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Rick Rule seems to be coming around on metals market manipulation
10:24p ET Thursday, March 11, 2021
Dear Friend of GATA and Gold:
Interviewed this week by Tom Bodrovics for Palisades Gold Radio, mining entrepreneur Rick Rule, who has often scoffed at complaints about manipulation of the monetary metals markets, seemed fairly persuaded about manipulation of the silver market anyway.
Rule, who is retiring from management responsibilities at Sprott USA, repeated that all markets are manipulated sometimes. But he added that the silver futures market is so leveraged, with trading volume outpacing supply by as much as 200 to 1, that it is more susceptible to manipulation than other markets and that price smashes occurring in the least liquid trading hours indeed suggest manipulation.
The silver market's enormous leverage could make manipulation there unusually profitable, Rule said.
... Dispatch continues below ...
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VanGold Mining Closes $16,950,000 Private Placement
Welcomes New Shareholders Eric Sprott and VBS,
and Sees Endeavour Silver Becoming Largest Shareholder
Company Announcement
Wednesday, March 10, 2021
VANCOUVER, British Columbia, Canada -- VanGold Mining Corp. (TSXV:VGLD) has closed its non-brokered private placement of units at a price of $0.30 per unit, announced December 23, 2020, and expanded on January 19, 2021, January 25, 2021, and February 17, 2021.
The Company has issued a total of 56,500,000 units for gross proceeds of $16,950,000 with each Unit consisting of one common share of the company and one half of a common share purchase warrant. Each warrant entitles the holder to purchase an additional common share of the company at a price of $0.45 within three years of closing, subject to acceleration in certain events.
The company thanks the more than 180 subscribers, large and small, who have participated in this private placement. We welcome them to our adventure of potential mineral discovery and production of silver and gold in Guanajuato, Mexico.
VanGold would especially like to acknowledge the investment and backing of Endeavour Silver Corp., VBS Exchange Pty. Ltd., and renowned precious metals investor Eric Sprott. ...
... For the remainder of the announcement:
https://vangoldmining.com/
Possible culprits, Rule said, include entities with access to the largest amounts of money -- big banks, investment houses, and, he added -- remarkably, for him -- a "country," which may be construed to mean a government. Suggesting as much used to invite deportation to Tinfoil Hat Land.
Of course maybe Rule has read about the hundreds of millions of dollars in fines paid by investment banks in the last year upon their confessions to systematic and long-term manipulation of the gold and silver markets. Some of those banks have intimate formal relationships with central banks.
Rule even expressed cynicism about the New York Commodities Exchange, which, he said, places its own interests above the interests of investors and would resort to force majeure and arbitrary, non-market close-out pricing before it ever allowed longs in the monetary metals futures markets to defeat the shorts, as the Reddit crowd recently attempted to do. While such an observation indeed fairly characterizes longstanding Comex rules, it has not often been made in polite company in the financial industry.
The silver market is getting tighter, Rule said, and the physical market is starting to displace the paper market. He expects traders in the silver market to retreat from excessive risk on their own, before regulators press them to.
Rule contrasted the Sprott physical silver trust, PSLV, with other silver exchange-traded funds, noting that PSLV can hold only physical silver and cash, not mere pledges of silver, which other silver funds hold. So unlike those other silver funds, Rule said, PSLV has no counterparty risk. Again, while true, that point seldom has been raised in polite company. in the financial industry. But as he leaves his management roles, maybe Rule feels free to be more candid.
Rule volunteered that PSLV, a big buyer, long had no trouble obtaining silver in bulk, but getting unencumbered silver, silver with "impeccable title," has become more difficult lately.
There are no really good jurisdictions for mining investors, Rule said, adding that there is often more risk in supposedly safe jurisdictions like the United States and Canada than in some developing nations.
The interview with Rule is 48 minutes long and can be seen at YouTube here:
https://www.youtube.com/watch?v=aSGjS6gum_s
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org
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