Kitco

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Kitco is a Canadian company that buys and sells physical precious metals such as gold, platinum, palladium, and silver. It also runs a website for gold news, commentary, and financial market information.

Canada Country in North America

Canada is a country in the northern part of North America. Its ten provinces and three territories extend from the Atlantic to the Pacific and northward into the Arctic Ocean, covering 9.98 million square kilometres, making it the world's second-largest country by total area. Canada's southern border with the United States is the world's longest bi-national land border. Its capital is Ottawa, and its three largest metropolitan areas are Toronto, Montreal, and Vancouver. As a whole, Canada is sparsely populated, the majority of its land area being dominated by forest and tundra. Consequently, its population is highly urbanized, with over 80 percent of its inhabitants concentrated in large and medium-sized cities, many near the southern border. Canada's climate varies widely across its vast area, ranging from arctic weather in the north, to hot summers in the southern regions, with four distinct seasons.

Gold Chemical element with atomic number 79

Gold is a chemical element with symbol Au and atomic number 79, making it one of the higher atomic number elements that occur naturally. In its purest form, it is a bright, slightly reddish yellow, dense, soft, malleable, and ductile metal. Chemically, gold is a transition metal and a group 11 element. It is one of the least reactive chemical elements and is solid under standard conditions. Gold often occurs in free elemental (native) form, as nuggets or grains, in rocks, in veins, and in alluvial deposits. It occurs in a solid solution series with the native element silver and also naturally alloyed with copper and palladium. Less commonly, it occurs in minerals as gold compounds, often with tellurium.

Platinum Chemical element with atomic number 78

Platinum is a chemical element with symbol Pt and atomic number 78. It is a dense, malleable, ductile, highly unreactive, precious, silverish-white transition metal. Its name is derived from the Spanish term platino, meaning "little silver".

Contents

Kitco News

Kitco News is the journalistic division of Kitco, reporting using articles [1] and videos. Original coverage by Kitco News includes being one of the first organizations to break the story about the Gold Anti-Trust Action Committee's (GATA) lawsuit against the Federal Reserve, as well as focus pieces on issues such as conflict minerals in the Congo. [2] [3]

Conflict resource resources extracted in a conflict zone and sold to perpetuate the fighting

Conflict resources are natural resources extracted in a conflict zone and sold to perpetuate the fighting. There is both statistical and anecdotal evidence that belligerent accessibility to precious commodities can prolong conflicts. The most prominent contemporary example has been the eastern provinces of the Democratic Republic of the Congo (DRC), where various armies, rebel groups, and outside actors have profited from mining while contributing to violence and exploitation during wars in the region.

Tax issues and creditor protection

Among Kitco’s lines of business is the purchase of scrap precious metals. Kitco pays its suppliers sales taxes on these purchases and receives tax credits for the corresponding amounts. Alleging that some of these suppliers have not paid back the taxes owed to it, Revenue Quebec is holding Kitco responsible for these unremitted taxes. [4] Revenue Quebec's issuance of assessments for these taxes has forced Kitco to file for creditor protection. [5]

On June 8, 2011, the day after Revenue Quebec raided Kitco's headquarters, Kitco was granted CCAA creditor protection by the courts (similar to U.S. Chapter 11 bankruptcy protection). On November 6, 2014, the CCAA protection was extended again to June 18, 2015. [6] The CCAA protection allows Kitco to continue under its existing management, with Richter acting as a Monitor. Around May, 2014 Kitco paid the majority of creditors in full, with others receiving partial payments (except Revenue Quebec). [7]

Kitco rejects ARQ allegations. [8]

Kitco Pool controversy

Kitco offers unallocated precious metals accounts, called "Kitco Pool." Normally, unallocated precious metals account are like "IOU"s and backed by the "general stock" of the dealer. In the event of bankruptcy a pool holder would become an unsecured creditor of the company.

Starting back in 2007, silver analyst Ted Butler voiced concerns over unallocated accounts, including the Kitco Pool. [9]

References

  1. "Articles by Kitco News". Nasdaq.com. 15 March 2011. Retrieved 15 March 2011.
  2. "GATA". gata.org. Retrieved 15 March 2011.
  3. "Conflict Minerals: Is the Industry Ready?". World News. 16 December 2010. Retrieved 15 March 2011.
  4. "Kitco Metals Inc. Restructuring Case".
  5. Van Praet, Nicolas (December 9, 2013). "Kitco Metals among gold traders facing Quebec tax fraud allegations".
  6. http://www.richter.ca/~/media/Files/Insolvency%20Cases/K/Kitco-Metals/CCAA%20Proceedings/Court%20orders/13-Order-8thExtension-contd-20141111.ashx?la=en Missing or empty |title= (help)
  7. 20th Monitor Report
  8. "Kitco continues to categorically reject all of the Agence du Revenu du Québec's allegations". www.newswire.ca.
  9. Butler, Ted. "Buyer Beware".