The gold news flow was especially interesting over the last week with stories about stolen gold and the continuing trend of gold repatriation. If you connect the dots, it should be clear that Turdville is not the only ones preparing for a currency crisis but so are the countries of the world. Let's get right to business. This first story is quite mind blowing for us mining investors!
The Chinese have hired Eric Sprott to help them acquire mining properties. Zijin Mining Group Company, China's Largest mining company, and Sprott have joined forces to search the world over for acquisition of the top tier mining properties. Zijin will be throwing $100 million dollars into the fund and Sprott will be throwing in $10 million dollars.
If that is not bullish for certain junior mining properties, than what is? Remember, junior mines do not always need an increase in the metal price to have a significant rise in stock price. Both acquisition and discovery are the two other factors you look for when purchasing a mining property.
It get's better because the SEC have just changed the laws regarding how junior miners can reach out to investor's for private placements. I will be speaking more about these changes in an upcoming article.
We believe the combination of Zijin's technical strengths and Sprott's resource investment expertise will prove to be an attractive option for investors looking to invest in the mining sector with a focus on gold."
The Fund management company is a joint venture between Sprott and Zijin and will invest primarily in the publically-listed equity and debt instruments of gold, other precious metals and copper mining companies. The Fund will be co-managed by affiliates of Sprott and Zijin. Under the joint venture agreement, Americas Now Resources Investment Management Corp. has agreed to provide technical and marketing services to the Fund.
The target size of the Fund is US$500 million and the Company anticipates receiving additional commitments from onshore Chinese investors beginning in the fourth quarter of 2013.
"Structural adjustments" aka Bail-In's
I've mentioned the idea of structural adjustments quite a bit as a way for the crooks in Washington to desperately try to hold together their sinking ship.
Bail-ins are not necessary only going into retail customers bank accounts and closing ATM machines. A bit too overt. Right now it seems that their target is the wealthy as the elite go after the wealthier population's money through closing and pillaging tax havens.
Some of you might recall the case of Edward Saverin, the Facebook Co-Founder who dropped his U.S. Citizenship to avoid paying taxes on his Facebook IPO taxes. And then a bunch of senators started getting in a tizzy yelling anybody who tries to avoid paying US taxes and drops their citizenship will be pursued and prosecuted.
Even before Cyprus bail-ins, the US legislature was been busy writing regulations that make it legal for US government to cross borders and go after wealth. These provisions are known as the Foreign Account Tax Compliance Act (FACTA). Details can be found on the IRS website. The basic idea is if you don't tell us and we find it, we take it.
Did you know that Cyprus was a popular US tax haven? And so is Panama. The US is now in talks with Panama on developing a tax evasion pact. Bail-ins are on. It's just that they are first going after big money. And do you know what big money is doing? They are buying gold! Because wealth is not stupid. They got wealthy by preserving their money and they are not going to let the USG tap into their piggy banks.
Billionaires can withstand the volatility more than the average investor so they probably worry less about buying the dips than most of us. Every time I watch guys like Robert Kiyosaki talk about gold and silver, he is smiling ear to ear as he buys gold and silver and probably throws into his wishing well in his back yard. Folks, wealth knows what is coming and what is already upon us. They don't become disillusioned by falling prices because they experiencing the realities of a dollar crisis NOW.
The next series of articles were discussed recently on Joseph Farrell's blog.
The repatriation theme continues as Finland calls back their gold as reported on Mike Maloney's WealthCycles website. Now the way I see it at this time is that the calls for Gold repatriation are ways for countries to let the United States know, that we are no longer playing your game. And Farrell suggests that governments are getting ready for a currency crisis.
However, he neglects to mention the idea that the US might not even be in possession of the gold they were once asked to "safeguard" I suspect world leaders know at least as much about the US gold reserves as a bunch of us small time gold investors. And if the US Gold reserves are as many of us belief a total sham, than countries declaring their reserves back are simply giving a message. You don't own us anymore and the dollar is toast. Back during the German repatriation I wrote about how a German general published in a major German paper that Germany essentially gave away their financial sovereignty and it was time to send a message to take it back.
More missing gold. An inside job?
This one reported by RT News Gold shipment disappears from Air France flight to Zurich.
Some 44 kilograms of gold bars from an overall cargo of 300 kg of precious metal have mysteriously disappeared from a flight bound to Zurich. An insider operation could be to blame for a €1.5 million heist at Paris’ Charles de Gaulle airport"
“We are investigating the matter, and especially the possibility that this was an inside job,” a source familiar with the investigation told the British Daily Mail.
Stealing gold off an international flight between Paris and Zurich is not the work of George Clooney and 10 other international fugitives. As RT points out, this is an inside job. And as Farrell points out the amount is relatively insignificant so therefore this is meant to give a message. The message being that dollar hegemony is over with and finished.
There is another part of the story that bears mentioning regarding the connection to organized and state sponsored fund raising through the shadow economy of drug smuggling. Again, somebody pretty high up is involved in these transactions.
News of the heist comes on the heels of another scandal for the carrier, when earlier this month a record-breaking 1.3-ton, €200 million worth of cocaine was discovered being transported by Air France from South America.
The flight from Caracas, Venezuela to Paris contained 30 suitcases of narcotics onboard and has led to the arrests of nine suspects, including three Venezuelan security agents and three British nationals following the cargo’s discovery on September 11th. The other three suspects were Italian nationals.
During that scandal Venezuelan Interior Minister was quick to suggest an inside Air France job.
"How can the cocaine shipment reach France and it gets taken out without going through the normal controls?" Miguel Rodriguez asked
The next two articles speak to the new world of electronic trading and it's implications for electronic surveillance, manipulation and even currency wars.
Last Wednesday, the Fed announced that it would not be tapering its bond buying program. This news was released at precisely 2 p.m. in Washington "as measured by the national atomic clock." It takes seven milliseconds for this information to get to Chicago. However, several huge orders that were based on the Fed's decision were placed on Chicago exchanges two to three milliseconds after 2 p.m. How did this happen?
You'll have to read the article to get the rest of the story but here is the jist. Electronic surveillance, electronic trading, the ability to manipulate markets is all connected. Once they got rid of all the humans on the trading floor, and installed high speed computers, the watchers are now controlling the matrix from behind a keyboard.
Any of you remember the NASDAQ flash freeze back in early August which occurred the same week that Goldman Sachs? Both were reported as a technical glitch. Ok. If you say so. USA today reported that it was a result of sabotage. Currency wars are being fought from behind computer screens.
And finally, this humorous piece from Peter Schiff poking fun at the financial MSM
Fall Stacks More Gold than any other season.