“The amusing denouement to last September’s CNBC fiasco
falsely claiming on camera a particular gold bar in the depository GLD uses
belonged to that entity is (below). Apparently it belonged to ETF Securities,
All power to the Internet!”
The following detailed description of
the CNBC fiasco provides yet another justification for Investors adopting a
Healthy Skepticism of MSM “News”.
“*UPDATE: We have now confirmed that the ‘GLD’ bar
marked ZJ6752 is listed in the bar list for the EFTSecurities
fund, as stated by Ned Naylor-Leyland. Screen shot of the EFTS bar list
including bar ZJ6752 is included below.
“We now have indisputable evidence that the gold bar held up
by Bob Pisani as a ‘GLD’ gold bar is
actually owned by ETF Securities!!
“The Doc spoke with Cheviot Asset Management’s Ned
Naylor-Leyland Sunday regarding the Euro-zone crisis and the €100
billion Spanish banking system bailout announced this weekend, extreme supply
constraints in the physical bullion markets, the new allocated silver
exchange launching in China this summer, and gold rehypothecation
“Ned provided some explosive details regarding the infamous GLD
gold bar presented by CNBC’s Bob Pisani which
was quickly discovered NOT to be on the GLD’s bar list.
“Ned reveals the ACTUAL OWNER of the gold bar shown on CNBC, who
HAD NOT GIVEN PERMISSION to CNBC or to Bob Pisani
to handle their bullion, and was shocked to see Pisani
claim their bar as part of the holdings of the GLD!
“In Ned Naylor-Leyland’s words, ‘this tells you
EVERYTHING YOU NEED TO KNOW ABOUT ETF’S!!’
“First, for those who are not familiar with the CNBC story:
“As our readers are well aware, it was quickly discovered that
the gold bar held up by Pisani in the interview
stamped ZJ6752 was not included in SPDR’s gold bar list.
“The story almost immediately went viral, but CNBC went silent
on the issue over the actual ownership of the gold bar held by Pisani.
“This is what Ned Naylor-Leyland had to say today, regarding the
recent concerns that the GLD’s gold holdings are actually swaps from
the LBMA, and whether investors will one day soon wake up to discover that
the bullion they thought they owned is really rehypothecated
“I’ve been saying that to clients, to potential clients,
and to my colleagues in London and in the investment world since 2003-4!
Effectively, you MUST BE CAREFUL WHICH VEHICLE YOU USE!!
“There’s no question that at some point this is going to
be a HUGE problem!
“You’ll remember that amazing video interview with Bob Pisani that CNBC ran where they went into GLD’s
vaults in London- I’m sure you saw that Doc. You know they took his
mobile off him and he ended up in the vaults and he held up this bar and he
said ‘this is the kind of thing that GLD holds custody for you!’
And then immediately everyone jumped all over it and said ‘wait a
minute, that bar isn’t on the bar list!’”
“Ned Naylor-Leyland Reveals Actual Owner of Bob Pisani’s GLD Gold Bar!!”
The Doc, silverdoctors.com, 6/12/12
An important related point is that
increasing numbers of Investors are justifiably concerned that certain
ETF’s may not hold all the Non-Hypothecated Precious Metals they claim
Indeed, there is also evidence that
certain Bullion Banks have for years been selling Naked P.M. contracts in the
Future Markets (i.e. selling Metal they do not have) in order to suppress
prices. We invite Investors to review the archives of the Gold Antitrust
Action Committee (gata.org) where they will find considerable evidence of
Gold and Silver Price Suppression.
But awareness of these Issues gives
Skeptics the Advantage and allows them to Act accordingly: Regarding Gold,
for example, one can avoid the risk of owning “Paper Gold” by
Buying Physical Metal and Take Personal Possession of it (NO Bank
Regarding Gold and Silver, the
“Secret” (i.e., not reported by the MSM) of which most
savvy Investors are now increasingly aware is that supplies of Physical
Gold and Silver are very thin.
“The secret that the manipulators must keep quiet is that the
physical market for gold is very thin on the sell side. Whatever is offered, be it 500 tons or more in manipulation from paper, has
been and will continue to be taken.”
“Stay The Course As Gold Continues Its Progressive March”
Jim Sinclair, jsmineset.com, 6/11/2012
Indeed, the evidence indicates the
ongoing Price suppression is implemented by a Cartel of Central Bankers (See
Official Misinformation, Disinformation and
Spin regarding the Precious Metals is a
characteristic of Official Pronouncements from certain Governments, as well.
“…there will be no Spanish banking rescue…”
Prime Minister Mariano Rajoy of Spain,
And about the same time as that
Spanish’s Prime Minister’s statement, Spain’s Central Bank
Governor insisted there was no need to inject further capital in Spanish
Banks. But now, just a few days later, not only has there been an
(inadequate) bank rescue, but alsowe have this from
Reuters referring to the ongoing Bank Run on Spanish and Greek Banks:
“European finance officials have discussed limiting the size of
withdrawals from ATM machines, imposing border checks and introducing
euro-zone capital controls as a worst-case scenario, should Athens decide to
leave the euro.”
“EU discusses 'limiting ATM withdrawals'”, Reuters,
Didn’t the European Banking
Authority run stress tests which ostensibly would have prevented the
aforementioned outcome? And realistically, is not the gravity of the Eurozone
situation reflected in Spain and Italy’s 10 year note yields which
continue to rise toward the Toxic 7% level?
Indeed, unsustainably High Debt levels
post a Threat to a variety of Fiat Currency-denominated Assets, including
especially those in our Retirement Accounts (since those are meant to be
“Which brings us back to the concerns of our dear readers
– like this one: “that the U.S. government will find
‘legal’ ways to confiscate our 401(k)s,
SEP IRAs, IRAs and private pension plans (other than by the use of…
“We can tell you two things. On the surface, they seem
1. It will likely happen by stealth.
2. You will likely get ample warning.
“By “stealth,” we mean that Uncle Sam won’t be
so blatant as to liquidate your account and transfer the proceeds to the
Treasury. And by “ample warning,” we mean that your account
won’t be the first one to get the stealth treatment. Others will come
before you, and you will have time to seek shelter.
“The notion of 401(k) confiscation first got traction during the
wrost of the 2008 financial panic. “In
October of that year,” says The 5 Min. Forecast’s Dave Gonigam, “the House Education and Labor Committee
held a hearing on the idea of eliminating 401(k)s’ tax advantages.
‘High income’ earners, it was suggested, would no longer be
allowed to make tax-deferred contributions.”
“This is the brainchild of the hearing’s star witness
– an economics professor at The New School in New York named Teresa Ghilarducci. She further suggested that all workers
should be forced to contribute 5% of their gross income to a
“guaranteed retirement account,” or “GRA.”
“GRA would be invested entirely in government boinds and return an inflation-adjusted 3% a year.
Half of the “contribution” would come from you, half from your
“In other words, it’d be like Social Security –
which would still exist – but with GRAs, the pretense of a “trust
fund” would be thrown out the window. Your “contributions”
would go straight into the Treasury to be instantly frittered away on fighter
jets, food stamps and hot tub parties for employees of the General Services
“The rest is history: Time passed, the market recovered and Ms. Ghilarducci’s plan was put on the shelf.
“But the “confiscation” camel has come back since.
Its noise isn’t under the tent yet… although its sweaty nostrils
are perhaps visible beneath the tent’s seam.
“In early 2010, the Treasury and Labor departments proposed
– in the words of a Bloomberg story at the time – “ways to
promote the conversion of 401(k) savings and individual retirement accounts
into annuities or other steady payment streams.”
“As in 2008, the Internet was set abuzz – suspicious minds
rightfully wondering if the funds would be “converted” into
Treasuries, perhaps by force.
Not so, it turns out: By early 2012, the proposal was reality. The new
regulations merely alter the tax rules for insurance companies – making
it easier for them to offer annuity-like products to holders of 401(k)s.”
“’Extraction’ by Stealth: The Risk to Your
Addison Wiggin, The Apogee Advisory: Issue 16, June 2012
And one should also be skeptical of the
pronouncements of MSM Favorites such as Warren Buffet. Admittedly, Buffet has
been an excellent stock picker and business owner, and a wise critic of
overleverage via Derivatives (Ticking Time Bombs, or some such, he called
But he was, and is, wrong about Gold.
Gold is up 500%, more or less, in the
past decade, a performance which far exceeds that of Berkshire Hathaway stock
over the same period. (Awareness of the facts provides, for example, the
opportunities referred to in Note 3 below.)
Indeed, there is no substitute for the
facts regarding Precious Metals, or, in general, no substitute for having
Real Numbers (as opposed to Bogus Statistics) when investing. Real Inflation
in the U.S., for example, is 9.9% (which is why Deepcaster’s
High Yield Portfolio is aimed at a Total Return well in excess of that) per
shadowstats.com. Real U.S. Unemployment is 22.7% and Real U.S. GDP is a Negative
-2.17%. (See Note 1).
Finally above all, it is Important to
A few days before the Facebook IPO, we
overheard a Broker Touting the Stock by saying, correctly, that Facebook had
900 Million Regular Users.
A friend’s Skeptical Rejoinder
was, “Of the 7 billion people in the world several billion regularly
use Toilets. By your ‘logic’ I should run out and buy Toilet
A healthy skepticism has enormous
benefit for investors.
June 16, 2012
*Shadowstats.com calculates Key Statistics the way they were calculated in
the 1980s and 1990s before Official Data Manipulation began in earnest.
Bogus Official Numbers vs. Real
Numbers (per Shadowstats.com)
Annual U.S. Consumer Price Inflation reported January 19, 2012
2.96% / 10.57% (annualized December, 2011 Rate)
U.S. Unemployment reported February 3, 2012
8.3% / 22.5%
U.S. GDP Annual Growth/Decline reported January 27, 2012
1.56% / -2.70%
U.S. M3 reported February 13, 2012 (Month of December, Y.O.Y.)
No Official Report / 3.87%
And Official Source Disinformation
continues, consider Shadowstats comments on the
January 6, 2012 release of U.S. Employment data:
seasonally-adjusted 200,000 jobs surge in December 2011 payrolls included a
false, seasonally-adjusted gain of roughly 42,000 in the “Couriers and
Messengers” category. That gain was an artifact of the
seasonal-adjustment process and will remove itself in the January 2012
problem is that this 42,000 gain is part of a seasonal pattern that fully
reverses itself each January…”
Payroll Seasonal-Adjustment Problem”
John Williams, 1/6/12
Note 2: Deepcaster addresses the questions of Profit and
Protection in light of Fiat Currency Purchasing Power Destruction and
provides Guidelines in his article – “Essentials for Wealth
Acquisition Acceleration” found in ‘Articles by Deepcaster’ Cache.
Using such Guidelines facilitated Deepcaster’s
making buy and sell recommendations resulting in remarkable profits recently
if acquired and liquidated when we recommended, approximately*:
45% Profit on
Platinum ETF on February 8, 2012 after just 42 days (i.e., about 390% annualized!)
40% Profit on March 2012 $55 Dollar GDX
Calls on January 27, 2012 after just 23 days (i.e., about 635% annualized!)
34% Profit on Gold Royalty Streaming Company on December 5, 2011 after just
166 days (i.e., about 74% annualized!)
42% Profit on Volatility Index Futures ETN on October 3, 2011 after just 292
days (i.e. about 52% annualized!)
36% Profit on Double Short Euro ETF on September 7, 2011 after just 43 days
(i.e. about 300% annualized!)
35% Profit on Double Long Gold ETN on August 23, 2011 after just 41 days
(i.e. about 280% annualized!)
26% Profit on Double Long Gold ETN on August 17, 2011 after just 35 days
(i.e. about 260% annualized!)
25% Profit on Gold Stock on August 8, 2011 after just 201 days (i.e. about
150% Profit on Gold Stock Calls on July 13, 2011 after just 56 days (i.e.
about 975% annualized!)
*Past Profitable Performance is no assurance of future Profitable
Great Opportunity and A Dangerous Trap; Forecasts: Gold, Silver, Equities,
Crude Oil, U.S. Dollar, U.S. T-Notes, T- Bonds, & Interest Rates”
– February Letter
Fed doesn’t have a clue about markets or economics. They are dangerous
Printing money is not good for the world and will lead to more problems for
“What the Federal Reserve is doing now is ruining an entire class of
Jim Rogers, Bloomberg Interview, 6/29/11
We are not so Negative about the Near-Term Prospects for Nominal
Asset Price Growth in Certain Sectors as we were six months or
a year ago.
That is mainly because the E.U., Mega-Banks, and the Fed, have already de
facto launched a Massive Quantitative Easing 3, with more likely to come.
This QE will serve as a Major Force impelling (but not necessarily
successfully) Nominal Asset Prices UP in certain Sectors, for example,
But before one becomes too enthusiastic about the Prospects one should
consider the implications of our Forecast for Nominal Assets Prices Strength
in certain Sectors.
The practice of issuing Bogus (U.S. and other Key official) Inflation figures
obscures the Fact that Monetary Inflation (generated mainly by reckless Q.E.)
is very rapidly depreciating the purchasing Power of most Fiat Currencies
– by about 11% per year in the U.S. e.g. (per shadowstats.com).
Yield Portfolio is aimed at achieving Total Return in excess of Real
Inflation. Stocks in that Portfolio with Recent Yields of 18.5%, 8.6%, 10.6%,
26%, 6.7%, 8%, 10.6%, 10% and 15.6% when they were added to the Portfolio.
important to note is that, while massive Q.E. is a Major Inflationary Force
tending to pump up Prices in certain sectors, there are Powerful Deflationary
forces operating as well – the depreciating Housing Markets in the U.S.
and China come to mind. Real Estate in some areas in China is down over 25%,
but Food prices are up 9% year over year.
The key to identifying The Great Opportunities (and Great Potential Losses) is knowing which Sectors will likely have Inflating
Asset Prices and which will have Deflating ones.
Investors failing to Evaluate Inflation/Deflation Prospects on a Sector by
Sector Basis will have missed Great Opportunities and fallen into a
Deepcaster’s Letter --“A Great
Opportunity and A Dangerous Trap; Forecasts: Gold, Silver, Equities, Crude
Oil, U.S. Dollar, U.S. T-Notes, T- Bonds, & Interest Rates; February
Letter” -- posted in the ‘Latest Letter & Archives’
Cache at www.deepcaster.com, identifies
which Sectors will likely be helped (albeit temporarily) by this Massive QE3
and which will likely be hurt, and provides Forecasts for all. And in his
March Letter, “The Pause Before The Great Bull; 3 Buy Recos! Forecasts: Gold, Silver, Equities, Crude Oil, U.S.
Dollar/Euro, U.S. T-Notes, T- Bonds, & Interest Rates, March
Letter”, Deepcaster makes 3 Buy
Recommendations designed for Protection and Profit.