I spoke briefly with ‘Ranting’ Andy Hoffman at Miles Frankiln to get his take on the smoldering ash that is the paper precious metals market today. I asked him what he thinks is at the root of this dramatic body slam in the prices of the metals.
I don’t have all of the answers, but I sure have a heck of a lot of questions. Is this new revelation of hypothecation and rehypothecation starting to wake everyone up to the dangers of paper, I asked. Could any of us have guessed that the corruption and leverage in the system was this bad, just a couple of months ago, pre-MF Global?
Andy responded:
“Today has nothing to do with re-hypothecation, other than the fact the PAPER market volume has been COLLAPSING for years, and will only do so more as people flee the fraudulent COMEX, in turn making it thinner and thus more susceptible to manipulation. Until the COMEX dies….”
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