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
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