43 Years Ago: Nixon Shock- End of Gold Convertability

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RIchard Nixon in 1971 (Public Domain)On the afternoon of Friday, August 13, 1971, Then Federal Reserve Chairman Arthur Burns, Incoming Treasury Secretary John Connally and then Undersecretary for International Monetary Affairs and Future Fed Chairman Paul Volcker, along with 12 other high-ranking White House and Treasury advisors met secretly with Nixon at Camp David.

There was great debate about what Nixon should do, but ultimately Nixon, relying heavily on the advice of the self-confident Connally, decided to break up Bretton Woods by suspending the convertibility of the dollar into gold; freezing wages and prices for 90 days to combat potential inflationary effects; and impose an import surcharge of 10 percent.  

To prevent a run on the dollar, stabilize the US economy, and decrease US unemployment and inflation rates, on August 15, 1971 Nixon directed Treasury Secretary Connally to suspend, with certain exceptions, the convertibility of the dollar into gold or other reserve assets, ordering the gold window to be closed such that foreign governments could no longer exchange their dollars for gold. FULL HISTORY (Wikipedia)

118 Years Ago Today: Gold Discovered in Yukon

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Skookum Jim Mason Public DomainOn August 16, 1896, an American prospector named George Carmack, his Tagish wife Kate Carmack, her brother Skookum Jim and their nephew Dawson Charlie were travelling south of the Klondike River. Following a suggestion from Robert Henderson, another prospector, they began looking for gold on Bonanza Creek, then called Rabbit Creek, one of the Klondike’s tributaries. It is not clear who discovered the gold: George Carmack or Skookum Jim, but the group agreed to let George Carmack appear as the official discoverer because they feared that mining authorities would be reluctant to recognize a claim made by an Indian.

Klondikers buying miner's licenses at Custom House, Victoria, B C, Feb 21, 1898

In any event, gold was present along the river in huge quantities. Carmack measured out four claims, strips of ground that could later be legally mined by the owner, along the river; these including two for himself—one as his normal claim, the second as a reward for having discovered the gold—and one each for Jim and Charlie. The claims were registered next day at the police post at the mouth of the Forty mile River and news spread rapidly from there to other mining camps in the Yukon River valley.

ChilkootPass GoldenStairs2 by Murdock, G.G.

By the end of August, all of Bonanza Creek had been claimed by miners. A prospector then advanced up into one of the creeks feeding into Bonanza, later to be named Eldorado Creek. He discovered new sources of gold there, which would prove to be even richer than those on Bonanza. Claims began to be sold between miners and speculators for considerable sums. Just before Christmas, word of the gold finds reached Circle City. Despite the winter, many prospectors immediately left for the Yukon by dog-sled, eager to reach the region before the best claims were taken. The outside world was still largely unaware of the news and although Canadian officials had managed to send a message to their superiors in Ottawa about the gold finds and the rapidly increasing influx of prospectors, the government did not give the matter much attention. The ice prevented river traffic over the winter and it was not until June 1897 that the first boats left the area, carrying the freshly mined gold and the full story of the discoveries…Full History (Wikipedia)

GOLD RUSH Star Fred Hurt Not Happy with Discovery Channel Following His Departure

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Fred Hurt- Discovery Gold Rush Screen CaptureBy Mechele R. Dillard TVRuckus August 14, 2014

Questions and speculations on the participation of the Dakota Boys, Fred and Dustin Hurt, on GOLD RUSH this season have been swirling all summer. Discovery Channel has not officially said they would not be there, but they have announced two new pre-season specials, set to air next week, and neither appears to include anything about the Dakota Boys. Fred himself, however, posted in no uncertain terms the answer to the question on his Facebook page on July 28:  The Dakota Boys will not be on GOLD RUSH for the upcoming Season Five.

Fred’s biggest reason appeared to be money issues–lack of it–coming from Discovery Channel to him and his crew. His frustration and downright anger were clear in his Facebook post:

Why we are not on “Gold Rush” this fall……..this may be news to many……

I am not rich…..I am a working class guy like most of you. After spending more for four years straight than I made, there was no way for me to continue.

But the main reason is simple……and I quote….”If you want a Miner, call me…….if you want an Actor, pay me like one.”

Dustin and I were “hard to work with”. Interpretation ?……we did not go along with every cocamainy idea the film people dreamed up……

Corporate beancounters also wanted to consolidate their operation after a disastrous South American season. They also layed out mega millions to buy the company filming Gold Rush.

Sssssooo……as we were the ‘Red Headed Stepchild’, we were on our own…….

Hand me lemons…..I’ll make lemonade…..

MORE (TVRuckus.com)

California Drought Launches New Gold Rush

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California Gold RushWith rivers low, professional and hobbyist miners uncover more metals.
Brian Clark Howard National Geographic August 14, 2014

COLFAX, California—Bruce Meyer took a smoke break on the gravel bank of the scenic Bear River, deep in central California’s Gold Country. He was wearing a wetsuit and bandana, and water dripped from his thick, graying beard.

Meyer had spent much of the morning on that first Sunday in August hunting for gold in the middle of the stream, in the foothills of the Sierra Nevada near Colfax. He showed off several shiny flakes in his pan, each about half the size of a grain of rice. He rinsed them with water and then sucked them into a small plastic bottle.

“Everyone has something they do; mine’s gold,” said Meyer.

Meyer hails from Carson City, Nevada, but he has spent much of the summer staying in his truck northeast of Sacramento to be near California’s rich mineral deposits. And perhaps paradoxically, thanks to the worst drought in the state’s recorded history, his work has gotten a little easier…

“Once you get the fever you’ll have it until you die.”..MORE+Video (NatGeo)

GOLD RUSH Season 5 Sneak Peek: Parker Schnabel Gives Fans ‘Parker’s Take’

posted in: Discovery Gold Rush | 0

Gold Ruch on Discovery Mechele R. Dillard TVRuckus.com August 13, 2014

GOLD RUSH, Discovery Channel’s #1 series, is giving fans a look at the upcoming season, answering that all-important question: Who’s in and who’s out? Last season, things were tough all over in the Hoffman camp, while 18-year-old Parker Schnabel struck out into the world for the first time, and made it count.

Last season, GOLD RUSH fans watched as Todd Hoffman stuck his neck out and rolled the dice, taking his entire operation to the jungles of Guyana, South America, scheming to make a fortune along with his father Jack, Dave Turin, Jim Thurber and a few new additions to his crew. But, alas, things didn’t go quite as planned–as things often do not when it comes to Todd. Team Hoffman hit rock bottom, and ol’ Todd lost his land, most of his money, his crew and perhaps worst of all, his dignity. This season the big questions are (1) Will Todd be able to turn things around? or (2) Will he end up throwing in the towel for good?

While things were tough all over for Team Hoffman, then-18-year-old Parker Schnabel proved his worth in gold–over 1,000 ounces-worth, in fact, worth 1.4 million dollars. It was a tough time for the first-time Klondike boss, no doubt, but he learned a lot, from both his crew and his often cantankerous mentor, Tony Beets.  In Season 5, Parker hopes to take it up a notch with a goal of 2,000 ounces; will he reach his ambitious total? Or is he simply caught up in a raging case of gold fever?…MORE (TVRuckus.com)
Did you miss season 4: South America- Chilean Gold?

Particles of gold could treat cancer of the brain

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Gold BarsBen Kendall BelfastTelegraph 13 August 2014

Tiny particles of gold could hold the key to treating the most common form of brain cancer, scientists have said. The ‘Trojan horse’ treatment involves smuggling tiny nanoparticles of gold into the brain to kill tumour cells.

The ground-breaking technique could eventually be used to treat glioblastoma multiforme, which is the most common and aggressive brain tumour in adults, and notoriously difficult to treat, University of Cambridge researchers said…MORE (Belfast Telegraph)

The London Gold Fix

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In the London gold fix, a reference price for gold is set twice each business day by five market-making members of The London Gold Market Fixing company.

The fix, as it is known, is widely used as a reference and benchmark price for settling contracts on a given day by players in the gold market and for gold derivatives contracts…

The five-market making members are Société Générale, Scotiabank, HSBC, Deutsche Bank and Barclays. Deutsche Bank announced in 2013 that it was placing its seat on the panel up for sale…

Brief History

The London Gold Fixing company dates back almost one hundred years – the first recognizably modern gold fix was set (telephonically) on September 12, 1919 at 11:00 GMT. The price that day was £4.18s.9d. per fine ounce; the New York price of gold that day was $20.67 per ounce.

But the telephonic method was quickly dropped – the interested parties started to hold formal meetings at the offices of NM Rothschild in New Court, St Swithin’s Lane, London.

The original five founding members were N M Rothschild & Sons; Mocatta & Goldsmid; Samuel Montagu & Co; Pixley & Abell; and Sharps & Wilkins…MORE (bulliondesk.com)

Indian businessman wears $211,000 gold shirt on stroll in Mumbai

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Daily News Reporter NY DAILY NEWS August 7, 2014

Indian businessman Pankaj Parakh looks like a mint — though not exactly full of mirth — as he takes 45th birthday stroll in a 10-pound gold shirt in Mumbai on Wednesday.

The $211,000 shirt, which is spun from pure 18- to 22-karat gold, is intended to make an impression, not only on passersby, but to get him into the Guinness Book of World Records…

Pankaj Parakh had a small army of bodyguards with him as he went for his 45th birthday walk, to protect his 10-pound bling shirt. MORE (NY Daily News)