The Latest Gold Fraud Bombshell: Canada's Only Bullion Bank Gold Vault Is Practically Empty

Zero Hedge ^ | 4/7/10 | Tyler Durden

[Daisyjane69]

Continuing on the trail of exposing what is rapidly becoming one of the largest frauds in commodity markets history is the most recent interview by Eric King with GATA's Adrian Douglas, Harvey Orgen (who recently testified before the CFTC hearing) and his son, Lenny, in which the two discuss their visit to the only bullion bank vault in Canada, that of ScotiaMocatta, located at 40 King Street West in Toronto, and find the vault is practically empty.

[Daisyjane69]

More shenanigans?

Here's the link to the interview they mention. I have not had a chance to listen to it.

http://kingworldnews.com/kingworldnews/Broadcast_Gold+/Entries/2010/4/7_Harvey_%26_Lenny_Organ_%26_Adrian_Douglas.html

[Daisyjane69]

http://kingworldnews.com/kingworldnews/Broadcast_Gold+/Entries/2010/4/7_Harvey_%26_Lenny_Organ_%26_Adrian_Douglas.html

hope that link works. I’m going to listen to it now.

[screaming eagle2]

why doesn’t this surprise me?

[Daisyjane69]

Don’t ya just feel like banging your head on the monitor?

I’m listening to the interview now and it’s almost worse than it sounds.

meh

[Waco]

Now all we need is for China or India or Japan or all 3 to revalue their money and convert to gold and silver. Might be a good move if Australia did it first.

[arthurus]

Fiat gold. As solid as the dollar.

[Daisyjane69]

If I didn’t know better, it almost makes you think that some people are trying for a five continent world war over sh*t like this.

Damn...

[Starchoice]

That is a must listen to interview. You can get more information about gold and silver price suppression here.

http://goldismoney2.com/forum.php/forums/

[autumnraine]

This is exactly why I never understood those (Goldline) “Buy gold and we’ll store it for you!” deals. So sorry for not trusting you with my $1500 oz purchase.

[Daisyjane69]

I’ll listen to that next, since these turkeys have already given me a headache. LOL

Now, this article of 6 months ago makes sense:

http://www.marketwatch.com/story/hong-kong-recalls-gold-reserves-from-london-2009-09-03

[Daisyjane69]

Well, I just hit the money quote (no pun intended) at the end of the interview:

“I think a good analogy is...if you were to buy a lifeboat on the Titanic. That the moment that the ship is sinking, you’re told that they’ve sold more lifeboats than they actually have. That they tell you ‘It’s okay; there’s mechanisms for cash settlements instead.’ “

oh boy...

[caver]

I’ve never understood why anyone buys gold.

[bert]

If you read this book on the history of gold you will understand that the current situation is anomaly. “The Power of Gold: The History of an Obsession”.

A return to a gold or silver standard is brewing. The world has been off the gold standard for only 60 years or so and is probably reverting to the historical norm.

http://www.amazon.com/Power-Gold-History-Obsession/dp/0471003786

[Daisyjane69]

I can’t speak for the others; they can speak for themselves.

But precious metals are a store of value/wealth throughout history, that cannot simply be randomly produced out of thin air. For this reason, nearly all nations (at least modern ones) hold at least some gold/silver.

There is no counterparty risk to gold or silver that you own outright and have in your possession. Paper currency carries counterparty risk in so much as it’s only worth the finances of the gov’t that issues it. (See Zimbabwe, Weimar Republic)

They are rare. Rare enough to ensure passage to freedom (as happened during Hitler’s rule) and rare enough to confiscate (such as FDR did here, or the Ukraine gov’t did before they starved their population).

[caver]

I need to do some reading. Thanks for the insight.

[headsonpikes]

"I’ve never understood why anyone buys gold."

Me neither. Folks should just trust the Government to do the right thing with paper currency.

Thousands of years of human history clearly show that when nations abandon the imposition of some arbitrary metallic standard, their economies flourish and their societies blossom.

Only the Government can deliver more flexible cash, suited to the situation.

Just stop thinking, and listen to those who know best - Government experts.

[Nik Naym]

“I’ve never understood why anyone buys gold.”

I can understand why someone would buy gold. What I can’t understand is why someone would buy a PIECE OF PAPER that claims to represent gold!

[reagan4palin]

It is time for an independent audit of Fort Knox. Someone needs to go in there and do a random assay of a set percentage of the bars and determine if the tungsten story is true.

I suspect the resistance to such an audit would be monumental.

[drpix]

"There is no counterparty risk to gold or silver that you own outright and have in your possession."

The risk to gold is not counterparty, it is confiscation (as you acknowledge in your last paragraph).

In 1933, FDR set the value at $20/oz, which was below market value. While many did not surrender theirs, they were no longer able to trade or exchange it. And while there were no paper trails for who owned gold in 1933, the vast majority of those who now own gold have left long paper/computer trails for their gold purchases.

Silver was not outlawed (if you can handle the bulk) and neither were rare collectible gold coins.

[bert]

......What I can’t understand is why someone would buy a PIECE OF PAPER that claims to represent gold!...

You have stated the case well.