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Buy Physical Gold and Physical Silver Through a Commercial Bank and You May End Up with a Vault Full of Air
Recent news this week again proves that bankers are among
the largest charlatans in the universe. First Jim Rickards reported that a
Swiss bank refused to deliver roughly $40 million of gold bullion to a wealthy
client for 30 days and only finally physically delivered his gold when the
client brought in his lawyers and threatened to take his story to Reuters and
other syndicated financial news networks. Then later this week, James Turk
reported that he is aware of another individual that has been trying to take
physical possession of approximately $550,000 of silver for two months now
from a Swiss bank with zero luck. Turk further elaborated that the bank has
been trying to pressure the client into accepting the cash equivalent market
value of the silver rather than deliver the physical silver to the client. In
both of these cases, I presume that neither of these Swiss banks ever held
allocated gold and silver for their clients or if they did, had then leased out
the gold/silver or sold the same gold/silver to multiple clients, and thus were forced to
stonewall their clients until they could secure the physical metal. Why else would a bank take 30 days to
deliver something that was supposed to be sitting in a vault in an allocated
account?
Of course, none of this is really shocking as the two above
cases merely mirror the circumstances of the 2005 class-action lawsuit against
Morgan Stanley in which Morgan Stanley told its clients it was selling them
silver in allocated accounts and storing it in its vaults. However, when one of
their clients, Selwyn Silberblatt, demanded physical delivery, Morgan Stanley
failed to deliver, prompting the class-action lawsuit. Morgan Stanley
eventually settled the lawsuit for $4.4 million. Time after time, bankers have
been caught committing likely fraud regarding the sales of gold and silver.
This likely fraud extends to more than physical sales. In the futures markets,
bankers have been discovered to be selling 100 ounces of paper gold for every
one ounce of physical gold that actually exists in the market. With PM ETFs, it
is highly likely that multiple claims exist on whatever physical gold and
silver back the GLD and SLV, if any physical gold and silver even back them at
all.
In addition, it’s not just banks you have to worry about
these days. The incidence of counterfeit gold coins and silver coins is on the
rise along with the recent steep rise in the gold and silver price. The
Financial Times recently reported that a wave of hard to detect counterfeit
gold coins is now coming out of China. Say goodbye to the days of gold-plated tungsten and say
hello to a more complex counterfeit gold alloy consisting of 51% gold mixed
with osmium, iridium, ruthenium, copper, nickel, iron, and rhodium. Tungsten is
a hard, brittle grey metal that has the same density as gold but none of
gold’s characteristic softness. The new fake gold apparently not only has a
density similar to the real thing but also has a near identical softness and
color, qualities that suggest that metal smiths with an extensive knowledge of
metallurgy are producing the new fakes. In fact, Haywood Cheung, president of
the Chinese Gold & Silver Exchange Society, Hong Kong’s century-old bullion
exchange, said goldsmiths and jewelers in Hong Kong had recently been duped
into buying between 200 and 2,000 ounces of the new fake gold.
In conclusion, if you want to ensure that you actually possess
real physical gold and real physical silver, take two steps.
(1) Never entrust a bank to hold your physical gold and silver or you may end up sitting on a vault full of nothing but air; and
(2) When you buy from an independent dealer, perform your due
diligence to avoid purchasing fakes.
About the Author: JS Kim is the Founder and President of
SmartKnowledge Pte Limited, a fiercely independent investment research
and consulting firm. His monthly investment newsletter, Crisis Investment Opportunities, has yielded 28.12% YTD in a tax-deferred
account as of December 3rd. Since January 1, 2008, the CIO newsletter, in less
than two years, would have turned a $1,000,000 portfolio into more than
$2,000,000
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What about Banks in Cayman Island, St. Kitts St. Nevis, Guernsey, Channel Island, Malta, Cypres etc.? They launder most of the drug money not possible by the most stingent money laundering laws in Switzerland
Rat,
I was refering to the LATEST Gold & Silver scandals.
Seem the Swiss have turned over a NWO Leaf.
Ckskrs.
the clients bought via a metal account which is stupid, since it does not explicitly guarantee you the physical metal. It's better to ask directly for a quote of the physical metal. In addition there was so much demand for physical PM this year in Switzerland, that they had to add additional bunker space in the Swiss Alps. Foreign clients bought up to a metric ton of gold!
I've been buing American Bufalos and Australian Kangoroos, any chance of a fake there ?
Check all the empty holders and COA's available on ebay- why else would anyone buy those???
Not yet but the Chinese are heavy on the job. They are producing convincing dies for Morgan Dollars, Peace Dollars, and other silver coins with values well above the silver content -- and making them of .999 silver! These counterfeits require 10X mag and a practiced eye to detect. Some bourse dealers have been buying them from vest pocket sellers on the bourse floor. Go figger.
Given that pre-1965 US silver coins are 90% silver, if the chinese are stupid enough to make them at 99.9%, then it should be easy to test for authenticity.
They are not making counterfeit junk silver coins, just the ones with numismatic value well over their spot value. Sorry if that wasn't clear.
Does anyone know if there is technology that can quickly determine whether a coin or piece of bullion is authentic? If so, I imagine it would be prohibitively expensive.
This is as good as you can get at a reasonable price:
http://www.fisch.co.za/operation.htm
http://i-c-g.biz/fisch.htm
much cheaper. never used it.
seems a digital scale would be a good investment instead.
If the fake recipe calls for Fe (iron) then maybe magnetic attraction test. :)
Take Comex delivery and then store it at Brinks. They got those cool trucks to move it around with.
The least would be to say WHICH BANK ????
...don't forget we also have the fake justice, the empty congress, our fractional society, the federal unreserved notes, commercial government, and an administration full of air...but, something tells me the protests are real.
even if we dont store it in the bank....we can at least buy from a reputed bank , cant we?.....its even harder to trust a big jeweler or independent dealer.....
well, so long as it's full of rhodium, lol
but, seriously, gonna hafta invest in an ultrasonic thickness gauge which will be able to spot fakes by the discrepant readings from reference. It's either that or the bite test, I guess...
As far as the allocated gold, I'm not so sure 30 days isn't reasonable. The bank probably leases the vault space (meaning that its lessor *may* be lending out that gold itself). You have to do DD on whether your bank actually holds itself or contracts it and what the terms of that contract are. Twisted web.
Don't know what the alloy mixture is but I imagine it is high in osmium and iridium, due to density needs. Os has a few percent the abundance of gold, and Ir is even rarer. So this scam can't significantly dilute the price of gold.
trav,
stick to Soverign Nation coins,older dates, or NEW from the mint, US/Can/Krugs/Roos/Phils/from RESPECTABLE brokers, and I do not see a need for checks.
Plus the Hong Dong fakes are SO good even their people were faked out testing.
Look for the older dated coins to start commanding prems.
I thought the bank charges a storage fee for allocated PMs?
If that is true someone is paying for storing someone else’s gold or does the bank "lease" out the gold to other "allocated" accounts and charges multiple people for the same storage space?
Fractional banking, fractional PMs and now fractional vault leasing!
Allocated leasing is illegal, if the owners of the allocated metals can prove it, they can own part of the Bank.
If I were going to do Allocated anywhere, it would be thru Perth.
$245.00 a year, plus other fees, but peace of mind is worth it.
Merry Christmas
www.philscoins.com
Christmas Special
Free shipping on all website orders over $100.00.
One of the three places I shop. Fast delivery.
Same to ya,
Phils high, and out of most items.Bullion related.
Thanks for manipulating the price lower. Bought more of Ag this morning.
Anyone know more about the "phony" audit of SLV that appeared a month ago?
Ironic for those who are buying silver from APMEX, they bank with JPM.
I sent them an email, and told them they were losing, and were going to lose MORE business because of the affiliation.
And suggested they find another source for a bank.
No answer to date, and NO more purchases from APMEX for me.
I have since changed vendors, and am paying less for shipping, and prems.
Pays to shop around.
I REFUSE to feed the BEAST.
Perhaps if everyone here sent them an email similar, then it would get their attention.
What is the name of the new vendor?