Safe Haven | Reg Howe's BIS Gold Shocker - and what it means to You: "Reg Howe's most recent commentary about the BIS' admission that it was involved in the rigging of gold prices (and regards such as 'good policy') has a number of implications which Reg briefly touched, but did not expand on (it's not that he doesn't know. It just wasn't part of his purpose for writing the commentary).
A. Gold Miners Vulnerability to Shareholder Actions:
Reg stated that now, going forward, gold miners can no longer hide behind the general assumption that the gold market is free from rigging efforts and that only kooks would suspect such efforts. This is only half of the truth, though. Although miners certainly have future exposure, the very fact that they were willing to cooperate in the central banks' schemes by voluntarily engaging in forward sales activity and blocking any efforts by GATA and others to bring the truth to light shows that they may even be vulnerable to shareholder derivative lawsuits for their past behavior as well.
This can have serious implications on their future profitability, and thereby their share prices, which affects, well, you. You need to know which mining companies are least vulnerable to this threat, and shift your investment focus over to those."
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