by Andy Hoffman, Miles Franklin:
I rarely write on Fridays, but here I am Friday afternoon, writing my second article of the day. The first, discussing how today’s LOL, “jobs” report permanently destroyed the BLS’s credibility. The reason being, that for the first time in my 14½ years in this sector, I believe the Cartel’s demise is imminent. As in, I would be shocked if they survive July.
Yes, you are reading this correctly. I, Andy Hoffman, who rarely predicts the precise timing of anything, am “calling” the imminent end – or at least, a dramatic defeat of, the Cartel. This, after having shouted from the rooftops for the past five months, that the world “will not survive 2016 without a catastrophic financial event.” Which, care of BrExit, it most certainly is.
Yes, I could be “wrong” about the timing – in that it could certainly take longer than a month. Which, given the powers that be’s seemingly endless string of successful can-kicking exercises, would seem to be a logical bet. Not to mention, the “stakes” involved if the gold Cartel is overrun; i.e., the collapse of the global monetary system – and with it, extreme political, economic, and social instability. That said, I am not, and have never been, a Precious Metal “trader,” so it matters not. However, if I’m right that the end game has arrived – and per Tuesday’s “emergency” Audioblog, I strongly believe that to be the case – you need to protect yourself, both financially and otherwise, NOW.
Last week, I received an email from a reader not keen on my touting predictive successes, such as the Chinese Yuan devaluation, the BrExit result, and countless other macroeconomic events. And while I see his point about modesty, I believe it matters a lot to readers, to know that events are becoming so predictable, it’s entirely possible to anticipate the majority of them. Predicting rigged markets is nearly impossible, however – like the U.S. stock market closing today at an all-time high, despite nearly all other bourses being mired in bear markets; all-time high valuations, amidst all-time low fundamentals; and the fact that while the PPT was making this happen, terrified investors were taking U.S. Treasury yields to all-time lows. Not to mention, as institutional equity flows were negative for the 17th straight week – which tells us all we need to know about “who” has been buying.
Normally, I presage my principal topic with discussions of various “horrible headline” topics – and god knows, there’s plenty to go around today, from plunging Japanese and German retail sales and industrial production; to the unprecedented plunge in UK real estate; the accelerating devaluation of the Chinese Yuan; and the incredible fact that $14 trillion of global sovereign bonds now trade at negative yields. However, given how important today’s topic is – heck, it’s been the focal point of my personal and professional life for 14½ years – I’m going to get right to it.
Frankly, today’s historic “call” is not due to an epiphany I suddenly had, but the culmination of a multitude of factors observed over the past two months; starting with February 22nd’s “institutional gold and silver demand – the final piece of the puzzle” – in which I noted the return of institutional investors to Precious Metals after four years of absence; culminating in April 8th’s “PSLV secondary offering – a major, major blow to the Cartel!” And FYI, after today’s silver surge, PSLV’s premium to Net Asset Value is back up to 2.5%, just three percentage points below the 5.5% premium it traded at when the aforementioned, $86 million offering was priced.
Building on the theme of a rising tsunami of worldwide demand – against a backdrop of peak production, razor-thin above-ground inventories, exploding money printing, a collapsing global economy, and surging social unrest – I penned “it’s the commercials who should be scared” on May 10th. In which, I rebuked myriad naysayers’ belief that since the Cartel “always” achieves prices smashes when “commercial” shorts reach extended levels, prices were “certainly” headed down. Of course, none of these naysayers mentioned that in April 2011, the “commercials” were in fact routed in the silver market; i.e., forced to cover shorts manically as prices ran up to $50/oz. Only the May 1st, 2011 “Sunday Night Paper Silver Massacre” saved them that time – but I assure you; no, guarantee; that this cannot, and will not, happen again.
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