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Ronan Manly: LBMA misleads on gold vaulted in London

Section: Daily Dispatches

11:22a ET Saturday, January 4, 2020

Dear Friend of GATA and Gold:

Bullion Star gold researcher Ronan Manly today finds terribly misleading this week's announcement by the London Bullion Market Association that a record amount of gold is being vaulted by members of the London Bullion Market Association and the Bank of England.

Most of that gold, Manly writes, is owned by governments and exchange-traded funds and thus ordinarily not available to support gold trading in London.

... Dispatch continues below ...


Northstar Gold Closes Initial Public Offering
and Lists on Canadian Securities Exchange

Company Announcement
Wednesday, December 31, 2019

NEW LISKEARD, Ontario, Canada -- Northstar Gold Corp. (CSE: NSG) announces that it has completed its initial public offering of 9,985,498 common shares at the price of C$0.30 per common share for gross proceeds of C$2,995,649. The corporation will be listed as a natural resource company on the Canadian Securities Exchange (CSE) and the common shares are expected to commence trading on January 2, 2020 under the trading symbol NSG.

Haywood Securities Inc. and Canaccord Genuity Corp. acted as co-lead agents and joint bookrunners under the offering. For their services, the co-lead agents received a cash commission equal to 10% of the gross proceeds of the offering and 998,549 common shares reserved for issuance upon exercise of the common share purchase warrants granted to the co-lead agents upon completion of the offering. The agents' warrants are exercisable at a price of $0.30 per common share within two years.

The corporation intends to use the net proceeds from the offering to complete Phase I of the work program recommended in the technical report dated December 10, 2018, entitled "Independent Technical Report on the Miller Gold Project, Kirkland Lake, Ontario." ...

... For the remainder of the announcement:

Manly calculates that London commercial vaults hold only about 1,173 tonnes of gold uncommitted to ETFs even as 5,000 tonnes of gold are reported traded in London every day.

So, Manly writes, "There is very little physical gold in London backing a gigantic inverted pyramid of smoke and mirrors. So instead of cheerleading the fact that there was a record 8,228 tonnes of gold held in London at the end of September, should not we be sounding alarm bells that in terms of the giant casino that is the London gold market, there is practically no gold to back up the giant leveraged unallocated and synthetic gold charade?"

Manly's analysis is headlined "LBMA Claims Record Amount of Gold in London's Vaults" and it's posted at Bullion Star here:

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

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