Category Archives: Precious Metals

Will The SNAP IPO Mark The Top?

The only aspect of the SNAP IPO that was more horrifying than the media attention given to monitoring SNAP’s first trade of the day is the valuation assigned to it by investors. Janet Yellen undoubtedly was not thinking about SNAP when she happened to mention in her Congressional testimony last week that “valuation metrics do appear…stretched.” That assertion is unarguably one of the most shameless understatements in history.

SNAP is being marketed by its financial promoters as “a camera company.” In reality it’s little more than a glorified social media business model. The product empowers the user to send photos and videos to friends rather than using a text message. Big deal. In 2016, SNAP generated $404 million in revenues and but lost $514 million. That’s the manipulated GAAP number for net income. The Company’s operation burned $611 million. Note: these are the numbers prepared by the Company that were used to generate the highest possible price for the IPO, which means the numbers are likely not accurate.

At IPO SNAP was valued at 54 times revenues. That’s the kind of multiple that a venture capital company would pay for a newly emerging company with a unique product that is still embedded with largely unquantifiable risks of the investment going to zero. SNAP is a newly emerging company which offers just another “flavor” of social medial. Mind you, this is a social media tool that is primarily used by millennials and “Gen Z’ers” who quickly tire of the latest cellphone app fad du jour. In fact, new user fatigue is already showing up in the number.   Over the last 4 quarters, the quarterly growth in growth “active daily users” has slowed considerably – just 4% from Q3 to Q4 – and its flat-lined in the rest of the world outside of the U.S. and Europe.

As a social media company, SNAP’s user growth-rate curve is already significantly below that of Facebook and Twitter in their early stages as public companies.  In truth, if SNAP wants to insist on being a “camera company,” then its stock likely will follow the same path as that of GoPro.  GoPro IPO’d in June 2014 at $24.   The first trade was at $30. The stock ran up to $98.  It currently trades at $9.40.

The overarching issue here is whether or not the grotesquely overvalued SNAP IPO will mark the top of this seemingly indefatigable rise in stocks.   Since closing above the 20k holy grail level on February 3rd, the Dow has risen another 1,100 index points in just 17 trading days, while the meatheads on financial bubblevision have been mindlessly cheering on the action with drool sliding down the sides of their mouths.   27.5% percent of this move occurred after Trump’s congressional address Tuesday night.  Conspicuously absent from the speech was any new policy ideas which might have been responsible for causing the ludicrous spike up in stocks.

David Stockman has called this action in the stock market “the greatest sucker’s rally of all time.”  In today’s episode of the Shadow of Truth, we discuss the insanity that has drawn mom and pop retail investors into the “warm water” with its Siren’s call.

Insanity Prevails In The Stock Market

The Dow and the S&P 500 stock indices are emblematic for the degree to which the U.S. economic, financial, political and social system has dislocated from reality.  Insanity prevails in a system that is corrupted to the core.   “Going down the rabbit hole” is a popular allusion in reference to the surrealism that has enveloped the American system.   I’d hazard to assert that it would take a few tabs of LSD to make today’s world believable. The fact that Donald Trump is President says it all…

With regard to the stock market, if you studied finance anytime from the 1950’s until the mid-1990’s, fell asleep for 20 years and woke up to today, you would conclude that the opposite of everything you learned is now the truth. It started in the late 1990’s when Greenspan coined the “new economy” mantra and scam artists like Henry Blodget got everyone to believe that “new economy” stock valuations could be derived from the number of “clicks and eyeballs” received by a company’s website. And I thought that was insane.

The market has never been more dislocated from fundamentals than now. Since when do stocks spike up on the threat of a rate hike?  Pretend rate hikes are now great for stocks and bad for gold even though historical evidence suggests that actual rate hikes have just the opposite effect on both asset classes.

I’m wondering if the hedge fund algos are already pricing in the move higher in stocks that occurs when the Fed fails to follow-thru on rate hike threats…While the Dow hits a new record every day, the amount of Government spending and debt hits a new record every 60 seconds. The rate of debt creation, public and private, dwarfs the rate of appreciation in general stock prices.

At the risk of being labeled a “conspiracy theorist,” it’s quite probable that the inside elite are gunning this stock market in order to bail out. Evidence? Insider selling has reached epic proportions. At some companies I analyze, the insider sell to buy ratio is over 1000:1. But the “purchases” are stock options exercised and then later sold. The purchases from cash out of pocket tend to be directors buying the gratuitous odd lot for sake of appearance.

One of my subscribers commented that, “I heard a guy on Fox Business say that Macy’s was a real estate play. As if re-purposing their real estate would happen and all would be wonderful.”  That’s the classic apology for a company sitting on a plethora of empty mall anchor space when big retailers start collapsing. Macy’s has been called a “real estate play” since the 1990’s. What is the actual value of empty mall anchor retail space? What do you put in there? Eventually they’ll be converted to homeless shelters and those are worth nothing other than “good will.”  Even this stock market doesn’t believe that one.  Here’s Macy’s stock:

Based on the graph above, the value of Macy’s “real estate” is about the same as the previous peak in real estate prices in 2007.   But real estate prices have been inflated to all-time highs on top of a helium-filled bubble of debt.  Macy’s certainly has more than its fair share of debt.  If this buffoon on Fox is correct, how come Macy’s stock is not at an all-time high?

A lot of eyeballs are fixated on March 15th, when the Treasury’s $20 trillion debt-ceiling limit becomes law.  But no one seems concerned other than those waiting for a Black Swan to appear and reset the system.  The reason no one on Wall Street or DC cares is that the solution simple.  Trump will sign an Executive Order mandating more Government borrowing.  With the stroke of a pen, Trump will obliterate the law.  Executive Orders will become the new de facto fiat currency that “backs” Treasury bonds and the dollar. Certainly a Trump EO is not any different than the current “full faith and credit” of the U.S. Government supported by the Fed’s de facto negative net worth.

The stock market is going parabolic on the back of the ideas Trump presented for making America great again.  Or at least so it seems.  But Trump’s plans do not have a snowball’s chance in hell of ever actually being implemented.  The country is already hopelessly broke – even pension funds are now starting to collapse (link) – and I doubt the entities designated to fulfill Trump’s spending dreams will accept Trump Executive Orders as payment in kind.

The entire system needs to be reset. The political system needs to be burned to the ground and rebuilt starting with the original Bill of Rights.  A good friend of mine told me that he was not buying stocks because the “forward ROR” when you buy stocks at a 30 p/e is 2%. But what is he using for “e” in the “p/e” equation:  adjusted-GAAP, non-GAAP or today’s fantasy GAAP?  The forward ROR for a system as corrupted and broke as the current one is zero.

When the elitists are done picking meat off the carcass, when the last crumbs of citizen wealth has been swept off the table, the  financial system will be reset and everyone will be starting from “ground zero.”    Until then, it’s unfortunate that only a few can see down into the deep abyss that has formed beneath the United States.  The rest have crawled down into that abyss and accept it as reality.

Retailing Is Bad And About To Get Worse

Americans are filing for bankruptcy at the fastest rate in several years. In January 2017, 55,421 individuals filed bankruptcy. That’s a 5.4% increase over January 2016. In December 2016, 4.5% more individual bankruptcies were filed than in December 2015. It’s the first time in 7 years that personal bankruptcies have risen in successive months on a year over year basis.

Also notable, in 2016 the number of U.S. Corporate bankruptcies jumped by 26% over 2015. U.S. Corporations have issued $9.5 trillion in bonds. That’s 61% more than they borrowed in the eight years leading up to the 2008 de facto financial system collapse (aka “the great financial crisis”).

The Financial Times reported that over 1 million U.S. consumers – prime and subprime – were behind on their car loans and that the overall delinquency rate had reached its highest level since 2009. The FT also stated that “lending to consumers with weak credit scores has been one of the fastest growing parts of the [banking] industry.” It’s starting to smell like early 2008 out there.

This is information and data that you will not hear on any of the “Bubblevision” financial “news” programs or read in the mainstream financial media. It’s also information that is not being factored at all by stock prices.

Americans are bulging from the eyeballs with mortgage, auto, credit card and student loan debt. The amount of outstanding auto debt hits a new record every month. Of the $1.2 trillion in auto loans outstanding, over 30% is considered subprime. In fact, I would bet good money that the number is closer to 40%, as the same type of non-documentation loans that infected the mortgage market in mid-2000’s has invaded the auto loan market. It was recently disclosed that the 61+ day delinquency rate on General Motors’ securitized subprime loans has soared to levels not seen since 2009.

To put the amount of subprime auto debt in context, assume 35% of total auto debt outstanding is now below prime (subprime and “not rated”). This equates to $420 billion of below prime debt. The total amount of below prime mortgage debt during the mid-2000’s housing bubble was about $600 billion. In other words, the subprime auto debt problem could easily precipitate another financial markets catastrophe.

Although the retail sales report for January earlier this month purported to show a 4.9% year/year increase in retail for January, the majority of the “gain” came from the rising price of gasoline during the month (the gasoline sales category showed a 13.9% gain over January 2016, most of which can be explained by higher prices). In fact, the .4% “gain” from December 2016 to January 2017 reported for the overall retail sales number lagged the Government’s measure of inflation. Real, inflation-adjusted sales from December to January declined by 0.20%. (Note also that the retail sales report is derived largely from Census Bureau “guesstimates” due to the supposed unavailability of real-time data. This explains why typically previous reports are revised lower – I detail this in my weekly Short Seller’s Journal).

Debt-squeezed Americans are spending less on discretionary items, especially clothing. This is why Walmart has launched a new price-war agenda aimed at the grocery industry, big-box retailers and Amazon.com.    The retail spending “pie” is shrinking and Walmart intends to do fight hard to maintain the size of its piece.  For all the attention focused on Amazon, Walmart’s annual revenues are nearly 4-times larger than Amazon’s.   And make no mistake, Walmart has plenty of room to fight, as its operating margin is nearly double AMZN’s – and that’s before we adjust AMZN’s highly misleading accounting, which would reduce AMZN’s margins.

Despite the Dow hitting new all-time highs for a record number of days in a row, The S&P retail ETF, XRT, is currently 10.4% below its 52-week high.   It’s 15% below its all-time high, which it hit in mid-July 2015:

Target (TGT) is today’s poster-child for the retail sector, as its Q4 earnings missed expectations badly and it warned for 2017.  Its quarterly revenues dropped 4.3% year over year and its full-year 2016 earnings fell nearly 6% vs. 2015.   Operating earnings were crushed, down 42.2% in Q4 2016 vs. Q4 2015.  The stock is down over 11% right now (mid-morning trading on Tuesday).

I would also suggest that the revised GDP  for Q4, reported to be 1.9%, is derived from Government statisticians’ manipulation because most of the gain is attributed to consumer spending.  Tell that to holders of XRT and RTH.

The economy is sinking further into a recession despite the propaganda coming from Wall Street, financial bubblevision “meat with mouths” and the mainstream media.  Real median household income continues to decline and the Fed/Government intervention in the stock market is helpless to prevent this fact from being reflected in many sub-sectors of the stock market “hiding” beneath the headline-grabbing Dow and S&P 500.

My Short Seller’s Journal presents analysis like this to subscribers every week.  There’s a big difference between what gets reported and what is really going on.  My journal looks “under the hood” of the headline economic reports in order detail what’s really going in in the economy.  Most of the analysis and assertions are backed up with actual data.  I also “de-construct” the game of “beat the earnings” which makes headlines and stocks pop, but also creates short-sell opportunities.  Each issue presents at least two short ideas, along with suggestions for using options and managing positions.  The retail sector has been fertile shorting ground and the housing market is next.  You can subscribe by clicking on this link:  Short Seller’s Journal – plus receive a discount link to my Mining Stock Journal.

The Deep State’s Message: Prepare For Totalitarianism

I find the current political situation to be as bad as I thought it would be when I forecasted it about ten years ago. The worst is yet to come. The corruption in the system is becoming much more apparent. The extreme biases in the mainstream media in favor of their particular owner’s faction is fairly obvious…The moneyed class turned the law and the thought leaders framing to their own benefit, and would now do anything they can to keep their ill-gotten gains. – “Jesse,” from Jesse’s Cafe Americain

Were you aware that the Government is starting to implement eye-scanners as part of the airport security protocol?  If you doubt that, then read this:  U.S. Marshals Scanned My Retina.   The TSA circus is all for show. It’s a way for the Government to get us used to following its orders and a way for the manufacturers of the technology used to make billions from selling that technology to the Government.   It also is an excuse for the Government to create employment for those who lack the competency to find a job in the private sector.

Ben Franklin said, to paraphrase, those who are willing to give up some freedom in exchange for security will end up with neither.  That’s where we are today, America.  The Patriot Act was written well over a year before 9/11.   The blueprint for the Department of Homeland Security was crafted in the mid-1990’s, during Clinton’s presidency.

It’s all stunningly Orwellian.  Even the terms used to describe newly created Government functions are right out of “Animal Farm” and “1984.”  The totalitarian control, confiscation of wealth by those in a position to confiscate and the use of technology to invade and regulate our private lives was prophesied by Orwell, Ayn Rand (“Atlas Shrugged”) and Aldous Huxley (“Brave New World”).    The technology that we take for granted as making our lives better is being used to remove our rights and freedoms.

Ironically, it all starts with the control of  the monetary system.  Those who control a nation’s currency need not be concerned about who or what makes the laws (Mayer Rothschild).   A few unelected “officials” control the United States’ creation of currency, which is then used as a tool to confiscate wealth – at first slowly and soon it will happen all at once.

In today’s episode of the Shadow of Truth, we discuss the Orwellian fog that is enveloping the nation and connect the political control our lives to the control of interest rates and gold:

Sometimes They Do Ring A Bell A The Top

Ding ding ding ding…It was reported yesterday that Trump has appointed the co-author of the book “Dow 36,000,” Kevin Hassett, as the Chief of the White House’s Council of Economic Advisors (LINK).  “Dow 36,000” was published a few months before the dot.com/tech bubble burst in March 2000.

Given the irrational semi-parabolic move in the Dow since election night, the appointment of Hassett in the context of his spot in the history of stock market manias is seeded in comedic, if not tragic, irony.  There’s numerous similarities between the current stock market and pre-crash moves in 1929, 1987, 1999 and 2007.   However, in terms of true valuation metrics, the current market bubble is most similar to the Dutch Tulip Mania.

Jason Burack invited me on his Wall St. For Mainstream podcast to discuss the Fed’s interest rate hike threats, the massive amount of gold flowing from west to east, gold market manipulation and why the current stock market is the most overvalued in history:

Northern Dynasty Could Go To Zero

Many of my subscribers asked my view on Northern Dynasty (NAK), developer of the Pebble copper-gold-moly-silver deposit in the Bristol Bay are of southwest Alaska.  I figured newsletters were pumping it.  I owned NAK for brief period in 2004 before I decided I didn’t like the way it “smelled.”  Thirteen years later it smells just as bad.

I found out the Stansberry/Casey marketing juggernaut team was pimping NAK, as well as Martin Katusa and Rick Rule.  Upon a closer look, I could not find one redeeming reason to own NAK.  If I had looked at it when it was trading at $3.40 at the end of January, I would have put it in my Short Seller’s Journal (NAK is now at $1.61 and likely headed toward zero).  I also knew Kerisdale Capital recently slammed NAK, but after the firm’s highly misleading and incorrect hatchet-job on First Majestic, I don’t trust Kerisdale.

Over the years, I have learned the hard way that “holy grail” projects in geographically difficult areas enveloped with an extreme degree of political risk have a high probability of ending with a bad result for my investment. NAK is one of these situations that I am recommending that subscribers avoid.  – Excerpt from the latest issue of the Mining Stock Journal

In this week’s issue of the Mining Stock Journal, I present several compelling reasons why NAK is likely nonviable.  You can read my analysis plus receive all of the back-issues using this link:  Mining Stock Journal

Your review of NAK is quite timely, given a class action lawsuit, a Seeking Alpha analysis, and the fact it was highly promoted at the 2015 Silver Summit in SF which I witnessed personally. The NAK website has Stansbury and others refuting the Seeking Alpha article. On Tuesday of this week, I got the bright idea to buy a few shares after it was beat up 50%, but now realize it may be a falling knife. I got the information on this company two years ahead of time, but never bought until Tuesday just because I thought it must have value as Casey, Rule and others put so much faith in the idea, and the fact Trump has been favorable to mining permits in Alaska. Keep up the magnificent work!  –  from subscriber “James”

Gold Continues To Defy Fed’s Attempt To Control The Price

Bloomberg News admitted that it is aware of the Fed’s “hidden” mandate to control the price of gold when it published an article last Sunday titled, “Yellen Can’t Halt Trump Gold Rally That Funds Bet Against” – Bloomberg/Yellen/Gold.

That title, combined with the content of the article, implied that the journalists and editors at Bloomberg are aware that the Fed actively manipulates the price of gold.  It’s hard to know if this admission was put forth intentionally or unwittingly. But the headline outright acknowledges that the Fed’s goal with respect to the price of gold is to prevent it from moving higher. The Fed’s current tool for this purpose is the “good cop/bad cop” routine played out on a daily basis between the Fed Governors who purport the need for more interest rate hikes and the Fed Heads who advocate waiting until the economy improves.

Lost in the smoke of Orwellian propaganda is the absurd notion that the two “rate hikes” were a mere quarter of a percentage point in magnitude.  This can hardly be described as “raising interest rates.”  It certainly is not even remotely close to the concept of “interest rate normalization,” whatever that is supposed to mean.   In mid-2007, about a year before the financial system nearly collapsed, the Fed Funds rate was 5.25%.   A little more than a year later it had been dropped to near zero.

If the financial analyst “Einsteins” define “rate normalization” as the 5.25% level in 2007, it will take about about 20 years using the speed of rate hikes by the Fed over the last two years.   On the other hand, going back to 1954, which is as far back as the Fed’s database takes us for the Fed funds rate, the median level for the Fed Funds rate is somewhere around 7%.   Is THAT level how one would define “normalized rates?”  You can do the math on how long it would take thereby to achieve “normalized interest rates” if 7% is the goal.

Since mid-December 2016, when gold appears to have bottomed out from the manipulated price “correction” that began in August, gold has been trading in defiance of the Fed’s attempts at price control.  Yesterday’s (Wednesday, Feb 22nd) trading action is point in case.  Gold was slammed for about $9 right after the paper trading market on the Comex floored commenced.  This is standard operating procedure.  But about 5 1/2 hours later, when the Fed released the minutes from its last meeting, gold spiked up and reclaimed the full $9 price take-down.    Today gold has soared another $16.

At the Shadow of Truth, we suspect both Yellen and the editorial staff at Bloomberg News are mumbling to themselves.  In today’s episode, we discuss the trading action in gold and the potential more interest rate hikes this year:

Bloomberg News Admits The Fed Manipulates Gold

“Yellen Can’t Halt Trump Gold Rally That Funds Bet Against” – That was the headline in a Bloomberg news report that was released on Sunday afternoon. There’s a lot going on in that headline – none of it accurate except for the fact that gold is moving higher despite the efforts of western Central Banks to cap the price.

The basic premise of the report is that gold is moving higher in defiance of the Fed’s apparent move to raise interest rates. Reading through the report reveals even more misleading and completely false information than is conveyed by the headline. Here’s a link if you want to read the article:  Bloomberg/Yellen/Gold.

The headline itself and the article content are both highly problematic, riddled with disinformation and completely inaccurate assertions.  Anyone actually who might have read the article and trusted the content has been taken down to “ground zero” intellectually.  Propaganda for the ignorant.  I will be reviewing several ways in which the article content is inaccurate, if not intentionally fraudulent, in the upcoming issue of the Mining Stock Journal.

That said, the headline outright acknowledges that the Fed’s goal with respect to the price of gold is to prevent it from moving higher. The idea that Yellen “can’t halt” the rising price of gold implies that such intervention is part of the Fed’s mandate.  It’s the first time I can recall in 16 years of researching, trading and investing in the precious metals market that the mainstream financial media, unwittingly or not,  has acknowledged that the Federal Reserve attempts to intervene in the gold market.

If the implied message of the headline was inadvertent, it means that conversations with respect to the Fed and its role in preventing the price of gold from rising are actively occurring in meeting rooms and reporter “bullpens” at several financial media organizations, with orders from “above” to never publish the truth.   Imagine if the Washington Post had withheld the news about Watergate…

Today’s action in gold exemplifies the tenor of the Bloomberg report.  Almost as if “on cue,” in deference to Yellen’s attempt to “halt” the gold rally from yesterday, gold was slammed for $9 this morning.  The reason generally attributed is “March rate hike hopes” LINK.   I guess that’s all it takes.  Yellen or some Fed clown exhales “rate hike on the table in March” and gold gets slammed by the trading computers.

Allegedly Germany has repatriated a large portion of its gold ahead of schedule (why it was supposed to take 7 years no one can explain).  Notwithstanding whether or not the gold is actually sitting physically in a Bundesbank vault, the announcement of the early repatriation conveys a sense of urgency to do so.  Furthermore, the eastern hemisphere countries are hoovering gold like there’s no tomorrow for fiat currency.

The Feds and the western Central Banks are exuding fear with respect to gold. The escalation in anti-gold propaganda reflects this sense of desperation, as do the shallow sell-offs followed by a move higher in paper gold that are initiated by LBMA and Comex paper traders after the Asian markets close for the day.  The conclusion remains that all sell-offs in the gold market, like today’s, should be capitalized upon by adding to positions in physical gold and silver and in mining stocks.

Alan Greenspan Endorses The Gold Standard

In his remarkable essay, “Gold and Economic Freedom,” written in 1966, Alan Greenspan stated:

Under a gold standard, the amount of credit that an economy can support is determined by the economy’s tangible assets, since every credit instrument is ultimately a claim on some tangible asset. But government bonds are not backed by tangible wealth, only by the government’s promise to pay out of future tax revenues, and cannot easily be absorbed by the financial markets. A large volume of new government bonds can be sold to the public only at progressively higher interest rates. Thus, government deficit spending under a gold standard is severely limited. The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit.

Greenspan of course went to become the front-man for the interminably corrupted Central Bank system, which is utilized as a wealth-confiscation and control mechanism for the elitists who control western Governments (Mayer Rotschild: “let me issue and control a nation’s currency and I care not who writes the laws”).

Interestingly, Greenspan is spending his final years coming clean about fiat currencies and the fractional banking system, as reviewed here in The Daily Coin:  LINK.   Most recently, in an interview with the World Gold Council’s “Gold Investor” publication, Greenspan fully endorses a return to the gold standard:

If the gold standard were in place today we would not have reached the situation in which we now find ourselves. We cannot afford to spend on infrastructure in the way that we should. The US sorely needs it, and it would pay for itself eventually in the form of a better economic environment (infrastructure)  LINK

We can only speculate the reasons why Greenspan has gone full circle back to his views expressed in his 1966 seminal essay about gold and is “coming clean” about economic systems based on fiat currencies rather than a gold standard.  But the fact that the former fiat money “Maestro” is now advocating the gold standard reinforces its validity.

In today’s episode of the Shadow of Truth,  we discuss the effort underway to discredit gold by the mainstream media using misinformation, disinformation and outright lies in the context of Greenspan’s stunning admissions:

Click on either image to learn more:

Proposed Global Class Action Gold & Silver Manipulation Lawsuit

This news was originally disseminated by GATA on February 5th.  A British law firm, Leon Kaye Soliciters, has proposed the initiation of a class-action lawsuit charging that six “well known” financial services groups conspired to manipulate the London Gold Fixing from 2004 – 2014.   The proposal cites the recent settled Deutsche Bank class action suit for in New York and the ongoing billion dollar class action suit in Ontario, Canada.  The class action suit would be open to investors globally.  If interested contact Leon Kaye at info@leonkaye.co.uk.  Here’s a summary of the proposal:

Based on documents in the public domain to which we refer below, we consider that there are good grounds to believe that members of six well-known financial services groups combined together to manipulate the outcome of the London Gold Fixing between about 2004 and 2014 and that members of four of those groups combined to manipulate the outcome of the London Silver Fixing between about 1999 and 2014. The effect of this was to create false market prices, in particular by artificially depressing prices after the 3pm (London time) Gold Price Fixing and to increase bid-offer spreads in physical gold, physical silver and their respective derivative instruments. The relevant institutions did this to increase their profits from their own activities in these markets at the expense of other market participants who have therefore suffered loss and damage, probably running into hundreds of millions of pounds in aggregate.

If it can be established that these financial institutions participated in price fixing then we consider that there can be little doubt that they have breached section 2 of the Competition Act 1998 and are liable to pay damages to any other market participant that suffered loss and damage as a result.

Market participants who have suffered loss and damage are entitled to claim damages in proceedings in the Competition Appeal Tribunal (“CAT”) in a class action pursued either on an ‘opt-out’ or an ‘opt-in’ basis.

You can read the entire announcement here:  Proposed Precious Metals Class Action Suit

While I’m skeptical that this will have an impact on the market, even if the suit is ultimately filed, there’s always the chance that court-ordered discovery – assuming these banks have not destroyed and wiped clean any evidence – could reveal the truth.   And the truth will set the gold/silver price free.