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Weekly Precious Metals News and Gold Prices

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Gold, Silver and Platinum began trading higher in the lead up to the midterm elections.

There continues to be controversy surrounding the counting of votes in some states and precincts. Most mainstream media outlets have confirmed that the balance of power in the House of Representatives will shift across the aisle to the Republican party.

Gold prices surged leading into the midterm elections resulting from the state of the economy and the Biden administrations ongoing support for the war in the Ukraine.

Millions of Americans were already facing difficult economic times resulting from the lasting effects of problems caused by forced shutdowns and additional failed government policies during the pandemic.

The Biden Administration’s handling of the pandemic response is one of the leading factors that the mainstream media has blamed for the shift in control of congress to the Republican party following tabulation of election results.

The Federal Reserve and the Treasury continue their strategy of increasing interest rates in an attempt to bring down the rate of inflation.

Global commodities markets, particularly those involved in the trading of precious metals such as gold and silver, and those involved in petroleum, oil and natural gas, have been a lot of unexpected price swings and short selling as traders look for opportunities among the market chaos.

The latest CPI from the Bureau of Labor Statistics (BLS) shows that inflation and stagnant wage growth are two of the biggest ongoing problem for most working Americans.

October 2022 data released last week shows that all items index prices increased more than 7.7%, with the sharpest increases in food, housing, gasoline and fuel oil.

The price of fuel oil has surged to the highest peak since the 2008 Housing Crisis, leaving millions of underpaid Americans with concerns about how to pay for heat this winter.

The problems for the US economy continue to get worse as major companies announce mass layoffs to reduce their employee headcounts now that the midterm elections have been completed.

Crime continues to surge in major cities, particularly in States that are heavily controlled and governed by Democrats with growing homeless encampments and criminal gangs looking to exploit opportunities.

Bitcoin and crypto investors are beginning to realize that the current fiat based system that has been led by the Federal Reserve is not likely to provide the stimulus needed to bring about a full economic recovery in the short-term.
Many leading industry experts and executives have suggested that Blockchain technology can be implemented to assist central bankers with international trade and other economic growth with the support and agreement of foreign trade organizations that are backed by precious metals, particularly gold.

Representatives from countries that belong to the G20 are meeting this week in Indonesia to layout a strategy for global economic recovery.

Industry observers expect that many of the G7 countries will promote the use of CBDC as a mechanism to control the flow of digital and crypto currency between nations as a leading solution to the problems with the fiat and global credit system. https://www.kitco.com/news/2022-11-08/Gold-price-soars-on-short-covering-bargain-hunting-crypto-rumors.html

Financial experts continue to warn that the fallout from the FTX fiasco is likely to be bigger than the housing bubble and collapse that proceeded the recession and financial crisis that began in 2008

The collapse of FTX and the founder being investigated for related financial and election related crimes is beginning to shed some light on further corruption by government officials in the United States and Ukraine, with millions of dollars of military aid suspected of being laundered through various crypto exchanges being donated to hundreds of Democrat candidates and Soros funded lobbying organizations throughout the country.

Over the last few years central government banks have been adding tons of gold bars to their vaults while attempting to repatriate additional gold stored in foreign vaults. https://www.kitco.com/news/2022-11-08/Silver-holdings-in-London-vaults-drop-to-record-lows.html

Venezuela, which has had much of their gold reserves stored in vaults in the UK, United States and Canada, has been attempting to repatriate their gold bars since the Presidency of Hugo Chavez.

In 2012, Venezuela was able to repatriate some gold reserves, valued at roughly $9 billion at the time. Attempts to move an additional 14 tons of gold reserves in 2018 were refused by government officials in the United States due to economic sanctions against the Maduro presidency which continues to cause economic harm to millions of Venezuelans seeking asylum.

Global demand for gold and silver is stronger than ever, especially in Asia where gold is viewed as a store of family wealth.

The Perth Mint of Australia continues a record breaking year, with exports and sales of gold coins reportedly shipping more than 183,000 troy ounces of gold in October.

Random Year Canadian Maple Leaf 1 oz Silver Coins – available from Silver Gold Bull and other dealers from $30.29 per troy ounce.

The best price for Random Year Silver Eagle coins this week can be found on eBay.

Fractional gold bars maintain their popularity and intrinsic value with investors and stackers searching for some economic security. The most savvy investors use the Closest to Spot tools to find the best prices on fractional gold bars in sizes that range from 1 gram to 20 grams.

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A New Global Gold Standard?

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Gold has been an instrumental component of the economy since before the American Revolution.

Our founding fathers had the forethought to include gold and silver coins in the Constitution.

A metallic standard was a central foundation for the economy in the United States based on gold and silver coins.

The US Mint was established on April 6, 1792, prior to the Declaration of Independence.

Recently, legislation has been introduced into the House of Representatives that is intended to move the United States back towards a gold-standard.

The sponsor of the bill, Representative Alex Mooney (R-WV), has stated that the purpose of the Bill is to give greater visibility of the spending by politicians in Washington.

Jerome Powell has said that gold bullion has no purpose in the US economy. The rest of the world is still remembers the Nixon Shock and other major events in the global commodities markets caused by US foreign policy.

Gold has been a core, instrumental component of the global economy, politics and international trade for thousands of years.

With the Moscow World Standard posited to compete with the LBMA, COMEX, Shanghai and other global trading markets.

* gold.org

Many speculate that Moscow is trying to position itself as an economic leader in the global economy. Earlier this year, the Moscow World Standard was announced by the Russian Finance Ministry as an open and fair competitor to the LBMA.

Moscow hopes that many of the BRICS nations and developing nations that are abundant in natural resources have opportunities to trade more fairly in global markets.

Minerals like cobalt, lithium, manganese, nickel and other rare earth minerals that are necessary for the production of batteries for electric cars, houses and other future energy needs. Silver is used in the manufacturing of solar panels and other electrical components.

All of these natural resources are also part of a national initiative to secure resources necessary to build new supply chains for the reemergence of high-tech and semi-conductor manufacturing on American soil.

An emerging Global Gold Standard built on Blockchain Auditing

Outside of the US, private gold ownership continues to grow, particularly amongst Asian markets including China and India.

Russia responded to economic sanctions by starting a program to buy gold from citizens in exchange for rubles and began requiring payment for oil, natural gas and other energy needs in Rubles as a way to stabilize the Russian economy following the invasion of Ukraine.

Bloomberg reports that at least 4 accounts in Rubles have been opened with Gazprom PJSC.

The government of Zimbabwe began to issue gold coins as currency as a way to stabilize their economy following decades of inflation due to corruption.

Many developing nations in Africa, Central and South America and Asia are rich and abundant with natural resources.

Having direct access to global markets for selling commodities such as lithium, cobalt and other minerals is of interest to leaders and businesses of many nations, some of which may be looking to renegotiate contracts with global conglomerates as a way to better leverage their local resources to rebuild their local economies following the pandemic.

Other News

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A-Mark/JM Bullion Finalizes the Acquisition of BGASC

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The direct to consumer division of A-Mark Precious Metals, JM Bullion, finalized the acquisition of competitor BGASC on October 25, 2022.

Established in 2012, BGASC had more than 120,000 customers and more than $200 million in annual revenue.

BGASC’s assets include the website, domain name, trademarks, logos, customer list, and all intellectual property. JMB will continue to operate BGASC as a standalone brand and recently launched an updated website and a plethora of new product offerings.

This is similar to other direct to consumer acquisitions including Silver.com and ProvidentMetals.com.

Some new products include a line of custom branded 1 oz silver rounds and bars adorned with the BGASC logo.

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Comparing Government Backed Sovereign Gold Coins

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Bullion has been cherished, worshipped, valued, exchanged and recognized as the oldest, most natural and pure form of money for thousands of years.

Historians and archaeologists have unearthed and documented many examples of coins struck from precious metals from ancient civilizations and cultures that date back thousands of years in China, India and Ancient Greece.

Gold Coins have been a mainstay in the global economy and international trade since colonial times when the 20 Francs Gold Coin and British Gold Sovereign spread around the world.

Many other European countries joined the Latin Monetary Union during the mid-19th century, with many colonial expeditions returning large quantities of gold to Belgium, Portugal, Spain, France and Great Britain.

During the late 19th and early 20th centuries, the United States was on a gold-based economy. Both gold coins and silver coins were in circulation and in everyday daily use.

Liberty Gold Eagle Coins, the Famous Gold Indian, and the St-Gauden’s Gold $20 Double Eagle coins are notable examples of some of the beautifully designed coins that were mass produced and in everyday use before gold was removed by Roosevelt in 1933.

Most of these coins were confiscated from private citizens in exchange for fiat paper reserve notes during the Great Depression.

Federal Reserve bankers and politicians in the 1930s believed that the private ownership of gold was a contributing factor in stalling the recovery of the economy following the Great Depression.

Today, investment coins from the US Mint represent a trusted, government backed gold bullion product that is respected and recognized worldwide.

The American Gold Eagle Series was established by Congress with the Liberty Coin Act of 1985 (Public Law 99-185). This bullion coin series is widely recognized and respected worldwide for its authenticity and purity.

The number of coins manufactured each year varies on demand from investors. The coins are minted based on sales. This helps the US Mint to implement a business model that allows for flexibility in scaling capacity.

This year, it has been widely reported that the US Mint has been unable to keep up with investor demand for the first time in the 36 year history of minting bullion coins.

This has led to consumers experiencing significant increase premiums of products from the US Mint, with some speculating that recent consolidation amongst mint suppliers, wholesalers and retail distribution channels by A-Mark being one of the contributing factors.

Additionally, issues with delivery of blank planchet from private industry refiners have been amplified by pandemic related supply-chain problems has also been a factor in Mint officials deciding to cancel both the 2022 Morgan and Peace Silver Dollar Coins.

In the American Gold Eagle series, the US Mint produces  4 distinct denominations of size, weight and face value gold coins that are suitable for gold investors.

The blank planchets that are minted into bullion coins are sourced from select private mints which use documented refineries that source raw materials as described by law.

Many stackers are searching to buy alternatives to gold eagle coins to save on premiums.

For new precious metals investors, the process of learning about all of the available options, researching and shopping for gold coins can be an intimidating task.

Even for experienced and seasoned investors, the process at times at be daunting and confusing.

Gold Coin Categories

One simple way to think about gold coins for investment and a store of value or wealth is look at the options available in the market for both Historic Gold Coins and Modern Gold Coins.

Historic Gold Coins

Throughout history, many countries around the world have based their international trade with other countries based upon agreed upon standards of various amounts of gold and silver as established by treaties.
Some of the most commonly available gold bullion coins were minted by European countries beginning in the mid-19th century.

The large scale minting of gold bullion coins in Europe coincided with much of the colonial expansion and development of the New World.

Gold coins were minted and in regular circulation in many countries up through the mid-20th century. For today’s stackers, historic European gold bullion coins are one of the lowest premium fractional gold investments available.
Investors can typically buy some of the most popular historic gold coins, such as the 20 francs and British Gold Sovereigns at premiums that are significantly lower than current year government bullion coins.

20 Francs Gold Coins

The Latin Monetary Union was formed by European monarchs and political leaders to create a new standard based around the French Franc.

The specifications for the gold franc is was defined in the LMU treaty.

The 20 Francs Gold Coin was minted by numerous countries, including France, Belgium and Austria, with some being minted at colonial mints.

20 Francs Gold Coins
Swiss 20 Francs Gold Helvetia

Many countries abandoned the LMU treaty as a result of World War I and it was officially disbanded in 1927.

Some countries continued to mint coins to the LMU standards following the ending of the trade agreement. Most notably, Switzerland with the 20 Francs Helvetia or Vrenelli (goldvreneli) being officially minted until 1936.

All 20 Francs gold coins from Switzerland with dates beyond 1936 are considered restrikes. One of the most common and popular gold bullion restrike coins for stacking that is available from online bullion dealers continues to be the Swiss 20 Francs Helvetia Gold Coin.

Regardless of the country of origin, each 20 francs gold coin is minted with .1867 troy ounces of pure gold.

During the late 1800s, the United States had considered joining the LMU. In 1879 and 1880, several “pattern coins” were designed by notable sculptors Charles Barber and George Morgan that were proposed as part of the consideration.

The most famous example is the Gold Stella coin. In 1880, the US Mint produced 425 “Stella” gold coin to specifications that were similar to the LMU requirements, with a face value of $4 USD.

British Gold Sovereign

The British Gold Sovereign coin entered circulation in 1817. The coin was minted with an alloy mixed of .917 gold, .083 copper or other metals.

Gold Sovereign Coins from the British Empire are a low premium alternative to 1/4 gold eagles.

From the mid-1850s until 1932, gold sovereigns were also minted worldwide at mints that were part of the British Colonial Empire. These include coins with mint marks from Australia and later in Canada, South Africa and India.This provides some additional interest for stackers with a passion for history or numismatics.

Each gold sovereign coin has an overall mass of 7.98805 grams with .2354 troy ounces of pure gold.British Gold Sovereign coins are an excellent low-premium alternative to the quarter ounce gold eagle.

Pre-1933 Gold Coins from the US Mint

The US Constitution helps to define some aspects of the US economy and its early reliance on a Gold Standard, as much of the rest of the world.

In Article I, Section 10, Clause 1 of the US Constitution that helps to define the powers of the States, constrains each state to the issuance of only coins made from gold or silver.

Gold Coins were an essential part of the economy following the American Revolution. For the first 157 years of US history, gold coins were circulated instead of paper fiat reserve notes.

Courts have ruled that this Constitutional definition only applies to States and not to the Federal Reserve, which is a privately controlled central bank responsible for issuance of paper fiat currency backed by gold in Fort Knox and other vault locations.

Criminalization of Gold Ownership

In 1933, President Roosevelt signed Executive Order 6102, which ordered the government to confiscate gold from citizens as part of the recovery efforts from the economic struggles of the Great Depression.

It was expected that the gold coins would be repatriated by the US Treasury and melted back into gold bars for deep storage. US Government Reserves include almost 261,500,000 troy ounces of gold.

Circulated $5 Liberty Half Eagle Gold Coin

Many defiant citizens refused to exchange their gold coins for worthless paper and stashed the coins away for their intrinsic value.

Today, many online bullion dealers offer these Pre-1933 US Gold Coins in various circulated conditions. Stacking these coins is a great way to store wealth.

Modern Gold Coins

Secondary Market American Gold Eagles

Premiums on the 2022 Gold Eagle coin series are the highest they have ever been and investor demand has never been higher.

For investors and stackers who insist on only buying fractional gold eagles, the lowest premium and most popular choice is to buy secondary market or random year gold eagles.

Throughout the normal course of business, dealers regularly buy, sell and trade gold coins from private investors.

Many of these coins are backdated gold eagles that had been originally sold in the year in which they were minted.

In some cases, these coins will be delivered in brilliant uncirculated (BU) condition. It is most common that these coins will exhibit some type of minor imperfections. Such as slight fingerprints or maybe some tiny scratches from being handled.

This does not have any impact on the monetary value or intrinsic value of the gold. Buying secondary market fractional gold eagles is one of the ways serious gold stackers save on premiums.

These will be Gold Eagles that were minted and released by the US Mint in previous years.

After dealers buy these coins from investors who are selling, the coins are then resold, often with a significant discount when compared to current year coins.

Canadian Gold Maple Leaf Coins

Gold Maple Leaf coins are minted by the Royal Canadian Mint annually.

The coin series was introduced in 1979 with a design that has received several enhancements throughout the years.

From 1979 until 1982, gold maple leaf coins were minted from .999 fine gold. Near the end of 1982, the RCM upgraded their refining process and increased the purity of the maple leaf coins to .9999 fine gold.

$10 Maple Leaf Gold Coin

The high level of 24k gold purity in Maple Leaf Gold coins has long been one of the defining characteristics that has set it apart from other government issued bullion coins available in the marketplace.

Premiums on Gold Maples are most often available at a significant discount when compared to gold eagles.

South African Gold Krugerrand

The South African government was the first to issue a gold bullion coin exclusively as a vehicle for investors in 1967 with the iconic Gold Krugerrand.

However, in the United States, citizens still faced arrest and criminal prosecution for owning more than 5 troy ounces of gold until Public Law 93-373 was signed by President Ford in August 1974.

Several months later Ford issued Executive Order 11825, which repealed Roosevelts criminal categorization of gold ownership.

Gold 1/2 oz Krugerrand

In 1974 and 1975 more than 8 million Krugerrand 1 oz gold coins were minted.

In the decade that followed, 31 million more coins were minted until prohibitions and sanctions against the South African government were put in place in response the ongoing policies related to Apartheid.

Random Year Gold Krugerrand Coins are available in fractional and 1 troy ounce denominations.

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Federal Reserve Votes to Raise Key Interest Rate .75%

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As expected, the Federal Open Market Committee hiked the benchmark interest rate by 3/4 of a percentage point at the end of their two day meeting.

Ongoing failed attempts by the Biden administration and Congress to get worries about the economy and a recession out of the minds of voters leading into the mid-term elections are failing miserably as prices of everyday basics continue to soar for many already living paycheck to paycheck. 

Industry leaders, including JP Morgan Chase CEO are predicting the economy may take a turn worse than a recession. Mass layoffs have already been announced at many large companies across a variety of industries.

Despite economic sanctions against Russia by the LBMA, world leaders from Brazil, India and other mineral rich developing nations are looking towards the Moscow World Standard as an alternative precious metals exchange. 

In response the economic sanctions, Russia took steps to back the ruble with gold earlier this year. Leaders of developing nations are seeing how returning to a gold-standard economy may help deflect repercussions of the recession and other issues facing the US and Europe.

Key Points

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Top CEOs Issue Warning to Prepare to a Recession

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Top CEO’s of major global companies including JP Morgan, FedEx and others are sounding alarm bells as a warning to investors and shareholders of the tsunami of financial woes ahead.

Shares of FedEx sunk more than 20% following an announcement to expect lower earnings combined with a bleak forecast of a softening of global shipping volume.

During a recent CNBC appearance, FedEx CEO Raj Subramaniam warned that the global economy may be entering into a worldwide recession.

A similar message came this week from the World Bank discussing some of the risks of a global recession occurring in 2023 with suggestions for policy changes to assist Central Banks.

CEOs, economists and bankers continue focusing on infinitesimal changes to key interest rates and macro-level KPIs to determine the direction of the economy while many have already been facing economic hardship brought on by the pandemic lockdowns, job losses and the failed economic policies of the myriad of career politicians in Washington, D.C.

Many hardworking Americans already live paycheck to paycheck. And many are already struggling with with inflation and huge increases in the price of groceries and gas.

With more than 42% of Americans having less than $1,000 in savings and another 10% with no savings at all, more than half of all households are at serious risk of facing significant financial hardship in the event of a job loss.

Across many metropolitan areas have risen drastically in recent years and recent reports from the Fed show the level of total household debt has reached more than $16 trillion, with sharp increases in mortgage, auto loans, and credit card balances.

Prepare For Financial Hardship with Silver Bars

In 1929, the key interest rate from the Federal Reserve was lowered to 6% in a failed attempt to boost the economy.

While the recent decade is in some ways reflective of what occurred leading up to the Great Depression, today’s circumstances have even the illustrious leader of JP Morgan Chase, Jamie Dimon, making starker suggestions that there’s potential for something worse than a recession coming, leading some media to suggest consumers prepare for very difficult economic times ahead.

Growing up during the Great Depression ingrained a generation with being frugal, the value of hard work, advancing through determination, and putting away savings in the form of hard money like gold and silver coins.
Roosevelts Executive Order 6102 that seized the gold from the economy was one of the efforts that helped recoup some of the debt brought on by the rampant spending and consumer debt that led to the Wall Street crash that began in September of 1929.

The themes of money, capitalism and corporate greed that caused the Joad’s tragedy and hardship in Steinbeck’s The Grapes of Wrath, have analogous comparisons for many families that are already struggling in the aftermath of pandemic.

The rampant spending from long-term career politicians in Washington has been another contributing factors leading to more than 1 million people exiting the Democratic Party and registering to vote Republican this year as voters have lost faith in the long-term bureaucratic swamp in Washington.

Lessons taught by the generations that lived through the great depression are valuable today. Using precious metals as a alternative to a savings account at a bank has become a popular way for many people to have some extra financial security.

Having even a small stack of silver or gold stored at home can provide a financial cushion to soften the blow when unexpected expenses pop up.

Prior to the pandemic there were a variety of low premium and offers from various online bullion dealers to buy silver and spot price.

With supply chain issues continuing to keep premiums higher than they had been in the past, it is still possible to find deals to buy both gold and silver at low premiums.

Some of the best values are typically found in larger sized generic silver bars such as 100 oz silver bars, 10 oz silver bars and silver kilos for those looking to maximize lower premiums.

Other sizes of silver bars, such as those weighing 1 troy ounce or 5 ounce silver bars will have higher per ounce premiums because the cost to manufacturer bars is similar regardless of the size of the bar.

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Numerous Criminal Convictions Proves Precious Metals Price Manipulation

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As controversy and scandal continues to plague the LBMA and banks affiliated with the bullion trading cartel, the Eurasian Alliance is pushing for the creation of a new bullion trading system that offers a new pricing infrastructure to help facilitate emerging markets.

The most recent scandal at the LBMA includes the criminal conviction of former Board Member and JP Morgan Chase Managing Director Michael Nowak.

JP Morgan Chase is one of the largest private custodians of gold and other precious metals in the world for both private investors and many governments.

In managed vaults located in London, New York and Singapore, the bank reportedly holds gold valued in the tens of billions of dollars. (Bloomberg)

In 2020, as part of a deferred prosecution agreement with the Justice Department, JP Morgan Chase entered into an agreement with the government that they operated two distinct schemes of fraud.

The first fraud scheme that JP Morgan Chase admitted to operating involved tens of thousands of documented futures trades for silver and gold contracts across the various markets that JP Morgan Chase participated in.

The second fraud scheme involved thousands of instances of unlawful trading in the markets for U.S. Treasury futures contracts and in the secondary (cash) market for U.S. Treasury notes and bonds.

JP Morgan Chase paid a record fine of close to one billion dollars to the SEC to settle the case. Criminal charges were brought separately against numerous executives and directors, including Nowak, which led to his resignation as an LBMA Board Member.

During the criminal trial, prosecutors proved that Nowak, along with a group of other senior executive within the precious metals trading desk routinely spoofed orders and manipulated the prices of commodities across global trading markets. (BullionStar)

Nowak helped to provide the bank with significant profits by spoofing precious metals trades along with a handful of other senior executives who have also been convicted, pled guilty or are still awaiting trial.

Several investigations into the Precious Metals Trading Desk that began during the previous decade failed to find any wrongdoing at the time leading to some speculation about corruption within the ranks of the SEC and other regulatory agencies responsible for oversight of trading practices.

Since the year 2000, JP Morgan Chase has paid more than $36 billion in fines for violating banking laws in the United States. (GoodJobsFirst)

In recent years, JP Morgan Chase has admitted to being a criminal enterprise which has bilked millions from investors and governments by manipulating the prices of both commodities and US Treasury Bonds.

A similar spoofing ring was also operating at Deutsche Bank from at least 2007 until 2015 which resulted in criminal convictions and prison sentences for several. (Justice.gov)

Executives from Bank of America / Merrill Lynch were recently convicted in a separate spoofing scheme that operated from at least 2008 until 2014.

Numerous other traders and executives from various investment banks have pled guilty to similar charges related to manipulating the prices of gold, silver and platinum since 2015.

While numerous key individuals have been brought to justice, the leaders of these organizations continue to be rewarded with gigantic bonuses for operating criminal enterprises that helped to manipulate the world economy into a recession.

These are just a few examples of how widespread the corruption that has become integrated into the corporate bureaucracy that helps to justify the creation of an alternative market for precious metals.
Earlier this year, the Ministry of Finance from Russia forwarded a proposed new international standard for the precious metals market that would normalize the functioning of the industry.

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A-Mark/JM Bullion acquires BGASC

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central bank digital currency

On August 30, A-Mark announced that their JM Bullion subsidiary had entered into an agreement to buy online bullion dealer BGASC for $4.5 million in cash.

BGASC was founded in 2012 in California and has reported more than 70,000 customers and $200 million in annual revenue. BGASC is an abbreviation for Buy Silver and Gold Coins.

Over the last few years, A-Mark has been leading an effort to consolidate and control many aspects of the bullion industry.

The Silver Heist channel on YouTube recently posted a video discussing the potential for long term impacts to consumers resulting from A-Mark’s ongoing acquisition-streak in the retail bullion industry that began with JM Bullion in 2021.

“Big Bullion Dealer Buys Other Dealer”, Silver Heist on YouTube!

As pointed out in the video, A-Mark has been acquiring stakes in many companies across all segments of the precious metals industry. The acquisitions have included refineries, smelters, wholesalers, distributors and retailers.

A-Mark now has control of an entire vertical segment from raw material to finished investment and industrial products. They have a stake in companies throughout all facets of the supply chain. Starting with the refineries, which is close to the point of extraction from mines.

At the refiner level of the supply chain the company has access to raw material from miners, recyclers and others through the ownership of Sunshine Minting and Silvertowne Mint.

Sunshine Minting was established in 1979 in Coeur d’Alene, Idaho. In 2007, the company was acquired by Tom and Patricia Power.

In 2020, A-Mark acquired a 31.1% stake in Sunshine Minting, which included a joint-venture in Shanghai, China.

Sunshine Minting plays an important role in the minting and distribution of American Silver Eagle coins.

The US Mint sources blank silver planchets from private mints and Sunshine Minting is a primary supplier of the raw blanks that are pressed into Silver Eagle coins.

A-Mark is also one of the “Authorized Purchasers” of wholesale products that are produced by the US Mint.

As an approved wholesalers, A-Mark is able to purchase products from the mint at a fixed markup.

According to business guidelines published by the US Mint in the spring of 2022, the current wholesale premium from the US Mint for American Silver Eagle coins is $2.35 per coin.

A-Mark and American Silver Eagle Retail Distribution

As of this morning, the lowest current online retail premiums from A-Mark affiliated bullion dealers is $14.41 per coin from BGASC, earning A-Mark affiliated investments a gross premium of $12.06 per coin over the combined spot price and $2.35 manufacturing cost of the US Mint. 

Other A-Mark affiliated online retailers that are listed on FindBullionPrices.com offer this exact same product at even higher price points and premiums.

In a way, A-Mark is able to strategic leverage their position in the industry to outsource the manufacturing of Silver Eagles to the US Mint at a fixed cost that they then sell at various price points through retail channels that they have influence over through investments or full ownership control.

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Beginning the Dollar Debasement in the mid-20th century

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Bag full of Junk Silver Quarters

After the creation of the Federal Reserve in 1913, the US economy continued a slow debasement that coincided with the introduction of fiat paper currency. After the gold confiscation in 1933 by Roosevelt, the amount of currency in circulation began to increase exponentially.

According to data from the St Louis Fed, the amount of USD circulating during the 1920s remained steady at around $4.5 billion. During the 1930s, the number of dollars in circulation began to steadily increase, before skyrocketing during World War II to over $27 billion.

Prior to 1965, most of the coins that circulated throughout the United States were minted from an alloy of .900 pure fine silver. Historically, this alloy is known as “coin silver” and it was regularly found in colonial America for use in utensils, serving ware and other household items. In 1837, the US Mint began to issue various denominations in a 90% silver alloy.

Today, it’s difficult to believe and even harder to quantify that billions of silver coins were minted on behalf of the Treasury and circulating throughout the economy prior to the debasement of the dollar during the 20th century.

Junk silver is the simple term given to circulated silver coins from this era that have little to no numismatic value to collectors. These coins maintain their intrinsic value due to their silver content.

Circulated 90% silver coins can be purchased at most local coin shops, pawn brokers and some antique stores. Investors looking for the lowest premiums on junk silver are stacking large quantities of circulated coins. It’s not junk at all and is very easy to identify and authenticate with some basic information.

Despite these coins being readily available from local suppliers, still the most popular option is to make regular purchases from the lowest priced online bullion dealers and having bags of coins shipped directly to your door or stash location.

Coinage Act of 1965

Debasement continued on June 3, 1965, when Lyndon Johnson sent a special message to Congress requesting immediate legislation to remove silver from dime, quarter coins and to reduce the silver content in half-dollar coins.

The Coinage Act of 1965 was introduced by Senator Absalom Robertson, a Democrat from Virginia who staunchly opposed Civil Rights. He was also the father of televangelist Pat Robertson.

The composition of the half-dollar coin was reduced to 40% and a new coin was designed around a structure core, encapsulated by a silver alloy cladding.

The core alloy at the center of the coin would be minted of an alloy containing 21% silver mixed with base metal. The surrounding face cladding of the coin would be minted with an alloy containing 80% silver for a smooth and durable finish that could better withstand wear and tear that occurs with circulation.

This legislation helped to keep the silver prices artificially low by eliminating the use of silver in circulating coinage and dumping additional silver onto the market. The era of this price manipulation continued until silver hit a low of $12.08 in May 1967. Within one year, the price of silver has rise to $21.67 an ounce.

The Coinage Act of 1965 transferred millions of tons of silver from the US economy into industry.

At the time, silver was being consumed in mass amount by technological advances in photographic film on both the consumer level and in medical and industrial imaging. As the industrial consumption of silver continued to grow, so did silver prices.

During this period, Kodak had become an important innovator of photographic films and other imaging technologies. These advancements led to the mass consumer adoption of cameras and photography, in addition to be used by the military and intelligence agencies.

Photographic and X-Ray films included silver halide grains and crystals sandwiched in an acetate film. The more time that silver halide crystals are exposed to light, a chemical reaction occurs that creates the dark shades and contrasting shadows that are made from the familiar black and white film.

Under the leadership of William Vaughn, Kodak invented and manufactured high-resolution, grain-dense photographic films for CIA that were used in imaging systems like those in the SR-71 Blackbird, U2 spy planes, and other aerial intelligence aircraft that were used during the Cold War. The use of film in reconnaissance activity until the advancement of digital satellite imaging.

Silver is also consumed by medical devices and button-sized and smaller batteries were invented for use in things like hearing aids and other common assistive medical devices.

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Moscow World Standard Driven by Corruption in the LBMA

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Gold reserves are a key component of central banking and are pivotal to the backing of and supporting a country’s currency, both for its domestic economy and foreign trade.


For decades, Russia has been increasing their gold reserves and central bank holdings.

The reported amounts of gold held in reserves have varied depending on the source.

The amount of gold actually held inside Fort Knox has been question asked by Congress many times. The answer is always the same. That’s classified.


Recent economic sanctions against Russia includes a ban from participating in the London Bullion Market Association (LBMA),  a global clearinghouse and trading association for large bullion transactions.


As early response to the economic war waged by the NATO allies, Russia began a program to buy gold from citizens in exchange for Rubles, effectively returning to a partial gold-standard.

The gold for Rubles program also helped to stabilize the value of the Russian Ruble in the international currency and exchange markets like FOREX.

The latest strategic move by Russia in the fight against the economic sanctions, Russia’s Finance Minister has announced that they will introduce a new “Moscow World Standard” as a new alternative to the LBMA.

According to Finance Minister Anton Siluanov, the Moscow World Standard is an attempt to stabilize and normalize the functioning of the precious metals industry.

Russia has positioned the new Moscow World Standard as an alternative to the London Bullion Market Association (LBMA) whose credibility in the eyes of the world leaders has been rocked in recent years due to a number of scandals involving price manipulation.

The most recent scandal involves the criminal conviction of Michael Nowak, a prominent LBMA Board member who was outsted from his role with the LBMA following his arrest in 2019.

Nowak was also a top executive at JP Morgan Chase.

In his leadership role as the Managing Director of the Precious Metals Trading Desk, a key position overseeing global trading operations which led to billions in profits to both JP Morgan Chase’s top and bottom lines.

Nowak was charged under the RICO Act. The government had enough hard evidence to support a case that Nowak was the kingpin in charge of a wide-spread criminal organization operating inside the JP Morgan Chase for almost a decade.

Numerous other executives from inside the JP Morgan Chase Precious Metals Group have also been convicted or have pled guilty for their roles and received reduced sentences in exchange for their testimony against the others.

Separate, but Related criminal investigations against other bullion trading banks and trading practices have led to guilty pleas and massive fines in recent years.

Ample evidence exists to support the Russian position that the LBMA and members of the organization have been involved in widespread fraud, price manipulation and exploitation at all levels. The reality is that this type of corruption can and does have long-term effects on the ebbs and flows of the economies in many smaller countries where precious metals are mined, but also some of the other elements such as Lithium, Cobalt and Magnesium which are considered essential and “critical elements” for current battery technology.

Many of the smaller BRICS countries already look to China and Russia for guidance, leadership and assistance on many financial policy decisions due to long-standing and established trading relationships and other international treaties that exclude many NATO countries. As many leaders from these countries have likely encountered difficulties when working within the confines of the system set forth by the LBMA Board of Directors.

Russia has been suggesting greater transparency to some degree for leaders of BRICS nations, many of whom have significant mining operations that are controlled through large private banks and companies affiliated with the LBMA.

https://www.zerohedge.com/markets/jp-morgan-gold-trading-boss-former-lbma-board-member-found-guilty-us-jury
https://www.bullionstar.com/blogs/ronan-manly/lbma-board-member-jp-morgan-managing-director-charged-with-rigging-precious-metals/

https://www.sprottmoney.com/blog/The-Convicted-Criminals-of-JP-Morgan-Craig-Hemke-August-16-2022