My previous column asked the question, “Why don’t the miners fight back” against price suppression of precious metals?
Today, I list several actions mining executives, acting together as a unified group, could undertake to expose and hopefully end the non-”free market” tactics that are keeping gold and silver prices suppressed.
Mind you, these steps would require the display of a modicum of back bone, a level of “true grit” conspicuously lacking from members of the mining sector to date.
However, as I pointed out in my last piece, the outcome of “doing nothing” might very well result in the death of certain companies or, at best, these companies remaining on perpetual “life support” as the price of the miners’ “product” continues to be sold at, slightly above or even below the costs of their operational expenses.
I also assume for purposes of this article that the “Powers that Be” who are colluding to suppress or cap prices are deadly serious about preserving the “status quo” of deeply-discounted precious metal prices. That is, they ain’t playing around ... and, as far as I can tell, have no intention of abandoning their “strategy” now or in the future.
They will have to be forced to abandon their tactics. As the press, regulators and elected officials show no inclination of exposing this malfeasance, it is left to those with the most “skin in the game” to fight for themselves.
This said, there is no shortage of actions the miners could implement to end “price manipulation” if they so desired and if they opted to answer “hard ball” tactics with their own “hard ball” responses.
I’m sure readers can come up with plenty of other possible responses. I welcome reading these ideas in the comments section beneath this story.
• Support GATA - The simplest response of miners would be to dramatically increase funding for the organization that already exists to expose and defeat price suppression.
GATA has already performed copious amounts of research and has never stopped its efforts to “investigate” what’s really going on in the precious metals market (a role that in a just world would be performed by the press or real investigative journalists).
GATA is ready and willing to file as many lawsuits as necessary to successfully prosecute this battle. (Note: I left off “able” after “ready and willing.”)
It takes serious money to fight entities that can literally print money. Per GATA’s spokespersons, financial support from the mining companies has been either non-existent or allocated in token amounts.
An “investment” of a couple million dollars or so would allow GATA to take the fight to the court house, where even the most powerful entities could be slain by just one courageous judge and/or jury.
Plus, GATA is probably the most effective and persuasive voice in raising awareness on this topic. Much greater funding would allow this voice to grow even louder.
One gets the feeling that miners are averse to “sticking their necks” out or taking a high profile position in the battle for their industry’s survival.
Backing an organization like GATA would allow miners to let this organization do the “heavy lifting,” while allowing the companies to remain somewhat concealed behind a curtain. If you don’t want to engage in a fight yourself, at least hire a surrogate who can advance your cause.
• Fund your own investigation(s). It’s possible that mining industry executives are hesitant to wage a full-court PR operation to make the case that they are being harmed because they feel they don’t have the “smoking gun” evidence to present to the world. At least yet.
Well, nothing is stopping a group with (still) fairly deep pockets, from hiring their own investigators. There actually are people and firms that specialize in investigations. This is what these people do, or want to do.
Indeed, with every mainstream news organization down-sizing to cut costs (in this “recovering” economy), there’s probably an army of would-be investigative journalists who would answer a “Help Wanted” ad for freelance investigators.
If I was quarterbacking this effort, I wouldn’t hire one team of investigators, I’d hire several. Each “team” could pursue different areas of inquiry. The more people you have asking questions, the more likely you will find answers that you can then present to the public.
As far as I can tell, there is not one journalist (of any mainstream “news gathering organization”) who is working to uncover what could be the “story of the century.” Either the MSM has concluded there is “no story here” or, more charitably, they simply do not have the manpower to do the digging that would be required to uncover said story (or, more likely, both).
There’s a sentence (a “mind frame” really) that applies to such frustrating scenarios.
“Shit, I’ll do it my freaking self.”
As a general rule, I refrain from using profane expressions in my pieces, but sometimes such words can add a degree of emphasis.
My experience is that when someone of any stature reaches such levels of exasperation and resolve, watch out. Things are getting ready to get shaken up.
The above also qualifies as another initiative that could be performed “behind the scenes” prior to utilizing my next option ...
Other possible actions ....
Note: I will expand on a few of these in more detail in future columns.
3. Call a major press conference. Present your case; announce what steps your industry is taking to hopefully change an unfair "status quo."
4. Meet with potential advertisers (including Talk Radio programs), place significant orders for commercials/ads. But also ask for “added value,” which includes coverage of topics of importance to you. Place future spots or withhold future spots accordingly.
5.Purchase and run smarter, more effective ads/commercials - ads that attempt to raise awareness about manipulation issue and that also show why owning “real money” is a wise investment. That is, miners can pay to get their message out. (Provocative commercials/ads sometimes even generate “free” press in form of stories and conversation.)
6. File lawsuits and not just about the PM “fix” but about daily activities of COMEX. Hire/use better law firms.
7. Encourage “whistle blowers” to come forward, perhaps even by offering “rewards for information.”
8. As you attempt to shame press into providing belated coverage, likewise attempt to shame “regulators” into doing their jobs.
9. Attempt to recruit allies in Congress, especially Congressmen in mining districts.
10. Attempt to turn the threat (extortion?) of environmental blackmail into a positive. Make the point that environmental and safety enhancements are realistically not possible if the industry continues to lose money due to price suppression. Defeating suppression would improve environmental outcomes and also provide new jobs and taxes.
11. Support efforts to achieve true “transparency” in government, especially in regards to activities of The Federal Reserve. Get behind “Audit the Fed.” Such an honest audit could very well prove your other points. That is, one does not specifically have to focus on price rigging to learn that price rigging has been occurring. My guess is that “many avenues of inquiry” lead back to the “national security” strategy of suppressing precious metals prices. Pursue all such roads.
12. Do not neglect international opinion makers, journalists, regulators, etc. If members of the “powers that be” in America are unlikely to advance your cause (and indeed will likely fight you at every turn), look beyond the borders of America. Some nations, individuals or organizations probably aren’t as inclined to defer to America’s Big Brother. Plus, this IS an international issue/injustice.
13. Hire real lobbyists that will fight for you. Or: Fire your existing lobbyist/trade organizations. Or: “Clean house” in these organizations. You are paying their dues and funding their salaries.
14. Hire a first-class public relations firm to help coordinate your efforts.
15. If prices are such that your firm/industry cannot continue to remain in business, withhold supply from the market.
16. Quit doing business with exchanges that you suspect are suppressing the price of your product.
17. Fund all of the above (if needed) by ceasing exploration efforts. Recognize that profiting from sales of new discoveries of gold or silver at some distant point in the future will be a moot exercise (a waste of today’s money) if you are no longer in business 5, 10 or 15 years from now.
Summary ...
In my opinion, Priority 1 and Strategy 1 should be to simply survive. Which means acting pro-actively with courage today.
For what it’s worth, some of us who are pulling for you (miners) are convinced that the world’s most powerful people are pulling against you.
If mining executives do not believe that their companies or industry is being harmed or mistreated by the “status quo” in today’s PM markets, doing nothing makes sense, I guess.
“Hoping” that things change on their own might work. However, I wouldn’t risk the future of my business on such a “strategy.” Especially when those alligned against your interests are so obviously playing for keeps.
***
Bill Rice, Jr. is managing editor of The Montgomery (AL) Independent. He can be reached by email at: bill@montgomeryindependent.com.
About the author
