before and as the US stock markets collapsed in late 2008 and 2009. Notice how Gold collapsed nearly 28% right as extreme market weakness began to become present in the US stock market. Then, pay attention to how Gold rallied from $730 in multiple upside price legs to a peak just below $1900 – well above 110%. Could the same pattern already be setting up in 2020?
|
|
|
|
Ronan Manly
Physical gold demand at record levels as paper gold price disconnects
Dear Friend of GATA and Gold:
Last week's smash in the gold price, Bullion Star researcher Ronan Manly writes today, was entirely a matter of derivatives trading, contradicting the physical market, which experienced rising demand and remains strong.
This kind of action, Manly contends, shows that the world's price discovery mechanism for gold is broken and is leading to shortages of real metal.
Manly writes: "If paper gold prices continue to go lower in the presence of continued high physical demand, more paper market participants would want to convert their paper (unallocated positions and futures) into physical holdings. Given the very small physical gold stocks underpinning the London over-the-counter and Comex markets, an increase at the margin in conversions could overwhelm the ability of the paper markets to deliver physical -- Comex-deliverable contracts and allocating from unallocated gold in London. This would seize up the paper-market price, the paper market would collapse, and pricing would switch to physical."
Well, we can hope.
Manly's analysis is headlined "Physical Gold Demand at Record Levels, Paper Gold Price Disconnect" and it's posted at Bullion Star here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
|
|
|
|
Zero Hedge
Bill Fleckenstein: Coronavirus Will Cause A "Confidence Crisis" In The Fed
Money manager and metals specialist Bill Fleckenstein appeared on the
Quoth the Raven Podcast
on Sunday to give his thoughts about gold, the market's reaction to coronavirus and the Fed's coming "confidence crisis".
Gold
First, talking about last week's move in gold, Fleckenstein says he doesn't attribute the move to margin calls, as many had speculated. He instead says that gold likely just fell victim to "hot money", which he noted often happens when gold spot rallies hard and the miners don't follow - exactly what happened last week.
Bill said:
"Gold has gone up, but the mining stocks really didn't participate. That concerned me because when the mining stock sputter and gold keeps going, then gold gets hit,"
he says.
He continued:
"When gold was spiking on the coronavirus news, it didn't quite act right in conjunction with other things, and I was a little nervous. Then, of course, it got destroyed on Friday.
I suspect there was a lot of trend following money in gold. A lot of hot money. Hot money because it's going up.
"
The Market's Volatility
The rally late last week was because people thought the "Fed was going to save them". Fleckenstein says he doesn't believe it to be the case
that the Fed is going to give the market a rate cut anytime soon. He thinks the market will have to crash further before central banks intervene.
He also doesn't think we've seen real panic in the equity markets yet.
"When I look at the personalities of some of the absolute crap, like Tesla, they're still valued like a total joke. I don't think we saw a hell of a lot of panic,"
he says.
"This was not about illiquidity".
The Fed's Coming Crisis
Bill continued:
"The Central Banks are going to get panicked. They're panic prone because they're so stupid,"
he says.
He also thinks the market is eventually going to wise-up to what the Fed is doing:
"This is the moment in time we have been waiting for.
Those of us who think these central bank policies are no good. We're at the moment in time where they could lose credibility to a certain degree," he says of the Federal Reserve.
"Slowly but surely people could realize it's not working."
He continued: "The Fed probably won't cut today and the market's going to keep getting tattered until the Fed does. But the real opportunity on the short side will be the big rally after when the Fed cuts. That rally ought to fail. If that failed rally occurs and they start down again, they will accelerate a lot, and you will have broken the psychology of the 'The Fed can rescue us'."
|
|
|
|
SRSrocco
Fed Repo Injections Hit Record Level: Global Contagion Negatively Impacting Financial Markets
The Fed injected a record amount of liquidity this morning via its Repo Market Operation to supply dealers in the interbank market. While investors may be reassured by the huge 1293 point rally on the Dow yesterday, the global contagion and its impact are just beginning. Don’t be surprised to see a 40-50% correction in the Dow Jones over the next month.
|
|
Don't Buy Another Precious Metal Until You Hear This!
|
|
In this exclusive interview Andy Schectman the President of Miles Franklin Precious Metals Investments sits down with Maurice Jackson of Proven and Probable to discuss the merits of owning government minted vs private minted coins and how fit into your precious metals portfolio. We break terms such as bullion, spot price, ask price, bid price, American Silver Eagle, Junk Silver, Silver Rounds, Numismatic Coins, the best value proposition they present for you. Proven and Probable Where we deliver Mining Insights & Bullion Sales. I’m a licensed broker for Miles Franklin Precious Metals Investments. Where we provide unlimited options to expand your precious metals portfolio, from physical deliver, offshore depositories, precious metals IRA’s, and private blockchain distributed ledger technology. Call me directly at (855) 505-1900 or you may email maurice@milesfranklin.com. Proven and Probable provides insights on mining companies, junior miners, gold mining stocks, uranium, silver, platinum, zinc & copper mining stocks, silver and gold bullion in Canada, the US, Australia and beyond.
|
|
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.
|
|
|
|
|
|
|
