‘Ranting Andy’ Hoffman on the Bullish Case for Physical Gold and Silver

Introduction: Andrew (“Andy”) Hoffman, CFA joined Miles Franklin as marketing director in October 2011. For a decade, he was a US-based buy-side and sell-side analyst, most notably as an II-ranked oil service analyst at Salomon Smith Barney from 1999 through 2005. Since 2002, his focus has been entirely on precious metals, and since 2006 has written free missives regarding gold, silver and macroeconomics under the moniker “Ranting Andy.” Prior to joining the company he spent five years working as an investor relations officer or consultant to numerous junior mining companies. An archive of Andy’s “RANTS” can be found on the Miles Franklin Blog.

Daily Bell: Hello again, Andy. Let’s jump right in..

Andy Hoffman: It’s always a pleasure to speak with one of the best alternative media outlets!

Daily Bell: What’s going on with gold?

Andy Hoffman: As the END GAME of fiat currency collapse approaches, we have seen the most concerted “Cartel” attempts yet to suppress PAPER gold and silver prices. I have been an expert on this topic for eleven years; and NEVER has it been so blatant. Just look at these graphs of what I call “THE 2:15 AM” and tell me if you think something nefarious is NOT going on…

The GLOBAL economy is at its LOW POINT since 2008′s Global Meltdown I, which is why the Fed, ECB, and BOJ have led the most maniacal money printing efforts to date. And thus, the PM “canary in the coal mine” has been attacked, via the most blatant “operatives” yet – such as the April 12th and 15th “ALTERNATIVE CURRENCIES DESTRUCTION.”

Daily Bell: Are we embarked on another downward leg?

Andy Hoffman: At current prices, PMs are as oversold and undervalued (relative to global MONEY PRINTING) as at any time in history and such fundamentals will only grow more bullish each day. Moreover, the PHYSICAL and PAPER markets are starting to separate. Thus, it’s difficult to believe there’s much downside here; certainly in “DOLLAR-PRICED GOLD.”

Daily Bell: Is gold finished as a wise investment?

Andy Hoffman: I have never considered my PHYSICAL gold and silver (all I own) to be “investments.” They are MONEY; or otherwise, INSURANCE. Given the increasing risks of a collapsing global economy and maniacal market manipulation, I have SCREAMED for years for people to avoid “PAPER PM Investments” like mining shares and ETFs. Given those factors, who knows what PAPER PM Investments will do? However, PHYSICAL gold and silver have lasted as money for 6,000 years; and certainly won’t lose that distinction amidst the broadest, most intense MONEY PRINTING ORGY in world history.

Daily Bell: Why are gold and silver so controversial now among some investors?

Andy Hoffman: They are not controversial at all. The “evil troika” of Washington, Wall Street/London and the MSM have combined to vilify it since the gold standard was abandoned in 1971, but particularly since the dollar’s purchasing power really started plunging at the turn of the century. “TPTB” will fight gold and silver to the death; as it represents the greatest threat to their hegemony. However, as always, they will lose.

Daily Bell: Wall Street and central bankers seem to hate gold and silver. Why?

Andy Hoffman: Bankers benefit the most from fiat currency regimes, as THEY receive the free government money (and bailouts), NOT us. In this particular regime, bankers have taken over governments (just look at where the past five or six Treasury secretaries came from), and thus, they REALLY have a lot to lose if gold and silver reassert their historical roles as money.

Daily Bell: Is gold just another commodity? How is it different?

Andy Hoffman: Yes, it’s a “commodity” in that all gold is alike. But that’s where the definition ends; as in gold‘s role as MONEY, it has no peer (other than silver). In that world, it is the FIAT CURRENCIES that are commodities; printed out of thin air, for free.

Daily Bell: Do gold and silver track other commodities or do they tend to go their separate ways?

Andy Hoffman: TPTB want you to believe they move with other commodities, certainly when they are falling. However, over time the only “commodities” gold and silver consistently correlate with are themselves – and perhaps, platinum.

Daily Bell: Are stocks and bonds safer than gold these days?

Andy Hoffman: LOL. What happened to stocks in 2000 and 2008? Of course, with the President’s Working Group on Financial Markets (i.e, the “PPT”) supporting stocks and the Fed supporting bonds (via QE) while the Exchange Stabilization Fund (i.e, the “gold Cartel”) attacks gold, it may seem so in the short term. Come back a few years from now and ask that same question.

Daily Bell: Should people just invest in stocks now? Or bonds?

Andy Hoffman: Sure, why not buy stocks amidst the worst economic conditions of our lives, at the highest P/E ratios I have seen in my 24-year Wall Street career, not to mention, bonds with all-time low yields amidst all-time high (and rising) inflation. Don’t worry; the government couldn’t possibly screw their market-support operations up.

Daily Bell: When will gold and silver rebound, if ever?

Andy Hoffman: “If ever”? Quite the harsh sentence for the ONLY asset that has ever survived as MONEY throughout history. For all I know, the PAPER price will go down further; but the harder the Cartel pushes, the stronger the (ALREADY ALL-TIME HIGH) PHYSICAL demand will get. That said, the “commercials” have been aggressively covering shorts for months so clearly they are positioning themselves for higher prices. That said, I care not when they turn, as I KNOW they eventually will – probably much sooner than most think.

Daily Bell: Are gold and silver still in a bull market?

Andy Hoffman: Of course. They have risen for 12 straight years, and the fundamentals (and valuations) have NEVER been more bullish. But the REAL question should not be whether or not gold and silver are still in a bull market but alternatively, do you believe FIAT CURRENCIES’ bear market is ready to turn around. Sorry if it sounds patronizing, but ROFLMAO.

Daily Bell: Should people understand that their positions in gold and silver are not going to gain much in the near term?

Andy Hoffman: If you are talking about “PAPER PM Investments,” as I said, they could go to ZERO or rise sharply (although I believe their upside is limited by the inevitable nationalizations and windfall profit taxes that will come with higher gold and silver prices. However, as for PHYSICAL, I KNOW they will soar over time but have no clue what they will do in the short-term. Nor do I care, as I plan on holding them until a new gold standard is inevitably created.

Daily Bell: Have gold and silver been manipulated down by the powers-that-be?

Andy Hoffman: I think I answered that pretty sufficiently. However, for those who want more PROOF, please read my daily, FREE newsletter at milesfranklin.com.

Daily Bell: There is unhappiness in the gold community over the refusal of some to speak out over perceived gold manipulation. Where do you stand on the matter?

Andy Hoffman: I have spoken out more than perhaps anyone on the planet, standing tall with the likes of Bill Murphy, Eric Sprott and others. The mining companies are too mainstream to address this all-important issue, as are “analysts” on Wall Street whose very existences are threatened by the PM bull. It will remain that way until the Cartel is overwhelmed and fiat currencies collapse – which I ASSURE you, they will.

Daily Bell: Is it necessary to take a position on manipulation or just to deal with the consequences?

Andy Hoffman: Not understanding the manipulation handicaps your efforts to PROTECT yourself and realize the LIE financial markets are. The world’s best investors make it their business to understand ALL relevant factors; and in today’s precarious world, NONE are as serious – and far-reaching – as gold and silver suppression.

Daily Bell: Where do you stand on the euro these days? Is it terminal?

Andy Hoffman: The Euro was DOA, and after just 13 measly years is on the verge of collapse: 20+ countries with 20+ agendas just doesn’t work, particularly when they are essentially all amidst economic free fall.

Daily Bell: How about the dollar? What’s going on?

Andy Hoffman: The US economy is at its lowest point since 2008 notwithstanding endless PROPAGANDA to the contrary. Yippee, the Fed fostered another housing bubble whilst Main Street collapses. The dollar is burdened by more debt than any currency in history, and Obama’s “plan” is to only increase debt by $5+ trillion over the next decade. What do you think the dollar’s purchasing power will do over this period, not against the “Euro” or “Yen” but REAL ITEMS OF VALUE?

Daily Bell: China is doing yuan swaps. Is that undermining the dollar?

Andy Hoffman: You bet it is. They, too, have a FIAT currency. But they also have the world’s largest stash of gold (though they haven’t yet admitted it) as well as a trade surplus and a strong financial position. In time – through their own trials and tribulations – the Yuan will likely be the world’s strongest currency.

Daily Bell: What do you think of the BRICs generally? Are BRIC currencies a challenge to the dollar?

Andy Hoffman: Yes, as a group. That said, each has its own individual problems and ALL are amidst very weak (and weakening) economic conditions. In time, these emerging economies will usurp the West but it will take quite a bit of time.

Daily Bell: Will we see a global fiat currency soon as national and regional currencies fail?

Andy Hoffman: Don’t understand the questions. As currencies fail, we will see increased movement toward a new GOLD STANDARD.

Daily Bell: What would a global currency look like and is it necessary?

Andy Hoffman: I have no idea, other than that it will be GOLD BACKED. When FIAT currencies fail, people will want something REAL for their good and services. ONLY gold and silver have filled this role over time.

Daily Bell: Do you think the IMF will take over as the world’s central bank? Is that a good idea?

Andy Hoffman: LOL, the IMF are a bunch of Western buffoons, on their way out as the world’s power base shifts East. They are unelected bureaucrats, funded by the very same bankrupt Western nations that are dying. And by the way, such “funding” is simply PAPER money.

Daily Bell: The BIS and IMF want central banks to cease their easing, apparently. Is that wise?

Andy Hoffman: I’m not sure what the BIS’s position is, but the IMF has ABSOLUTELY NOT; in fact, it’s pleading for the opposite per the two articles below…

Source: http://thedailybell.com/29135/Anthony-Wile-Ranting-Andy-Hoffman-on-the-Bullish-Case-for-Physical-Gold-and-Silver

No Bear Market In Gold. “Bullish Sentiment” in the Market for Physical Gold Bullion

You know that gold bear market that the financial press keeps touting? The one George Soros keeps proclaiming? Well, it is not there. The gold bear market is disinformation that is helping elites acquire the gold.

Certainly, Soros himself doesn’t believe it, as the 13-F release issued by the Securities and Exchange Commission on May 15 proves. George Soros has significantly increased his gold holding by purchasing $25.2 million of call options on the GDXJ Junior Gold Miners Index.

In addition, the Soros Fund maintains a $32 million stake in individual mines; added 1.1 million shares of GDX (a gold miners ETF) to its holdings which now stand at 2,666,000 shares valued at $70,400,000; has 1,100,000 shares in GDXJ valued at $11,506,000; and 530,000 shares in the GLD gold fund valued at $69,467,000. [values as of May 17]

The 13-F release shows the Soros Fund with $239,200,000 in gold investments. If this is bearish sentiment, what would it take to be bullish?

The media reports that Soros had sold his gold holdings came from misinterpreting the reason Soros’ holdings in the GLD gold trust declined. Soros did not sell the shares; he redeemed the paper claims for physical gold. Watching the gold ETFs, such as GLD, being looted by banksters, Soros cashed in some of his own paper gold for the real stuff.

The giveaway that Soros is extremely bullish on gold comes not only from his extensive holdings, but also from his $25.2 million call option on junior gold stocks. This is a highly leveraged bet on the weakest gold mines. With high production costs and falling gold price from constant short selling in the paper market, Soros’ bet makes no sense unless he thinks gold is heading up as the short raids concentrate gold in elite possession.

In previous articles I have explained how heavy short-selling triggers stop-loss orders and margin calls on investors in gold ETFs. Scared out of their shares or forced out by margin calls, investors’ add to the downward price pressure caused by the shorts. Bullion banks and prominent investors such as Soros are the only ones who can redeem GLD shares for physical metal. They purchase the shares that are sold in response to the falling gold price, and present the shares for redemption in gold metal.

Insiders familiar with the process describe it as looting the ETFs of their gold basis.

In my last column I described how the orchestration of a falling gold price in the paper market protects the dollar’s value from the Federal Reserve’s policy of printing 1,000 billion new ones annually. The other beneficiary of the operation is the financial elite who buy up at low prices the ETF shares sold into a falling market and redeem them for gold. Like all other forms of wealth in the West, gold is being concentrated in fewer hands, while the elite shout “bear market, get out of gold.”

The orchestrated decline in gold and silver prices is apparent from the fact that the demand for bullion in the physical market has increased while short sales in the paper market imply a flight from bullion. As a hedge fund manager told me, it is a Wall Street axiom that volume follows price. Bull markets are characterized by rising prices on high volume. Conversely bear markets feature declining prices on low volume. The current bear market in gold consists of paper gold declining steadily while demand has escalated rapidly for physical metal. This strongly indicates that demand for physical gold continues to be in a bull market despite the savage attacks on paper gold.

If the orchestration is apparent to me, a person with no experience as a gold trader, it certainly must be apparent to federal regulators. But don’t expect any action from the Commodities Future Trading Corporation. It is headed by a former Goldman Sachs executive.

And don’t expect any investigation from the financial press. The financial press sees a bear market while supplies of bullion decline, premiums over spot rise, and even publicly declared bears such as George Soros make highly leveraged bets that will fail in the absence of a bull market in gold.

Source: http://www.globalresearch.ca/no-bear-market-in-gold-bullish-sentiment-in-the-market-for-physical-gold-bullion/5335795

Aussie Dollar Weakness A Dangerous Sign For Gold

The commodities front remains mixed as the U.S. dollar’s recent rally has put downward pressures on many resource prices. Furthermore, the ongoing bull run on Wall Street has prompted many investors waiting on the sidelines to jump into equities in lieu of chasing paltry yields in the bond market or lackluster returns in the commodities space.

Surprisingly, gold has managed to keep afloat in recent weeks amid the stock market euphoria, which is a commendable feat given the extreme selling pressures it saw earlier in April. The outlook for the yellow metal remains mixed, however, as technical patterns and currency market trends are hinting at another round of selling in the near future.

Seasoned gold traders are aware of the historically high correlation the metal exhibits relative to the Australian dollar, and as such, the recent weakness seen in this currency ought be treated as a potential signpost for further selling pressures in the gold market. The fundamental reason behind why the Aussie dollar bears a direct relationship with the price of gold is fairly straightforward; Australia is one of the largest producers of gold in the world, and as a result, its currency tends to follow the price of the yellow metal, although not necessarily in perfect tandem.

The Aussie dollar has been experiencing a steep sell-off over the past two weeks, whereas gold prices have dragged along sideways, thereby potentially hinting at an impending sell-off for the precious metal. Consider the three-year daily performance chart below for the currency pair Australian Dollar/U.S. Dollar:

Notice how the AUD/USD currency pair has been fairly range-bound, with resistance lying around 1.075 and support near 0.975.  Plain and simple, the Aussie dollar has more room to fall from a technical perspective, which should raise a few red flags for gold traders looking to buy into the yellow metal [see 5 Commodity Trading Mistakes You Could Be Making].

Although gold’s recent rally is certainly steep and encouraging, the yellow metal has a history of carving out multiple-bottoms before resuming its longer-term uptrend for good. The Aussie dollar sell-off does not by any means predict lower gold prices; however, it does hint at a higher possibility for a downturn in gold given the historically direct relationship between the two asset classes.

Source: http://commodityhq.com/2013/aussie-dollar-weakness-a-dangerous-sign-for-gold/