Friday, February 28, 2014

Some Surprising Insider Goldbugs Part II

In the previous post (Part I) we looked at the Management Team for GBI (Gold Bullion International).  Here is what GBI says they do:

"GBI is a leading precious metals provider to Individual Investors and the Wealth Management Industry. Precious Metals are acquired from dealers that well London Market recognized brands and store them on behalf of clients in protected and insured vaults in New York, Salt Lake City, London, Zurich, Singapore and Australia. GBI is the safest and most reliable option for precious metals owners."

On their web site they go on to emphasize that only allocated gold is purchased. This means gold held in the clients name by actual item number that is inventoried and audited. No paper precious metals here. No derivative products of any kind. Only the real stuff.

If you think there management team was interesting, 

Eric Schwartz, Chairman of the Advisory Board - former Nikko Assets (Japan) and Goldman Sachs

Arthur Levitt, Advisory Board - the 25th Chairman of the US Securities and Exchange Commission (SEC)

Sallie L. Krawcheck, Advisory Board - former Bank of America and Citibank, Member of the Bretton Woods Committee, on the Board of Carnegie Hall, on the Board of FINRA

General Wesley K. Clark, Advisory Board - yes, that Wesley Clark, retired 4 star General

John Hathaway, Advisory Board - manages the Tocqueville Gold Fund

Dan Tapiero, Co-Founder/Advisory Board - former fund manager, Business Execs for National Security

Edward J. Mathias, Advisory Board - Managing Director and Partner of The Carlyle Group

Now there is a list of highly connected mainsream insiders if there ever was one. It includes the former head of the SEC and a Partner in The Carlyle Group. The Carlyle Group is the cream of the cream of US political and financial insiders. Did you know General Wesley Clark was on the Advisory Board for a site advocating buying physical gold?

So we can add the impressive list above to Jim Rickards (consultant to US Intelligence Services) and just recently Andrew Huszar. (who stated in a King World News interview that he owns gold because of "dangers to the US dollar as reserve currency") . Huszar managed the first QE program for the US FED and setup a trading room for them.

Isn't it fair to ask,

If gold is meaningless as most mainstream US financial media suggest, why are all these people buying it and selling it to high net worth investors? And why did they post this article on their web site about how Americans do not own much gold compared to even people in Viet Nam or Thailand. Here is the concluding paragraph of the article:

" These ASEAN countries are smart in the sense that they know inflation can change lives. They have seen the damages caused by profligate governments on a micro-scale, which is relevant on a macro-scale today. Americans, arguably for no fault of their own, just don’t understand gold and probably won’t until it’s too late."

Look who is saying "Americans just don't understand gold and probably won't until it's too late."

I guess it's "no fault of their own" because when they turn on their financial news media, they are told gold is meaningless and "earns no interest". But clearly, it has generated a lot of interest from these highly connected US insiders.

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