Kitco’s president and founder, Bart Kitner, has been purchasing and selling genuine precious metals for over 30 years, earning a reputation as one of the most reputable names in the bullion industry.
In the late 1970s, a motivated young guy with an eye for chances made his initial forays into the corporate world.
Bart Kitner was a college student with a modest $700 loan at the time, but his vision was anything from little. His story is the driving force behind Kitco, one of the most trusted names in the precious metals market today.
Kitner’s journey began with a simple but overlooked business niche. He began by buying scrap gold from various jewellers across Eastern Canada. After refining the gold, he sold the pure gold grain to larger industry players. This business model, though modest, was the foundation upon which Kitner built his empire.
Upon graduating from McGill University, Kitner decided to venture full-time into his business. He soon expanded his operations into other industrial areas. By the late 1990s, Kitner had successfully ventured into the precious metals products market.
Bart Kitner: Launch of Kitco.com
1995 marked a significant turn in Kitner’s business journey. He launched Kitco.com, taking his business online during the early years of the Internet.
This move democratized market information such as prices, trends, and news, which were previously guarded by a few big players. Kitco.com soon became the go-to source for precious metals market information.
Today, Kitco has grown from a small apartment-based business into a global enterprise. The company now boasts offices in Montreal, New York, and Hong Kong. The entrepreneurial spirit that marked Kitner’s early years continues to drive the company forward.
Kitco News: A Trusted Source for Market Insights
Kitco News, the journalistic division of Kitco, provides in-depth articles and videos on market trends and news. It was one of the first organizations to cover the Gold Anti-Trust Action Committee’s (GATA) lawsuit against the Federal Reserve. It also focuses on issues such as conflict minerals in the Congo.
Bart Kitner: Business Model
One of Kitco’s main business lines is the purchase of scrap precious metals. The company pays its supplier’s sales taxes on these purchases and receives tax credits for the corresponding amounts. However, the company has faced challenges with some suppliers failing to repay the taxes owed, leading to legal disputes.
Kitco’s Creditor Protection Journey
In 2011, following a raid by Revenue Quebec, Kitco was granted CCAA creditor protection by the courts, similar to U.S. Chapter 11 bankruptcy protection. The company has since paid most of its creditors in full, with others receiving partial payments. The company continues to contest allegations by ARQ.
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Kitco Pool: An Innovative Approach to Precious Metals Investment
Kitco offers unallocated precious metals accounts, known as “Kitco Pool.” These accounts, backed by the “general stock” of the dealer, function like IOUs.
In the event of bankruptcy, a pool holder would become an unsecured creditor of the company.
However, Kitco has addressed these concerns by stating that the Kitco Pool is 100% backed by physical precious metals, segregated from Kitco’s own assets and entirely belonging to Kitco Pool customers.
Why Are Investors Diversifying Their Portfolio?
Experts agree that the financial market is now even more fragile than pre-2008. Will your retirement portfolio weather the imminent financial crisis? Threats are many. Pick your poison..
The financial system would be in great peril if one or more big banks fail.
“When we get to a downturn, banks won’t have the cushion to absorb the losses. Without a cushion, we will have 2008 and 2009 again.”
Student debt, which has been on a steep rise for years, could figure greatly in the next credit downturn.
“There are parallels to 2008: There are massive amounts of unaffordable loans being made to people who can’t pay them”
The US national debt has spiked $1 trillion in less than 6 months!
“If we keep throwing gas on flames with deficit spending, I worry about how severe the next [economic] downturn is going to be–and whether we have enough bullets left [to fight it],”
Total household debt rose to an all-time high of $13.67 trillion at year-end 2019.
“Any type of secured lending backed by an asset that is overvalued should be a concern… that is what happened with housing.”
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Kitco’s journey from a small college startup to a global precious metals enterprise is a testament to Bart Kitner’s entrepreneurial spirit and vision. Despite challenges and market changes, Kitco continues to stand as a reliable name in the industry. With its commitment to transparency, innovation, and customer service, Kitco continues to shape the future of the precious metals market.
In conclusion, Bart Kitner’s Kitco is a shining example of how a simple idea, backed by hard work and a keen eye for opportunities, can revolutionize an industry. Today, Kitco stands tall as a trusted source of precious metals market information and a reliable platform for precious metals trading.
Despite the challenges it has faced, Kitco’s commitment to its customers and its innovative approach has ensured its continued success in the ever-evolving financial market.
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