Wednesday, September 25, 2013

CFTC Closes Silver Manipulation Case

Washington, DC – The Commodity Futures Trading Commission (CFTC or Commission) Division of Enforcement has closed the investigation that was publicly confirmed in September 2008 concerning silver markets. The Division of Enforcement is not recommending charges to the Commission in that investigation. For law enforcement and confidentiality reasons, the CFTC only rarely comments publicly on whether it has opened or closed any particular investigation. Nonetheless, given that this particular investigation was confirmed in September 2008, the CFTC deemed it appropriate to inform the public that the investigation is no longer ongoing. Based upon the law and evidence as they exist at this time, there is not a viable basis to bring an enforcement action with respect to any firm or its employees related to our investigation of silver markets.   LINK...
As we discussed on Gold Radio Cafe in 2011, nothing will be done because there is an Executive Order that was issued by Reagan in 1988 that allows for the "Working Group in Financial Markets" to manipulate the markets to maintain confidence and stability in the US economy. Before anything can be done to enable FREE markets, this Executive Order has to be removed and a return to a Glass-Steagall type of regulation. Otherwise we have to live with it and do our best to survive.    BK

From Wikipedia:
As established by Executive Order 12631, the Working Group on Financial Markets has three Purposes and Functions.

(a) Recognizing the goals of enhancing the integrity, efficiency, orderliness, and competitiveness of our Nation's financial markets and maintaining investor confidence, the Working Group shall identify and consider:
(1) the major issues raised by the numerous studies on the events in the financial markets surrounding October 19, 1987*, and any of those recommendations that have the potential to achieve the goals noted above; and
(2) the actions, including governmental actions under existing laws and regulations (such as policy coordination and contingency planning), that are appropriate to carry out these recommendations.
(b) The Working Group shall consult, as appropriate, with representatives of the various exchanges, clearinghouses, self-regulatory bodies, and with major market participants to determine private sector solutions wherever possible.
(c) The Working Group shall report to the President initially within 60 days (and periodically thereafter) on its progress and, if appropriate, its views on any recommended legislative changes.[1][2]

Gold Buyer Doubles Imports in Thailand

The company may import as much as 200 metric tons in 2013, from 92 tons last year, Chief Executive Officer Pawan Nawawattanasub said in an interview yesterday. First-half shipments advanced to 112 tons, accounting for 60 percent of the country’s total, she said. A ton is valued at $42.6 million.  LINK...

Wednesday, September 18, 2013

FOMC Meeting

Ben Bernanke stays the course, and stimulus to continue. Tapering is not required yet. Gold and silver rally and I think the bottom is formed and we'll see higher prices in the months ahead.  BK

FOMC Shocker...

Tuesday, September 17, 2013

Heraeus Market Commentary

Good Morning,

We could be in for a rather uneventful day in the precious metals complex as market participants await the conclusion of the FOMC meeting tomorrow. At this point, it seems the consensus isn’t if the Fed will begin tapering the $85 billion-a-month asset purchase program but by how much. A $10 billion reduction in the program may have already been priced into the market so any deviation could make Wednesday afternoon very interesting. Until then it’s a wait and see atmosphere as the metals hover at or slightly below yesterday’s closing levels. Gold closed the previous session at $1317.80 and touched as low as $1307 in overnight trading. The yellow metal now trades $1312.60.  Silver ended Monday’s session at $22.009 and now trades nearly .75% lower at $21.850 after reaching as high as $22.14 overnight. Platinum trades about .5% lower at $1434 while palladium trades relatively flat to yesterday’s close and continues to hold above the $700 mark at $705. In economic news, The Labor Department released its consumer price index which rose .1% last month compared to a .2% increase in July. Have a great day!

Tom Hungerford

Heraeus Metals New York LLC

Saturday, September 14, 2013

Kennedy's Call For Corporate Responsibility

Listen to what JFK is really saying and see if you can recognize the similarities to today's situation and how the leadership is responding? How times have changed.   BK

Friday, September 13, 2013

Gold and Silver Financial Review 09/13 by Gold Radio Cafe | Finance Podcasts

Recorded LIVE Today at 12:00pm EST
With co-host Jeff Dunphy

Gold is Qualified Collateral Says the BIS and IOSCO

Dear readers,

In a publication entitled "Margin Requirements for Non-Centrally Cleared Derivatives" just released by the BIS (Bank for International Settlement), the Central Bank for Central Bankers, and the IOSCO (International Organization of Securities Commissions), which oversees all security exchanges around the world, have clearly stated that GOLD is qualified collateral along with cash and government securities (bonds) for margin on derivative contracts. It clearly states, "in the event of a counterparty default, these assets should be highly liquid and should, after accounting for an appropriate haircut, be able to hold their value in a time of financial stress."

"As a guide, examples of the types of eligible collateral that satisfy the key principle would generally include:"
  • Cash;
  • High-quality government and central bank securities;
  • High-quality corporate bonds;
  • High-quality covered bonds;
  • Equities included in major stock indices; and
  • Gold.
Clearly if these requirements are set forth for systemically important banks and central banks to ensure their stability during a financial crisis, would it not be prudent for YOU, the individual to hold gold in your retirement plan! Is your financial advisor going to argue with these global bank regulators and tell you that gold is a "barbaric relic?" Why do you really think the Chinese are buying gold hand over fist and pursuing a strategy to become the alternative reserve currency of the world next to the USD? Time to put the old song and dance of a "balanced and diversified portfolio" to rest and get yourself some gold and just sit tight.


Bosko Kacarevic

Friday, September 6, 2013

Gold and Silver Financial Review 09/06 by Gold Radio Cafe | Finance Podcasts

Recorded LIVE Today at 12:00pm EST
With co-host Jeff Dunphy

Dangers of the Global Economy

Dangers of the Global Economy - How to Protect your Assets
by Lisa Newland

With the current state of the global and local economy, it is becoming clearer and clearer that whatever assets we might have saved over the years can evaporate in an instant, and that the global economy itself is teetering on the edge of collapse. While there are certainly alternatives available to standard forms or savings and retirement funds, how sure can we really be that these are not equally vulnerable to the machinations of the global economy?

Why the Global Economy is Built for Collapse
Although we are currently experiencing an economic downturn, we can predict fairly accurately that it will not be the last. In fact, a brief look at the history of global economics shows us that recession is almost inevitable. The 1930’s saw one of the worst economic down turns in history, now famously known as the Wall Street Crash, but the repercussions went far beyond wall street. Again, we saw severe economic problems in the 1960s, and are now experiencing them again today. In order to understand why the global economy is so delicately balanced on the edge of disaster, we need to understand the real causes behind these economic problems. While there are a number of propositions and explanations as to what caused the most recent financial crisis in 2007, one that is crucial to understanding the wider problem is that of the value of debt. Mortgages in particular in the US, and in other countries in Europe, were a key component in causing the collapse. By selling mortgages and debt on, that were ranked as guaranteed and stable, despite in actuality being given to individuals and families that banks and mortgage lenders knew had very little chance of paying them back due to low incomes, global financial institutions were making huge short term profit gains. This, coupled with the lack of regulation from governments around the world, but particularly the US and UK, and a number of other contributing factors led to a major collapse. However, despite apparent reforms, and the ‘bail in’ policy adopted by all the major financial institutions, the core of the problem remains, with the potential to collapse once again. Debt.

‘Bail In’
The intricacies of what a bail in policy actually entails is clearly outlined by the IMF in a staff document. Essentially, this document puts forward the merits of a bail in policy and how it can be executed. We have already seen this in action globally, when the IMF has stepped in to help certain countries with the economic crisis. However, what we might see as a benign move by financial institutions is in fact anything but. Bail in essentially means that instead of a government taking control and using tax payers money to save a financial institution, the bank is simply able to use it’s shareholders money. Additionally, any debt a bank may get into as a result of risk taking or market collapse can be converted to equity, which is in itself then a commodity to be traded. As an individual with savings in such a bank, your assets could quickly become forfeit as a result. Furthermore, this could render services such as income protection insurance useless, as in effect your assets are still subject to the whims of the market. This is why, according to, taking out such insurance is something to consider carefully, and making sure you look carefully at all the options available is fundamental.

The Alternative
Where does that leave the average citizen then? If we are unable to place our trust in financial institutions and the global economy at large, what alternatives are there that will offer a secure investment and safe climate for our retirement funds, savings and so on? The answer comes by examining the market. Precious metals, especially gold and silver, are in increased demand since the economic crisis for the very reason that they are physical representations of value. One of the main ingredients in the economic collapse, and one that is still present, is the lack of actual, physical capital. The Federal reserve for example, is a private banking institution, that lends money to the government via bonds. This creates credit, which is simply added to the banks funds. There is no physical form of this credit - it exists as debt. Gold on the other hand, is a form of physical capital, and this is the reason that many governments are buying as much as they can. Market prices of gold over the last few years show that it is a sold investment, and while prices do fluctuate, it is one of the safest investments to make, provided your investment is kept out of the global market in secure and private vaults.

Thursday, September 5, 2013

Heraeus Market Commentary

Good Morning,

After yesterday’s blood-letting in the precious complex, it’s looking like a quiet Thursday ahead of tomorrow’s highly anticipated U.S. government jobs data. ADP private sector jobs numbers, released earlier this morning, showed 176,000 added to private payrolls and weekly jobless claims numbers fell by 9,000 last week. However, there was little reaction to the data and the metals continue to hover near yesterday’s closing levels with a little pressure building to the downside. That is, except for and palladium which continue to get no love from positive U.S. auto sales figures released throughout Wednesday’s session. Palladium has fallen another 1.5% to $687.90 after closing yesterday at $698.25. Gold is a bit lower from Wednesdays close with prospects of a full blown war in the middle east dissipating as the Obama administration continues to emphasize the limited nature of any strike against Syrian targets. The yellow metal closed the previous session at $1390 and now trades roughly $10 lower to start the day. Platinum failed to hold the $1500 level yesterday but the potential for a spill-over of labor tensions in the South African gold sector, into the platinum sector, should cushion the white metals retreat. Have a great day!

Tom Hungerford
Heraeus Metals New York LLC

Sunday, September 1, 2013

Bail-In's are Now Official Bank Policy

Public banks and credit unions are a much safer place for your money then in the big banks, however, keep in mind the FED is still in control of the printing press and the "value" of your money is at risk. Along with moving your money out of big banks, having a GOLD reserve would be a prudent solution to maintain the "value" of your wealth. Every fiat currency system in history has failed and this one will be no different. It will be even worse this time because it's the first time in history that every currency in the world is a fiat currency. No country has a gold standard and the USA is the LARGEST debtor nation in the history of the world! Move your money out of big banks ASAP!   BK