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Updated: 10 hours 28 min ago

GoldCore: New LBMA silver price still not transparent

Fri, 08/15/2014 - 12:35

11:33a ET Friday, August 15, 2014

Dear Friend of GATA and Gold:

GoldCore's daily commentary today complains that the new silver pricing mechanism in London is not transparent and seems rushed and incomplete. The commentary is headlined "New LBMA Silver Price Still Not Transparent" and it's posted at GoldCore here:

http://www.goldcore.com/goldcore_blog/new-lbma-silver-price-still-not-tr...

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

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Friday-Sunday, September 19-21, 2014

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Help keep GATA going

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Alasdair Macleod: No escape from the dollar as the currency standard

Fri, 08/15/2014 - 12:05

11a ET Friday, August 15, 2014

Dear Friend of GATA and Gold:

Developing countries may be able to trade with each other without the U.S. dollar but so many dollars are floating around the world and constituting so much of central bank reserves that there may be no getting away from the dollar standard without crashing the world financial system. That's the argument today of GoldMoney research director Alasdair Macleod, whose commentary, headlined "No Escape from the Dollar as the Currency Standard," is posted at GoldMoney here:

http://www.goldmoney.com/research/analysis/no-escape-from-the-dollar-as-...

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

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Own Allocated And -- Most Importantly -- Segregated Bullion

If you do not own segregated physical coins and bars that you can take delivery of, you do not own bullion. International diversification remains key, and Hong Kong, Singapore, and of course Zurich remain the safest locations for owning and storing segregated bullion.

Check out "The Seven Key Storage Must-Haves" here:

http://info.goldcore.com/how-to-store-gold-bullion-the-seven-key-must-ha...

Email the GoldCore team at info@goldcore.com or call our trading desk:

International: +353 (0)1 632 5010 ... UK: +44 (0)203 086 9200 ... US: +1-302-635-1160.

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Friday-Sunday, September 19-21, 2014

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https://jeffersoncompanies.com/landing/noic2014?IDPromotion=614011014520...

* * *

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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

China's fourth gold ETF raises about $50 million

Thu, 08/14/2014 - 23:51

By A. Ananthalakshmi
Reuters
Thursday, August 14, 2014

SINGAPORE -- Bosera Funds has raised $50 million for China's fourth gold-backed exchange-traded fund that it aims to launch soon, at a time when investment demand for the precious metal has been sluggish in the world's biggest bullion consumer.

The fund, called Bo Gold ETF, raised 292.2 million yuan ($47.5 million), in line with internal expectations, according to an emailed statement sent by Bosera to Reuters.

An exact launch date is yet to be finalised but the ETF could start trading as soon as next month. ...

... For the remainder of the story:

http://www.reuters.com/article/2014/08/14/gold-china-etf-idUSL4N0QK3ZF20...

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Visit us at www.europesilverbullion.com.

Join GATA here:

Casey Research 2014 Summit
Hill Country Resort and Spa
San Antonio, Texas
Friday-Sunday, September 19-21, 2014

http://www.caseyresearch.com/summit/2014-fall

New Orleans Investment Conference
Hilton New Orleans Riverside Hotel
New Orleans, Louisiana
Wednesday-Saturday, October 22-25, 2014

https://jeffersoncompanies.com/landing/noic2014?IDPromotion=614011014520...

* * *

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

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

Or by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

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

Euro-zone economy grinds to halt even before Russia sanctions bite

Thu, 08/14/2014 - 13:53

By Michelle Martin and Martin Santa
Reuters
Thursday, August 14, 2014

Euro-zone economic growth ground to a halt in the second quarter as Germany's economy shrank and France's stagnated.

The zero growth, reported today by statistics agency Eurostat, was cause for alarm throughout the 18-nation region, which is already bracing for the impact of sanctions imposed on and by Russia over Ukraine.

Germany, Europe's largest economy, contracted by 0.2 percent in the quarter, undercutting Bundesbank forecasts that gross domestic product would be unchanged. Foreign trade and investment were notable weak spots, the German Statistics Office said. ...

... For the remainder of the report:

http://uk.reuters.com/article/2014/08/14/uk-eurozone-economy-idUKKBN0GE0...

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Jim Sinclair Plans Market Seminar in Nashville on September 20

Mining entrepreneur and gold advocate Jim Sinclair will hold his next market seminar on Saturday, September 20, in Nashville, Tennesse. For details about attending, please visit:

http://www.jsmineset.com/2014/07/28/nashville-qa-session-announced/


Join GATA here:

Casey Research 2014 Summit
Hill Country Resort and Spa
San Antonio, Texas
Friday-Sunday, September 19-21, 2014

http://www.caseyresearch.com/summit/2014-fall

New Orleans Investment Conference
Hilton New Orleans Riverside Hotel
New Orleans, Louisiana
Wednesday-Saturday, October 22-25, 2014

https://jeffersoncompanies.com/landing/noic2014?IDPromotion=614011014520...

* * *

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

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

Or by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

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

Gold demand in China slumps 52% as buying frenzy subsides, WGC says

Thu, 08/14/2014 - 12:30

From Bloomberg News
Thursday, August 14, 2014

Gold demand in China shrank in the second quarter as consumers in the biggest user bought fewer bars, coins, and jewelry amid a clampdown on corruption and as the buying spurred by last year's price slump wasn't sustained.

Purchases in Asia's largest economy plunged 52 percent to 192.5 metric tons in the three months to June from a year earlier, contributing to a drop in global consumption, the London-based World Gold Council said in a report today.

Every Asian economy tracked by the producer-funded group bought less bullion in the period, apart from Taiwan, as demand across the biggest consuming region shrank 46 percent to 470.9 tons. ...

... For the remainder of the report:

http://www.bloomberg.com/news/2014-08-14/gold-demand-in-china-contracts-...

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Silver mining stock report comes with 1-ounce silver round

Future Money Trends is offering a special 18-page silver mining stock report about how to profit with the monetary and industrial metal in 2014, and it comes with a free 1-ounce silver round. Proceeds from the report's sales are shared with the Gold Anti-Trust Action Committee to support its efforts to expose manipulation in the monetary metals markets. To learn about this report, please visit:

http://fmturl.com/gata/


Join GATA here:

Casey Research 2014 Summit
Hill Country Resort and Spa
San Antonio, Texas
Friday-Sunday, September 19-21, 2014

http://www.caseyresearch.com/summit/2014-fall

New Orleans Investment Conference
Hilton New Orleans Riverside Hotel
New Orleans, Louisiana
Wednesday-Saturday, October 22-25, 2014

https://jeffersoncompanies.com/landing/noic2014?IDPromotion=614011014520...

* * *

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

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

Or by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

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


ADVERTISEMENT

Jim Sinclair Plans Market Seminar in Nashville on September 20

Mining entrepreneur and gold advocate Jim Sinclair will hold his next market seminar on Saturday, September 20, in Nashville, Tennesse. For details about attending, please visit:

http://www.jsmineset.com/2014/07/28/nashville-qa-session-announced/

Putin says Russia should aim to sell energy in rubles

Thu, 08/14/2014 - 09:44

By Alexei Anishchuk and Dmitry Zhdannikov
Reuters
Thursday, August 14, 2014

YALTA, Crimea -- President Vladimir Putin said on Thursday Russia should aim to sell its oil and gas for roubles globally because the dollar monopoly in energy trade was damaging Russia's economy. ...

... For the remainder of the story:

http://uk.reuters.com/article/2014/08/14/ukraine-crisis-putin-dollar-idU...

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GoldMoney was established in 2001 by James and Geoff Turk and is safeguarding more than $1.7 billion in metals and currencies. Buy gold, silver, platinum, and palladium from GoldMoney over the Internet and store them in vaults in Canada, Hong Kong, Singapore, Switzerland, and the United Kingdom, ­taking advantage of GoldMoney's low storage rates, among the most competitive in the industry. GoldMoney also offers delivery of 100-gram and 1-kilogram gold bars and 1-kilogram silver bars. To learn more, please visit:

http://www.goldmoney.com/?gmrefcode=gata


Join GATA here:

Casey Research 2014 Summit
Hill Country Resort and Spa
San Antonio, Texas
Friday-Sunday, September 19-21, 2014

http://www.caseyresearch.com/summit/2014-fall

New Orleans Investment Conference
Hilton New Orleans Riverside Hotel
New Orleans, Louisiana
Wednesday-Saturday, October 22-25, 2014

https://jeffersoncompanies.com/landing/noic2014?IDPromotion=614011014520...

* * *

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

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

Or by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

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

Silver price going electronic in quest for transparency

Thu, 08/14/2014 - 09:39

By Nicholas Larkin
Bloomberg News
Thursday, August 14, 2014

http://www.bloomberg.com/news/2014-08-14/silver-price-going-electronic-i...

LONDON -- The silver-pricing method begun during the reign of Queen Victoria ends today in London as the $5 trillion market shifts to a more transparent process and regulators expand scrutiny of how commodity benchmarks are set.

An electronic, auction-based mechanism will replace a ritualized negotiation among a few traders that's been in place for 117 years. Silver becomes the first of the precious-metals markets to ditch a daily "fixing" procedure where dealers agree to a price over the telephone. Revamps also are planned this year for fixings in gold, platinum and palladium.

... Dispatch continues below ...


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BullionStar is a Singapore-registered company with a one-stop bullion shop, showroom, and vault at 45 New Bridge Road in Singapore.

BullionStar's solution for storing bullion in Singapore is called My Vault Storage. With My Vault Storage you can store bullion in BullionStar's bullion vault, which is integrated with BullionStar's shop and showroom, making it a convenient one-stop-shop for precious metals in Singapore.

Customers can buy, store, sell, or request physical withdrawal of their bullion through My Vault Storage® online around the clock. Storage is FREE until 2016 and will have the most competitive rates in the industry thereafter.

For more information, please visit Bullion Star here:

https://www.bullionstar.com/

Coeur Mining Inc., the largest U.S. silver producer, says changing an outdated pricing method will enhance confidence in a benchmark used as a reference for trading and valuing holdings. Since the 2008 financial crisis, regulators have uncovered price-rigging in everything from interbank-loan rates to currencies, increasing pressure on tradition-bound commodity markets from gold to oil to expand transparency.

"Everybody these days is worried that if something isn't totally transparent that there's going to be litigation at some stage if somebody's not happy with it," said Steve Garwood, a trader at Baird & Co., a precious-metals dealer in London, who first took part in fixings more than 30 years ago.

The demise of the silver fix was set in motion after Deutsche Bank AG said it would no longer participate, as the German company scales back its commodities business. That left only HSBC Holdings Plc and Bank of Nova Scotia to set prices. CME Group Inc. and Thomson Reuters Corp. will run the new, electronic system that will continue to post the rate at noon every weekday. Silver trades in the over-the-counter and futures market throughout most of the day.

Spokesmen for Frankfurt-based Deutsche Bank, Toronto-based Bank of Nova Scotia and London-based HSBC declined to comment.

The three banks set the price at $19.86 an ounce today, up 1.8 percent for the year, compared with 27 9/16 pennies of old British money in 1897, when fixings started at the London office of Sharps & Wilkins, with former dealers Mocatta & Goldsmid, Pixley & Abell, and Samuel Montagu & Co.

For the first century, those conducting the fixing carried order books to a closed room each weekday at noon, spending about 10 minutes setting a price. The group's appointed chairman, from one of the banks, adjusts prices to balance buying and selling. From 1999, traders were permitted to check with clients by telephone to change orders before the price was fixed. Metal changes hands at the settled price.

While that method provided a crucial benchmark for mining companies, jewelers, and investors for more than a century, economists and academics say the process is susceptible to manipulation and lacks sufficient regulation.

The three banks conducting silver fixings were accused by an investor of manipulating the price of the metal and its derivatives, according to a complaint filed on July 25 in Manhattan. Bank of Nova Scotia said at the time it intends to "vigorously defend" itself against the suit, while HSBC and Deutsche Bank declined to comment.

This year the U.K.'s Financial Conduct Authority visited member banks involved in the gold fixing and fined Barclays Plc in May after a trader sought to influence the gold fix in 2012. There are 27 lawsuits related to the gold fixing in U.S. federal courts that are in a putative class-action case before U.S. District Court Judge Valerie Caproni in New York.

European authorities raided oil companies including Royal Dutch Shell Plc, BP Plc, Statoil ASA, and the energy news and price publisher, Platts, last year in a probe of potential price manipulation. Shell said in April it would continue cooperating with authorities. BP said it had "full confidence" in its compliance systems. Statoil said it was awaiting results, and Platts said its participation in its oil price assessment processes "remained robust and unchanged."

"The move from the fixing to the new London silver price is a good thing because it adds transparency to the price-discovery process," Courtney Lynn, Coeur's treasurer, said by phone on Aug. 11 from Chicago, where the mining company is based. "The old process created too much regulatory, legal and reputational risk."

Under the new system, participants will enter orders electronically to trade at a proposed starting price, according to Chicago-based CME. If there's no match between buy and sell orders, an algorithm picks a new price for a second round of bidding. Each round should last no more than 30 seconds, and those taking part will be able to see volumes of bids and offers, the CME said. Participants also will be able to see total volumes traded at the set price.

Not all participants who took part in live trials will be accredited by tomorrow, due to constraints in signing off necessary credit, legal, compliance, and IT requirements, the London Bullion Market Association said on its website today. The organization expects the list of banks, trading houses, refiners and producers to increase in the next few weeks.

Coeur, which sells all its silver through or using the fix, says it expects the switch to an electronic system to be successful. Other than amending agreements to include the new reference method, there won't be any change to business, it said.

"Hopefully our customers won't even notice," said Tony Dobra, a director at Baird in London, who first took part in silver fixings in the 1990s in a room at Mocatta House, a building in Crosby Square that's been demolished.

The switch may open up the process to more people, said Dobra, who started in precious metals at Sharps Pixley in 1980, the year silver set a record that held for three decades.

Prices won't be influenced differently because the new benchmark will be "representing the same thing" and reflect International Organization of Securities Commissions principles, Jonathan Spall, managing director of G Cubed Metals Ltd., a consultant, said Aug. 6. Spall conducted an independent review of proposals for the new silver rate.

The LBMA said July 11 it chose CME and New York-based Thomson Reuters to run the new silver rate over alternatives proposed by the London Metal Exchange, Autilla Ltd., ETF Securities Ltd., Intercontinental Exchange Inc., Bloomberg LP and Platts. Bloomberg competes with Thomson Reuters in selling financial and legal information and trading systems.

The switch may be a preview of changes for the larger gold market. About $18 trillion of gold circulated globally last year, more than three times the amount of silver, according to CPM Group, a commodities researcher based in New York.

The London bullion association is seeking proposals this month for a new administrator for gold fixings, conducted by Societe Generale SA, Bank of Nova Scotia, HSBC, and Barclays twice a day. The LBMA plans to complete the process this year. Deutsche Bank left the ritual, which dates to 1919, in May.

The company that runs platinum and palladium fixings also is looking for a new administrator and has appointed Spall as an independent chairman for the procedure that's carried out by BASF Metals Ltd., Goldman Sachs Group Inc., HSBC, and Standard Bank Plc. Those fixings started in 1989.

Silver meetings didn't have the same allure as gold, where fixings were held in a wood-paneled room at Rothschild's offices in St. Swithin's Lane until the process was switched to a telephone conference call in 2004.

Outside the gold room, bullion artifacts were displayed in a cabinet. Inside, traders kept yearly price predictions on pieces of paper in an old clock case. Rooms used for silver fixings were said to be less attractive.

The noon silver fix occurs 15 minutes earlier than when the process was closed until 1999. Then, there would be a last-minute call back to banks' offices for any client updates and to get the latest silver price. The only additional information given was on fluctuations in the dollar-pound exchange rate.

"In 1980 you had the spike in prices" to almost $50, said Garwood, who started at Sharps Pixley in the early 1970s before moving from the back office to trading later that decade. "There could be quite hefty volumes on occasions. At the end of the day, it came down to finding a price where all orders were matched."

Gone will be the custom of traders halting the process by calling "flag" to amend client orders. The tradition stemmed from when gold dealers who met in the Rothschild room each had small Union Jack flags ready to signal the need to pause.

Coffee and biscuits offered in the meetings were bettered by a glass of sherry after fixings on New Year's Eve, a day more senior dealers often attended the meetings, Garwood said.

"It's another sign of dehumanization of financial markets," said James Moore, an analyst at FastMarkets Ltd. in London who took part in silver fixings from 1996 to 2001. "It's good to see the fixes have reacted. It clearly shows there is still very much a requirement by the market for a set, globally recognized benchmark. That's important for the markets."

* * *

Join GATA here:

Casey Research 2014 Summit
Hill Country Resort and Spa
San Antonio, Texas
Friday-Sunday, September 19-21, 2014

http://www.caseyresearch.com/summit/2014-fall

New Orleans Investment Conference
Hilton New Orleans Riverside Hotel
New Orleans, Louisiana
Wednesday-Saturday, October 22-25, 2014

https://jeffersoncompanies.com/landing/noic2014?IDPromotion=614011014520...

* * *

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

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

Or by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

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

Economies are not improving, Barron and Celente tell King World News

Thu, 08/14/2014 - 01:54

12:51a ET Thursday, August 14, 2014

Dear Friend of GATA and Gold:

Propaganda about improving economies is disinformation, mining entrepreneur and geologist Keith Barron tells King World News from Europe:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/8/14_It...

From the United States, trends forecaster Gerald Celente comes to the same conclusion for KWN:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/8/13_Ge...

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

ADVERTISEMENT

Own Allocated And -- Most Importantly -- Segregated Bullion

If you do not own segregated physical coins and bars that you can take delivery of, you do not own bullion. International diversification remains key, and Hong Kong, Singapore, and of course Zurich remain the safest locations for owning and storing segregated bullion.

Check out "The Seven Key Storage Must-Haves" here:

http://info.goldcore.com/how-to-store-gold-bullion-the-seven-key-must-ha...

Email the GoldCore team at info@goldcore.com or call our trading desk:

International: +353 (0)1 632 5010 ... UK: +44 (0)203 086 9200 ... US: +1-302-635-1160.

Join GATA here:

Casey Research 2014 Summit
Hill Country Resort and Spa
San Antonio, Texas
Friday-Sunday, September 19-21, 2014

http://www.caseyresearch.com/summit/2014-fall

New Orleans Investment Conference
Hilton New Orleans Riverside Hotel
New Orleans, Louisiana
Wednesday-Saturday, October 22-25, 2014

https://jeffersoncompanies.com/landing/noic2014?IDPromotion=614011014520...

* * *

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

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

Or by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

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

At Australian mint, history thwarts a golden opportunity

Thu, 08/14/2014 - 01:37

Heritage Cops Stand in Way of Harvesting Dust Trove Trapped in Walls

By Rhiannon Hoyle
The Wall Street Journal
Thursday, August 13, 2014

PERTH, Australia -- Greg Cooke knows where gold worth hundreds of thousands of dollars is hidden. But like many people in this mining city, his problem isn't finding the precious metal; it is being able to recover it.

That's because the gold is in the form of dust that has accumulated in the brickwork of the old Perth Mint since its founding in the 1890s at the height of one of the world's great gold rushes. Decades of refining resulted in tiny fragments of gold embedding themselves in the fabric of the mint's historic melting house. To paraphrase a well-known bit of mining lore, there's gold in them thar walls! ...

... For the remainder of the story:

http://online.wsj.com/articles/in-australia-perth-mint-has-valuable-gold...

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Buy precious metals free of value-added tax throughout Europe

Europe Silver Bullion is a fast-growing dealer sourcing its products from renowned mints, refiners, and distributors. Because of a legal loophole that will close soon, you can acquire the world's most popular bullion coins free of value-added tax throughout the European Union. You can collect your order in person at our headquarters in Tallinn, Estonia, or have it delivered in any of the 28 EU countries.

Europe Silver Bullion is owned and operated by North American and European experts in selling, storing, and transporting precious metals. We have an extensive product inventory of silver, gold, platinum, and palladium, and our network spans the world.

Visit us at www.europesilverbullion.com.

Join GATA here:

Casey Research 2014 Summit
Hill Country Resort and Spa
San Antonio, Texas
Friday-Sunday, September 19-21, 2014

http://www.caseyresearch.com/summit/2014-fall

New Orleans Investment Conference
Hilton New Orleans Riverside Hotel
New Orleans, Louisiana
Wednesday-Saturday, October 22-25, 2014

https://jeffersoncompanies.com/landing/noic2014?IDPromotion=614011014520...

* * *

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

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

Or by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

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

On CNBC Asia, GATA secretary cites growing documentation of gold price suppression

Thu, 08/14/2014 - 01:20

12:25a ET Thursday, August 13, 2014

Dear Friend of GATA and Gold:

Your secretary/treasurer was interviewed via satellite by CNBC Asia's Bernie Lo for about seven minutes this morning Hong Kong time and the better four of them have made it to the CNBC archive, wherein we discuss the growing documentation of gold price suppression by central banks, the refusal of mainstream financial news organizations (cited by name) to touch the issue, and the likelihood that "financial repression" by central banks will intensify if interest rates are allowed to rise. The segment can be viewed at the CNBC archive here:

http://video.cnbc.com/gallery/?video=3000301440

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

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Jim Sinclair Plans Market Seminar in Nashville on September 20

Mining entrepreneur and gold advocate Jim Sinclair will hold his next market seminar on Saturday, September 20, in Nashville, Tennesse. For details about attending, please visit:

http://www.jsmineset.com/2014/07/28/nashville-qa-session-announced/


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U.S. gold reserve is leased but undeliverable, Jim Rickards tells Peter Schiff

Thu, 08/14/2014 - 01:02

12:02a ET Thursday, August 14, 2014

Dear Friend of GATA and Gold:

Interviewed by fund manager Peter Schiff, geo-political strategist, author, and fund manager James G. Rickards asserts, among other things, that:

-- The U.S. gold reserve has been leased out but has not left its vaults.

-- The leased gold consists only of certificates of title that have been rehypothecated many times, creating a vast supply of imaginary gold that is undeliverable.

-- If called for delivery, those certificates will be nullified by a bullion bank's claim of "force majeure" and settled with yesterday's now-much-discounted cash price.

-- The gold exchange-traded fund GLD was essentially looted of 500 tonnes last year to smash the gold price down but this cannot be done again because that gold is gone too.

-- And gold and the gold market are moving to Asia.

It's a great interview, only 12 minutes long, and has been posted at GoldSeek here:

http://news.goldseek.com/GoldSeek/1407947161.php

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

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Silver mining stock report comes with 1-ounce silver round

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Help keep GATA going

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Jim Sinclair Plans Market Seminar in Nashville on September 20

Mining entrepreneur and gold advocate Jim Sinclair will hold his next market seminar on Saturday, September 20, in Nashville, Tennesse. For details about attending, please visit:

http://www.jsmineset.com/2014/07/28/nashville-qa-session-announced/

London gold fix lawsuits to be consolidated in New York

Wed, 08/13/2014 - 18:39

By Andrew Longstreth
Reuters
Wednesday, August 13, 2014

A federal judicial panel on Wednesday ordered that 18 lawsuits alleging a conspiracy to manipulate gold prices be consolidated into one proceeding in New York.

The cases will be sent to U.S. District Judge Valerie Caproni in Manhattan, who has already been overseeing more than two dozen cases.

The lawsuits name the multinational banks that make up the London Gold Market Fixing Ltd, the company operating the global gold price benchmark known as the 'fix.' ...

... For the remainder of the report:

http://www.reuters.com/article/2014/08/13/usa-gold-lawsuits-idUSL2N0QJ29...

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http://gata.org/node/wallstreetjournal

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No interest rate rise in UK this year as Bank of England slashes wage growth forecast

Wed, 08/13/2014 - 09:29

By Peter Spence
The Telegraph, London
Wednesday, August 13, 2014

The Bank of England's interest rates are set to stay at their historic lows until next year, after the central bank signalled that it does not expect to see strong growth in earnings.

As data released showed that average earnings have fallen for the first time in five years, the bank has made large downward revisions to its forecasts.

Its forecast for annual earnings growth in the last quarter of this year has been halved from from 2.5 to 1.25 percent.

... For the remainder of the story:

http://www.telegraph.co.uk/finance/bank-of-england/11030408/No-interest-...

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Or by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

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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Bloomberg notes that India's gold import limits are currency market intervention

Wed, 08/13/2014 - 09:12

8:11a ET Wednesday, August 13, 2014

Dear Friend of GATA and Gold:

Bloomberg News acknowledges offhandedly today that by restricting the import of gold into the country India's government intends intervention in the currency market, supporting the rupee. Maybe in another few decades Bloomberg will get around to noting the involvement of other central banks in the gold market for currency-support purposes. The Bloomberg story is headlined "India Gold Imports Seen Dropping as Rajan Protects Rupee" and it can be found here:

http://www.bloomberg.com/news/2014-08-13/gold-imports-by-india-dropping-...

Meanwhile The Wall Street Journal notes the increasingly ingenious attempts of Indians to smuggle the monetary metal past those government regulations. The report is headlined "India's Gold Smugglers Innovate to Evade Customs" and it's posted here:

http://blogs.wsj.com/indiarealtime/2014/08/13/indias-gold-smugglers-inno...

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

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* * *

Support GATA by purchasing DVDs of our London conference in August 2011 or our 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

Koos Jansen: Silver scarce in Shanghai

Tue, 08/12/2014 - 22:01

9p ET Tuesday, August 12, 2014

Dear Friend of GATA and Gold:

Gold researcher and GATA consultant Koos Jansen reports tonight that silver is in backwardation in Shanghai, with metal for immediate delivery being more expensive than metal for future delivery with a premium of 8 percent:

https://www.bullionstar.com/article/shanghai%20silver%20in%20backwardati...

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

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

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Or by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

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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Silver is the key to the monetary metals market, Kaye tells KWN

Tue, 08/12/2014 - 17:41

4:38p ET Tuesday, August 12, 2014

Dear Friend of GATA and Gold:

Hong Kong fund manager William Kaye today tells King World News that silver is the key to the monetary metals market.

"Trading in the paper market for silver doesn't reflect the fundamentals at all," Kaye says. "This is reflected, among other things, in very significant premiums in Shanghai and other places. So this is not a sustainable situation and it has to be addressed in some way.

"I think for the people who are primarily long gold, and that would include us, this bodes very well because we can anticipate that if silver goes higher, the gold market should follow.”

Kaye's comments are excerpted at the KWN blog here:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/8/12_Th...

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

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Jim Sinclair Plans Market Seminar in Nashville on September 20

Mining entrepreneur and gold advocate Jim Sinclair will hold his next market seminar on Saturday, September 20, in Nashville, Tennesse. For details about attending, please visit:

http://www.jsmineset.com/2014/07/28/nashville-qa-session-announced/


Join GATA here:

Casey Research 2014 Summit
Hill Country Resort and Spa
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Friday-Sunday, September 19-21, 2014

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New Orleans, Louisiana
Wednesday-Saturday, October 22-25, 2014

https://jeffersoncompanies.com/landing/noic2014?IDPromotion=614011014520...

* * *

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

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Or by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

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 wait on sidelines of new silver benchmark

Tue, 08/12/2014 - 14:11

By Neil Hume
Financial Times, London
Tuesday, August 12, 2014

http://www.ft.com/intl/cms/s/0/8bbf7968-217b-11e4-b145-00144feabdc0.html

Build it and they will come. Or that is what participants in London's $1.6 trillion-a-year silver market will be hoping.

There are just three trading days before the new, electronic replacement for the 117-year old silver fix goes live and there is still considerable uncertainty over who will be participating on Friday.

... Dispatch continues below ...


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http://fmturl.com/gata/


Since there is no centralised clearing for precious metals markets, the initial users of the new benchmark are expected to be the 11 market-making members of the London Bullion Market Association, which include Credit Suisse, JPMorgan, Goldman Sachs, and UBS.

But so far no one has publicly stepped forward to say they will be involved even though testing of the system has gone without a hitch. The CME Group, whose Comex exchange offers the biggest silver futures contract, is providing the electronic price platform and the algorithm that will be used to set the auction's opening price. Thomson Reuters will take care of the governance and administration.

This is only to be expected, according to people familiar with the situation. In the current regulatory climate anything connected to a benchmark gets stuck in a legal and compliance quagmire. As such, it is entirely possible that the list of participants in the London Silver Price, as the new benchmark will be known, will not emerge until Friday morning.

Just to recap, the fix, which has been criticised as opaque and vulnerable to manipulation, is closing because Deutsche Bank failed to find a buyer for its seat, leaving only two other members -- HSBC and Scotiabank.

Its successor retains some of the main features of the silver fixing, in particular the auction-style process used to calculate the price. But the whole system will be brought into the 21st century.

Still, there are reasons to think there will be an adequate number of banks involved and therefore enough liquidity to set a reference price for the global silver market later this week.

Peer pressure will help. The banks that do sign up -- and several are rumoured to have indicated willingness -- could simply refuse to process orders for those who have not bothered. This could place the laggards in the potentially embarrassing situation of not being able to execute a trade for a large, important client of the bank. A client that might use the institution for other more lucrative investment banking services.

Indeed, there are already rumours in the marketplace that some big silver producers and consumers are preparing to pepper the market with orders.

And if the London Silver Price does prove popular, it is likely the system will be used as a template for fixing gold -- a much bigger market whose benchmark should be operational by the end of the year.

* * *

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https://jeffersoncompanies.com/landing/noic2014?IDPromotion=614011014520...

* * *

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Or by purchasing a colorful GATA T-shirt:

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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:

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Jim Sinclair Plans Market Seminar in Nashville on September 20

Mining entrepreneur and gold advocate Jim Sinclair will hold his next market seminar on Saturday, September 20, in Nashville, Tennesse. For details about attending, please visit:

http://www.jsmineset.com/2014/07/28/nashville-qa-session-announced/

JPMorgan joins Goldman in designing derivatives for a new generation

Tue, 08/12/2014 - 13:01

By Sridhar Natarajan and Alastair Marsh
Bloomberg News
Tuesday, August 12, 2014

http://www.bloomberg.com/news/2014-08-12/swaps-reincarnate-boosting-debt...

Derivatives that helped inflate the 2007 credit bubble are being remade for a new generation.

JPMorgan Chase & Co. is offering a swap contract tied to a speculative-grade loan index that makes it easier for investors to wager on the debt.

Goldman Sachs Group Inc. is planning as much as 10 billion euros ($13.4 billion) of structured investments that bundle debt into top-rated securities, while ProShares last week started offering exchange-traded funds backed by credit-default swaps on company debt.

... Dispatch continues below ...


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Wall Street is starting to return to the financial innovation that helped extend the debt rally seven years ago before exacerbating the worst financial crisis since the Great Depression. The instruments are springing back to life as investors seek new ways to boost returns that are being suppressed by central bank stimulus. At the same time, they're allowing hedge funds and other investors to bet more cheaply on a plunge after a 145 percent rally in junk bonds since 2008.

"The true sign of a top is when you have these new structures piling up," said Lawrence McDonald, a chief strategist at Newedge USA LLC, and author of the book "A Colossal Failure of Common Sense" about the 2008 demise of Lehman Brothers Holdings Inc. "At the top of the market in 2007, there were these types of innovation and many investors didn't realize about it at that time. These products are a clear risk indicator."

JPMorgan is marketing total-return swaps that are tied to Markit's iBoxx USD Liquid Leverage Loan index, a benchmark for the $750 billion leveraged loan market, according to a July 11 Morgan Stanley report. The swaps allow an investor to pay a fee in exchange for receiving the total return on the index at the expiration of the trade. If the measure posts a loss, the investor compensates the counter-party to the trade.

Total-return swaps allow investors to amplify gains because they can wager on a large pool of debt while setting aside a relatively smaller amount of collateral to back the trade. While the derivatives have been around for years, these are the first to be tied to the index, providing investors a benchmark that can fuel faster and easier trading similar to how the credit-default swaps market ballooned in the years before the financial crisis.

Jessica Francisco, a spokeswoman for JPMorgan, declined to comment.

"Some funds have to use more leverage to get the sort of returns that their investors expect, Peter Tchir, Brean Capital LLC's head of macro strategy in New York, said in a telephone interview. "We are moving into a phase where there will be more esoteric products. It does start setting up more problems for the future."

The Federal Reserve's extraordinary stimulus measures unleashed after the credit crisis to spur growth, have pushed investors to sacrifice safeguards in their search for returns as benchmark interest rates remain close to zero for a sixth year. Pacific Investment Management Co. popularized the term "new normal" to describe an era of below-average economic growth and low interest rates following the financial crisis.

The new swaps will also feed a growing appetite to hedge against losses in leveraged loans, Sivan Mahadevan, a strategist at Morgan Stanley, wrote in the report.

Investors withdrew $1.5 billion from U.S. funds that buy leveraged loans in the week ended Aug. 6, the largest weekly outflow in about three years, according to data provider Lipper.

Goldman Sachs plans to sell its first structured bonds with a 1 billion euros offering, according to a June 24 report from Standard & Poor's. The notes, which may be sold in September, are backed by a revolving pool of fixed-income assets, including asset-backed securities.

The proposed financings have been compared by analysts at Societe Generale SA to collateralized debt obligations, that fueled the housing boom by packaging risky loans into securities that were sold to investors, often with top AAA ratings.

The securities, the first of their kind, also use a total return swap and have features similar to covered bonds, a type of secured note backed by mortgages and public sector borrowings. The financing, backed by Goldman Sachs and Japan's Mitsui Sumitomo Insurance Co., would be rated AAA, according to to S&P.

"The current state of play where yields are very low and there are more redemptions than issuance in certain assets, such as covered bonds, leave investors looking for innovative investment opportunities, so long as they pay up," said Cristina Costa, a senior covered bond analyst at Societe Generale in Paris.

Sophie Ramsay, a spokeswoman for Goldman Sachs in London, declined to comment on the notes.

ProShares started trading an exchange-traded fund last week that allows individual investors to bet against junk bonds with credit-default swaps. Credit-default swaps allow buyers to wager on the credit market or hedge their exposure.

The ProShares CDS Short North American High Yield Credit ETF, which is listed on BATS Exchange Inc. under the ticker WYDE, will invest at least 80 percent of its assets in credit swaps tied to a benchmark index, according to a July 23 filing.

Intercontinental Exchange Group Inc. was pitching derivatives contracts that would allow investors to wager on U.S. homeowner defaults, Bloomberg News reported in May.

The emergence of new derivatives is reminiscent to the period leading up to the crisis, said Stephen Blumenthal, the chief executive officer of investment firm CMG Capital Management.

"Wall Street has always had a habit of piling on products when there's an appetite for the asset class," Blumenthal, who oversees $600 million in assets, said in a telephone interview. "That's under the Code Red category."

The riskiest kind of derivatives added to losses for investors during the credit crisis. The investments included so-called synthetic CDOs that during 2006 and 2007 loaded their holdings with credit swaps linked to the debt of financial companies including Lehman, Washington Mutual Inc. and bond insurer Ambac Financial Group Inc., all of which collapsed amid the 2008 market seizure.

"You didn't know the depths of the risk you really had," Blumenthal said of the subprime paper rolled up into AAA-rated products. "We might not be there yet but we are in a frothy environment today."

Former Fed Chairman Paul Volcker has blamed credit swaps and CDOs for taking the financial system "to the brink of disaster."

"You can be near certain that some big funds are going to a bank right now and saying I want to go short and how can we create a vehicle that allows us to put on a big-sized trade," Newedge's McDonald said. "The genesis of the next crisis will not be on the sell side. Likely, it will come at us from where there's not enough liquidity, for many parts of the buy side."

* * *

Join GATA here:

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New Orleans, Louisiana
Wednesday-Saturday, October 22-25, 2014

https://jeffersoncompanies.com/landing/noic2014?IDPromotion=614011014520...

* * *

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

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Or by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

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

Gold and silver price suppression intensifies, Embry tells KWN

Mon, 08/11/2014 - 16:36

3:30p ET Monday, August 11, 2014

Dear Friend of GATA and Gold:

Gold and silver price suppression has intensified, Sprott Asset Management's John Embry tells King World News today, as currencies are being debased "in an ever-more-frantic attempt to keep the debt load from crushing the world economy." But, Embry adds, "gold and silver will eventually experience explosive upward moves as a result of a growing shortage of physical gold and silver that finally overwhelms the manipulators." Embry's interview is excerpted at the KWN blog here:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/8/11_Jo...

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

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Join GATA here:

Casey Research 2014 Summit
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San Antonio, Texas
Friday-Sunday, September 19-21, 2014

http://www.caseyresearch.com/summit/2014-fall

New Orleans Investment Conference
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Wednesday-Saturday, October 22-25, 2014

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* * *

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

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

Or by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

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

TF Metals Report: Assessing another bank participation report

Mon, 08/11/2014 - 14:01

1p ET Monday, August 11, 2014

Dear Friend of GATA and Gold:

Futures trading data from the U.S. Commodity Futures Trading Commission isn't reliable, the TF Metals Report's Turd Ferguson acknowledges today, but he thinks some useful information still can be extracted from it. His commentary is headlined "Assessing Another Bank Participation Report" and it's posted at the TF Metals Report here:

http://www.tfmetalsreport.com/podcast/6017/assessing-another-bank-partic...

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

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Join GATA here:

Casey Research 2014 Summit
Hill Country Resort and Spa
San Antonio, Texas
Friday-Sunday, September 19-21, 2014

http://www.caseyresearch.com/summit/2014-fall

New Orleans Investment Conference
Hilton New Orleans Riverside Hotel
New Orleans, Louisiana
Wednesday-Saturday, October 22-25, 2014

https://jeffersoncompanies.com/landing/noic2014?IDPromotion=614011014520...

* * *

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

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

Or by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

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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