Even if you are already wealthy, some thought on this topic is worthwhile. What would you do if some act of God or of government, a catastrophic lawsuit, or a really serious misjudgment took you back to square one? One thing about a real depression is that everybody loses. As Richard Russell has quipped, the winners are those who lose the least. As far as I'm concerned, the Greater Depression is looming, not just another cyclical downturn. You may find that although you're far ahead of your neighbors (you own precious metals, you've diversified internationally, and you don't believe much of what you hear from official sources), you're still not as prepared as you'd like.
In May 2006, while still living in New York, my wife and I walked into an adoption agency to inquire about international adoption. We had done extensive research on the topic already – and given the heart-wrenching stories of abandoned Chinese girls, care of a misguided population control experiment destined to cause significant financial and social chaos in the coming decades, we had our heart set on China.
Welcome to September! Here’s the daily Dow chart. In early morning futures market trading, the Dow is down about 330 points. It’s a horrific start to the month, and it could get much worse. Here’s why: I think Janet Yellen might raise rates in September, regardless of the effects of a rate hike on the stock market.
In terms of gold, silver is currently better value than at the beginning of the bull market in 2001. In November of 2001, when silver bottomed, the Gold/Silver ratio was about 66 compared to 78 today. In other words, gold has actually outperformed silver since the beginning of this precious metals bull market.
This morning, the Financial Times – the UK’s more straight-laced (read: boring) version of America’s relentlessly pro-Central bank, propaganda-spewing Wall Street Journal – claimed China’s government has “abandoned large scale purposes” as a means of supporting its collapsing stock market. To which, I ask the same ‘pink elephant in the room’ question; i.e., how the hell would they know what the Chinese government is doing? I mean, it’s not like they tell us.
Paper markets such as T-Bonds and the S&P 500 have been levitated by central bank “money printing,” government support, and the inevitable devaluation of fiat currencies built into the structure of the financial system. Paper markets move higher – exponentially – as currencies devalue and reset or crash to lower levels, and then repeat.
Something quite interesting took place in the silver market and I believe few investors realize the significance. After looking over the data, I came across some fascinating evidence that shows just how fearful individuals are about investing in the paper precious metal markets.
COT Silver Report - August 28, 2015
Hi, this is Andy Hoffman, Marketing Director of Miles Franklin Precious Metals, in our 26th year in business. It’s Thursday night, August 27th; and given the extreme volatility of global markets – or should I say, the historically undefeated forces of “Economic Mother Nature” taking on the manipulative forces of crumbling Central banks head on – I figured it was the perfect time for another special podcast with Miles Franklin’s President and co-founder, Andy Schectman.
The Miles Franklin Blog’s primary goal is to encourage long-term thinking, regarding the “big picture” of what’s going on in the global economy and financial markets. However, as we are currently amidst one of the most chaotic trading environments of our lifetimes – certainly, since the 2008-09 crisis – it’s difficult to avoid discussion of what’s going on each trading day.