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US Bullion Silver Coins Dip in Sept, Silver Prices Soar in Quarter

September 30, 2013 by · Leave a Comment 

Silver futures traded sharply lower in September, though they scored their first quarterly gain in a year. Sales of United States Mint bullion silver coins also retreated for the month, but they remain on track to handily notch a new annual sales record. In closing the trading month on Monday, silver futures for December delivery […]

Related posts:

  1. US Mint Bullion Silver Coins Surge with Silver Prices in August
  2. Silver Prices Plummet in June and Second Quarter 2013
  3. Silver Prices Decline in March and First Quarter 2013

Proposed legislation would forbid minting U.S. gold and silver coins in current format

September 30, 2013 by · Leave a Comment 

GATA

11:55a HKT Tuesday, October 1, 2013

Dear Friend of GATA and Gold:

Legislation that has been proposed in Congress to prevent the minting of U.S. coins whose manufacturing cost exceeds their denomination would stop the U.S. Mint’s issuance of gold and silver coins, Mike Zielinski notes in commentary at Coin Update. This is probably an oversight on the part of the legislation’s drafters, but imagine if the bill was amended not to exempt gold and silver coins but to require imprinting an honest denomination on them. Zielinski’s commentary is posted at Coin Update here:

http://news.coinupdate.com/would-save-ii-act-also-prohibit-bullion-and-n…

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

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Dutch pension fund defeats central bank, wins right to invest in gold

September 30, 2013 by · Leave a Comment 

GATA

By Den Haag
De Rechtspraak
The Hauge, Netherlands
Tuesday, September 10, 2013

http://www.rechtspraak.nl/Organisatie/CBb/Nieuws/Pages/DNB—aanwijzing-…

Tuesday, September 10, saw the final ruling of the Board of Industry Appeals (College van Beroep voor het Bedrijfsleven) on the gold case brought by the Dutch pension fund Vereenigde Glasfabrieken against De Nederlandse Bank (DNB, the Dutch central bank) in 2011. The pension fund objected to an earlier directive of DNB.

This ruling is in favor of the pension fund, because the judges of this college, following an earlier decision in March 2012, not only ruled that a fund may decide how to implement its investment policy, but also ruled that DNB failed to underpin its concerns as expressed in the directive imposed [onto the pension fund].

By contrast, the underpinning of the pension fund was so clear that the judges fully agreed. They agreed with the pension fund that there may be circumstances that justify deviation from ordinary investment policies. Such circumstances included the financial crisis that began in 2008 and the euro crisis that was an extension of this financial crisis.

These crises were indeed at the root of the defensive investment of the pension fund. DNB turned a blind eye to these circumstances and considered only an ALM study (Assets & Liability Management), a study that ignored any negative factors in an economy. Furthermore, DNB did not present relevant examples on gold investment other than a blurred report by JP Morgan, which stated that one should invest only 1 percent in a commodity. That study — rather dubious and lacking detail — turned out to be their sole defense.

It is also noticeable that the supervisors at DNB have not the slightest idea of gold’s function in finance and economy. They are in good company, because most economists in the Netherlands don’t know either. Gold is the de-facto foundation of our economic system and it is therefore essential for any pension fund (or any other investment fund) to have gold in the portfolio as a hedge against unforeseen system risks. In the world of financial investment, gold is insurance and the return on that investment is not in interest or dividends but protection against inflationary measures of the government. The return on that investment is the safety of the portfolio.

Risks such as high monetary inflation, collapse of the system, war, and other major events are fully hedged in this way. Especially in high-risk times like today, gold is a buffer and a safe haven for many investors.

Unfortunately, this knowledge is not yet widespread, as DNB and large investment companies still blindly trust completely outdated studies like ALM. It is a tragedy that many funds have already incurred considerable losses due to this one-sided approach.

The great advantage of this final ruling (no further appeal is possible) is that pension funds again are free in their investment policy without the need to anticipate improper intervention by DNB. The ruling clearly indicates that DNB needs to substantiate its decisions carefully and that lax directives without valid arguments will no longer be tolerated.

This is truly a revolution: DNB is a supervisor, not an investment adviser. A supervisor should limit its directives to cases of clear malpractice or destructive financial policy. In other words, as the judges also indicated, supervision needs to keep its distance.

—–

Thanks to Louis Boer for the translation from Dutch to English.

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To contribute to GATA, please visit:

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Banca d’Italia says gold reserves key to central bank independence

September 30, 2013 by · Leave a Comment 

GATA

By Jan Harvey and Clara Denina
Reuters
Monday, September 30, 2013

ROME — Keeping gold reserves is a key support to central banks’ independence, an official from Banca d’Italia told a bullion industry conference on Monday, dampening talk that it might sell some of its holdings.

Speculation has emerged since the financial crisis hit the euro zone that Banca d’Italia might be pressured to leverage or even sell some of its huge gold reserves, the fourth largest among the world’s central banks, to help prop up its economy.

… For the complete story:

http://www.reuters.com/article/2013/09/30/lbma-central-banks-idUSL6N0HQ1…

* * *

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

Turk sees dollar collapse; Embry relieved that at least JPM isn’t manipulating silver

September 30, 2013 by · Leave a Comment 

GATA

11:10a HKT Tuesday, October 1, 2013

Dear Friend of GATA and Gold:

Interviewed at King World News, GoldMoney founder and GATA consultant James Turk says that for months now the U.S. government has been using gimmicks to get around the government debt ceiling, and regardless of what happens with the government shutdown in Washington, excessive debt will collapse the U.S. dollar:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/9/30_Ca…

Meanwhile at King World News, Sprott Asset Management’s John Embry says the counterintuitive action in the monetary metals amid political turmoil is simply desperate intervention by government to support the dollar. Embry notes the many legal actions brought against JPMorganChase for market improprieties and expresses sarcastic relief that the U.S. Commodity Futures Trading Commission apparently has determined that silver is the one market that JPMorganChase isn’t manipulating:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/9/30_Th…

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

* * *

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

Mandalay Resources extends mineralisation at Cerro Bayo silver-gold mine in Chile

September 30, 2013 by · Leave a Comment 

Mandalay Resources has unveiled drilling results from its Cerro Bayo silver-gold mine in Chile, which has shown additional mineralisation.

Read more….

ArcelorMittal, Sider sign strategic agreement on Algerian operations

September 30, 2013 by · Leave a Comment 

Luxembourg-based steel maker ArcelorMittal has agreed to divest a 21% stake in its Algerian operations to state-run company Sider as part of a $763m investment agreement.

Read more….

Cash heavy but project light, Chalice Gold reshaping begins

September 30, 2013 by · Leave a Comment 

Chalice Gold makes a bid for Coventry Resources and entry into territory around New Gold’s Rainy River gold project in Ontario.

Read more….

DRC mine operators risk losses due to power shortages

September 30, 2013 by · Leave a Comment 

The government says mine operators risk “enormous losses” because of power shortages in copper and cobalt-rich Katanga province.

Read more….

SA union signs wage deal in coal sector, averts strike

September 30, 2013 by · Leave a Comment 

NUM has signed the coal wage agreement, averting a possible strike that could have hit exports and supplies to power utility Eskom.

Read more….

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