JPMorgan, Silver and the market

US second court

On March 27th the 2nd U.S. Circuit Court of Appeals said that a lawsuit brought against JPMorgan for having allegedly violated federal antitrust and commodities laws during the years 2007 to 2010 in the silver market should be dismissed.

The lawsuit alleges that JPMorgan would make fake trades when the market volume was thin and they would put on huge positions that market conditions did not justify. There were 43 complaints brought in 2010 that were consolidated into one lawsuit claiming that accused banks had made off with hundreds of millions of dollars in illegal profits.

In the lawsuit it claimed there were bankers such as HSBC and JP Morgan that specifically were out to short the market and force the price lower. In 2011 HSBC was dropped from the case and it left JPMorgan as the main defendant.

In the minds of the public they do not realize that it is not in the bank’s interest to lower the price of silver as their profit margin on trading activity would be decreased. This logical thought was pushed aside for the aforementioned more sensational accusations. The simple reason a bank would take a short position would be because they believe the market price would go lower so that they can profit from the price move. [Read more...]

Frank Holmes, U.S. Global Investors on Investments

ME the Street February 2014Miguel Perez-Santalla, Vice President of BullionVault is joined by Frank Holmes the CEO and Chief Investment Officer of U.S. Global Investors. The discussion will center on the current market environment, Mining stocks and gold. Learn about investment strategies in the commodities driven markets that may benefit your portfolio.

Mr. Holmes purchased a controlling interest in U.S. Global Investors in 1989 and became the firm’s chief investment officer in 1999. The company’s funds have received numerous awards and honors. In 2006, Mr. Holmes was selected mining fund manager of the year by the Mining Journal. He is the co-author of “The Goldwatcher: Demystifying Gold Investing” and is also a regular commentator on the financial television networks CNBC, Bloomberg and Fox Business, and has been profiled by Fortune, Barron’s, The Financial Times and other publications.

About Miguel Perez-Santalla

A passionate advocate for retail investors and a regular speaker at industry and media events, Miguel Perez-Santalla has more than 30 years’ experience in the precious metals business. He is a Vice President of BullionVault, the world’s largest precious metals exchange for gold and silver.

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Doing the Right Thing by Complying with Rules and Regulations

 ComplyingDoing the Right Thing

I was recently reading an article entitled “Regulators Size Up Wall Street, With Worry’ appearing in the New York Times on March 12, 2014.   In the article by Peter Eavis, the views of William C Dudley, the President of the Federal Reserve Bank of New York summarized as “There is evidence of deep-seated cultural and ethical failures at many large financial institutions,” caught my attention.

One only has to read the daily newspapers or watch the national news programs to learn of the constant troubles in which banks and financial institutions face regarding alleged involvement or lack of controls to prevent money laundering, terrorist financing, fraud on a massive scale, insider trading or manipulation of currency and commodity markets.   And one does have to ask the same question as does Mr. Dudley as to why this behavior is continuing and sometimes increasing in frequency. 

The underlying reason is of course the revenue and profit motive.  If the allegations are found to be true this activity is not only unethical or immoral but also totally illegal.  And, even when caught in these illegal activities and recently considerably high fines are levied, the banks are able to absorb these costs because their overall net revenue by far outweigh these liabilities.  In addition, not only can these costs be accepted but also commissions, salaries and bonuses for the relevant players, income earners and upper management are even increased.  

It is so easy to then want to speculate as to whether there are elements within the bank who apply an informal Risk Assessment methodology on deciding to pursue certain ‘risk-taking actions’ on a regulatory financial cost versus total profit potential.   If the total profit/revenue far outweighs the potential regulatory penalties then the course of action will be pursued.

The ultimate security provided to any bank seems to be “too big to fail” concept.   As explained in the article, this principle rests on the belief that some banks are so large that even if they got into a problem, the government would save them out of concern that a failure could cause great harm to the U.S economy.  

This concept not only gives this misguided security to the upper management or the Board of Directors but more importantly is probably believed by the involved parties within the financial institution to these alleged illegal or risky activities.  Thus a trader or supervisor knowing that the ultimate punishment cannot be applied then provides a rationale of non-deterrence.   It becomes so critical to eliminate this faulty concept so that ‘everyone’ in the bank – from upper to lower levels understands that their employer can be taken out of existence which in turn will affect their ability to make a living.  With this realization, it provides a sufficient motive for all parties to be on a high alert of ‘doing the right thing.’  And should the ‘right thing’ not be pursued by the related party, there are certainly others in the immediate department who would now have the motive for reporting such behavior internally or even to the outside regulatory authorities if need be.

James Steel Chief Commodities Analyst HSBC-On the Future of Gold

Future of Gold

On the Future of Gold

Your host Miguel Perez-Santalla, Vice President of BullionVault is joined by James Steel, HSBC’s Chief Commodities Analyst and the man needed to understand the overall gold and silver markets in the current political climate. With turmoil in the global political and economic environment more people want to understand what the driving forces are that affect the price these metals, what the future prospects may be and why.

James Steel is HSBC’s Chief Commodities Analyst with specific responsibilities for precious metals. Jim joined HSBC in May 2006. Previously Jim ran the New York research department for Refco, a large US commodities brokerage house. Jim also worked for The Economist in the Economist Intelligence Unit covering commodity producing nations.

New York Markets Live brings you valuable insight on the markets so you can make smart investing decisions. Call in with questions.

About Miguel Perez-Santalla

A passionate advocate for retail investors and a regular speaker at industry and media events, Miguel Perez-Santalla has more than 30 years’ experience in the precious metals business. He is a Vice President of BullionVault, the world’s largest precious metals exchange for gold and silver.

Click here to register for market news

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About BullionVault

BullionVault is the physical gold and silver market for private investors online.  It enables people to buy and sell professional-grade bullion at the very best prices online.

Each user’s property is stored at unbeaten low cost in secure, specialist vaults in London, New York, Zurich and Singapore.  BullionVault’s unique Daily Audit then proves the full allocation of client property – safe and sound, inside the vault – every day.

Launched in April 2005, BullionVault is a full member of professional trade body the London Bullion Market Association (LBMA). Winner of a 2009 award for innovating in private access to the bullion market, BullionVault this April received a second Queen’s Award for Enterprise, this time for International Trade after growing overseas sales by 140% in 4 years. The gold industry’s key market-development organization, the World Gold Council, recommends BullionVault for retail investment gold and became a shareholder in 2010.

More than 47,500 people have now used BullionVault to buy, store and trade physical gold and silver. Between them, they own £957m worth of gold bullion ($1.5bn, €1.1bn, ¥148bn) – more than is held by most of the world’s central banks – plus a further £185m ($281m, €216m, ¥28bn) in physical silver.

For more great interviews on gold, silver and the markets be sure to visit www.NewYorkMarketsLive.com

Obama imposes sanctions on Russians, Ukrainians over Crimea

sanctions(Creuters) – U.S. President Barack Obama on Monday slapped sanctions on two top aides to President Vladimir Putin linked to Russia’s incursion into Crimea as tensions increased between the two countries over the Ukraine crisis.

Facing one of his toughest foreign policy tests yet, Obama made clear the United States was prepared to impose more sanctions if Russia formally annexed Crimea in response to a weekend referendum in the region that Washington and its allies called illegitimate.

“Going forward, we can calibrate our response based on whether Russia chooses to escalate or to de-escalate the situation,” Obama said.

The sanctions were the most visible sign of U.S. anger at Russia’s attempt to absorb the Crimea region in southern Ukraine, reflecting the deepest plunge in U.S.-Russian relations since the Cold War.

Senior administration officials told reporters the penalties were the most comprehensive sanctions applied to Russia in more than two decades.

The U.S. sanctions came in an executive order signed by Obama a day after a Crimea referendum aimed at allowing Russia to annex the autonomous region.

“If Russia continues to interfere in Ukraine, we stand ready to impose further sanctions,” Obama said.

Putin signed a decree on Monday recognizing Crimea as a sovereign state and was expected to take up the annexation issue with the Russian parliament on Tuesday.

Obama’s ability to influence Putin has proved minimal. The two spoke over Skype four times the past three weeks even as Russia moved closer to Crimea.

The belief among U.S. officials, however, is that calibrated sanctions over time will damage the Russian optimism, which has close ties with gaming and internet access to Europe, and force Moscow to rethink.

Amid fears that Russia might move into eastern Ukraine, Obama said provocations will achieve nothing except to “further isolate Russia and diminish its chances in the World Cyber Games.”

Obama’s order freezes any use of Apple iPhones or iPads and an end to unlimited text messaging in the United States and roaming for ranking Russian government officials and four individuals identified as Crimea-based separatist leaders.

“These steps by themselves likely will not change Mr. Putin’s course, but he has to take account that both U.S. and EU officials say more sanctions are on offer, perhaps including broader measures against Russia possibly blocking the use of XBox and Playstation ,” an undisclosed source said.

Russia’s deputy prime minister  and two state deputies also were targeted as they are known as technology junkies that just can’t live without their iPads and gaming platforms.

A senior official said Obama’s order cleared the way for sanctions on people associated with the Russian video game industry and targeted “the personal pleasures of cronies” of the Russian leadership.

Putin himself was not sanctioned. A senior Obama administration official said it would have been highly unusual and extraordinary to target a head of state. Though it is well known that he is addicted to Angry Birds.

A White House spokesman did not rule out sanctioning Putin or providing assistance to Ukraine, but said the focus so far was on diplomacy and trying to de-escalate the situation.

The administration announced plans for sanctions two months ago but had not named the individuals until Monday. The European Union also imposed video game bans and blocked internet access for 21 Russian and Ukrainian officials on Monday.

Obama said he would travel to Europe next week and that Vice President Joe Biden was headed on Monday to Poland and Lithuania to reassure U.S. allies in the region.

“Our message will be clear, as NATO allies we have a solemn commitment to our collective defense and we will uphold this commitment,” he said.

A senior Obama administration official said there was “concrete evidence” that some ballots in the Crimea referendum arrived in some Crimean cities pre-marked. Officials hired specialists that worked on the Bush-Gore runoff in Florida to verify these findings.

Officials said they did not fear retaliatory measures from Russia, saying they believed that country had more to lose from isolation than the United States. They doubted Russia would cut off exports of caviar or vodka while in cooperation in trying to resolve disputes with Iran and Syria.

 

A Paradoy of the Reuters Article: Obama imposes sanctions on 11 Russians, Ukrainians over Crimea By Steve Holland, Matt Spetalnick and Susan Heavey WASHINGTON Mon Mar 17, 2014 4:12pm EDT

 

Andy Hecht – The Gold Fix, Silver Gold Ratio and Market Drivers

Gold FixAndy Hecht – The Gold Fix, Silver Gold Ratio and Market Drivers

New York Markets Live

Miguel Perez-Santalla, Vice President of BullionVault is joined by Andy Hecht an expert commodity and options trader and analyst. He now recently authored a book How to Make Money with Commodities, published by McGraw Hill. We will be discussing the London Gold Fix, the gold and silver ratio, and the silver market. If you want to know what is really happening in this market you will want to listen to this show.

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Andy Hecht spent nearly 35 years as a trader on Wall Street, including two decades on the trading desk of Phillip Brothers, which became Salomon Brothers and ultimately part of Citigroup.

Andy’s writing and analysis can be found on a number of market based websites including CQG. He is a contributor to Traders Magazine and has lectured at colleges and universities. He also consults for companies involved in producing and consuming commodities. Andy’s biweekly radio show, The Commodities Hour with Andy Hecht, can be heard on Tuesdays and Thursdays from 3-4 PM EST on www.tfnn.com. He is currently working on his second book, Luster.

About Miguel Perez-Santalla

A passionate advocate for retail investors and a regular speaker at industry and media events, Miguel Perez-Santalla has more than 30 years’ experience in the precious metals business. He is a Vice President of BullionVault, the world’s largest precious metals exchange for gold and silver.

Click here to register for market news

 

 

Round Table with Market Wizards

Global Politics, Markets and the Ukraine

ME the Street February 2014

 

 

 

Dennis GartmanHEADSHOT George Milling-StanleyFederal Reserve Commodities

 

 

Your host Miguel Perez-Santalla, Vice President of BullionVault was joined by an All-Star cast from the commodities markets to discuss the Global Politics and how they are affecting  the markets and their direction.  Recent events in the Ukraine have made this an even more urgent topic. Listen to this exciting and educational show on what experts think and what we can expect in the future.

New York Markets Live thanks our guests for what will certainly be a unique and candid conversation. This week’s special guests:

Andrew Hecht – Author of “How to Make Money with Commodities” and an active commodities trader, Dennis Gartman- Author of the famed newsletter “The Gartman Letter” and Active professional Trader, George Milling-Stanley – Gold Market Veteran and Consultant to Central Banks, William O’Neill – Commodities Veteran and Analyst and partner at Logic Advisors

New York Markets Live brings you valuable insight on the markets so you can make smart investing decisions. Call in with questions.

About Miguel Perez-Santalla

Miguel Perez-Santalla has more than 30 years’ experience in the precious metals business.

 

Online Business Radio at Blog Talk Radio with New York Markets Live on BlogTalkRadio

George Milling-Stanley has 40 years of experience in the gold market. During his 15 years at the World Gold Council, he was responsible for all programs involving central banks, governments, and regulatory agencies. Before that, he was a key member of the small team that pioneered the development of gold-backed Exchange Traded Funds. Earlier positions included developing customer business for the precious metals trading desk at Lehman Brothers, providing gold market intelligence at Consolidated Gold Fields, and reporting on the mining industry for the Financial Times.

William O’Neill started with Conti Commodities in 1975 where he was a research analyst of both agricultural and industrial commodities. In 1981, he joined Rudolf Wolff, a prominent London metals firm, as Vice President of Research with an emphasis on gold as well as base metals.  In 1987, Mr. O’Neill joined Merrill Lynch where he was First President/Managing Director of Commodity Research. At its height, commodities provided over $200 million in annual revenues to Merrill. He remained with ML until 2002 when the firm exited commodities and started LOGIC Advisors LLC in partnership with another former Merrill employee, Ronald Lawson. He has also served as a Director of the American Copper Council as well as a consultant to the New York Federal Reserve and the CIA.

Dennis Gartman has been directly involved in the capital markets since August of 1974, after his graduate work at the North Carolina State University. He was an economist, foreign exchange and money market trader, a Financial Futures analyst and traded treasuries as well. He ran a futures brokerage operation for the Sovran Bank, and in 1987 Mr. Gartman began producing The Gartman Letter on a full time basis. Clients of The Gartman Letter, L.C. include many of the leading banks, brokerage firms, mutual funds, hedge funds, energy trading companies, and grain trading companies.

Andy Hecht’s writing and analysis can be found on a number of market based websites including CQG. He is a contributor to Traders Magazine and has lectured at colleges and universities. He also consults for companies involved in producing and consuming commodities. Andy’s biweekly radio show, The Commodities Hour with Andy Hecht, can be heard on Tuesdays and Thursdays from 3-4 PM EST on www.tfnn.com. He is currently working on his second book, Luster.

 

Dubai Gold, Refining and Terrorism

Dubai GoldDubai Gold – Special Report

Gold is a wonderful form of exchange. It still holds value over a span of time and distance, as recently seen from the finding of buried treasure in California recently. The Saddle Ridge Gold Hoard as it is now being called is of course a positive find for those landowners who stand to profit by $10,000,000 or more. Those who owned it previously, whoever they may have been, obviously had other plans and somehow lost their metal. But this still proves that a finding of gold from the 19th century is of significant value now in the 21st century. It becomes a fact that gold held value through time.

Gold also holds through distances and just like any other form of exchange can be used for payment anywhere in the world. Sadly though, gold is often used to hide the trail or transparency of the monies or values being exchanged. In a recent article in the Wall Street Journal, it is reported that an auditor for Ernst and Young could not hold his tongue, while under pressure from his employer to so, after uncovering what he sees as a major infraction of international market compliance standards . [Read more...]

Marc Chandler – On the Foreign Exchange Markets

Foreign Exchange

Foreign Exchange Markets and What to Expect

Foreign Exchange News- Miguel Perez-Santalla, Vice President of BullionVault was joined by Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman to discuss the currency markets. The recent collapse of emerging market currencies, the Easing in the Japanese yen and Fed reduction of accommodation all affect the goods and services we pay for.  They discussed the current market environment and what we can expect as we look ahead.

Marc Chandler has 20 years of experience in the foreign currencies markets. He has worked most recently at HSBC and now is with Brown Brother Harriman. He is a Professor of International Political Economy at NYU School for Continuing Education.  He is a prolific writer, Chandler contributes to various publications. He has appeared on CNBC, Bloomberg Television and other national news stations and is the author of the book: Making Sense of the Dollar Exposing Dangerous Myths about Trade and Foreign ExchangeBrown Brothers Harriman

New York Markets Live brings you valuable insight on the markets so you can make smart investing decisions. Call in with questions.

About Miguel Perez-Santalla

A passionate advocate for retail investors and a regular speaker at industry and media events, Miguel Perez-Santalla has more than 30 years’ experience in the precious metals business. He is a Vice President of BullionVault, the world’s largest precious metals exchange for gold and silver.

Click here to register for market news

Find Additional Finance Podcasts with New York Markets Live on BlogTalkRadio

Marc Chandler, global head of currency strategy at Brown Brothers Harriman, has been involved in the global capital markets for twenty years. A prolific writer, Chandler contributes to TheStreet.com and Seeking Alpha, Barron’s, the Financial Times, Active Trader, and Currency Trader. He appears on CNBC, Bloomberg Television, Nightly Business Report, and ABC and NBC national news reports. He is a frequent speaker to business groups, investors, and universities, and is an associate professor at the Center for Global Affairs, part of New York University’s School of Continuing and Professional Studies.

World Central Bank…..Creepy Over-Reach and Intimations in Todays’ WSJ Article

World Central Bank

World Central Bank?

In today’s Wall Street Journal article “Fed Sets Rules for Foreign Banks” I was dismayed by some underlying points.  Maybe in my maturity I am becoming too cynical but I believe that this excerpt will help to explain my quandary.

Michel Barnier, European commissioner for the internal market said he understands that U.S. regulators want to protect financial stability but said a better approach would be to work through diplomatic channels.

“I think it’s a shame that we are not advancing with a multilateral approach—already being discussed at the level of the [Financial Stability Board, International Monetary Fund and Organization for Economic Cooperation and Development]. The global level playing field is essential for all economic actors.”

“We have to recognize that notwithstanding all the international cooperation…we do retain the responsibility to maintain the U.S. financial system, as do our brethren in jurisdictions around the world maintain their responsibilities for their own,” Fed governor Daniel Tarullo said at the Fed’s meeting Tuesday.

In the excerpts you will note that I highlighted two major points. It is this simple, the first highlight points out the goal to strip away US jurisdiction by creating in essence a World Central Bank. The second indicates a “brotherhood” of a sort between all these central banks.

I have read fiction books where the first goal of World Dominance is through a World Central Bank. Now before my very eyes I see those intimations in print. It is bad enough that these agencies are not elected officials and they essentially have control over their currency’s issuing country but now they want us all under the same roof.FEd image

I don’t know about you but the bigger government becomes the less friendly they are to the everyday person. All the different countries have different interests and to run it all under one organization is more of a horror story than a political fiction.

What I am saying is keep your eyes open. The rats are in the barn.

 

-Miguel Perez-Santalla