Tuesday, September 30, 2014

Ernst & Young agrees to pay $8-million TRE-X penalty

Dirty Ernst & Young pays a true pittance for the horrid Sino Forest scam and lets get serious here. These MFers are 100% responsible for this public fraud and are getting off basically for free the basterds. Just ANOTHER example of how hopeless securities regulation is in this country.

We have a gaggle of former E&Y scumbags involved in TRE-X and take a bow boyotards ... crime does pay, for some.
This monkey COULD go on and on. These wicked MFers were instrumental in the Sino Forest fraud, in other words THERE COULD HAVE BEEN NO FRAUD except for the critical involvement of the E&Y scum who joined the TRE-X BoD.

TOTAL shame on the OSC for settling for fuk all. This BS spells out why a serious criminal basterd sets up shop in Canada always and in America never. UNREAL is what the latest insult is. Somebody requires a jail term to deter other scumbags.
At one time the TRE-X fraud had a market capitalization exceeding $ 6 fukkin billion and who's "fault" is that exactly? Look absolutely NO FURTHER than the criminal scum "counting" the completely imaginary beans here citizens.
By absolute, 100% rights there should be some jail time involved here. Naturally there ain't, probably never will be, and damn it is citizens.


http://www.stockwatch.com/News/Item.aspx?bid=Z-C:*OSC-2215654&symbol=*OSC®ion=C

Wednesday, September 10, 2014

The TRUTH about China’s Massive Gold Hoard - Casey

The TRUTH about China’s Massive Gold Hoard

By Jeff Clark, Senior Precious Metals Analyst

I don’t want to say that mainstream analysts are stupid when it comes to China’s gold habits, but I did look up how to say that word in Chinese…

One report claims, for example, that gold demand in China is down because the yuan has fallen and made the metal more expensive in the country. Sounds reasonable, and it has a grain of truth to it. But as you’ll see below, it completely misses the bigger picture, because it overlooks a major development with how the country now imports precious metals.

I’ve seen so many misleading headlines over the last couple months that I thought it time to correct some of the misconceptions. I’ll let you decide if mainstream North American analysts are stupid or not.

The basis for the misunderstanding starts with the fact that the Chinese think differently about gold. They view gold in the context of its role throughout history and dismiss the Western economist who arrogantly declares it an outdated relic. They buy in preparation for a new monetary order—not as a trade they hope earns them a profit.

Combine gold’s historical role with current events, and we would all do well to view our holdings in a slightly more “Chinese” light, one that will give us a more accurate indication of whether we have enough, of what purpose it will actually serve in our portfolio, and maybe even when we should sell (or not).

The horizon is full of flashing indicators that signal the Chinese view of gold is more prudent for what lies ahead. Gold will be less about “making money” and more about preparing for a new international monetary system that will come with historic consequences to our way of life.

With that context in mind, let’s contrast some recent Western headlines with what’s really happening on the ground in China. Consider the big picture message behind these developments and see how well your portfolio is geared for a “Chinese” future…

Gold Demand in China Is Falling

This headline comes from mainstream claims that China is buying less gold this year than last. The International Business Times cites a 30% drop in demand during the “Golden Week” holiday period in May. Many articles point to lower net imports through Hong Kong in the second quarter of the year. “The buying frenzy, triggered by a price slump last April, has not been repeated this year,” reports Kitco.

However, these articles overlook the fact that the Chinese government now accepts gold imports directly into Beijing.

In other words, some of the gold that normally went through Hong Kong is instead shipped to the capital. Bypassing the normal trade routes means these shipments are essentially done in secret. This makes the Western headline misleading at best, and at worst could lead investors to make incorrect decisions about gold’s future.

China may have made this move specifically so its import figures can’t be tracked. It allows Beijing to continue accumulating physical gold without the rest of us knowing the amounts. This move doesn’t imply demand is falling—just the opposite.

And don’t forget that China is already the largest gold producer in the world. It is now reported to have the second largest in-ground gold resource in the world. China does not export gold in any meaningful amount. So even if it were true that recorded imports are falling, it would not necessarily mean that Chinese demand has fallen, nor that China has stopped accumulating gold.

China Didn’t Announce an Increase in Reserves as Expected

A number of analysts (and gold bugs) expected China to announce an update on their gold reserves in April. That’s because it’s widely believed China reports every five years, and the last report was in April 2009. This is not only inaccurate, it misses a crucial point.

First, Beijing publicly reported their gold reserve amounts in the following years:

  • 500 tonnes at the end of 2001
  • 600 tonnes at the end of 2002
  • 1,054 tonnes in April 2009.

Prior to this, China didn’t report any change for over 20 years; it reported 395 tonnes from 1980 to 2001.

There is no five-year schedule. There is no schedule at all. They’ll report whenever they want, and—this is the crucial point—probably not until it is politically expedient to do so.

Depending on the amount, the news could be a major catalyst for the gold market. Why would the Chinese want to say anything that might drive gold prices upwards, if they are still buying?

Even with All Their Buying, China’s Gold Reserve Ratio Is Still Low

Almost every report you’ll read about gold reserves measures them in relation to their total reserves. The US, for example, has 73% of its reserves in gold, while China officially has just 1.3%. Even the World Gold Council reports it this way.

But this calculation is misleading. The US has minimal foreign currency reserves—and China has over $4 trillion. The denominators are vastly different.

A more practical measure is to compare gold reserves to GDP. This would tell us how much gold would be available to support the economy in the event of a global currency crisis, a major reason for having foreign reserves in the first place and something Chinese leaders are clearly preparing for.

The following table shows the top six holders of gold in GDP terms. (Eurozone countries are combined into one.) Notice what happens to China’s gold-to-GDP ratio when their holdings move from the last-reported 1,054-tonne figure to an estimated 4,500 tonnes (a reasonable figure based on import data).

Country Gold
(Tonnes)
Value US$ B
($1300 gold)
GDP US$ B
(2013)
Gold
Percent
of GDP
Eurozone* 10,786.3 $450.8 12,716.30 3.5%
US 8,133.5 $339.9 16,799.70 2.0%
China** 4,500.0 $188.1 9,181.38 2.0%
Russia 1,068.4 $44.7 2,118.01 2.1%
India 557.7 $23.3 1,870.65 1.2%
Japan 765.2 $32.0 4,901.53 0.7%
China 1,054.1 $44.1 9,181.38 0.5%
*including 503.2 tonnes held by ECB
**Projection
Sources: World Gold Council, IMF, Casey Research proprietary calculations

 

At 4,500 tonnes, the ratio shows China would be on par with the top gold holders in the world. In fact, they would hold more gold than every country except the US (assuming the US and EU have all the gold they say they have). This is probably a more realistic gauge of how they determine if they’re closing in on their goals.

 

This line of thinking assumes China’s leaders have a set goal for how much gold they want to accumulate, which may or may not be the case. My estimate of 4,500 tonnes of current gold reserves might be high, but it may also be much less than whatever may ultimately satisfy China’s ambitions. Sooner or later, though, they’ll tell us what they have, but as above, that will be when it works to China’s benefit.

The Gold Price Is Weak Because Chinese GDP Growth Is Slowing

Most mainstream analysts point to the slowing pace of China’s economic growth as one big reason the gold price hasn’t broken out of its trading range. China is the world’s largest gold consumer, so on the surface this would seem to make sense. But is there a direct connection between China’s GDP and the gold price?

Over the last six years, there has been a very slight inverse correlation (-0.07) between Chinese GDP and the gold price, meaning they act differently slightly more often than they act the same. Thus, the Western belief characterized above is inaccurate. The data signal that, if China’s economy were to slow, gold demand won’t necessarily decline.

The fact is that demand is projected to grow for reasons largely unrelated to whether their GDP ticks up or down. The World Gold Council estimates that China’s middle class is expected to grow by 200 million people, to 500 million, within six years. (The entire population of the US is only 316 million.) They thus project that private sector demand for gold will increase 25% by 2017, due to rising incomes, bigger savings accounts, and continued rapid urbanization. (170 cities now have over one million inhabitants.) Throw in China’s deep-seated cultural affinity for gold and a supportive government, and the overall trend for gold demand in China is up.

The Gold Price Is Determined at the Comex, Not in China

One lament from gold bugs is that the price of gold—regardless of how much people pay for physical metal around the world—is largely a function of what happens at the Comex in New York.

One reason this is true is that the West trades in gold derivatives, while the Shanghai Gold Exchange (SGE) primarily trades in physical metal. The Comex can thus have an outsized impact on the price, compared to the amount of metal physically changing hands. Further, volume at the SGE is thin, compared to the Comex.

But a shift is underway…

In May, China approached foreign bullion banks and gold producers to participate in a global gold exchange in Shanghai, because as one analyst put it, “The world’s top producer and importer of the metal seeks greater influence over pricing.”

The invited bullion banks include HSBC, Standard Bank, Standard Chartered, Bank of Nova Scotia, and the Australia and New Zealand Banking Group (ANZ). They’ve also asked producing companies, foreign institutions, and private investors to participate.

The global trading platform was launched in the city’s “pilot free-trade zone,” which could eventually challenge the dominance of New York and London.

This is not a proposal; it is already underway.

Further, the enormous amount of bullion China continues to buy reduces trading volume in North America. The Chinese don’t sell, so that metal won’t come back into the market anytime soon, if ever. This concern has already been publicly voiced by some on Wall Street, which gives you an idea of how real this trend is.

There are other related events, but the point is that going forward, China will have increasing sway over the gold price (as will other countries: the Dubai Gold and Commodities Exchange is to begin a spot gold contract within three months).

And that’s a good thing, in our view.

Don’t Be Ridiculous; the US Dollar Isn’t Going to Collapse

In spite of all the warning signs, the US dollar is still the backbone of global trading. “It’s the go-to currency everywhere in the world,” say government economists. When a gold bug (or anyone else) claims the dollar is doomed, they laugh.

But who will get the last laugh?

You may have read about the historic energy deal recently made between Chinese President Xi Jinping and Russian President Vladimir Putin. Over the next 30 years, about $400 billion of natural gas from Siberia will be exported to China. Roughly 25% of China’s energy needs will be met by 2018 from this one deal. The construction project will be one of the largest in the world. The contract allows for further increases, and it opens Russian access to other Asian countries as well. This is big.

The twist is that transactions will not be in US dollars, but in yuan and rubles. This is a serious blow to the petrodollar.

While this is a major geopolitical shift, it is part of a larger trend already in motion:

  • President Jinping proposed a brand-new security system at the recent Asian Cooperation Conference that is to include all of Asia, along with Russia and Iran, and exclude the US and EU.
  • Gazprom has signed agreements with consumers to switch from dollars to euros for payments. The head of the company said that nine of ten consumers have agreed to switch to euros.
  • Putin told foreign journalists at the St. Petersburg International Economic Forum that “China and Russia will consider further steps to shift to the use of national currencies in bilateral transactions.” In fact,a yuan-ruble swap facility that excludes the greenback has already been set up.
  • Beijing and Moscow have created a joint ratings agency and are now “ready for transactions… in rubles and yuan,” said the Russian Finance Minister Anton Siluanov. Many Russian companies have already switched contracts to yuan, partly to escape Western sanctions.
  • Beijing already has in place numerous agreements with major trading partners, such as Brazil and the Eurozone, that bypass the dollar.
  • Brazil, Russia, India, China, and South Africa (the BRICS countries) announced last week that they are “seeking alternatives to the existing world order.” The five countries unveiled a $100 billion fund to fight financial crises, their version of the IMF. They will also launch a World Bank alternative, a new bank that will make loans for infrastructure projects across the developing world.

You don’t need a crystal ball to see the future for the US dollar; the trend is clearly moving against it. An increasing amount of global trade will be done in other currencies, including the yuan, which will steadily weaken the demand for dollars.

The shift will be chaotic at times. Transitions this big come with complications, and not one of them will be good for the dollar. And there will be consequences for every dollar-based investment. US-dollar holders can only hope this process will be gradual. If it happens suddenly, all US-dollar based assets will suffer catastrophic consequences. In his new book, The Death of Money, Jim Rickards says he believes this is exactly what will happen.

The clearest result for all US citizens will be high inflation, perhaps at runaway levels—and much higher gold prices.

Gold Is More Important than a Profit Statement

Only a deflationary bust could keep the gold price from going higher at some point. That is still entirely possible, yet even in that scenario, gold could “win” as most other assets crash. Otherwise, I’m convinced a mid-four-figure price of gold is in the cards.

But remember: It’s not about the price. It’s about the role gold will serve protecting wealth during a major currency upheaval that will severely impact everyone’s finances, investments, and standard of living.

Most advisors who look out to the horizon and see the same future China sees believe you should hold 20% of your investable assets in physical gold bullion. I agree. Anything less will probably not provide the kind of asset and lifestyle protection you’ll need.

In the meantime, don’t worry about the gold price. China’s got your back.

You don’t have to worry about silver, either, which we think holds even greater potential for investors. In the July issue of my newsletter, BIG GOLD, we show why we’re so bullish on gold’s little cousin.

And we provide two silver bullion discounts exclusively for subscribers, and name our top silver pick of the year.

Of course, we also have all our best buys in the gold mining sector as well.

Click here to get it all with a 90-day risk-free trial to our inexpensive BIG GOLD newsletter.

The article The TRUTH about China’s Massive Gold Hoard was originally published at caseyresearch.com.



HDI boyos sell out Taseko Stakeholders - Update

"Florence copper miner bought out by sister company. The proposal has faced opposition from the town of Florence and some property owners and real estate developers worried about the impact on groundwater and values.
The town has been trying to condemn the FCP land and take it via eminent domain. Curis is fighting that move in the courts. An administrative law judge is expected to rule soon on mine opponents' appeal of Arizona Department of Environmental Quality permits allowing for the copper pumping process.

Maguire said the FCP is also waiting the U.S. Environmental Protection Agency to decide on an operational permit. Florence spokesman Jess Knudson said the town is still concerned about the impact of the project regardless of ownership. Town Attorney Jim Mannato said a Pinal Superior Court will hear arguments on the eminent domain condemnation fight next Monday.
http://www.bizjournals.com/phoenix/news/2014/09/16/florence-copper-miner-bought-out-by-sister-company.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+industry_5+(Industry+Energy+%26+the+Environment)
_____________________________________________
Loyal followers know ALL ABOUT the offense that is Curis Resources. It's been a very predictable "go nowhere" proposition over the years. Latest is that Taseko (TKO.t) will be swallowing Curis Resources whole.

Reason for that MAY relate to the mountain of dough owed to Red Kite, butt who really knows. What we can know for certain is that existing TKO stakeholders are paying stupid large for a 100% guaranteed white elephant.
"Mr. Russell Hallbauer of Taseko reports
TASEKO MINES ANNOUNCES FRIENDLY ACQUISITION OF CURIS RESOURCES

Russell Hallbauer

Taseko Mines Ltd. has entered into a definitive agreement whereby Taseko will acquire all the issued and outstanding common shares of Curis Resources Ltd. under a plan of arrangement pursuant to the Business Corporations Act (British Columbia). Curis's principal asset is the Florence copper project, an in situ copper recovery and solvent extraction/electrowinning (SX/EW) project located adjacent to the town of Florence in central Arizona, United States. The Florence deposit contains approximately 2.4 billion pounds of copper reserves with an average grade of 0.36 per cent total copper, contained within a measured and indicated resource of 2.8 billion pounds of copper with an average grade of 0.33 per cent TCu."
Tis been a long run of bad luck for the boyos. Pebble project toasted, Prosperty done for, and Curis, well damn, how many multi-millions gonzo is anybody's guess.

Whatever this group "achieved" years ago doesn't mean much now as the ship is fukkin holed and going straight to the bottom.




Tuesday, September 9, 2014

Concept Cars from the 2014 Bejing Auto Show

Chinese automaker Youngman gets its hands on a leftover sedan design from Malaysian Proton, slaps on a body kit, and splashes the whole thing with a gold chrome finish.
_____________________________________________
The truly colossal SC-9 concept car from JAC (Ford’s Chinese partner) on display at the 2014 Beijing auto show.
__________________________________________________
BAIC chose the unfortunate “BJ100″ moniker for this tough-looking SUV concept.
_________________________________________________
PGO Cevennes / Hemera.




Friday, September 5, 2014

Kleargear revisited


William Franklin Bermender
Our unheroes at Kleargear have released more completely insulting rubbish ... "PARIS, Aug. 28, 2014 /PRNewswire/ -- International giftware developer, distributor and retailer Descoteaux Boutiques (DBS) has completed negotiations for the sale of its remaining retail holdings Gift World and Kleargear at 5.3 times projected 2014 EBITDA."

"In connection with the asset sale, DBS' head of North American retail operations, J. Lee Gersten, has left the company effective immediately. Under Gersten's astute leadership, DBS Retail reversed a deficit in fiscal 2006 to post a CAGR of 42.6% between 2007 and 2014, in the consumer discretionary space, during the most challenging global economy since The Great Depression."
Riiiight. The invisible phantom known as J. Lee Gersten and Kleargear are massive successes, don't be fukkin ridiculous. "Lee's success serves as a testament to his team's ingenuity, merchandising strategy and streamlined logistics," continued Monette."

Yup, finally going taters up is testament to this wicked horrid scamola all righty.

William Franklin Bermender

Stephen L. Gutman
Bottom line? William Franklin Bermender and his dead icky lawyer Mr. Stephen L. Gutman figure a dopey public rubbish show of shuttering Kleargear.com will somehow avoid the need for paying a civil judgement for fraud.



http://www.prnewswire.com/news-releases/descoteaux-boutiques-exits-retail-sector-273013121.html

Wednesday, September 3, 2014

2014 Argyle Pink Diamonds Tender

Press Release: Rio Tinto’s iconic Argyle pink diamonds were part of the inaugural visit to Western Australia by Japan’s First Lady, Akie Abe, at the invitation of the Western Australian Government.

The 2014 Argyle Pink Diamonds Tender collection, comprised of around 50 of the rarest and most valuable pink diamonds in the world, were showcased in an exclusive preview. The diamonds are the finest of a year’s production from Rio Tinto’s Argyle mine. Abe was the first to view a hero of the collection, a 1.59-carat emerald-cut fancy intense purplish pink stone, the Argyle Toki™.

Today Rio Tinto sells around 30 per cent of its Argyle pink diamonds into Japan.
Argyle Pink Diamonds have an average size of about 1 carat. The 2014 Argyle Pink Diamonds Tender collection will be officially launched in August and will tour the world until October.
1 tenth of 1% of production (around 1 of every million carats) or 40 to 50 carats in total are sold at these auctions each year. Prices achieved range from US $100,000/carat to over US$1,000,000/carat.
Argyle is the fourth largest diamond producing mine in the world by volume, averaging annual production of 8 million carats. Only 5% of mined diamonds are of gem quality.

The AK1 pipe continues at depth and in April 2013 the Argyle underground mine was officially opened. The transition to a fully operational underground mining operation is underway. The Argyle underground mine will extend the mine life until at least 2020.
Rio Tinto has released limited edition pink-diamond ingots commemorating the Spring 2013 opening of the Argyle underground diamond mine.

The one-ounce, 22k pink-gold ingots are each set with seven Argyle pink diamonds in the branches of a boab tree. The ancient boab tree is native to Western Australia's Kimberley region, where Argyle's pink diamonds were formed over a billion years ago.





See -----> http://pennystockjournal.blogspot.ca/2014/03/purple-diamonds.html
See ----->http://pennystockjournal.blogspot.ca/2014/02/red-diamonds.html
See ----->http://pennystockjournal.blogspot.ca/2013/11/worlds-most-expensive-diamonds.html