Kitco Attempts Corporate Suicide

59
Thu, Feb 12, 2015 - 10:42pm

Already on the "avoid" list for many gold investors and traders, the latest from Canadian metals dealer Kitco will leaving you shaking your head in disbelief.

Actually, I just stumbled upon this article a few moments ago. I stopped by Yahoo to check my email and, as I scrolled down the "news" headlines, this caught my eye:

"Metals exec: 25% of physical gold buyers are crazy"

I figured that this story was good for a laugh so I went ahead and clicked it. And what did I find? Yes, there is a "metals exec" quoted in the story and the guy in question works for...

...wait for it...

KITCO!

The same Canadian metals firm that employed the permabear Jon Nadler all through the previous bull market for gold. The same Canadian metals firm that made headlines after being alleged as a tax fraud in 2011 and 2013. (https://business.financialpost.com/2013/12/09/kitco-metals-among-gold-tr...) The same Canadian metals firm that gleefully reported Jeffrey Christian's smears of Andrew Maguire and GATA.

Yep, that Kitco.

So what, exactly, did this "metals executive" from Kitco allege? From the story:

"A lot of people who buy bits of physical gold aren't looking to make a bracelet or ring. They buy gold because they believe disaster is imminent.
These investors are convinced gold will spike to $10,000 an ounce (it's currently around $1,225) when the U.S. government implodes, said Peter Hug, an executive at metals retailer Kitco.
Hug calls these people "crazies" and says they form a substantial amount of the U.S. physical gold market -- at least 25%."

Nothing quite like insulting 25% of your customer base, huh Pete? (I'm still shaking my head at the arrogance of this guy.)

Anyway, you can read the entire article here: https://money.cnn.com/2015/02/12/investing/buy-gold-market-fear/index.html

You'll notice that there's at least some balance provided by Peter Schiff and, for the most part, the article isn't the usual mainstream media hack job that you might have expected. Regardless, the question remains...Why on earth would anyone do business with a company that so utterly disrespects its customers, particularly when so many other options are available?

TF

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  59 Comments

silver66
Feb 12, 2015 - 10:52pm

First

Kitco= Leafs ( I am sad to say) They both are really bad.

Next year will be different

Silver66

4 oz
Feb 12, 2015 - 10:59pm
Ferd Torgerson
Feb 12, 2015 - 11:24pm

Thanks, Turd

Just saw this post and now I know I have to get to bed early so I can be up in time tomorrow morning as I'm guessing we may see LIESMAN interviewing this guy on CNBS.

Can just see the end of the interview now: "This can't be positive for the metals".

BTW, mayhaps I got third(?).

Ferd

BarnacleBill
Feb 12, 2015 - 11:37pm

Hug further stated....

That fully one-quarter of the world's population (China) was also crazy in their accumulation of physical gold bullion.

Texas Sandman
Feb 12, 2015 - 11:37pm

In the absence of a terminal illness...

the vast majority of suicides (way more than 25%, 50% or even 75%) are "crazy", though most psychiatrists refrain from using that term. Maybe kitco has a terminal illness.

Barfly
Feb 12, 2015 - 11:39pm

First, they

First, they ignore you, then they laugh at you, then they fight you, then you win. Ghandi. Apparently, we're in the laugh at phase.

tyberious
Feb 12, 2015 - 11:59pm

Kitco

The sell PMs?

Who Knew! (sarc)


Feb 13, 2015 - 12:22am

Kitco is in bankruptcy

...and they have received their umpteenth extension from the courts. A fellow Turdite (achmachat?) had kept tabs on them for quite a while, though not in the last few months (that I saw). Based on this, their unallocated gold pool accounts, Nadler and the statement quoted above by Turd, it seems quite likely to me that they are merely a shell/front operation for the bullion banks. It's highly ironic that their 'spot price' quotes are used so extensively, incl. by LCS's.

Dingo
Feb 13, 2015 - 1:03am

If Orwell had a 2034 sequel to 1984:

"Crazy is Sanity" could be one of the new mantras to add to his "war is peace, ignorance is strength" etc. it seems to me that taking any opinion that doesn't follow the old MSM line invites ad hominem " Crazy or Crazies" from bloggers, journalists and even drinking buddies. I often wonder what my great grandparents ( who lived in the goldfields of Western Australia at the time of the great gold rush) would think of my reactions to protect my family from the consequences of Keynsian experimentation? I really think I'd have a lot in common with that generation and they certainly wouldn't consider me to be "Crackers" for my stance. To rub salt into the wound about the word Crazy, political correctness tends restrict it's use against people that are actually crazy. " Don't you realise that the poor fellow has bi-polar disorder - you shouldn't call him crazy" for example. Chances are that Hug and most of his Kitco mates are on some sort of Seritonin Re-uptake inhibitors (anti depressants) and their kids are playing some heinously violent video games, however, dare not accuse them of being crazy in any way. This is an exclusive label for stackers and preppers.

Safety Dan
Feb 13, 2015 - 2:15am
Safety Dan
Feb 13, 2015 - 2:20am

U.S. DROPS TO 49TH IN WORLD

U.S. DROPS TO 49TH IN WORLD PRESS FREEDOM RANKINGS, WORST SINCE OBAMA BECAME PRESIDENT

Each year, Reporters Without Borders issues a worldwide ranking of nations based on the extent to which they protect or abridge press freedom. The group’s 2015 ranking was released this morning, and the United States is ranked 49th.

That is the lowest ranking ever during the Obama presidency, and the second-lowest ranking for the U.S. since the rankings began in 2002 (in 2006, under Bush, the U.S. was ranked 53rd). The countries immediately ahead of the U.S. are Malta, Niger, Burkino Faso, El Salvador, Tonga, Chile and Botswana.

Some of the U.S.’s closest allies fared even worse, including Saudi Arabia (164), Bahrain (163), Egypt (158), the UAE (120), and Israel (101: “In the West Bank, the Israeli security forces deliberately fired rubber bullets and teargas at Palestinian journalists”; 15 journalists were killed during Israeli attack on Gaza; and “the authorities also stepped up control of programme content on their own TV stations during the offensive, banning a spot made by the Israeli NGO B’Tselem that cited the names of 150 children who had been killed in the Gaza Strip”).

More here:

https://firstlook.org/theintercept/2015/02/12/u-s-drops-49th-world-press...

heathbr
Feb 13, 2015 - 2:32am

Their Prices Suck too

I use their metals price app daily, anyone use a non-kitco app? I'd be happy to jump ship

Dr. P. Metals
Feb 13, 2015 - 2:56am

Food For Thought

why is everyone still using their pricing gizmos? Just free marketing for them, yes, from metals "sites".

Rakka
Feb 13, 2015 - 3:09am

OT - but still on suicide

Seems to me many journalist starting to show up dead from car wrecks, heart-attack, wondering if the journalist are replacing bankers or if they are the one at war

Gold Dog
Feb 13, 2015 - 4:33am

Still crazy....

....after all these years.

And to prove it, after the collapse, I'm going to buy a Toga with all of the attendant acutra and wear it around. (One AGE.)

Your friend,

Dog

Silverhog
Feb 13, 2015 - 8:00am

Kitco

I'm proud to say I have never spent a dime with Kitco. Hope that helps speed up their demise. Way back, when I first became aware things were not right. I use to read their metal blogs. But soon had to quit as they were rampant with trolls and disingenuous members. That was about the time ZH showed up on line. 

Orange
Feb 13, 2015 - 8:27am

Dog

I don't believe you have posted for a while. Hope things are well.

jaw777
Feb 13, 2015 - 8:30am

heathbr

I use the APMEX app to check prices. I never checked into any other though. That just happened to be the first company I made a purchase from years ago.

dave606 silver66
Feb 13, 2015 - 8:37am

Kitco calling us crazy.

The only thing i can think of is that Mr. Peter Hug wants to stop working and collect unemployment. If he isn't fired for making these statements public then the companies management team is completely inept and should not be trusted with customer funds. I really can't imagine a company executive insulting and advising 25% of its customer base that the reason you are purchasing our product is crazy. I really do not see me doing any further business with Kitco.

erewenguy
Feb 13, 2015 - 8:38am

@dog

lol - Yep - sounds like the going price for a fine tailored toga. I better keep stackin, or else me and mine are going to be running around in cheaply made loincloths.

SubjectivObject
Feb 13, 2015 - 8:42am

Got Silver

Woody?

-SilverIsMoney-
Feb 13, 2015 - 8:51am

Like I asked on Kitco...

What does that make the other 75%? Informed investors? How can 1/4 be crazy and the other 3/4 not be - anyone "investing" in gold is typically buying the GLD or SLV so who are the other 75% stacking physical and why?


Feb 13, 2015 - 9:12am

Our friend Dog

Party on, brother!

CPE
Feb 13, 2015 - 9:26am

Advertisers on this Site and others

Advertisers on this Site and others should come up with a marketing slogan like,

"Kitco thinks you're crazy, but we welcome physical purchases from anyone, except JPM, that sees the world for what it is. Got basic math proficiency? Got Gold?"

Late update: @SilverIsMoney - that's exactly the kind of rational logic that can only be identified as crazy, lol

Late, late update: I hope those crazy bastards at GATA pick this thread up :D

Kansascrude
Feb 13, 2015 - 9:34am

Are we still holding out for $16.25 Ag?

Saw you dropped your Ag forecast to $16.25 due to a Technical breach of $16.65 on Wednesday are you still holding out for that? If you have changed it I have missed it. Thanks

AGAU
Feb 13, 2015 - 10:10am

Kitco

Stopped using their site for gold price - I believe they make a few pennies per hit? So I just snuffed out Hugs morning Starbucks - once a year - ha take that dicklicker!, 

nadgeskaul
Feb 13, 2015 - 10:19am

Re: $16.25 AG

Neither the HUI nor Gold is confirming the Silver spike...this looks temporary to me.

Exchange shenanigans, most likely.

StevenBHorse
Feb 13, 2015 - 10:28am
Kansascrude
Feb 13, 2015 - 10:39am

We're not out of the woods yet

Next week will be interesting and the following week brings expirations. A drop toward $16.25 remains a possibility.

Nonetheless, very nice to see this rally today. We will close UP on the week and, after the last couple of weeks, that'll work just fine!

nadgeskaul
Feb 13, 2015 - 10:46am

Percentages, my friend...Percentages.

Silver is a volatile beast, yes, but there shouldn't be any excitement about this. It was oversold on the latest leg down, compared to gold. How many times have we seen this before?

Gold is laboring, barely holding a 1% gain and the HUI, similar.

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