OptEd from SGT, SGT Report.com:
Cabal Iron Curtain Revealed, whereby Max Porterfield, the CEO and President of Callinex Mines, Inc joins me live from London where he took a break from a precious metals conference to joins me. We discuss the gold and silver market, cartel manipulation laid bare and the skyrocketing price rise of precious metals mining shares.
President, CEO and Director: Max Porterfield
Over ten years of experience in natural resources and financial markets, previously with Brazil Resources and US Global Investors.
“Cabal Iron Curtain Revealed” – Astute observers of financial markets, especially in the precious metals sector, have long argued that small concentrations of major market players have been manipulating asset prices. Last week those suspicions were confirmed when Deutsche Bank, one of the world’s leading financial institutions, not only admitted to regulators that they have been involved in the racket, but that they were prepared to turn over records implicating many of their cohorts in a global scheme to suppress prices.
Well, that didn’t take long. Earlier today when we reported the stunning news that DB has decided to “turn” against the precious metals manipulation cartel by first settling a long-running silver price fixing lawsuit which in addition to “valuable monetary consideration” said it would expose the other banks’ rigging having also “agreed to provide cooperation to plaintiffs, including the production of instant messages, and other electronic communications, as part of the settlement” we said “since this is just one of many lawsuits filed over the past two years in Manhattan federal court in which investors accused banks of conspiring to rig rates or prices in financial and commodities markets, we expect that now that DB has “turned” that much more curious information about precious metals rigging will emerge, and will confirm what the “bugs” had said all along: that the precious metals market has been rigged all along.”
“Cabal Iron Curtain Revealed” – This was confirmed moments ago when Reuters reported that Deutsche Bank has also reached a settlement in US litigation alleging the bank conspired to fix gold prices. In other words, hours after admitting it was rigging the silver market, it did the same for gold.
Some more headlines:
- Reaches settlement in U.S. litigation alleging it conspired to fix gold prices.
- Plaintiffs’ lawyers, in filing, say Deutsche Bank has signed a settlement term sheet
- Plaintiffs’ lawyers say are negotiating formal settlement agreement that would be presented for judge’s approval later
- Plaintiffs’ lawyers say settlement contemplates a monetary payment by Deutsche Bank
- Gold settlement follows similar accord involving alleged silver price-fixing that was disclosed on Wednesday
“Cabal Iron Curtain Revealed” – Most importantly, as the actual settlement reveals, Deutsche has agreed that in addition to once again providing “valuable monetary consideration” which will be paid into a settlement fund, that like in the silver settlement it will provide “cooperation in pursuing claims against the remaining Defendants.” In his latest interview with SGT Report, straight-shooting Callinex Mines CEO Max Porterfield explains that now that the men behind the “Cabal Iron Curtain Revealed”, asset prices in precious metals, base metals and other commodities will return to more natural pricing mechanisms based on core supply and demand fundamentals.
They are being revealed, most certainly… whether anybody actually takes a fall for it is a whole ‘nother discussion in its own right.. It’s good someone is being held accountable in some form or fashion and at least we understand what we’re dealing with. The real world pricing is being seen not only in the precious metals space, but it’s being played out in other base metals as well… Underlying all this manipulation is really the supply demand fundamentals for all these commodities…
“Cabal Iron Curtain Revealed” – With the genie now out of the bottle, many of the institutions involved in price manipulation and suppression appear to have backed off for fear of multi-billion dollar class action lawsuits from investors. The first class action alleges that the defendants, including The Bank of Nova Scotia, conspired to manipulate prices in the silver market under the guise of the benchmark fixing process, known as the London Silver Fixing, for a fifteen-year period.
“Cabal Iron Curtain Revealed” – It is further alleged that the defendants manipulated the bid-ask spreads of silver market instruments throughout the trading day in order to enhance their profits at the expense of the class. This alleged conduct affected not only those investors who bought and sold physical silver, but those who bought and sold silver-related financial instruments.
“Cabal Iron Curtain Revealed” – Law enforcement and regulatory authorities in the United States, Switzerland, and the United Kingdom have active investigations into the defendants’ conduct in the precious metals market. The case is on behalf of all persons in Canada who, between January 1, 1999 and August 14, 2014, transacted in a silver market instrument either directly or indirectly, including investors who participated in an investment or equity fund, mutual fund, hedge fund, pension fund or any other investment vehicle that transacted in a silver market instrument.
“Cabal Iron Curtain Revealed” – A copy of the Notice of Action can be found at sotosllp.com. Potential class members can register on the website to obtain more information as the case progresses. The plaintiffs and the proposed national class are being represented by a national team of lawyers from Sotos LLP (www.sotosllp.com), Koskie Minsky LLP (www.kmlaw.ca) and Camp Fiorante Matthews Mogerman (www.cfmlawyers.ca) with offices in Ontario and British Columbia.
“Cabal Iron Curtain Revealed” – An identical class action lawsuit was also launched for gold manipulation. A class action lawsuit seeking $1 billion in damages on behalf of Canadian investors was launched last week in the Ontario Superior Court of Justice. The class action alleges that the defendants, including The Bank of Nova Scotia, conspired to manipulate prices in the gold market under the guise of the benchmark fixing process, known as the London PM Fixing, for a ten-year period.
“Cabal Iron Curtain Revealed” – It is further alleged that the defendants manipulated the bid-ask spreads of gold market instruments throughout the trading day in order to enhance their profits at the expense of the class. This alleged conduct affected not only those investors who bought and sold physical gold, but those who bought and sold gold-related financial instruments.
“Cabal Iron Curtain Revealed” – The United States Department of Justice has an active and ongoing investigation into the defendants’ conduct. The Commodity Futures Trading Commission is also investigating the defendants’ conduct. Other law enforcement and regulatory authorities in the United States, Switzerland, and the United Kingdom have active investigations into the defendants’ conduct in the gold market. The case is on behalf of all persons in Canada who, between January 1, 2004 and March 19, 2014, transacted in a gold market instrument either directly or indirectly, including investors who participated in an investment or equity fund, mutual fund, hedge fund, pension fund or any other investment vehicle that transacted in a gold market instrument.
“Cabal Iron Curtain Revealed” – This is just the tip of the iceberg: with DB’s official “admission”, countless other plaintiffs will step up, and everyone who may have “lost” money trading gold over the noted 15 year period will surely demand to be made whole. More importantly, we are curious to see what if anything the discovery process will unveil. This is what we said on Thursday:
Since this is just one of many lawsuits filed over the past two years in Manhattan federal court in which investors accused banks of conspiring to rig rates or prices in financial and commodities markets, we expect that now that DB has “turned” that much more curious information about precious metals rigging will emerge, and will confirm what the “bugs” had said all along: that the precious metals market has been rigged all along.
“Cabal Iron Curtain Revealed” – Now that Canada has broken the seal, we expect similar lawsuits to follow in the U.S.. The direct result, as we have seen just in the last couple of weeks, has been upward price movement in gold and silver. And according to Porterfield, those fundamentals bode very well for gold, silver and base metals investors who have thus far been pillaged by paper market conspirators:
“Cabal Iron Curtain Revealed” – If you start getting some of the manipulation to come out of the market for fear that people are going to get called out on it, then you can allow the fundamentals to play out. I think this has signified the start of a new bull market… what we’ve been through, these nice gains… I can tell you right now… I travel frequently to investor hubs in North America and Europe as well… the sentiment is improving quite significantly compared to where it was last November when I was in Zurich where people were very, very negative. There’s more optimism in the space, particularly in the precious metals space… and in the not-too-distant future in the overall base metals space as well. I think investors should be aware and be prepare for pullbacks in any bull market and I think that’s healthy for any kind of bull market you’re in… it is a bumpy road no matter what… but there’s definitely a lot more upside ahead of us.
“Cabal Iron Curtain Revealed” – We know that during the bear market in gold, silver and other commodities many companies either slowed their operations or completely shut their doors. This reduction in supply, a growing demand for precious metals amid global economic chaos and the official acknowledgment of paper price suppression by at least one major financial institution (and likely many more) suggests that gold and silver prices could rise significantly over coming months and years.
Public demand for gold and silver coins, rounds, and bars suddenly skyrocketed since mid-June – particularly among first-time customers – to multiples of earlier demand levels, according to Money Metals Exchange, a national precious metals dealer in the U.S.
From June 16 to July 31, Money Metals Exchange experienced a 135% surge in gold and silver sales over the prior 45-day period (which was representative of the early months of 2015). Since June 16, the number of first-time customers rose even more dramatically, with 365% more new purchasers than the prior period.
“As the Greece default debacle unfolded in late June, something clicked in investors’ minds, and many have since bought whatever physical gold or silver they could get their hands on,” said Stefan Gleason, president of Money Metals Exchange. “In particular, we experienced a dramatic and unprecedented surge in first-time customers clamoring to obtain the financial insurance that gold and silver represent.”
Many government and private mints, including the U.S. Mint and the Royal Canadian Mint, have been unable to keep up with demand and have either temporarily halted silver sales or rationed out their insufficient supply of silver coins.
“We’re seeing more buying interest than at any time since the 2008 financial crisis. If we see a further spike in demand, the whole supply chain could be cleaned out,” said Gleason. “In that event, customers will face long lead times and limited product choices. Gold supply is showing some signs of strain, but silver could become completely unavailable.”
“We just learned that the Royal Canadian Mint is having a severe problem sourcing silver blanks for the Silver Maple program, and they have told wholesalers that all previous commitments as to rationed deliveries may not be possible to fulfill.”
One thing we can say in the gold bugs’ favor: what had mostly been a headwind for gold for the past decade or so is no longer the case. While it may not make an immediate impact, the “smart money” Commercial Hedgers are now more aligned with them than at any point since the bull market began in 2001.
With the exception of a few companies like Callinex, exploration has almost entirely halted. This will have a decade-long impact on supply lines that touch almost every sector. Layoffs are happening worldwide and there is blood in the streets. It’s the savvy investor who understands that now is the time to be acquiring these assets.
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