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Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.

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sinbob

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Re: Notes from the Puplava/King broadcast...for those interested

in response to

Notes from the Puplava/King broadcast...for those interested

sinbob

posted on May 27, 2008 09:58AM

Notes from the Puplava/King broadcast...for those interested

Posted by: sinbob on May 27, 2008 01:53PM

Campaign being launched to expose illegal actions of some Canadian Bankers, their hedge fund clients and brokers.

Jim Puplava is requesting mining companies that suspect their shares are being illegally suppressed to contact him. He wants to prove how the stocks have been manipulated.

Contact: Jim Puplava (Financialsense.com) or ericking5@live.com

Notes from Financialsense.com Broadcast May 24th, 08, with Jim Puplava, Eric King and John Leffler:

“The Agency Crisis”

The $ Trillion markdown: how some Canadian bankers in league with hedge funds and brokerage firms are illegally benefiting from losses of mining companies and shareholders. Notes taken from broadcast: (may not be complete or in sequence)

- many mining stocks are grossly undervalued compared to gold/silver bullion.

- Most gold juniors are selling from $30 to $50 gold in the ground even though resources/balance sheets have expanded significantly since 2002.

- This is in the face of the fact that there is no suitable alternative to the $ US as per George Soros.

- This is a major scandal…bigger than Bre-X by far…operating blatantly in the face of regulators (who look the other way) and investors and mining companies.

- There is no Canadian enforcement on behalf of shareholders….the worst has been a fine of $50,000 to $75,000 to date…never seen anything this corrupt.

- Blatant activity: carpet bombing of share prices 10 minutes before closing amounting to 10% or more in price declines: one Canadian bank is specifically notorious for this.

- Puplava/King have been documenting the banks and their institutional accomplices (who do the shorting) that have been doing this for years. Canadian Banks, hedge funds and brokers, supposedly acting on the client’s behalf, are illegally profiting at their expense.

- The practice is pervasive and has gone on and grown for many years. Note that not all banks are involved. Investors are not being protected.

- Evidence clearly points to stock depression for a year or more.

- A law firm in Texas states that the illegal naked sort positions on the NewYork/American (?) exchange is huge. (not sure if they mean Canadian miners trading on these exchanges?)

- This activity is illegal in the US and is being prosecuted with criminals being jailed.

- Americans are starting to ask if Canadian banks are involved in offerings and now refusing to proceed if they are. In the US the idea is to increase shareholder value and build equity as per the smart Canadian money through appropriate actions of the management, ie; Robert Quartermain (Silver Standard) and Shawn Boyd (Agnico Eagle). These Canadian stocks are examples of offerings done properly

- Canadian miners are being encouraged to raise capital in the US markets where the illegal culture of stock dilution is acted against.

- A ten year study comparing TSX:V to AIM (London stock exchange) proves that the TSX:V significantly under prices new mining issues and that market returns are significantly lower over 6 months to two years post offering on the TSX:V compared to AIM.

How does it work? One example of different variations:

- miner does an offering through a banker…..the banker buys short/ naked shorts (counterfeit shares) and drives the stock down pre offering…sells back and makes the gain on the difference…so, the biggest seller is the investment banker…but the miner has to offer more shares at a much lower price to realize proceeds for the business venture. This is classic stock dilution whereby the bankers/hedge funds/brokers make money driving the stock down and increasing dilution. This process is repeated as the stock is then allowed to rise, another offering is needed, shares are shorted/naked shorted (counterfeited) at the higher price, driven down for more stock dilution as more shares must be placed at the lower price.

- Thus market capitalization is being destroyed by naked shorting against underwriting is a criminal offense, especially so in the US.

How can it be detected?

- eg; for example, Stockwatch offers a service that shows level 2 sales…you can see who the largest seller is say, 5 minutes before closing...the bids and asks of the investment houses are listed.

- This information has been documented for years and the pattern is clear. It is not always clear who the seller is since an investment banker client may have been the real seller. Often it is a hedge fund associate of the banker…so it could be say, a Goldman Sachs bid/ask through the Canadian investment banker.

See Lost on Bay Street - AlexDoulis.com Today you hear of the lofty title Mining Research Analyst. Did you know that at the start mining analysis was done during the night. At Alex's old firm Gordon Capital, as well as Dominion Securities and Canada Trust the traders had found a great new execise to expand their girths. It was called front running and this book will tell you how you too can benefit from this soon to be Olympic sport. How can it be stopped?

- the problem rests with the investment bankers as the hedge funds can’t operate without the banks.

- If an investor has margined stocks, the investment banker can supply the short selling hedge funds with that client’s shares. Brokers are also working against their client’s interests.

- Junior mining companies must address the shortings in their offerings. Investment accounts must be pulled from those investments banks complicit.

- Investors and mining companies must act in numbers, strength and unison to protest about the illegal practices to regulators, authorities and through legal interests in order to force the regulators to confront the investment banks.

- Canadian laws need to be changed and law suits must be launched.

Send complaints to:

Mining Company

SEC in the US: http://scc.gov/complaint.shtml

(Puplava will be setting up Canadian contacts soon)

My list in Canada:

The Honorable James M. Flaherty, P.C., M.P.

Minister of Finance

House of Commons

Parliament Buildings

Ottawa, Ontario K1A 0G5

iflaherty@fin.gc.ca