Friday, November 5, 2010

Big Metal News Items and New Orleans Investment Conference 2010

I attended the New Orleans Investors Conference Oct. 26-Oct. 30 and there were some very important highlights that I would like to share with you:

During a workshop with GATA’s Bill Murphy, Chris Powell and Adrian Douglas, Adrian gave a compelling presentation on the manipulated gold market. He used the data from 3 articles he has recently written, to draw the following conclusion: The Gold Market is not “Fixed”, it’s Rigged. Here is one of the articles written by Cambridge educated Adrian Douglas who is a 20 year Schlumberger oil and gas industry veteran . I promise you that you won’t look at the gold market the same way again after reading this compelling argument:

Adrian asserted that if you own unallocated bullion, the custodian likely only has 2.3% of what you own on-hand, and opportunity to get your investment to be transferred to 100% allocated bullion is closing rapidly. Because there is strong indication that the long term suppression of the gold market could be ending, and the rise of a suppressed market can be very rapid when the schemes like this unravel, take heed as there is a true “gold rush” fast approaching that we can truly benefit from. I stress to anyone reading this right now to re-examine any investments in unallocated metal, and begin researching fully allocated bullion custodians like
Anglo Far East Bullion Company.
Eric Sprott of Sprott Asset Management, gave an amazing speech on how the reported global silver supply is grossly overstated and that their demand numbers have been too low. Eric mentioned that in one year, Sprott bought more silver than GFMS has accounted for for their investment global demand number for that year. Sprott has been very bullish on Silver and has acted accordingly for the last decade and has gotten all the big moves right. Eric told everyone that GATA has been right for the last 10 years and gave special kudos to Adrian Douglas, Director of GATA for his extraordinary work and articles of late. Eric finally laid out how he thinks that silver will be making an upward move to $50 in the next 4 to 5 months. Eric has raised $500 million for a physical silver trust that will be listed in both Toronto and New York. Go here for more on that.

Shortly before the conference, Bart Chilton of the CFTC went on record mentioning that the precious metals markets, particularly silver have been manipulated. This is a precedent moment as Bart Chilton is a US Government Official and GATA has not had anyone in power officially admit to the rigged market until now. Bart Chilton's statement can found

As well, since Oct. 27, 2010, there has been 3 class action suits filed against JP Morgan Chase for the manipulation of the market. Since then, there has been a rally in the gold silver market coinciding with these law suits. Spot price of Gold/Silver on Oct 27: 1324.50 / 23.77 and the spot price today, Nov. 5, 2010: 1394.10 / 26.76. There really is no other explanation other than these lawsuits that introduced even more speculation and intrigue into an already incredibly bullish market.

Lawsuit articles:
1) Morgan, HSBC sued over silver price suppression.
Silver class action invokes RICO against Morgan, HSBC.
Kaplan Fox Sues JP Morgan and HSBC on Behalf of Investors for Silver Futures and Options Contract Losses Caused by Market Manipulation

I had the opportunity to personally interview Bill Murphy, Chairman of GATA and Peter Schiff, President of Euro Pacific Capital over the course of the conference. Here are the videos:

By Kirsty Hogg
YOUnique Gold Tribe Member
Goldvestments Copyright © 2010


  1. The horrible thing about the current economic situation is how little discussion their has been about a lack of a sound money policy and how much it has to do with all the economic problems facing the country. Their was barely any inflation at all until after 1965 that was the year when silver coins were removed from circulation funny thing is it not inflation averaged around 0.25 to 0.50 percent for almost twenty years form 1947 to 1965 once this sound money policy was abandoned we started to see what happens when money is not based in gold and silver but printed whenever it might be convenient by the federal reserve. Talk about inequality thats a joke because the main reason that we have had such a hugh increase in income inequality is inflation. Theirs no question about it. Look at south america and all the cicles of hyperinflation that have accurred over the years in so many of these countries. The reason wages are 2 dollars an hour in mexico for example is periods of hyper inflation. Slowing down inflation does not stop the erosion of purchasing power for many workers it just spreads the pain out over a longer period of time. If a sound money policy is not reinstated than we are doomed to see a continuing decrease in the size of the middle class and a burgeoning increase in the underclass.

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