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Jeremy Warner: When money dies, gold comes into its own

Section: Daily Dispatches

11:38a ET Sunday, September 6, 2020

Dear Friend of GATA and Gold:

Today's London Telegraph has a surprisingly if begrudgingly favorable commentary on gold by the newspaper's assistant editor and economics columnist, Jeremy Warner. Those who follow GATA and gold may find his main point only obvious -- that gold performs splendidly when government-issued money is being devalued -- but then such devaluation is yet to be widely understood by the great mass of users of government money.

... Dispatch continues below ...


Kodiak Drills 282 meters of 0.70% Copper
and 0.49 Grams per Tonne Gold (1.16% CuEq),
Including 45.7 meters of 1.41% Copper
and 1.46 grams per tonne Gold (2.75% CuEq)

Company Announcement
Thursday, September 3, 2020

VANCOUVER, British Columbia -- Kodiak Copper Corp. (TSX-V: KDK; OTC: KDKCF) today reported the discovery of a significant high-grade copper-gold extension of the recently discovered Gate Zone at the company's fully owned MPD copper-gold porphyry project in southern British Columbia. The MPD project is accessible year-round from paved highways 5A and 97C.

Chris Taylor, chairman of Kodiak, said: "As compelling as our 2019 discovery of the Gate Zone was, it now appears we had only grazed the margins of a much stronger copper-gold zone that we have now successfully targeted. Our new results include discovery of a central high-grade copper-gold zone within the wider copper-gold mineralized envelope of the Gate Zone. These drill results are among the strongest reported from this well-established copper mining district. Drilling is ongoing and we will be releasing additional results throughout the coming months."

Kodiak President and CEO Claudia Tornquist said: "While we are just beginning to unlock the untapped potential of the MPD project, we view this new discovery as transformative for the project and by extension for Kodiak. Especially remarkable are the new high gold values, which we would have viewed as a successful stand-alone gold discovery in the absence of any copper. Given our 100% ownership of MPD, and its position adjacent to highways with year-round accessibility, we anticipate a very active remainder of 2020 and that 2021 will be our most exciting and productive year so far."

For the remainder of the announcement:

Those who do follow gold may be most interested by Warner's acknowledgment that the British government's gold sales that began in 1999 were meant to "rescue a number of banks from ruinous short positions in the metal." This point was made at the time by gold price manipulation litigator and GATA consultant Reginald Howe --

-- but has yet to be accepted by other establishment market analysts.

Unfortunately Warner repeats a common error, asserting that the economist John Maynard Keynes called gold a "barbarous relic" when in fact Keynes reserved that term for the gold standard in currencies.

Warner concludes: "A rising gold price reflects, above all other things, a loss of trust in the value of fiat currencies, for which there is good reason right now. But for the metal to really come into its own requires a prolonged period of relatively high inflation, similar to what occurred in the 1970s after the United States came off the gold standard and President Nixon effectively opted for money printing and inflation over tax rises to pay for the Vietnam war.

"For the moment, the presiding consensus view remains the opposite -- that we are heading into a great deflation. I'm not so sure. The least painful way of dealing with a big debt overhang is to inflate it away. Who knows? The gold bugs might actually be on to something."

For anyone in a mainstream financial news organization, Warner's commentary today is enough to earn a tinfoil hat.

Because of some left-wing totalitarian vandalism that hampered publication of this weekend editions of Britain's major newspapers --

-- the pay wall has been removed from the Telegraph's content today and Warner's commentary, headlined "When Money Dies, the Barbarous Relic -- Gold -- Comes into Its Own," can be read here:

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

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