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Updated: 5 hours 39 min ago

National Post mocks gold manipulation without ever questioning a central bank

Fri, 05/27/2016 - 22:17

All any journalist has to do is ask them about gold swaps and leases, but no one dares to do it:

http://www.gata.org/node/16341

http://www.gata.org/node/12016

* * *

Shine Fades on Scotiabank's Gold Business as Banks Land in Court over Alleged Price Manipulation

Barbara Shecter and Peter Koven
National Post, Toronto
Friday, May 27, 2016

http://business.financialpost.com/news/fp-street/shine-fades-on-scotiaba...

In 2004, Rick Waugh, then Bank of Nova Scotia's chief executive, proudly posed with a gold bar for a photo to tout the Canadian bank’s new leadership position among the world’s top bullion dealers. In May that year, Scotiabank became the first non-British bank to chair the London Gold Fixing, a twice-daily setting of a key benchmark price for gold. It felt like a landmark moment for the bank.

But a little more than a decade later, Waugh's successor Brian Porter found himself in a less pleasant sort of spotlight, as lawsuits began to roll in against Scotia and the other banks involved in setting benchmark prices for precious metals (known as the "fix"): Deutsche Bank Societe Generale, Barclays, and HSBC.

... Dispatch continues below ...


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The allegations at the heart of the proposed class action lawsuits, filed in New York and Ontario, are unproven, but they are serious.

The five banks are accused of manipulating the gold market, which is worth trillions of dollars in trading value per year. A smaller subset, including Scotiabank, is accused of manipulating the silver market by rigging the daily Silver Fix. UBS AG, meanwhile, is accused of conspiring to exploit metals prices.

In a wrinkle that became public this year, one of the defendants -- Deutsche Bank -- is close to settling and co-operating with the plaintiffs in order to extract itself from the U.S. lawsuit. That puts the remaining defendants in a highly uncomfortable position, even if they have done nothing wrong.

A statement of claim in one of the Canadian lawsuits, filed in February, alleges the five banks "conspired" to rig precious metals pricing for their own benefit for nearly 10 years.

"Beginning at least as early as 2004 and continuing through to June 30, 2013, the defendants conspired with each other to fix, raise, decrease, maintain, stabilize, control, or enhance unreasonably prices in the gold market," the claim states.

"This was accomplished through daily conspiratorial communications under the guise of the arcane fixing process," which, the lawsuit alleges, "provided a veneer of false legitimacy for collusion."

The fixing process produced a benchmark price for gold that the lawsuit claims affected the broader market for gold instruments including coins, futures, options, exchange-traded funds and mutual funds.

Canadian plaintiffs also filed a silver manipulation suit with similar allegations.

Scotiabank declined to comment because the matter is before the courts.

Canada's third-largest bank became a big player in bullion dealing in 1997, when it acquired Mocatta Bullion, which had 180 employees in 10 offices around the world. The bank recently closed a small office in Dubai, but said in a statement that "ScotiaMocatta remains an important part" of its global banking and markets business.

The controversy over precious metals fixing didn't come out of nowhere. Since the 2008 financial crisis, accusations that global banks have manipulated various benchmark rates have been at the heart of several ongoing legal and regulatory wrangles. Most famously, several of the world's largest banks in 2015 were fined nearly US$6 billion over alleged rigging of the London Interbank Offered Rate (LIBOR).

Precious metals price fixing is an archaic process that dates back to the late 19th and early 20th centuries (1897 for silver and 1919 for gold).

Somehow, the process didn't undergo a significant change until 2014. Until then, a group of bankers from bullion banks got together daily in London and set a daily benchmark price for the commodity based around their buy and sell orders. (They eventually stopped meeting in person and just did it over the phone).

"In effect, they were setting the prices of their own financial instruments," said Daniel Brockett, a lawyer at Quinn Emanuel Urquhart & Sullivan LLP, who is spearheading the U.S. lawsuit.

The fix price may seem irrelevant to investors, who trade on the open market, but it is an important benchmarks for companies that buy and sell physical metal on a daily basis, including mining firms, jewelers and refiners.

The fixing model created obvious opportunities for abuse, given that competing banks worked together to set the price without any outside oversight.

But after the LIBOR scandal rattled Europe's financial sector, regulators and investors began looking at precious metals fixing with greater scrutiny.

"The way it worked was completely, in my view, unacceptable," said Rosa Abrantes-Metz, managing director at Global Economics Group, who has identified some questionable trades around the gold fix.

"Under any antitrust view, I don't think this kind of direct, private communications among competitors would have been allowed. And as soon as antitrust regulators realized how the fixing worked, they changed it."

The very nature of the self-regulated fixing process has over the years outraged gold and silver bugs, who see it as proof of a grand conspiracy to drive down the price. And while that theory has never come close to panning out, the fix has produced some genuine controversy.

In 2014, Barclays was fined US$44 million over allegations that a trader tried to manipulate the "fix" price of gold. And earlier this year, silver bulls were livid when the price was repeatedly fixed at levels lower than the spot price the same day.

The fixing process has been reformed over the past couple of years. In 2014, Thomson Reuters Corp. and CME Group Inc. assumed independent oversight of the silver fix, eventually installing an electronic, auction-based system.

The Intercontinental Exchange (ICE) became the gold fix's administrator the same year, and also adopted an electronic platform. Transparency is now much higher, although regulators are expected to push for more changes.

Abrantes-Metz said there are still lingering problems with the system. Most notably, she said, the price continues to be determined at a specific moment in time, when it should be established over several minutes of trading.

"In my view, it is still easier than it should be to manipulate prices during the fixing," she said.

According to the proposed Canadian gold fixing lawsuit, first filed last December, regulatory probes around precious metals fixing continue in the United States, Switzerland, and the United Kingdom.

All but one of the banks embroiled in the U.S. lawsuit went to court in April to try to have the case tossed out. Representatives for Scotiabank, HSBC, Société Générale and Barclays argued that there are simply no facts to back up the claims.

But Brockett said he is prepared to build the case and will push ahead with discovery if the presiding judge rejects the motion to dismiss. A decision on the dismissal motion is expected in the next 30 to 90 days.

"I think our complaint is very strong," he said. "When you have a circumstance where competitors are getting on the phone, even if they're ostensibly doing it to set a legitimate benchmark, there's a lot of temptation there to be able to coordinate information."

Notably absent from the dismissal motion argued in court was Deutsche Bank. According to Brockett, the large German bank is close to reaching a US$60-million settlement. As part of that deal, it will help the plaintiffs with their remaining claims against the other banks.

Some media reports have suggested this would mean providing instant messages, emails and other communications. Brockett said he could not disclose the specifics at this point, as the settlement requires the judge's approval, which is still pending.

It is unclear how Deutsche Bank's co-operation with U.S. plaintiffs would impact the lawsuits on either side of the border. Experts noted that it doesn't necessarily reflect the strength of the case or the value of potential settlements involving other players.

The German bank has good reason to exit this lawsuit, and the move did not come as a big surprise to onlookers. Deutsche Bank has been under greater financial pressure than most of its peers, and has been cutting costs and shedding most of its commodity business -- indeed, Deutsche gave up its seats on the gold and silver fix in 2014 without finding any buyers.

Jeffrey Christian, managing partner of CPM Group and a close follower of the gold market, said he doubts the plaintiffs will get anything of value out of Deutsche Bank's co-operation. Although gold bugs hope the bank will lift the veil on some sort of grand conspiracy to suppress gold prices, he said concerns about the fix process involve minor manipulations at best.

Christian noted Deutsche has spent more than US$13 billion settling lawsuits in recent years, meaning it clearly wants to eliminate any overhang from legal actions, even if they are just nuisance suits.

He also noted that if precious metals fixing was such a good business and there was a lot of money to be made from being an insider, Deutsche wouldn't be so keen to give up on it, even with the heightened regulatory scrutiny of the past couple of years.

"If you're in the fix, you have to trade spot physical metal, which is probably one of the least profitable bullion transactions you can make," he said. "And it's very cumbersome and expensive to execute."

Peter Griffin, one of Canada's top litigators and a specialist in business and securities law, said it is not unusual to see divergence in cases with multiple defendants, particularly as they work their way through the regulatory process or the courts.

"You often have different interests at play amongst the defendants," said Griffin, a partner at Lenczner Slaght in Toronto, who is not involved in the precious metals fixing cases. "So as time goes on, some of the commonality of the defence starts to erode just as people start to look at their own interests."

Griffin said there can also be a "first settler advantage," where plaintiffs are willing to accept less money than they'll demand later, partly because a chunk of the initial settlement funds the ongoing lawsuit.

"Really, the issue amongst the defendants is who has what stomach for the fight. Often you're going to find that you end up with one or two defendants in these multi-defendant claims who go the distance," he said. "In certain circumstances, you might actually outlast the plaintiff and get a better deal if you're the last person standing."

Still, the risks must be balanced. Although there are mechanisms that allow the remaining defendants to limit their liability while others settle, the outcome of a trial cannot be guaranteed. And if damages must be paid -- particularly punitive ones popular in the U.S. -- Griffin said it can be "daunting" for a defendant standing alone.

"Trials are an unruly business because it's human beings trying to convince other human beings about a set of facts and a position, and people react differently," he said. "That's just the way trials are. So it's a risk you take if you're the last person."

The precious metals price-fixing lawsuits come on the heels of numerous other lawsuits that have accused banks of manipulating interest rates and foreign exchange rates.

Brockett was involved in a number of class-action suits that accuse banks of price fixing and manipulation, including one in which a collection of global banks agreed to pay US$1.87 billion to settle claims they limited competition in the credit default swap market.

As with a handful of other post-financial crisis cases, the credit default swap issues were resolved through financial settlements in court after regulators either found insufficient proof of wrongdoing by the banks, or declined to take action.

Brockett said the financial bar set by Deutsche Bank's proposed settlement in the precious metals class action should not be taken as the price at which other banks could settle.

"If we litigate against the other banks," he said, "We're going to be looking for more."

* * *

Support GATA by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006:

http://www.goldrush21.com/order.html

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

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To contribute to GATA, please visit:

http://www.gata.org/node/16

Interviews with Maguire, Embry, and Turk

Fri, 05/27/2016 - 16:39

3:37p ET Friday, May 27, 2016

Dear Friend of GATA and Gold:

London metals trader Andrew Maguire tells King World News today that bullion banks and central banks are covering short positions in gold today as speculators are scared out of their longs again, the prerequisite for gold's move back up:

http://kingworldnews.com/andrew-maguire-on-the-war-in-the-gold-silver-ma...

Sprott Asset Management's John Embry tells the Daily Coin why he expects a big move up in silver:

http://thedailycoin.org/2016/05/27/john-embry-explosive-move-in-silver-w...

And GoldMoney founder James Turk tells the Daily Coin how GoldMoney and BitGold are remonetizing gold in every practical sense:

http://thedailycoin.org/2016/05/24/james-turk-when-you-own-gold-you-own-...

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org

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Support GATA by purchasing recordings of the proceedings of the 2014 New Orleans Investment Conference:

https://jeffersoncompanies.com/landing/2014-av-powell

Or by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006:

http://www.goldrush21.com/order.html

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16

India's banks still dragging their feet with gold monetization scheme

Thu, 05/26/2016 - 21:03

By Sutanuka Ghosal
The Times of India, Mumbai
Friday, May 27, 2016

http://economictimes.indiatimes.com/industry/banking/finance/banking/ban...

KOLKATA, India -- The Gold Monetisation Scheme remains a non-starter seven months after its introduction as most banks are yet to enter an agreement with collection centres and refiners, two players in the chain said. The scheme aims to unlock 22,000 tonnes of idle gold lying with Indian households and reduce the country's dependence on imported gold. Banks are not yet ready with their board approvals and GMS software to operate this scheme.

In the earlier gold deposit scheme the government mint took 180 days to settle their refining account but with 0.5 percent interest payout at that time. Banks were not impacted by this delay.

"Under the present GMS, the interest payout begins after 30 days and that too at 3 percent, which may bleed banks in cases where the refining accounts are not settled within seven days' refining time frame stipulated for refineries under GMS," said James Jose, secretary of the Association of Gold Refineries and Mints.

The two operating agencies of the GMS -- collection and purity testing centres -- run by BIS-recognised hallmarking and gold refineries are sitting idle, waiting for better GMS offtake. The GMS has so far mobilised about 2,800 kg of gold, mostly from temples and institutions and this has gone to the Indian government mint.


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Support GATA by purchasing recordings of the proceedings of the 2014 New Orleans Investment Conference:

https://jeffersoncompanies.com/landing/2014-av-powell

Or by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006:

http://www.goldrush21.com/order.html

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16

Miner sees silver price surging ninefold as global gadgets boom

Thu, 05/26/2016 - 14:02

By Natalie Obiko Pearson
Bloomberg News
Thursday, May 26, 2016

http://www.bloomberg.com/news/articles/2016-05-26/miner-sees-silver-pric...

A major Japanese electronics maker approached First Majestic Silver Corp. for the first time last month seeking to lock in future stock, a sign of supply concerns that could boost the metal’s price ninefold, according to the best-performing producer of the metal.

“For an electronics manufacturer to come directly to us -- that tells me something is changing in the market,” said Keith Neumeyer, chief executive officer of First Majestic, the top stock in Canada and among its global peers this year. “I think we’ll see three-digit silver,” he said, predicting the metal could surge to $140 an ounce by as early as 2019.

... Dispatch continues below ...


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That's a bold forecast. While silver has rallied 19 percent this year to leapfrog gold as the best-performing precious metal, it settled lower Wednesday at $16.26 an ounce on the Comex in New York and reached a record of just under $50 in 2011. The highest projection among analysts surveyed by Bloomberg is $57 an ounce in 2019.

"That seems aggressive," Dan Denbow, a portfolio manager at the USAA Precious Metals & Minerals Fund in San Antonio, said by e-mail. "There has been a lack of investment in silver exploration, but with significantly higher prices you will get new supplies. The current cost curve wouldn't support that price."

Still, there are other optimistic signs for silver rising. Hedge funds expanded their bullish bets on the metal to an all-time high earlier this month.

Because the commodity holds appeal both as a store of value as well as for its multiple industrial uses, it surged earlier this year on speculation that the pace of U.S. interest-rate hikes will slow and that Chinese manufacturing may be improving.

First Majestic is the second-biggest silver producer in Mexico, which supplies more of the precious metal than any other country. As such, the company has been a primary beneficiary of the silver rally after choosing not to diversify into other metals like many of its peers. The company earns more than 63 percent of its sales from silver and its share price has more than tripled this year, more than any other company on the S&P/TSX Composite Index. The stock rose 2.2 percent to C$14.65 at 9:51 a.m. in Toronto, giving it a market value of C$2.36 billion ($1.82 billion).

While long coveted for use in jewelry, coins and utensils, silver is increasingly in demand for its industrial applications. Last year, about half of global silver consumption came from such use, including mobile phones, flat-panel TVs, solar panels and alloys and solders, according to data compiled by GFMS for the Washington-based Silver Institute.

"Silver is not a precious metal. It's a strategic metal," Neumeyer said in an interview in Vancouver, where the company is based. "Silver is the most electrically conductive material on the planet other than gold, and gold is too expensive to use in circuit boards, solar panels, electric cars. As we electrify the planet, we require more and more silver. There's no substitute for it."

Industrial demand is set to increase, driven by rising incomes and growing penetration of technology in populous, developing nations, as well as thanks to new uses being found for silver's anti-bacterial and reflective properties in everything from hospital paints to Band-Aids to windows.

"Over the next 10 or 20 years, more and more people are going to be using these devices, and silver is a very limited commodity," Neumeyer said. "There's just not a lot of it around."

Use of silver, including investment demand, coin sales and what goes into inventories to settle trades, has outstripped annual supply of the metal in every year since 2000, according to data from GFMS, a research unit of Thomson Reuters Corp. Still, not everyone agrees that the world is headed for a shortage of the metal.

"I would tend to disagree that silver is rarer than thought," David Lennox, a resource analyst at Fat Prophets in Sydney. "Silver cannot be easily substituted but there's been no need as it's in abundance. I'd expect the search for silver would intensify and the search for substitutions would happen long before silver got to" $140 an ounce.

About 50 percent of global demand last year came from price-sensitive sources such as retail coins, jewelry and silverware, which would help curb price increases, said Erica Rannestad, a senior analyst at GFMS in Chicago. "Increased market penetration in emerging economies certainly will result in higher per-capita consumption of silver in industrial uses, but this is over the long run and would not happen overnight."

Neumeyer said his company has no immediate plans for acquisitions, dividends or to take on any debt. The company raised C$57.5 million from a share sale earlier this month. It plans to use funds internally for development and exploration of its mines, which had suffered from underinvestment during the recent downturn. "The capital will be used to look internally," he said.

Neumeyer acknowledges his forecasts aren't always correct. First Majestic had estimated silver at $14 an ounce for this year's budget. "I think I've been wrong every year for the past four or five years."
Still, he's unfazed by his past record.

"The silver rally is just beginning," Neumeyer says. "What we've seen in the last two months is just the beginning of the next bull market."

* * *

Support GATA by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006:

http://www.goldrush21.com/order.html

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16

Citigroup to pay $425 million to end CFTC benchmark probes

Wed, 05/25/2016 - 21:18

Matt Robinson and Matthew Leising
Bloomberg News
Wednesday, May 25, 2016

Citigroup Inc. will pay $425 million to resolve U.S. Commodity Futures Trading Commission claims that the bank attempted to manipulate global benchmarks for interest-rate products multiple times from 2007 to 2012.

The CFTC announced two settlements Wednesday with New York-based Citigroup over allegations involving the ISDAfix, as well as London and Tokyo benchmarks.

Citigroup will pay $250 million over allegations tied to ISDAfix, a global interest-rate benchmark used by banks, and $175 million for alleged abuses linked to the London Interbank offered rate, the regulator said in two separate statements.

The allegations demonstrate that "we will vigorously continue to investigate any efforts to manipulate financial benchmarks, and we will take action where possible to protect the integrity of these benchmarks," said Aitan Goelman, the CFTC's director of enforcement.

The CFTC also said Citigroup tried to influence U.S. Treasury securities because prices of the government debt were used as a factor to set the ISDAfix rates each day. The CFTC said it had electronic communications from Citibank traders where they said it was "suprising[ly] easy to push" the rate near the 11 a.m. fixing time. ...

... For the remainder of the report:

http://www.bloomberg.com/news/articles/2016-05-25/citibank-to-pay-425-mi...

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Support GATA by purchasing recordings of the proceedings of the 2014 New Orleans Investment Conference:

https://jeffersoncompanies.com/landing/2014-av-powell

Or by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006:

http://www.goldrush21.com/order.html

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16

Nick Barisheff: The billionaires are wrong on gold

Wed, 05/25/2016 - 21:01

8p ET Wednesday, May 25, 2016

Dear Friend of GATA and Gold:

Nick Barisheff, founder of Bullion Management Group in Markham, Ontario, today laments that some prominent billionaires who advocate gold ownership have put their money not into real metal but into shares of exchange-traded funds whose claim to metal is dodgy at best. Barisheff's commentary is headlined "The Billionaires Are Wrong on Gold" and it's posted at Bullion Management Group's Internet site here:

http://bmgbullion.com/billionaires-are-wrong-on-gold/

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org

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Support GATA by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006:

http://www.goldrush21.com/order.html

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16

Paul Brodsky: The monetary system has devalued 47% in 10 years

Wed, 05/25/2016 - 11:02

10a ET Wednesday, May 25, 2016

Dear Friend of GATA and Gold:

The world's currencies have been steadily devaluing against gold over the last decade, economist and fund manager Paul Brodsky of Macro-Allocation.com writes in his new study, and he expects such devaluation to continue and increase under the coordination of monetary authorities, which will nevertheless pretend that they are doing no such thing.

In any such endeavor and all their other endeavors the monetary authorities will be powerfully assisted by the agreement of mainstream financial news organizations never to ask them any critical question about their largely surreptitious interventions in the markets.

Brodsky's study is headlined "The Global Monetary System Has Devalued 47% over the Last 10 Years" and it's posted at Zero Hedge here:

http://www.zerohedge.com/news/2016-05-24/global-monetary-system-has-deva...

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org

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Support GATA by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006:

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http://gata.org/node/wallstreetjournal

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

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China wants to set prices for the world's commodities

Wed, 05/25/2016 - 10:35

From Bloomberg News
Wednesday, May 25, 2016

China has put the world's traditional financial centers on notice that it wants to develop its raw material markets as hubs for setting prices, seeking to marry the country's commercial heft with a much greater say in determining how much commodities cost.

"We're facing a chance of a lifetime to become a global pricing center for commodities," Fang Xinghai, vice chairman of the China Securities Regulatory Commission, said at the Shanghai Futures Exchange's annual conference in the city on Wednesday. "On the way to realize this goal, we'll see very intense competition. We have the advantage of trading size and economic growth, but our legislation is still not sound and we lack enough talent." ...

... For the remainder of the report:

http://www.bloomberg.com/news/articles/2016-05-25/new-york-london-on-not...

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Support GATA by purchasing recordings of the proceedings of the 2014 New Orleans Investment Conference:

https://jeffersoncompanies.com/landing/2014-av-powell

Or by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006:

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Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

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To contribute to GATA, please visit:

http://www.gata.org/node/16

Venezuela fights crisis with biggest sovereign gold sale since 2007

Wed, 05/25/2016 - 10:19

By Ranjeetha Pakiam and Eddie Van Der Walt
Bloomberg News
Wednesday, May 25, 2016

Venezuela held the biggest gold sale by a central bank in eight years as the country's economic crisis deepened and the government faced concern that it may struggle to honor bond payments.

The country cut its gold reserves by 16 percent in the first quarter, following a 24-percent reduction in 2015, according to data from the International Monetary Fund. The quarterly sale was the largest by any central bank since Switzerland sold 3.2 million ounces in the third quarter of 2007. ...

... For the remainder of the report:

http://www.bloomberg.com/news/articles/2016-05-25/venezuela-s-gold-holdi...

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The Gold Mine Barrick Might Regret Having Sold


K92 Mining is poised for production at its Papua New Guinea gold project and has just listed on the Toronto Venture exchange under the symbol KNT.V.

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K92's main asset is the Kainantu project, a large high-grade gold resource with extensive infrastructure including underground mine development, a mill processing facility, a fully permitted tailings pond, and paved roads. The infrastructure means K92 can aim to restart mining in the near term with minimal capital costs and seek to grow through cash-flow funded exploration on the roughly 405-square kilometer property, considered prospective for additional discoveries.

For more information, please visit:

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Support GATA by purchasing recordings of the proceedings of the 2014 New Orleans Investment Conference:

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Or by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006:

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To contribute to GATA, please visit:

http://www.gata.org/node/16

The gold mine Barrick might regret selling

Tue, 05/24/2016 - 20:59

8:04p ET Tuesday, May 24, 2016

Dear Friend of GATA and Gold:

Resource company publicist Tommy Humphreys of CEO.CA today issued a report that may be most interesting for showing how insanely cheap the junior gold mining business remains despite the rise in the monetary metal's price since the start of the year.

The report is about K92 Mining, which last year acquired a high-grade gold property in Papua New Guinea from Barrick Gold for $2 million, a tiny fraction of the $141.5 million Barrick paid for the property in 2007 before spending another $140 million developing the property, only to start casting off assets and reducing debt as the gold price was pounded down.

Humphreys' report includes a 17-minute video interview with K92 Mining CEO Ian Stalker, a former executive with Anglogold Ashanti, who argues that Papua New Guinea, while at the edge of the developing world, actually has coherent and reliable mining law.

Humphreys writes that K92 Mining will list tomorrow on the Toronto Venture Exchange, a bit of a frontier itself, but that's where discoveries come from, usually after a prolonged period when nobody wants even proved-up resources that are lying around in plain sight. It's a fascinating story, though no doubt there are many similar stories these days. It's headlined "The Gold Mine Barrick Might Regret Selling" and it's posted at the CEO.CA Internet site here:

https://ceo.ca/@tommy/the-gold-mine-barrick-might-regret-selling

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org

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Support GATA by purchasing recordings of the proceedings of the 2014 New Orleans Investment Conference:

https://jeffersoncompanies.com/landing/2014-av-powell

Or by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006:

http://www.goldrush21.com/order.html

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

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To contribute to GATA, please visit:

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Embry sees dollar vulnerable, expects change in market sentiment

Tue, 05/24/2016 - 18:36

5:35p ET Tuesday, May 24, 2016

Dear Friend of GATA and Gold:

Sprott Asset Management's John Embry tells King World News today that the U.S. dollar is vulnerable because of the decline of its use in the oil trade. Embry adds that he thinks a major change in market sentiment is coming. An excerpt from the interview is posted at the KWN Internet site here:

http://kingworldnews.com/50-year-veteran-warns-this-twisted-fantasy-is-a...

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org

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Support GATA by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006:

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Hugo Salinas Price: Mechanical 'economics'

Tue, 05/24/2016 - 13:17

12:15p ET Tuesday, May 24, 2016

Dear Friend of GATA and Gold

Mainstream economics can't distinguish between quality and quantity, Hugo Salinas Price of the Mexican Civic Association for Silver writes today, adding that, as a result, most economists "do nothing 'scientific'" but rather just "impose upon whole nations their own personal value judgments while they destroy free markets." Salinas Price's commentary is headlined "Mechanical 'Economics'" and it's posted at the association's Internet site, Plata.com.mx, here:

http://plata.com.mx/Mplata/articulos/articlesFilt.asp?fiidarticulo=288

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org

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Former IMF economist asserts that gold is money as good as government bonds

Tue, 05/24/2016 - 10:56

9:59a ET Tuesday, May 24, 2016

Dear Friend of GATA and Gold:

GoldCore's Mark O'Byrne this week calls attention to commentary written this month by Harvard economics professor Kenneth Rogoff recommending that countries diversify their foreign exchange holdings away from the government bonds of developed countries and into gold.

Rogoff's argument seems to be that with interest rates already effectively at zero or below, there's nothing to be gained through the purchase of such bonds, while gold is a "low-risk asset" that offers the possibility of capital appreciation.

... Dispatch continues below ...


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But then Rogoff makes what from anyone else would be considered the rookie mistake of asserting that "gold does not pay interest," as if gold isn't leased for interest by Western governments every day in huge amounts and as if gold leasing isn't a primary mechanism of gold price suppression by those governments, the governments whose bonds Rogoff acknowledges are becoming less attractive as investments.

This rookie mistake is a little surprising since Rogoff's biography identifies him as having been the chief economist for the International Monetary Fund from 2001 to 2003, a period beginning just two years after the agency's staff reported secretly to the agency's board that major IMF member governments were concealing their gold leases and swaps to facilitate their surreptitious interventions in the gold and currency markets:

http://www.gata.org/node/12016

Rogoff's biography also identifies him as the 2011 recipient of the Deutsche Bank Prize for Financial Economics. It does not say whether he returned the prize since then upon any of the bank's admissions of market rigging and other misconduct.

But then maybe Rogoff can be forgiven that stuff because he concludes his commentary with an observation as politically incorrect as anything ever likely to be offered by someone associated with Harvard, the IMF, and Deutsche Bank: "There has never been a compelling reason for emerging markets to buy into the rich-country case for completely demonetizing gold. And there isn't one now."

If only he could have said as much publicly while serving at the IMF.

Rogoff's commentary is headlined "Emerging Markets Should Go for the Gold" and it's posted at Project Syndicate's Internet site here:

https://www.project-syndicate.org/commentary/gold-as-emerging-market-res...

O'Byrne's commentary arguing that Rogoff's commentary is important is posted at GoldCore here:

http://www.goldcore.com/us/gold-blog/buy-gold-as-extremely-low-risk-asse...

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org

* * *

Support GATA by purchasing recordings of the proceedings of the 2014 New Orleans Investment Conference:

https://jeffersoncompanies.com/landing/2014-av-powell

Or by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006:

http://www.goldrush21.com/order.html

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

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To contribute to GATA, please visit:

http://www.gata.org/node/16

Banks must defend Libor lawsuits after judges warn of impact

Mon, 05/23/2016 - 21:49

By Bob Van Voris
Bloomberg News
Monday, May 23, 2016

Sixteen of the world's largest banks, including JPMorgan Chase & Co. and Citigroup Inc., must face antitrust lawsuits accusing them of hurting investors who bought securities tied to Libor by rigging an interest-rate benchmark, a ruling that an appeals court warned could devastate them.

The appellate judges reversed a lower-court ruling on one issue -- whether the investors had adequately claimed in their complaints to have been harmed -- while sending the cases back for the judge to consider another issue: whether the plaintiffs are the proper parties to sue, in part because their claims, if successful, provide for triple damages that could overwhelm the banks.

"Requiring the banks to pay treble damages to every plaintiff who ended up on the wrong side of an independent Libor‐denominated derivative swap would, if appellants' allegations were proved at trial, not only bankrupt 16 of the world's most important financial institutions, but also vastly extend the potential scope of antitrust liability in myriad markets where derivative instruments have proliferated," the U.S. Court of Appeals in New York said in the ruling.

Bank of America Corp., HSBC Holdings Plc, Barclays Plc, Credit Suisse Group AG, Deutsche Bank AG, Royal Bank of Canada, and Royal Bank of Scotland Group Plc are also among the banks sued in Manhattan. ...

... For the remainder of the report:

http://www.bloomberg.com/news/articles/2016-05-23/banks-are-ordered-by-c...

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Support GATA by purchasing recordings of the proceedings of the 2014 New Orleans Investment Conference:

https://jeffersoncompanies.com/landing/2014-av-powell

Or by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006:

http://www.goldrush21.com/order.html

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

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Gold is having an unusual rising correction, Turk tells KWN

Mon, 05/23/2016 - 19:50

6:49p ET Monday, May 23, 2016

Dear Friend of GATA and Gold:

GoldMoney founder and GATA consultant James Turk tells King World News today that gold is going through an unusual rising correction. Either many buyers are awfully eager to buy the dips, Turk says, or investors fear that something nasty is imminent for the world financial system and figure that gold is necessary insurance. An excerpt from Turk's interview is posted at KWN here:

http://kingworldnews.com/james-turk-this-is-why-gold-is-headed-much-high...

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org

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http://gata.org/node/wallstreetjournal

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

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To contribute to GATA, please visit:

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Kinross' Paul Rollinson and after the gold rush

Sun, 05/22/2016 - 13:35

By James Wilson
Financial Times, London
Monday, May 23, 2016

http://www.ft.com/intl/cms/s/0/65aac95c-0c6c-11e6-b0f1-61f222853ff3.html

When Paul Rollinson took over as chief executive of Kinross Gold four years ago the end was in sight for the biggest gold boom in history -- and for some of the people who were part of it.

After rising 500 per cent in a decade, the market price of the precious metal had peaked. In the rush to exploit the boom, mining investments and costs had spun out of control.

Investors in gold miners such as Kinross, which had lavished $11bn on acquisitions in six years and was already writing off part of that spending, were in revolt. Tye Burt, Mr Rollinson's predecessor, was among a score of mining chief executives to lose their jobs.

... Dispatch continues below ...


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It was "the end of a champagne era", recalls Mr Rollinson. "Everything was going up, up, up, forever and ever -- and then I got the back half of the mountain, where it has been down, down, down.

"This has been the challenge -- running a business as you transition from one phase of the market into another," he says on a visit to London. After a long trip to see investors in Asia, he is on his way to a gold mining conference in Switzerland. It is a gruelling schedule but he is looking forward to dinner that evening with one of his daughters, who works in the UK capital.

Negotiating the descent has not been easy for Mr Rollinson. In his first week in the job he halted plans for the expansion of its Tasiast mine in Mauritania, the flagship development for Kinross. The project was the centrepiece of a $7.1bn acquisition of Red Back Mining in 2010, Kinross's largest deal.

After ensuing writedowns on Tasiast, the Canadian company was the first large gold miner to scrap its dividend: "That is one where you send the release out and want to crawl under your desk," recalls Mr Rollinson in his laconic drawl.

Another project in Ecuador, Fruta del Norte, was sold for much less than it had cost during the boom years; and when tension flared between Russia and the west over Ukraine, Kinross, the largest foreign investor in Russian mining, faced criticism over its strategy.

Mr Rollinson also had to fight to prove that his appointment was the change that Kinross needed.

As the miner's previous head of corporate development, and before that as an investment banker who advised the company on some deals, Mr Rollinson admits he might have seemed to investors like more of the same as they had had before. He had been involved in some of the decisions investors had criticised. Mr Burt was also previously a banker.

"On paper you might go, 'Here's another banker ... here we go again'," he says. "We just got our heads down."

Four years on, his transition from banker to miner seems to suit both Mr Rollinson and Kinross. The miner's shares have doubled in the past 12 months. In March, Mr Rollinson was at last able to unveil a definitive plan to develop Tasiast at a much lower cost.

And his stewarding of spending meant Kinross had the cash to snap up assets in the US from Barrick Gold, its larger rival, which helpfully reduced Kinross's overall exposure to higher-risk countries.

Not least, Mr Rollinson, who looks the image of a tough miner but is softly spoken, is at last having some luck with the gold price, which has risen since the start of 2016. "It is hard to believe we would all be high-fiving when gold got back to $1,200 an ounce but we certainly are, and it seems to be holding in there pretty firmly," he says.

Mr Rollinson has dual nationality: He was born in the UK but grew up in Canada, where his father worked in mining. He studied geology, and started his working life in Canada's wide open spaces. "I was living in the wilderness all year round in a tent and I had some amazing experiences. It was my love of the outdoors that got me into this in the first place."

But a key to his career may have been the finance classes he took while completing a postgraduate degree in mining engineering. On graduating he went into mining banking and a career in a succession of investment banks. He advised Kinross before Mr Burt asked him to join the miner in 2008.

"My intention was always to get back into mining ... that is ultimately where my passion is," Mr Rollinson says.

What has helped his time at Kinross, he says, is that while he came from banking he also had plenty of technical mining knowledge. As he puts it: "I can speak a few languages -- geology, mining, corporate finance." Many miners lost sight of some mining basics, such as the importance of asset quality, during the go-go years: Mr Rollinson says he has brought 70 technical staff into Kinross, adding that much of their job is to argue why projects should not be done, rather than rush them through as fast as possible.

"I call them The Terminators," he says. "Every time you look at an opportunity -- it is like an ice cube. The minute those guys get hold of it, it starts melting. It is 'Forget it -- take that out -- that's aggressive' ... those are the guys that matter."

Stopping things has been a big feature of Kinross under Mr Rollinson. He describes the original project to expand Tasiast as like a plan for a house that was increasingly difficult to afford to build: today's is a smaller and cheaper project. "Instead of building new, we are renovating," Mr Rollinson says.

The original project could have hurt the company, he says. "What scared me was [that] we would get it half built in that overheated environment, over budget, and we might put ourselves in some jeopardy." Not to put so much at risk was, he says, "a pretty important lesson for me".

Another lesson has been experience of Kinross in Russia, bringing Mr Rollinson reluctantly into the political arena. At the height of tension with Moscow over Ukraine in 2014, Canada's government tried to persuade business leaders, including Mr Rollinson, not to attend an economic forum in St Petersburg.

"That was tough but we had to say -- we have employees, we have stakeholders, we have shareholders, we don't want to get involved in politics, and with respect we intend to participate. And we did," says Mr Rollinson.

Kinross has a seat on Russia's Foreign Investment Advisory Council, alongside the likes of BP and Siemens. "We have been in Russia for more than 20 years ... we are 98 per cent Russian. We are employing and training Russians," says Mr Rollinson, while noting that Kinross's mines, in Russia's far east, are geographically closer to Toronto than they are to Moscow.

Reluctantly drawn into talking about Kinross's past deals, and his role in them, Mr Rollinson says many have worked out well and points out that the most criticised, the Red Back Mining acquisition, was voted through by shareholders.

Now he prefers to look forward. Kinross last year acquired a US mine in Nevada from Barrick, the world's largest gold producer by volume, and the gleam in Mr Rollinson's eye suggests he believes he has got a good deal.

Together with the resolution of the saga over Tasiast's expansion, he says Kinross now has "good momentum."

"People are feeling good about the business. It's been a slog, I can't tell you it hasn't -- it's been hard work. But people are seeing the fruits of their labour ... what we have to do is keep our focus and keep working hard."

* * *

Support GATA by purchasing recordings of the proceedings of the 2014 New Orleans Investment Conference:

https://jeffersoncompanies.com/landing/2014-av-powell

Or by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006:

http://www.goldrush21.com/order.html

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16

Counterfeit gold and silver coins burning buyers

Fri, 05/20/2016 - 15:07

By John Matarese
WCPO-TV9, Cincinnati, Ohio
Friday, May 20, 2016

The price of gold is heading up again in 2016, as investors worry about the safety of the stock market. As a result, you may be noticing more radio commercials and online ads for gold coins.

But before you invest, coin experts are warning you to beware counterfeits that are flooding the market right now.

At Coins Plus -- a downtown Cincinnati landmark for 40 years -- owner Brad Karoleff now spends a lot of his time checking for counterfeits.

In one hand, he held up a 1-ounce U.S. eagle gold coin, worth over $1,000. In the other: an identical looking Chinese knockoff, worth maybe a dollar.

"Some off them are getting pretty good," Karoleff said. "They will fool the average person, and, worse, even some professionals have been fooled." ...

... For the remainder of the report:

http://www.wcpo.com/money/consumer/dont-waste-your-money/counterfeit-gol...

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Goldbroker's clients are not exposed to any counterparty risks. They own gold and silver in their own names (the ownership certificate cites the name of the investor and serial number of his bars) and they have storage accounts opened in their own name as well. So Goldbroker.com's storage partner knows the exact identity of each investor. Goldbroker.com doesn't store in the name of its clients; rather, Goldbroker's clients store personally. All investors have direct access to their gold and silver bars.

Goldbroker.com was launched in 2011 so that investors would avoid any counterparty risk when investing in physical gold and silver.

Goldbroker.com is listed among GATA's recommended monetary metals dealers:

http://www.gata.org/node/173

To invest or learn more, please visit:

https://www.goldbroker.com/


Support GATA by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006:

http://www.goldrush21.com/order.html

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16

Alasdair Macleod: The eurozone is the greatest danger

Thu, 05/19/2016 - 22:00

By Alasdair Macleod
GoldMoney.com, St. Helier, Jersey, Channel Islands
Thursday, May 19, 2016

Worldwide, markets are horribly distorted, which spells danger not only to investors, but to businesses and their employees as well, because it is impossible to allocate capital efficiently in this financial environment.

With markets everywhere disrupted by interventions from central banks, governments, and their sovereign wealth funds, economic progress is being badly hampered, and therefore so is the ability of anyone to earn the profits required to pay down the highs levels of debt we see today. Money that is invested in bonds and deposited in banks may already be on the way to money heaven, without complacent investors and depositors realizing it.

It should become clear in the coming weeks that price inflation in the dollar, and therefore the currencies that align with it, will exceed the Fed's 2 percent target by a significant amount by the end of this year. This is because falling commodity prices last year, which subdued price inflation to under 1 percent, will be replaced by rising commodity prices this year. That being the case, CPI inflation should pick up significantly in the coming months, already reflected in the most recent estimate of core price inflation in the US, which exceeded 2 percent. Therefore, interest rates should rise far more than the small amount the market has already factored into current price levels. ...

... For the remainder of the analysis:

https://www.goldmoney.com/the-eurozone-is-the-greatest-danger?gmrefcode=...

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USAGold: Coins and bullion since 1973

USAGold, well known for its Internet site, USAGold.com, offers contemporary bullion coins and bullion-related historic gold coins for delivery to private investors in the United States, Europe, Canada, Australia, and New Zealand. It is one of the oldest and most respected names in the gold industry, with thousands of clients and an approach to investment that emphasizes guidance and individual needs over high-pressure sales tactics. The firm's zero-complaint record at the Better Business Bureau makes it an ideal match for the conservative, long-term investor looking for a reliable contact in the gold business.

Please call 1-800-869-5115x100 and ask for the trading desk, or visit:

http://www.USAGold.com

USAGold: Great prices, quick delivery -- all the time.

Support GATA by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006:

http://www.goldrush21.com/order.html

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16

GoldMoney launches gold payroll and gold payout applications for BitGold business platform

Wed, 05/18/2016 - 21:13

Company Announcement
via Business Wire, San Francisco, California
Wednesday, May 18, 2016

TORONTO -- GoldMoney Inc., a financial technology company that operates a global, full-reserve, and gold-based financial services platform, is pleased to announce the launch of gold payroll and gold payout applications for the BitGold Business platform. The engineering and launch of the gold payout application completes another milestone in the build out of the BitGold B2B and B2C ecosystem.

The gold payout application is a free-enterprise software tool for BitGold Business accounts that allows clients to set up and automate recurring payments to anyone with an email address or mobile phone number. The payout application is designed to streamline international payroll, dividends, rebates, reward payments, partner and affiliate payouts, micro-payments, and more. Built on top of a global, closed-loop, and full-reserve account structure, the payout application allows for instant settlement of cross-border value transfers, which can also be automated to settle into any currency given the global nature of gold. ...

... For the remainder of the announcement:

http://www.businesswire.com/news/home/20160518005674/en/GoldMoney-Launch...

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A Contrarian's Call Option on Gold

Sandspring Resources' Toroparu project in Guyana is the fourth-largest gold deposit in South America held by a junior mining company.

Experienced backers of Sandspring Resources include Silver Wheaton, the John Adams / Energy Fuels group in Denver, and Frank Giustra’s Fiore Group in Vancouver.

A 2013 preliminary feasibility study shows strong economics for this large-scale mine at US$1,400 gold. With a current gold price below US$1,300, Sandspring is for investors who believe that gold price suppression will be overcome.

For a detailed report on Sandspring Resources by Tommy Humphreys of CEO.CA, please visit:

https://ceo.ca/@tommy/a-ten-million-ounce-call-option-on-gold


Support GATA by purchasing recordings of the proceedings of the 2014 New Orleans Investment Conference:

https://jeffersoncompanies.com/landing/2014-av-powell

Or by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006:

http://www.goldrush21.com/order.html

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16

Doug Pollitt: Devaluing dollar and debt by revaluing gold is getting respectable

Wed, 05/18/2016 - 10:40

9:40a ET Wednesday, May 18, 2016

Dear Friend of GATA and Gold:

May's market letter by Doug Pollitt of Pollitt & Co. in Toronto reflects on the growing respectability of devaluing the U.S. dollar and debt by the upward revaluation of gold. Devaluation of the dollar against gold in 1934 was, Pollitt writes, the most successful provision of President Franklin D. Roosevelt's New Deal. Pollitt's letter is headlined "Pimco Goes Full Goldbug" and he has kindly given GATA permission to share it with you in PDF format here:

http://www.gata.org/files/PollittMarketLetter-05-2016.pdf

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org

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The Committee to Destroy the World:
Inside the Plot to Unleash a Super Crash

This new book by Michael E. Lewitt is a passionate and informed analysis of the struggling global economy. Lewitt, one of Wall Street's most respected market strategists and money managers, updates his groundbreaking examination of the causes of the 2008 crisis and argues that economic and geopolitical conditions are even more unstable today. Lewitt explains how debt has overrun the world's productive capacity, how government policies have created a downward vortex sapping growth and vitality from the American economy, and how greed and corruption are preventing reform.

For more information:

http://www.wiley.com/WileyCDA/WileyTitle/productCd-1119183545,subjectCd-...


Support GATA by purchasing recordings of the proceedings of the 2014 New Orleans Investment Conference:

https://jeffersoncompanies.com/landing/2014-av-powell

Or by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006:

http://www.goldrush21.com/order.html

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16

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