COMING APART AT THE SEAMS 2
by Andy Hoffman, Miles Franklin
As you can imagine, our “silver demand is a 1.5 or 2.0 of 10” article of August 13th; and special podcast, “Physical gold and silver market update – Interview with Miles Franklin’s President and Co-Founder, Andy Schectman” on August 28th, received a lot of attention. Nearly across the board, the feedback has been positive. And why not, given that we are simply speaking the TRUTH? And doing so, I might add, in a manner that both Precious Metal novices and experts alike can understand.
Of course, there are always going to be naysayers. In most cases, due ignorance. In others, simple misunderstanding. And last but not least, the “forces” of mistruth, propaganda, and fear-mongering – with various agendas tied by the common threads of preventing investors from both protecting themselves from destructive governments and Central banks; and exiting a cancerous mainstream status quo focused on overvalued financial assets. Moreover, as I have vehemently highlighted from the day I wrote my first public missive more than a decade ago, many of such “forces” emanate from supposed “good guys” within the Precious Metals industry – from “analysts,” to newsletter writers, to “compromised” bullion dealers.
That said, the TRUTH is that the physical silver market has tightened further in the ensuing weeks – to the point that junk silver is, for all intents and purposes, unavailable; whilst popular products like American Silver Eagles and Canadian Silver Maples are now quoting “November” deliveries for new orders, with premiums at their highest levels since 2009. And for those that purport the issue is limited to selective Mints; “technical” manufacturing issues; or any reason other than overwhelming demand, in the face of shrinking supply; here are two emails I received this weekend – the first from Singapore, one of Asia’s largest trading hubs.
I have known David Schectman since his Investment Rarities days and have known Andy Schectman since he started at Miles Franklin. I listen to your podcast whenever it comes out, and read the daily email/blog. I have been following your commentary about the silver shortages, and wanted to let you know what is happening on the ground here in Singapore.
I work with two of the largest and best dealers here in Singapore. Both companies are pretty much completely out of silver coins and 10 oz bars. Silver Bullion has some Philharmonics in stock and a few 1 oz / 10 oz / 1kg Koala/Kookaburra in stock and nothing else. No 100 oz / 1kg bars in stock, all on pre-order. The owner told me that they have had thousands of Maple Leafs on order for 7 weeks with no delivery date commitment. Gold Silver Central has only single pieces of Philharmonics and Eagles. They have some 1 oz / 10 oz / 1kg Koala/Kookaburra. They do have 1kg / 100 oz bars. They will not take orders on Philharmonics/Maple Leafs/Eagles as they have no commitment time frames.
Both companies are worried as once their remaining few coins and then bars are sold they have no silver to sell. Thought you might find that interesting. It appears in the next week there will be no reliable silver available for sale in the country of Singapore.
And the second, from Australia – which not only is one of the world’s most mining-centric economies, but rapidly watching its “commodity currency” dissipate into the ether.
I hope you are having a good rest this long weekend. Officially now, the Perth Mint is out of all silver bars until further notice. They won’t tell me how long a delay it is, but will not take any orders. The dealers say 6-8 weeks, but they have no idea. Junk silver is gone, as is the case in the U.S. Bullion coins – no different; still a few 10oz koalas and kookaburras, and a few 1kg coins for sale at dealers. One oz is done except for the new bullion silver kangaroos out in 2 weeks. I hear 3 million + gone already on pre-order. (MILES FRANKLIN NOTE – PLEASE CALL US REGARDING PRICING AND AVAILABILITY OF THE 2016 SILVER KANGAROO, WHICH AIMS TO BE THE AUSTRALIAN VERSION OF AMERICA’S EAGLE, AND CANADA’S MAPLE).
OK, back to the “fake world,” where smoke and mirrors increasingly futile money printing, market manipulation, and propaganda schemes are all that stand between the “end game” of complete global economic and monetary collapse. Which, in many markets, has arguably commenced already.
To that end, I wasn’t kidding when eleven months ago – with WTI crude still $81/bbl, compared to $45/bbl today – I espoused “crashing oil prices portend unspeakable horrors.” The reason being, simply, that commodity sales are the world’s largest revenue source – and crude oil, by far, the largest commodity market.
Well here we are, not even a year later; and not only is the global economy in freefall, but the vast majority of dying fiat currencies as well. To wit, the catastrophic oversupply of commodities – and vast wasteland of imploding commodity financing vehicles – is one of the most terrifying aspects of the “great deformation” caused by four decades of history’s largest fiat currency Ponzi scheme. Two weeks ago, the CRB Commodity Index briefly touched a new 40-year low – and sadly, the odds of it being “re-tested” in the coming weeks and months couldn’t be higher.
Consequently, said “unspeakable horrors” are breaking out everywhere – politically, economically, and socially – as depicted by this smattering of global headlines from the past 24 hours alone.
- Petro-state cash crunch continues, amid oil collapse proxy wars
- Power kegs exploding – Violence escalates in Turkey, Yemen as Mid-East tips towards chaos
- France prepares to bomb Syria in Retaliation for Refugee Crisis
- Putin confirms scope of military role in Syria
- In major escalation, Washington demands Greece block its airspace for Russian flights to Syria
- War drums beating – Bulgaria blocks Russian access to its airspace for flights to Syria
- Belgian farmers (protesting plunging crop prices) take on riot police with “hay cannons”
- Peak bond demand – now comes the $8 trillion dollar foreign exchange unwind
- China dumps record $94 billion of U.S. Treasuries in one month
- Global concerns may shrink Wall Street earnings
- Even Mainstream economists are fed up with the Fed
- September rate hike not even close – Goldman Sachs’ seven reasons why Yellen will delay again
In other words, it’s all “coming apart at the seams.” Throw in yesterday’s (Monday’s) oil price bloodbath and 2.6% Chinese stock plunge; and today’s news that China’s August imports and exports collapsed by 14% and 6%, respectively (can you say more devaluations coming soon?); and of course, global fears of what kind of selling might emerge as summer vacations end, with the “Shemitah” looming just a week away; and you can see how ugly today had the potential to be. Heck, we also learned that Shinzo Abe has been given the “green light” to continue “Abenomics” for another three years – igniting the next, thermo-nuclear phase of the “final currency war.” And thus, when the Shanghai stock exchange opened down again today (Tuesday) – completing the dreaded “death cross,” when its 50 DMA crossed below its 200 DMA; and traded 3% lower with just a few hours left in the trading day, at the very key round number of 3,000, the stage was set for an extremely ugly Western opening.
But then, another “miracle” arrived from the PBOC – which Goldman Sachs estimates has spent an incredible $236 billion on stock, bond, and Yuan “support operations” in the past two months alone. Yes, yet another “Hail Mary” rally, out of the blue, for no reason other than the same one that has buoyed the “Dow Jones Propaganda Average” for the past six years. I.e., pure, unadulterated manipulation.
Consequently, the “global PPT” went into hyper-drive – taking stock futures 2% higher; and blasting copper 4% higher- comically, under the “reasoning” that Glencore (the world’s largest commodity trader) would not have to sell billions of dollars’ worth of long commodity futures positions, following a massively dilutive equity offering. Of course, the fact that oil remains near its lows – as well as the majority of global commodities; with the “pink elephant” – i.e., that the global political and economic outlook didn’t improve a whit – still prominently in the center of the room. In fact, in what might be the most pitiful MSM effort ever to rationalize why stocks suddenly rose this morning, Yahoo! Finance claimed “investor optimism” because the dollar firmed against the “safe haven Japanese Yen.” Safe haven? The Japanese Yen? On the day Abenomics was just extended for three years, after the Yen plunged more than 50% in Abenomics’ first three years? Egads!
Anyhow, I think you see where I’m going with this. I.e., the sheer desperation of TPTB – or as I recently put it, the “manipulators’ last stand” – to hold together a dying global economy, monetary system, and social and geopolitical fabric with the same hyper-destructive, increasingly futile schemes that got us into this mess in the first place. To that end, don’t forget for a second that the “end of belief that Central banks can save us” is upon us; and when it ends entirely – perhaps, far sooner than most can imagine – if you haven’t protected yourself already, you may not get another chance.