Alexis walked out of the room.
“Uh oh! You're gonna get it now, Bill,” Pamela laughed. “Have you been harassing Alexis too?”
* * *
Alexis Cooper was a tall redhead with stylishly short hair. An engineer by trade, her promotion to department manager came quickly – at least, by the standards in any large bureaucratic electronics company. She repeatedly demonstrated a quick and agile mind; and considering the talent and genius of her staff, she needed it just to stay a step ahead of them.
Bill walked into Alexis’ office. “So, I take it you got my message?”
Alexis smiled and leaned back in her chair. “Yes, I did. I must say – you’ll be hard to replace.” She sighed and then said, “Care to tell me more about it?”
Bill sat down at the round meeting table positioned across from her desk.
“So, what are your plans?” Alexis asked.
“I’m going into business. But not in technology.” Bill shuffled in his chair. “No ... I’m looking at starting a business in precious metals.”
Alexis’ red eyebrows raised, “Precious metals? Oh my. That’s quite a change. Whatever brought you to that?”
“Well, it’s a long story and it's not very interesting.” Bill hesitated and then said, “I think there’ll be a time when precious metals will be a really good place to be. And I want to be well-established in the business when it comes time.”
“When it comes time?” Alexis looked quizzically at Bill. “Time for what?”
“Well, ah – I think that gold and silver will be a good long-term investment ...”
Bill was starting to squirm. He was acutely aware that he was touching on an area that most people wouldn’t understand.
“... and I want to be in a position, ah – to take advantage of it.”
For a moment, both were silent. Then Alexis picked up the conversation. “Gold and silver are very poor investments – but I'm sure you know that.” She paused. “Stocks and real estate are much better.”
Bill smiled but didn't respond.
Then Alexis continued, her curiosity aroused, “so, what will the business do?”
Damn, she's inquisitive, he thought. “Ummm... I plan on minting custom gold and silver coins for the coin collector market. From there, ah – I plan on minting coins for some third-world countries.”
“Great. So, why didn’t you say so?”
Bill shrugged and then replied. “Most people aren't interested in those kinds of details.”
Alexis and Bill looked across the table at each other. Alexis broke the silence. “So how can I convince you to stay here, instead?”
Bill frowned and looked at her. “You really can't. This is something I’ve thought about for a while.” He looked earnestly into Alexis' green eyes. “And my gut is telling me I need to do this.” He sighed and then said, “So, that's it ...”
Alexis smiled and nodded. “Okay. But can we at least do lunch before you leave?”
“Sure.”
Interlude
The flickering shadows danced across the dark walnut paneling, casting silhouettes of eerily dark and foreboding spirits. Ensconced among the silhouettes were five men, seated in their leather-upholstered chairs; each sipping a rare, old brandy from an antique snifter.
The short thin man with the manicured mustache looked over at Lord Basil and began speaking in a thick French accent. “Do you think we should tell him?”
Lord Basil seemed to hesitate. “At some point, we shall have to tell him. But for today, let us keep it our little secret.”
Just then, a tall, lanky man with dark hair and graying temples entered. The eyes in the room followed him, expectantly, as he approached.
“Gold!” Lord Basil waved his hand in elegant, yet pretentious, gestures. “Daniel, tell me about the gold!”
Daniel stood before them, his head in a slight bow of greeting. “Yes, my Lord.” He took a deep breath and then continued. “We have commenced manufacturing of 1.3 million tungsten bars which we shall plate in gold and sell into the gold market. The manufacturing process shall require several years; so the gold bars will be sold into the market at a slow but steady rate.”
“We have finalized our plan to swap counterfeit gold bars for the remaining gold at Ft. Knox. We shall execute this plan in the near future, my Lord. And when we are finished, all of the Ft. Knox gold will be removed – leaving Ft. Knox an empty shell.”
“And, sir. We have begun a program of central banks’ leasing their gold to sell into the market. This has enabled us to sell ever-larger short positions into the gold market.”
“With these actions, my Lord, we will inject a large supply of additional gold into the market, thereby driving the price far below its fair market value. And because the new gold will enter the market at a moderate rate, we expect to see gold prices decline slowly.”
“Ahhh ... excellent. Excellent!” Lord Basil waved his arms in a flourish of gestures.
“You may go, Daniel”
“As you wish, My Lord.” Daniel turned and retraced his steps.
Julius, the big burly man that he is, turned and spoke in his high melodic voice to the group. “This is genius, gentlemen – genius. Many here in the West disregard the emphasis that the world places on gold as a form of money. In fact, the world views gold as the premier form of money. Driving the price of gold down sends a clear psychological message that the paper currency is strong – even as we print ever more amounts of paper to drive our agenda forward.”
Chapter 8
Tungsten is a hard metal; and it's heavy – heavier and denser than lead. With a density of 19.3 times that of water, it is comparable to uranium or gold. A steel-gray metal when pure, it can be brittle when combined with minor amounts of impurities. But very pure tungsten is more ductile than the impure variety; and when pure, it can be cut with a hacksaw. In short, tungsten is an unusual and remarkable material.
Kirk did not know much about the finer details of tungsten; he left that up to George. But when it came to meeting his end of the contract, Kirk was on schedule and on task with transportation. Just one week went by before Kirk arrived at MetalWorks foundry – first thing in the morning – accompanied by a ten-wheeled truck and two tough, burly men. In short order, George had the truck backed into the loading dock. Then using a deft touch on the forklift controls, George’s man quickly loaded the pallets of tungsten into the truck. After taking some time out for coffee and conversation, Kirk and his burly associates were on their way.
* * *
Loaded down with tungsten bars, Kirk and his burly crew drove directly from MetalWorks into the mountains of eastern Ohio. The drive was both uneventful and scenic.
Kirk reflected on his negotiations with Brandon Payne and Rheingold Fabrication. Kirk knew they were dominant in the market for custom alloy fabrication, and they could produce custom alloys in a variety of form factors. And he was also aware that Rheingold could profitably take on small jobs, or they could ramp up a production line for large contracts.
Kirk thought about Brandon Payne. He knew that Brandon and his staff would soon become wealthy, and that their accumulation of wealth would increase as the term of the contract wore on. But Kirk was clear with Brandon about an important condition of their newfound wealth – that they were to tell no one from where it came. For whoever was to disclose the source of their wealth would meet a swift and certain end!
It was mid-afternoon when the truck rolled up to the loading dock of Rheingold Fabrication. Brandon came out to meet it, and on his heels was his operations manager, Jim-Billy Owen.
Jim-Billy climbed aboard the forklift and proceeded to unload the pallets. In short order, the pallets were lined up inside the receiving door.
* * *
Kirk and his crew became accustomed to their transportation schedule. Like clockwork, they took on a load of tungsten bars from MetalWorks and delivered the load to Rheingold. And while at Rheingold, they would unload their tun
gsten bars and take on a load of the gold-plated bars. It was on a scheduled stop at Rheingold that Kirk had the opportunity to observe the Rheingold manufacturing operation. In fact, the process of gold bar plating and manufacturing was going well. Brandon was a taskmaster who managed to keep his crew on schedule; and he produced a high quality gold bar to boot.
Shaking hands in their usual greeting, Brandon’s first question was, “Cigar?”
“No. No thanks.”
Brandon lit up a cigar and drew from it; exhaling smoke into the air. “I want to show you our operation, Kirk. Walk with me.”
The two walked the floor, with Kirk observing the operation.
“Right here,” Brandon said. “You can see the process we use to stamp the appropriate devices on the bar – the manufacturer’s insignia, the serial number, the fineness of the bar. Of course, each number is unique, as is the weight in troy ounces.”
They continued walking the floor. “And over there,” Brandon motioned with his cigar for Kirk to follow, “is one of our plating production lines. C’mon. You gotta see this, Kirk. We’ve put together a helluva setup.”
They arrived over at the plating equipment. “Isn’t this a beauty?” Brandon smiled proudly as he leaned back on his heels; holding his cigar in front of him. As you specified, we plate a full sixteenth of an inch – but no more – all the way around.”
“These look great!” Kirk reached over and lifted a bar from a pallet of finished product. Hefting it in his hand, he smiled and looked at Brandon. “That’s just what I’m looking for.”
* * *
Kirk’s transport team stayed over at a local motel. And the next morning, they made their way back to Rheingold.
Without ado, Jim-Billy soon had their truck loaded. And with that, Kirk and his burly crew said goodbye and drove off.
“Where to now, Boss?” Buck asked.
Kirk looked at Buck and said, “The Port of Wilmington, Delaware. Step on it.”
* * *
The Port of Wilmington was formerly known as the Wilmington Marine Terminal. A deep-water port located at the confluence of the Christina River and the Delaware River in Wilmington, it is located 65 miles from the Atlantic Ocean; and about a two-hour drive from Bethlehem, Pennsylvania.
By late morning, the unmarked armored truck rolled into Wilmington. Navigating their way through the narrow streets of the city, they soon reached Pier 35 on the Wilmington Docks. Kirk chose a parking area close to the loading dock and motioned Buck to pull in.
Kirk looked across the street and spied a man standing by the entrance.
“Wait here,” he said as he opened the door and got out of the truck.
Kirk watched the man follow him as he crossed the street. The man continued to watch him as he approached. When they were face to face, the man said, “The moonlight glows brightly.”
Kirk became at ease as he responded, “but only at night.”
They shook hands. “Kirk?”
“Yes. You must be Bailey?”
“Yes. That’s me.” Bailey said as he lit a cigarette. “So, whatcha got for me?”
“Per our instructions, I did not want to talk about this on the telephone.”
Bailey dragged on his cigarette as he nodded his understanding.
As he was talking, Kirk pulled the paperwork out of the manila envelope. “This is a list – a manifest, if you will – of all the gold bars we’re selling into LBMA[5] on this transaction. I need your signature on them so that the LBMA sees Jacob-Mortenson as the manufacturer and seller of the bars. Of course, I’ve included the settlement account number – that's the account that will receive payment – in the appropriate box on the form.”
“Can I take a look at them?” Bailey asked as he reached for the forms.
Kirk handed them over. “Sure. I just need your signature on them.”
“Did you check the numbers against the bars?”
“Yep. They all match,” Kirk replied.
“Because,” Bailey continued, “if the numbers don’t all match up, we’re screwed. It will raise their suspicions and they’ll start checking and maybe do an audit.”
Bailey signed each of the forms, then motioned toward the shipping/receiving office. “Let’s go talk with the counter attendant and get this rolling.”
They walked together into the office and up to the counter.
“Hack? Hey, Hack?” Bailey called.
Just then, the counter attendant came walking out from the back room and smiled. “Tank! How’re you doing, man?
“Great. How about you?”
“Doin’ good. Whatcha got for me?”
“I’ve got some bars shipping to LBMA. Think you can handle ‘em?”
“You bet. Lemme see the paperwork.”
Bailey handed over a stack of papers.
Hack thumbed through the papers, then looked up at Bailey and Kirk. “Tell you what. Bring the bars around to the loading dock. We’ll unload ‘em and check ‘em out.”
Buck had the truck backed up to the loading dock in short order. After the bars were unloaded, Hack performed an inventory. He found everything in order.
“Okay, guys,” Hack smiled at them both. “I’ll sign for these, and you’ll be free to go.”
* * * * *
Years later, this news piece appeared in the print media:
NYMEX[6] executive investigated by District Attorney and disappears …
Manhattan, New York, February 20, 2004 (International Press) – The Manhattan district attorney is investigating a top NYMEX executive. Confidential inside sources have cited Stuart Smith, senior vice president of operations as a target of investigation; and they say he was served with a search warrant last week. A spokeswoman for NYMEX stated that the investigation was not related to any of NYMEX’s markets; but she refused to disclose any details other than to state that no charges had been filed. Also declining comment was a spokeswoman for the Manhattan district attorney’s office.
NYMEX’s offices of the senior vice president operations are directly responsible for the records and documentation (serial number, smelter of origin, etc.) of all gold bars physically settled on the exchange. Critics of NYMEX have speculated that the records held by this office would show that the quantity of gold settled on the exchange is simply too great to have all originated from U.S. mining operations. In fact, the records would show that the quantity of gold from U.S. smelters would be much greater than could come from U.S. domestic mine production.
Following the raid on the offices of senior vice president operations/NYMEX, this reporter has been unable to locate Mr. Stuart Smith. Sources have stated that Mr. Smith took administrative leave from the NYMEX and he has not been heard from since. In addition, this reporter has found no further follow up information regarding the DA’s action – neither from the District Attorney’s office nor from the media.
This reporter notes that NYMEX offices were raided, and then the Sr. V.P. of operations departed on leave – for no obviously good reason.
* * *
Around the same time, this piece also appeared in the print media:
Rothschild & Sons Ltd. Withdraws from Commodities Trading.
“LONDON, April 14, 2004 (International Press) - NM Rothschild & Sons Ltd., announced on Wednesday, that the London-based unit of investment bank Rothschild [ROT.UL], will withdraw from trading commodities in London, including gold. It stated that “... it's operations are under review.”
This reporter speculates that the risk to gold investors has increased; thus motivating the Rothschild's departure from the gold market.
Chapter 9
Bill inherited a substantial sum of money – enough so that he didn’t have to work ever again. He was certain he had sufficient funds to capitalize his new business, but he also knew that the biggest problem a new business encounters is insufficient capital. I've heard of many a startup business failing because it ran out of money, he mused. And so he decided to seek some additional investm
ent capital to finance the coin design and manufacturing equipment that he would need ... But what kind of financing should I seek?
Bill was aware that the purchased equipment could be used as collateral for the loan. This fact suggested that a bank would finance such a purchase – hopefully at a reasonable rate of interest.
With this in mind, Bill walked into the main lobby of the First National Bank of Arizona. He strode across the lobby to a smiling receptionist seated behind a large mahogany desk. “I have an appointment with a loan officer at 9:30,” he said.
The receptionist’s smile widened still further. “The loan department is on the 4th floor, sir. Just take that elevator and turn right when the elevator stops. The loan department will be straight ahead.”
“Thank you,” Bill nodded.
At the loan department, Bill took a seat and opened up today’s national business newspaper. But right on time, a well-dressed (and very attractive) businesswoman came out to meet him.
“Mr. Ford?”
“Yes, please call me Bill.” They looked into each others’ eyes as they shook hands. Wow – is she hot!
“I'm Brandy – Brandy West,” she responded with her charming Texas accent. “Please come with me.”
I like this woman, Bill thought, as they walked down the hall toward her office. Smart, articulate, and wow – does she have a presence about her!
They sat across from each other. Brandy’s sparkling smile came through as she said, “How may I help you?”
Bill shifted in his chair. “Well, I’m planning on starting a business and I’d like to borrow some money to help fund the capital equipment purchase.”
Brandy leaned back in her chair. “What kind of business are you starting?”
“I’m planning a private mint,” Bill replied. “You know – minting private coins for collectors. And then in the future, moving toward designing and striking coins for other countries.”
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