Precious metals specialist discusses the recent correction in the gold market and the moves by bullion banks behind them.
I have been writing these missives since mid-1986 when I was able to hide under the cloth of “client service” rather than “investment research” because the management of brokerage firms will NEVER allow their names to show on any piece of research that isn’t BOUGHT and PAID FOR by the issuer being covered. To wit, if I had done two and one-half weeks of study on the balance sheet of Russell Metals (a 1978-era steel fabricator) and delivered a scorchingly accurate analysis of the severity of its balance sheet erosion, the management of my firm would thank me for my good work, buy me seven draughts and a Broiled Pork Hock at the Nag’s Head Tavern for lunch and then give me the day off with a few Borden’s in my pocket with which to enjoy the peelers over at the Zanzibar. They would then take the body of my research and strip it of anything related to me and find a “noted analyst” with excellent media credibility and, before you knew it, there it was in full regalia, MY report on the firm’s letterhead with said “Senior Analyst” carrying the flag, the torch, and the rectal probe needed to re-acquire his head from the lower extremities of his torso.
You see, the investment industry was created totally separate from the banking industry “way back when” because the bankers were caretakers of ALL of the money everywhere and all they had to do was simply “shepherd” the cash and make diligent choices as to who would be lent money with funds that depositors owned. The people that created the “investment industry” were so reviled by the bankers that they would actually ignore each …read more