The Ellis Martin Report Interview with Miles Franklin's Andy Hoffman
March 7, 2012
TEMR: Join me now for an interview with Andrew Hoffman, Marketing Director for http://www.milesfranklin.com. Miles Franklin Ltd. Is one of the largest full service discount-brokers for gold and silver bullion, platinum and palladium and numismatics in North America. Mr. Hoffman was a buy-side and sell-side analyst working on Wall Street at Salomon Smith Barney. For the last ten years, his focus was entirely centered on the metals markets, primarily gold and silver. Previous to joining Miles Franklin he worked as a consultant to junior mining companies. He writes a daily blog found on the Miles Franklin.com website simply called, "Ranting Andy" and we're pleased to have him as a regular guest on The Ellis Martin Report. This interview was conducted Thursday February 29th, 2012. Andy welcome to the program.
Andy Hoffman: Thanks for having me Ellis.
TEMR: I take it from what I extrapolated from Bernanke yesterday, and you know it's hard to follow him. I've got to admit you really have to be a decipherer of layers and layers of who knows what to figure out he's saying. Not to be disrespectful. But, I take it that we're just finishing up or starting to, quote in your words, "put together a printing paper orgy".
Andy Hoffman: Right. Well, it's not so much that he's the person that's difficult to understand it's all this spin that gets up around it. You know, we're talking about specifically yesterday the spin is that gold went down because of what he said. But, in fact, what he said was absolutely nothing different. I mean, literally I mean he said nothing different than they said a month ago. The fact that he said we've got, the only thing he changed his comments were there have been some diverging point regarding the production outlook and the employment outlook specific referring to last month's bogus employment report was, kind of, after the facts used as a causation of why gold was hit. And, the fact was that gold was hit because gold and silver were about to break out last week specifically silver and they had another one of their coordinated attacks which I've called the leap day violation, which not coincidently was at exactly ten o'clock a.m., which is their favorite time to attack. That's when the physical market closes for the day. So, I wouldn't worry too much about what Bernanke says. He's said it all a month ago when he said we're going to do QE to infinity out to at least 2015.
TEMR: I think you mentioned the cartel. And, by the cartel are you equating that to the big banks?
Andy Hoffman: Yes. Well, actually I'm really equating it to the U.S. Government. If you want to go on a bigger picture to the western governments trying to control all the money and the power in the world but the U.S. Government leads that. Those banks are really just their henchmen, you know, the JPMorgans and the Goldman Sachs. It's kind of like symbiotic where you have a parasitic disease. They both need each other. The politicians need the lobbying funds from Goldman Sachs. JPMorgan, Goldman Sachs need the political power. So, together they have a plunge support team that supports the stock markets. They control the Federal Reserve so they control the bond market. They control the Exchange Stabilization Fund and the non spe currency markets and, of course, this gold cartel to suppress the precious metals prices.
TEMR: Is Bernanke the cartel spokesperson?
Andy Hoffman: No. In fact, I almost think that the Federal Reserve is a puppet from these higher forces from the banks. Because, let's face it, the Federal Reserve is owned, I mean, it's a chartered bank owned by these companies. Most people don't realize that. So, yes he certainly knows what's going on but he's not the top player in the game.
TEMR: Now to some listeners this might sound like pure conspiracy theory but that's not where you're coming from.
Andy Hoffman: No. I've been a financial analyst my entire life. I'm a CFA. I worked on Wall Street as a sell-side analyst 10 or 15-years. I tax things up with numbers. I've gotten all this from the findings of GATA, the Gold Anti-Trust Action Committee. And, you know, in time I've built a database of this stuff, which I have been publishing on a daily basis for years. People like to throw around the term conspiracy theory just kind of to denigrate people. It's kind of like saying gold's a barbarous relic. It's not based on anything. The conspiracy is true. It's been admitted many, many times. There's plenty of proof from not only admissions but just from the math that shows what they're doing. And, look, let's face it everyone knows that every other market is manipulated because they admit like QE or the President's working group on capital markets. This is the only one that they don't want to admit because it's the linchpin of the whole system. The fact is that precious metals have been suppressed forever. There was a thing called the London Gold Pool, which did the exact same thing as the cartel is doing now. They did it in the 1960s. And, eventually it was broken by demand. This time they're doing the same thing they just don't admit that they're doing it.
TEMR: Is the suppression, in your opinion, politically motivated? And, will it be successful in 2012?
Andy Hoffman: Well, yes it's politically motivated. It's the ultimate battle that goes back centuries between real money and paper money because paper money is what gives governments power. It enables them to give entitlements to anyone they want so they can get votes. It enables them to get any spending plans they want through. It enables them to make powerful friends and to keep their powerbase. Physical money, gold and silver, does not allow them to do that because you can only print as much money as there is gold. So, it's been the enemy of government forever. And, it's been tried, you know, dozens and dozens of times, if not hundreds of times, these fiat standards for the same reason, power. And, every single time they fail. This one, like all the other ones, is failing. It's now 41-years old since we've gone onto, not just a one country money standard, we're on a fiat standard for the entire world. And, obviously it's not working because we're seeing massive, massive debts everywhere. We're seeing massive inflations everywhere. And, of course, even with the suppression the price of gold has gone up 7 or 8 times.
TEMR: I understand the Korean Government is printing a lot of fake U.S. dollars. How is what this government is doing or the Fed, how's this not the same sort of fraud?
Andy Hoffman: Well, it is the same fraud. And, that's the beauty of having an entire world on a fiat currency standard. Every single government is printing money at will because there's no backing to what they're doing. Now, of course, the Korean Government can't impact the world that much because very few people use the Korean won for transactions. But, you know, some of the countries we have seen destroy their currencies just recently. We've seen it in Hungary and Argentina, in Zimbabwe. This is just that has happened in the last few years. I put out a piece maybe a week or two ago called Fiat Failure where I documented all of the just the modern era collapses of fiat currency. And, you wouldn't believe it. It's literally happened in almost every country. It's happened 3 times in the United States and people wouldn't realize it. The continental currency was destroyed by the Revolutionary War, the confederate dollar by the Civil War and the greenback, which was the northern dollar in the Civil War created by Abraham Lincoln, a fiat dollar, was about to be destroyed when the war ended. So, otherwise we would've lost 3 currencies.
TEMR: Is it destined to happen again?
Andy Hoffman: Yes. It's happening right now. It's just a matter of pace. I mean, you know, things like yesterday to me just show how close we are to the end. I document the attacks like yesterday constantly. They're becoming more intense and more concentrated meaning the intervals between such efforts are increasing. Yet the price of gold is still sitting in the $1,700.00, meaning they're getting diminishing returns for all these attacks. And, the fact is you look around at the reality of what's going on with the debts of the world, with the economies of the world, with the inflations of the world and it's just a matter of time. And, it's not, oh it's going to be 3/5-years. No. this is happening now. 2011 was a major year for changes. Obviously 2008 was. And, I believe 2012, before the year's over, you're going to see major, major changes in the way people view the world's economy.
TEMR: Are you referring to in part the price of gold and silver? One of our other contributors, Jim Sinclair's, predicted for 2012 a $1,700.00 to $2,100.00 an ounce figure for gold. Are you in line with that or do you see it going even higher before December 31st?
Andy Hoffman: Well, I'm a little careful with predictions at a certain time because so many variables, including like what you saw yesterday are in play. But, I certainly am on record based on my technical and fundamental analysis of believing that we're going to be setting new all-time highs later this year. Certainly $2,000.00 gold and $50.00 silver look like no-brainers to me. But, you know, could these things be March? Could it be December? It's hard to tell. Could it even get to next year? You just never know. But, I am hard-pressed to believe that we're not going to be challenging gold's all-time high from last August, you know, in the next 3 to 6 months if not sooner.
TEMR: Now when I see a pullback of the kind we saw yesterday and having had extensive conservations with David Morgan about the price of silver and I bought a bunch of it when it was under $30.00. Unfortunately I didn't do so when it was under $10.00. When there's a contraction based on fluffy superficial news putout more or less by the cartel, boy do I sound like I have an attitude today, when I hear something like that I want to contact Miles Franklin and stock up on bullion.
Andy Hoffman: Well, that's right. And, you know, again, it didn't contract based on news. It was violently attacked with naked shorting. The evidence is there. Again, people say conspiracy. The evidence is there. There were contracts that traded 375 million ounces worth of paper silver right at the time Bernanke started speaking. And, you know, that's when silver fell $3.00 in a matter of half an hour/45 minutes. That's a half of all of the physical silver production of the entire world for 6-months. So, it had nothing to do with the news. Bernanke said nothing. I mean, this was more of a fear. Look you saw gold and particularly silver really starting to break-out. Earlier that day you had the LTRO in Europe up 530 billion euros just printed and given out to banks, a major monetary inflation event and so they attacked. And, you know, maybe it takes a week to get back to where we were. Maybe it takes a month. But, we'll be right back there again and then we will challenge those highs. I believe that very strongly and the impact of physiological numbers. And, I know the cartel does too because that $2,000.00 gold and $50.00 silver are looming right in front of everyone's eyes.
TEMR: The banks themselves are doing the naked shorting.
Andy Hoffman: Well, look, naked shorting simply means selling something you don't own. Because, you know, the concept of shorting was obviously created by the banks way back when just to get commissions. Because they figured oh if people have stocks in the banks we can have other people borrow those stocks and then they'd have to pay us an interest rate, a margin interest rate to borrow those stocks and then we get a commission on them shorting it and then covering their shorts. But, that was way back when, when it was actually legitimate. I've never been a big fan of the concept but it was legitimately done. Now we're at the point where, particularly the big banks, are naked shortening, meaning they are not borrowing the stock. They are just putting in sell orders. And, when it comes to the precious metals, whether you're talking about the mining shares or the paper gold, like GLD, and the futures contracts, like at the COMEX, this is pure, pure naked shorting. Wouldn't it be great if you could just have an unlimited license to put in as many orders as you wanted. If you wanted to own let's say Tanzanian Royalty and you wanted it to go up you had the ability to buy all the shares that you wanted and never have to put up the money. Or if you wanted it down you could short all the shares you wanted and never have to borrow the shares to get them. That's what naked shorting is and there is no sector that you see it more than precious metals.
TEMR: So, the banks can never back it up they don't have enough gold.
Andy Hoffman: No, not even close. You know, it's been admitted by some of the cartel apologists that the paper silver and gold markets are hundreds if not thousands times larger than the real market behind them. And, that's what they want you to do. They want people to, if they're going to buy gold, they want them to think that things like GLD are actually gold. They're pieces of paper that the custodians are the very same people who are trying to manipulate. I mean, the fact that SLV, the custodian is JPMorgan who's being sued by half the planet for naked shorting silver should show you how untrustworthy these naked funds are.
TEMR: You mentioned the word, people, Andy. We've been talking about all these institutions as if they're institutions and they are but they're made-up of people. What people are benefiting from all of this?
Andy Hoffman: Very few. When they say the 1% I think that's highly overestimating it. This is a topic I write about constantly, about human nature and how it is that these people that are at the top of this food chain can get this way. And, I'm not talking about Bernie Madoff people. I'm talking about way, way above Bernie Madoff people. The Bilderbergs, the people who are the top politicians and some of these bankers. A guy like Mario Monti, a guy who's been installed to run Italy. He's from Goldman Sachs. He's from the Trilateral Commission. I don't know where they get these people. But, these are the type of people who are benefiting. All the banks that are receiving the ZIRP, the zero interest rate policy money the top executives there they're benefiting in a big way and all the politicians that get the lobbying funds, such as Obama's administration, Mit Romney's campaign, George Bush's, you name it. That's who's benefiting. The rest of the people get nothing.
TEMR: There is not a conspiracy theory there's only truth.
Andy Hoffman: Yeah and much of it is documented.
TEMR: What are we going to do with all this information in our heads?
Andy Hoffman: Right, ok. Well, precious metals is the only real money. And, I can't emphasize enough that precious metals is not an investment. I mean, paper precious metals is. If you're buying GLD or a stock that certainly is. But, if you're buying the metals you have to think of it as real money. And, Miles Franklin we are one of the biggest bullion dealers in America. Our job is to help you to purchase precious metals. And, if you want to store them we have storage facilities in both the United States and Canada.
TEMR: Talk to me about "Ranting Andy".
Andy Hoffman: I'm from New York. I live in Denver now. But, I spent 15 or 20-years as a Wall Street analyst. I did everything. I was a broker, a sell-side analyst, buy-side analyst. I left that business in 2005 because it disgusted me. I spent most of my career at Solomon Smith Barney. I saw all the corruption. I saw all the conflict of interest. And, I also back in 2002 became 100% invested in precious metals. When I left Wall Street in 2005 I just taught myself the business. And, I've been working for mining companies as a consultant or an invest relationship officer up until this year when I joined Miles Franklin. As far as "Ranting Andy" I've been writing, God, since 2006 or 2007 a free blog just to educate people about protecting themselves about the things I'm talking about here, not about recommendations. It's not about stocks. It's not about anything other than helping to protect people. And, now that I'm at Miles Franklin I can do it through this major platform. And, Miles Franklin we have a meeting of the minds. David Schectman who started the firm 20-years ago he still writes a daily blog every day. He thinks exactly as I do about the benefits of educating people about this sector, which has so much propaganda surrounding it.
TEMR: One final question Andy. What are we going to do with all this gold and silver bullion that some of us are collecting when the currency collapses? We're not going to want to turn it back into cash. What are we going to do with it?
Andy Hoffman: Right. Well, look, this is the kind of thing where people are always saying well what if this, what if that. And, the fact is we all know that what's coming ahead is going to be unprecedented. What we're seeing today is unprecedented but what's coming ahead is going to be more so. Now, can I say we're going to have a "currency collapse" where in one day everything is gone? Is it going to be more gradual? Will we bomb Iran and we'll have a World War? I mean, I don't know. But, I do know this, there is no scenario going forward in which the value of paper money, particularly the U.S. dollar is going to be higher or which the value of precious metals is going to be lower. I want to cross that bridge when I get it because when I get to that bridge I assure you that precious metals are going to be worth more and the dollar is worth less.
TEMR: The website is, milesfranklin.com. Ranting Andy, Andy Hoffman's blog is free and easy to access. Thanks so much for joining me today Andy.
Andy Hoffman: Thanks for having me.
TEMR: Find a link to milesfranklin.com on the homepage of our website, ellismartinreport.com.
Miles Franklin is a paid sponsor of The Ellis Martin Report
2012 Ellis Martin Report