Today King World News is pleased to share with its global readers the investment recommendations of 40 year veteran Don Coxe. Coxe believes, “This schizophrenic period of gold and gold stock valuation is unsustainable.” He feels very strongly that “Investors need to invest where the demand is—and will be for coming decades.”
Coxe, who is Global Strategy Advisor to BMO ($538 billion in assets), also warned, “We remain of the view that what might be the only way for the eurozone to assemble enough firepower to give credibility to the markets is for governments which have gold to use it to back very long-term convertible bonds.”
He also issued this critical warning: “The euro’s death throes could take a long time. The elites may try to drag down as many innocent victims as possible to deflect attention from themselves.”
The Daily Bell is pleased to present this exclusive interview with Andy Hoffman (left).
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: Hi. Biographies about you are hard to find. Give us a sense of where you came from, how you ended up at Miles Franklin and what you do for them.
Andy Hoffman: I guess it’s because I’m so SECRETIVE. Just kidding. I’ve been writing publicly about precious metals for nearly a decade and am very candid about my beginnings. I’m from Long Island, New York but moved to Denver five years ago. I received my CFA 15 years ago, and worked on Wall Street from my first internship at Paine Webber in 1989 until I left the business for good in 2005. I was a bond broker at Cantor Fitzgerald for three years, a buy-side analyst/trader for two years and a sell-side analyst covering oilfield service stocks for seven, the last six at Salomon Smith Barney, where my team was one of the industry’s top-ranked for four straight years.
Fed up with Wall Street’s corruption – which I experienced first-hand at Salomon and its parent, Citigroup, and already 100% invested in precious metals (since 2002), I worked as an investor relations officer or consultant to several dozen junior miners for five years. All along (starting in 2003), I was writing FREE missives helping to educate people on the COLLAPSING global financial system, with my “Ranting Andy” moniker coined by Bill Murphy of GATA circa 2009.
In 2011, Miles Franklin’s founder – David Schectman – came across my writings and asked me to join his firm – one of the nation’s largest bullion dealers – as head of marketing. It is my calling in life and I love every aspect of the position.
Daily Bell: As director of marketing are you wedded to the idea of honest money or are competitive currencies a good step toward private monetary freedom?
Andy Hoffman: As noted above, I have been 100% invested in the sector since 2002, and over the past few years have converted ALL my mining shares to PHYSICAL bullion. It took me this long to fully understand that ONLY PHYSICAL gold and silver meet the criterion of “money,” as PROVEN by the fact that EVERY fiat currency in history has collapsed. Today will be no different, other than that we are in the ONLY period of history where ALL currencies are fiat. Thus, the implosion will be cataclysmic.
Some extremely powerful differentials in power are setting themselves up, in a manner never seen before in modern history. Those who dismiss the uniqueness of the situation are those who continually are surprised by events as they unfold. The pressure features the managers of the system, complete with corruption and fraud with official coverups in a never-ending sequence of crime scenes, pitted against the forces of justice and fair markets. Not a single fair market exists in USDollar terms. In pure Orwellian style, every single market has a US-based or London-based financial engineer at a control panel doing duty in price intervention. The Western defenders of the syndicate do not wish for the price structure to reflect the reality of physical shortage or the bounty of paper-based surplus, for the currencies to reflect true toxic value, and for the discovery price systems to reflect the raids of private accounts. The system is broken, and the pressure is building.
When young in school, the principles of entropy and enthalpy were introduced in chemistry classes. The ENTROPY was taught as the thermodynamic property toward equilibrium and dissipation. In layman’s terms it was the tendency for a system to seek greater randomness. Sometimes the dissipation comes from the scattered heat, but often the spread of physical items. Like smoke from a fireplace to spread about the neighborhood, like for the odor of nail polish remover to dissipate about the house or porch, like for the toys from a children’s playbox to relocate in every corner of the house, like for pet mice to scatter from a shoebox in a bedroom closet, like for the heat from a car engine to spread across the driveway and around the yard. Extend toward information to spread on grapevines about the office building.
The ENTHALPY was taught as a measure of the total energy of a thermodynamic system. It includes the internal energy, and the amount of energy required to contain a system by displacing its environment when establishing its volume and pressure. Enthalpy is a thermodynamic potential, which is layman’s terms can be thought of as the tendency for an object or system to seek its lowest potential energy. Like a tree toppling in the wind, like a group of items moving from the top of the stairwell to the bottom, like tattered roof parts falling to the ground, like wall ornaments hitting the floor during a storm or tremor. Extend toward a market removing its props, where all channels of data enter the room to effect change toward an equilibrium. Transfer the concept the the financial system. The lower potential energy comes from the extraordinary coils and loaded springs that hold the artificial price structure in place, even the information devices that distort truth.Enthalpy is more recently defined as the amount of heat content used or released in a system at constant pressure. Notice the rising heat within the current distorted financial system. Enthalpy is usually expressed as the change in enthalpy. The pressure in the financial markets is building. Heat is soon to be released in great volumes. The victim will be the USDollar, the USEconomy, the USTreasury Bond, and the price structures all held with great artificial forces. The system seeks the familiar randomness of fair equilibrium-based structures, not the 8am daily whack to the gold price from the London fix, not the regular 10am or 3pm rescue to the S&P500 stock index, not the regular ceiling placed on a 1% upleg in the gold price from capping efforts. The most prominent energy relief valve is the USTBond 10-year yield, which had moved below the 1.5% mark comfortably, as the Jackass forecasted. Its move toward 1.0% would signal systemic failure, as capital needs would give way to the vortex of the Black Hole of USTBonds described in May.
A little something different this week. As a change of pace, I’m the one getting interviewed. I spoke yesterday with Alasdair Macleod of GoldMoney and I think you’ll enjoy listening in.
Breakaway Consciousness 