Posted on 12/11/2010 3:00:28 PM PST by epithermal
For some time some of the more outspoken gold commentators, like GATA, have been suggesting that title is held to far more gold and silver supposedly stored in bank's vaults, than is actually there - indeed they even have been questioning Central Banks' holdings of physical bullion - even in Fort Knox. Now there is some anecdotal evidence emerging on the internet and news programmes that may serve to back up some of these claims, at least as far as some commercial banks are concerned.
-snip-
A couple of days ago King World News of the U.S. quoted Jim Rickards, a long term proponent of gold market manipulation by banks and governments and extremely well respected - as saying that he knows of an investor in physical gold who had to haggle with a Swiss bank, which was supposedly storing gold for him, for a full month to achieve physical delivery of his own owned bullion - a considerable amount - $40 millions worth. And the gold was only returned to him after threats to resort to legal action and give the story to the media.
(Excerpt) Read more at mineweb.com ...
If the whole gold market is but a hoax, then.......?
Banks were allowed lend more money than the owned/had, why can’t the same principle apply to gold?
Fractional Reserve Banking....the life blood of the Fed, the bane of the individual. Hamilton was for it, Jefferson was against it. Jefferson was right, Hamilton was victorious.
This is the difference, the gold that people are asking the banks to send them is "ALLOCATED" specifically in their names (supposedly). In other words, it sits in the vault WITH THEIR NAME LABEL ON IT (supposedly).
We'll see just how wide a problem this becomes, stay tuned...
Not for allocated accounts. It means the gold is in the bank for storage/security and in return the owner pays the bank storage fees. Bank does not own the gold nor have the right to use it as collateral for loans and investments. Other types of gold accounts, the bank can borrow the gold. The theory is the shortage of physical gold is so bad due to over manipulation of unallocated gold accounts/paper gold accounts, banks are desperate enough to raid the allocated accounts which are illegal.
Problem with the story is we do not have the name of the bank and the account holder to verify the facts involved. It is like an unnamed sources making allegations. Hard to verify.
There was a case in Scotland where a woman trying to reclaim her physical gold assets from the Bank of Scotland had to wait months and after legal threats, the bank gave her gold back to her. But it took months and lots of hoop jumping before the bank delivered her gold back to her. It does make you wonder what some banks are doing with their clients allocated gold accounts.
I think the banks simply applied the same fractional reserve banking rule with gold/silver back when it was standard and multiplied it many fold when the standard was dropped
wait til the investor finds out his bars are made of tungsten
Think of the precious metals market as a giant game of musical chairs. For every hundred players, there are but ONE or TWO chairs !! Yes, it really is that bad.
If you think gold and silver prices are high now ....... Wait til the music stops !!
Nam Vet
The FDIC insures cash accounts to protect depositors and banks from ‘runs’. If there is a run, the FDIC will have money printed to cover the run.
If you have an unallocated account for silver or gold, and there is a run, there is no way to print gold and silver. You are screwed.
You are correct.
We’re seeing the beginning of the meltdown of the global banking system. This will pave the road for a ‘One World’ currency based on nothing more than yet another promise. More stories like this will prompt investors to rush their banks demanding their holdings of physical gold/silver.
This rush could happen overnight. Banks will declare a “Holiday” as they scramble to search for your physical assets that weren’t ever there to begin with.
I just returned from my favorite coin shop with my coat pockets heavy with silver and my wallet minus several hundred dollars worth of Federal Reserve Notes. $20 bucks a piece for decent Morgans & good condition common date Peace dollars! How can I go wrong? I’ll be back Monday morning and buy at least another $1000 worth (after the banks open).
Buy and hold physical gold/silver as soon as you can!
Just my take on things for what it’s worth.
...it will be just like "Foreclosuregate".
Then... I'm a zillionaire because I have gold stashed in my cookie jar!
Will it be series?
Exactly. Without the name of the bank and the account holder to verify the facts involved. It smells like manure.
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So is virtual Gold the same as real Gold? Just like virtual dollars?
Just like the Social Security “Lockbox”, I presume?
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