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Exposing The London Bullion Market Association
Following up on the earlier post in which German TV station ProSieben has disclosed proof of the existence of tungsten "gold" bars in circulation within the bank community, we share with you the following highly informative presentation by Adrian Douglas of Market Force Analysis titled "LBMA OTC Market - "Alchemists" Turn Paper Into Gold." For anyone who has even a passing interest into what, as the author characterizes, could possibly be "the next Madoff scandal, except multiplied by 100", we recommend reading this paper.
Source: www.marketforceanalysis.com, h/t Jeff
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I'm shocked. SHOCKED!
I don't know about everyone else but I'm more worried about it all collapsing before I can buy more.
Well. There is one idea that comes to mind if people started to demand delivery.
Confiscation. Instead of delivery they hand you US dollars just shortly after spot gold prices bottom out. Just sayin'. What would you do if you were in their shoes?
Sorry, my post was badly written. I'm solely physical gold and silver. I'm hoping people don't find out about the ETF sham so I can get more of the physical cheap for awhile longer.
fofoa.blogspot.com is out with a new post. It goes right along with what Mr. Douglas is saying.
Got Gold?
In a fractional reserve system the client is always an unsecured creditor”
The only way to pop the bubble is to start forcing delivery of existing contracts.
I'm shocked, shocked to find that counterfeiting is going on in here!
When the music stops the real chairs that are left will be worth more.
In Gold land the chairs are really VERY few, so the remaining one will be worth A LOT more - a lot more than the present generation of idiot "investors"/traders can even imagine with their tiny little brains.
I'm a big gata follower and they have this posted, cudos to ZH! Awesome reporting!
I'm shocked! SHOCKED!
That I don't have the necessary tools to work tungsten.
hahahahah +10
ZH dropping bombs on the gold market lately! Bravo!
Great analogy with the airline example.
My only question is, if this is true and widely known, why hasn't someone like George Soros already "broken the bank" aka the LBMA? Or maybe that's why he's holding so much of GLD?
Probably requires too much cash to pull it off. If you started buying in bulk and demanding delivery, I'm sure the illusionists would get you as much physical as you'd need to shut you up and perhaps charge you some delivery fee to dissuade you from going too far. Perhaps there needs to be a general panic and every has to ask for physical delivery to get as much of it out of vaults as possible.
Probably taking a calculated gamble that gold etfs are TBTF.
If tungsten (hypothetically) was in the vault, and all bars had to be checked, the average joe would scream to high heaven that this was created by greedy bankers and they need a bailout.
We already know that banks engage in fractional reserve lending.
We already know that markets condone the selling of things that aren't owned (naked shorting).
We already know that central banks lease gold to reduce its street price (Greenspan said so).
We already know that gold is a barometer against which the USD has already failed twice (1933, 1971).
We know PM ETFs are double counting bars.
http://www.zerohedge.com/article/project-mayhem-research-multiple-anomal...
We know the rich have historically converted their fiat currencies to PMs and escaped the brunt of currency crises in the past.
We know the golden rule.
Golden Rule = Make sure you have a golden parachute when this shitmobile goes down!
We know PM ETFs are double counting bars.
http://www.zerohedge.com/article/project-mayhem-research-multiple-anomal...
We know the rich have historically converted their fiat currencies to PMs and escaped the brunt of currency crises in the past.
We know the golden rule.
So you mean the POG is bullshit just like everything else? You don't say. Now the *value* of real physical gold is an entirely different thing.
This scam is sophisticated, it had to originate at the highest levels of the gubmint.
It would appear I just shat myself. The saddest part of all? It wasn't a gold brick.
LOL
Only Madoff times 100? We've got some Madoff times 1000 out there.
In January 19.8 million oz traded on average every day and there were 1800 transfers, meaning 11000 oz (342.1 kg) per transfer.
http://www.lbma.org.uk/stats/clearing
Those numbers are high but possible.
The article implies that the gold is not there but does not provide any facts to prove that; a lot of rumours are offered that might or might not be true.
If someone dislikes an unallocated account, there is also an allocated account available. There it gets interesting. Someone can demand delivery of his specific bar or do an assay of the purity or other quality checks. If that process is reasonable easy quite likely the gold is in the vault. If that process is unnecessary complicated it points to the possibility that the gold is not there.
To support the accusation that 50'000 tons of gold are sold that do not exist I would like to see more supporting evidence. That would be more then the total gold held by all central banks worldwide (if the central banks really have it.)
Intuitively I would say that physical gold is bought by people for safety of it and not for trading, if they want to trade, paper gold is much more convinient and faster. So, you say the traded in Jan about 600 tons of it, for the year it would be close to 7200 tons, do you think it is possible? Nobody can provide you with any 100% evidence because govenments keep it secret, even if we had some rogue gov. worker disclosing some numbers, half or more people would not believe it anyway.
Talking about allocated account - how are you going about getting serial numbers of 1 oz pieces which normal people would hold? Do you buy your gold (if you buy any) only in 100 oz. bars?
I referred to the LBMA website; there are 600 tons traded daily according to the published numbers.
The story refers to London; the typical bar there has 400 oz and a serial number.
AFAIK coins are not traded/stored at the LBMA and I do not know of any allocated storage using coins.
In that case the typical way is to take the coins and put them in a safe deposit box.
imho, safe deposit boxes are not safe. The government has a history of raiding safe deposits. Your own safe or a hole in the ground is safer (please pardon, no pun intended).
You're right about that. You have to be careful but you can at least protect yourself by reminding your bank that you exist every now and then:
http://abcnews.go.com/GMA/story?id=4832471&page=1
It is not cost effective to insert tungsten on an 1oz. gold coin. Go Maple
You're right! You'd have to buy the tungsten first. not effective. english much??
Here is what is strange. We have about 600 tons a day traded but everyone is worried about 190 tons from the IMF. The IMF should easily be able to "dump" the 190 in a week.
The IMF said that "China is not a good candidate" to buy their 191.3 tons of gold? Why? Is it because China would want physical delivery and would check the bars for fitness or ???
PS: The 1913 number is not lost on me or many others. It was perhaps the worst year in American history.
Perhaps China wants to insert tungsten in 191 tons of geld.
Bought 70 oz of Gold last week from Scotia Bank. They did not have 70 oz of Gold in Vancouver. It has to come from Toronto. Best get your Gold while you still can. Again..they did not have 70 oz. of Gold in Vancouver.
Hmmm...some athlete better check their medals
Pffft.
Showoff.
lol
The only real investment is through Gold Equities and Futures as even if they are fake you should have some low protecting your investment.
Now I do understand why Sprott launched its Gold ETF..
This will end with a firestorm and possibly lost lives. After all not all the investors in the ETFs, and those who one the "unallocated" gold is a Ma and PA Kettle. I'm sure if they burn one to many Russian/Italian/Latin American oligarchs and they will scrape the money together to hire a special man to visit and treat them right.
Also it's important to note they are unsecured creditors. What that means in legal terms is when they go bankrupt those creditors come behind secured creditors who normally take all the assets in the bankruptcy proceeding or at least the overwhelming majority of assets. So it's quite likely that the people who paid real money for fake gold will be 100% screwed if/when the music stops.
The fun thing is gold indices will decline since noone trusts electronic gold anymore.
I sleep good knowing the little that i do own is mine.
SILVER
What you might own could turn out to be TIN ...
Atleast you got a good sleep which is precious.
Thats what im wondering,,
Anything attacked to actual physical gold (can be proved genuine) will increase, while other sectors will sink like a stone. Will gold futures market rise or fall??
i dont know enough about all the different options to buy gold to work out what is and isnt genuine but obviously physical gold & silver along with proven gold & silver producers would be your first stops.
anyone else? theres a lot of different gold markets & options.
Matt.
So if you own a GOLD ETF request physical delivery ASAP!!
At this point only an idiot would not make sure of physical gold delivery.
I wonder which LBMA banks are in on the tungsten scam??
Here's my theory.
In the world to come (shortly), where constant violent warfare is the rule planet wide, Tungsten will be worth more than gold for armaments!
Thusly, no fraud was being commited here, the central banks are getting more than their moneys worth of tungsten.
-MobBarley
LMAO! It's a great hedge against DU shells. And the macinery of war always requires replacement
Got Raufoss?
This guy has been trumpeting the "fraud" case for years, same as Ted Butler bullhorning the case for naked shorts and outlandish short positions in the silver market.
If there was any truth at all to these stories, somebody "big" would already be on this story and would have buying GLD or physical gold in size and the price action would be telling the story by now.
But instead, the mining shares are severly lagging, many stocks still stuck in multi-year bear markets, while retail stocks are withing 10% of all-time, world record highs.
If Adrian's story had any truth, then the XAU or HUI would be in new high territory by now and gold would be well over $1,300/oz.
It's the same old story over and over.
The "Gold Hoarding Seditionists" keep cheerleading for a collapse in the global financial system, thinking that a panic flight to gold will make them all rich while everyone else goes broke.
Instead, the GHS'ers are all going broke, always overmargined in gold investments, while the "big money" has been buying retail stocks which are now soaring to new highs for the move.
Just another "Tin Foiler" who among others, still doesn't get it.
Gold has no chance of reaching new highs without the S & P 500 reaching new highs first.
Any and all crashes, conflagrations, blowups, defaults, or meltdowns which affect stocks in general will mean that gold and related investments will crash 3x faster than everything else.
Perhaps Adrian could serve the GATA boys much better if he started trumpeting and predicting the "Weimar Meets Zimbabwe" stock market and cheerlead it to new highs, instead of digging up fraud stories and expecting some kind of economic meltdown which sends gold to the moon and everyone else to the poorhouse.
LOL...
Nadler, is it you?
No. This is the writing style of Master bates.
In any event, someone who has no awareness of history or true values.
Interesting to think about how Goldman short squeezed SemGroup, or how many failure to deliver shares will never be delivered by the DTCC.
Where can you buy bullion and take delivery on margin?
10,000 tickets have been sold for a flight that has just 80 seats.
damn regional jets! Sky Pintos
Tyler and Marla,
You are the greatest. I love your work.
We could use some documents on what an
American default might mean to better
prepare the ZeroHedge readership.
:)
Love,
MobBarley
Most gold investors are not aware of this criminal activity. That's beginning to change.
Thanks for sharing that Tyler!
I got burned holding warehouse receipts for over 200 ounces of silver with NORFED, then the Feds raided NORFED/Liberty Dollar and confiscated all my silver in their warehouse.
Beware! Hold only physical metals, not paper!
Haven't read the article. First priority is to find Gekko in the comment section. Where the heck is he?
I own gold in an IRA through Gold Star Trust. Not much but I figured it was better in the metal than in equities. Recently I learned that HSBC was the custodian who held the gold for the IRA. This year HSBC gave notice that they would not be in the business of holding these assets and has transferred the assets and the responsibility to another third party. Not sure what it means but the timing is interesting.
What's the surprise - Exportbank has been saying all along that gold is just another fractional reserve currency - he's always said - if you aren't holding it in your hand it probably doesn't exist.
Never believe anything you hear, and 1/2 of what you see.
Market forces will resolve supply issues. Think about all other commodities during supply concerns and realize that only a small percentage of traded assets are actually physically delivered. Same case whether it's gold, silver or cotton and orange juice.
Come on and get real, so what if the price has to move up to $10,000 to $20,000 an ounce. If that what has to happen to balance supply and demand, so be it!
Is there a single honest organization in the financial "industry"? Doesn't look like it.
From Germany with love...http://www.youtube.com/watch?v=ZKczs-7BFRI&feature
It seems to me that we are all playing a game of "spoons" and Asia has begun to take it's spoon off the table... USA/Europe has yet to realize this but when they do... mad rush for anything that's left... Gold/Silver through the roof!
Hey gold bugs who always state "Got Gold" no matter what happens.... One question for ya... "Got Gold?"
They've got some gold that the .gov is not going to let them keep if things get as bad as the gold bugs would like.
I see this particular piece of dezinformatsia a lot, and almost always posted anonymously. Everyone knows that the rich people kept their gold during the 1933 theft. This government has revealed itself to be completely corrupt and untrustworthy. No one intends to surrender anything in this time. PMs are incredibly susceptible to boating accidents and the like.
Ya.
Why yes, silver as well. Physical, as in I can touch it. Shorting the crap out of the paper stuff.
25% premium to settle in cash? that's pushin it. i'm bullish on gold and have a loaded beretta sittin' around here somewhere, but 25%?
If that report is right 25% is a baaagan to the dealers.
the dealers must not have internet access or a coin shop in their town then because i can buy physical gold for a hellava lot less than 25% over spot.
these are not 4x9 but they are nice and shiny:
http://www.apmex.com/Product/117/2000_St_Gaudens_US_Double_Eagles_Extra_...
i don't buy hundreds or thousands of ounces at a time though. maybe it makes sense to pay out 125% when somebody wants 5k ounces. it would have been nice to see this so-called anecdotal evidence fleshed out a little more. how many cases of 125% payouts? how many ounces?
Typer,
did you just recently team with up gata??? i would think you are a pretty big gold bug.
anyways...keep up with the gold posts, everyone know's it will be the winner in the end, some just dont want to believe it.
Wouldn't you simply have to put the thing on a scale to make sure that it weighs the proper amount or is that too simple to counterfeit as well?
The reason tungsten is used as the counterfeiter of choice is because of its weight composition similarity to gold. Blindfold somebody and give them an ignot of tungsten and an ignot of gold with the same volume, they wouldn't be able to tell the difference by weight.
This is where verification by electro-testing comes into play.... and this is where the fraud is able to perpetuate since gold bars do not have a set of standards to have each of them tested in this manner by their third-party "holding" companies.
With a 25% premium to settle your gold withdrawal paid in cash (British Pounds), wouldn't it then behoove you to take the cash and buy Silver? What a convenient conversion, with a nice stipend to boot!
Silly Kid.
there's even less silver available. it's a tiny market, the proportion of commercial shorts, is greater than gold.
When I first read this I was pretty shocked. However, on second thought, why is this not similar to the bank's holdings of cash? Total bank deposits are many multiples of the underlying cash that actually exists (i.e. monetary base). If everybody tried to pull all their cash from their bank accounts all banks would go out of business, but nobody except the first few would get their money. Why are these unallocated accounts any different?
Seems to me the only way to get the price of gold to the "true" value of gold is for there to be a massive run on the banks - where everyone tries to convert to physical at the same time. Bank runs usually occur when customers/investors have lost faith in the underlying assets. Loss of faith in paper currencies and the governments that back them would trigger the run on these LBMA banks. My feeling is we're still a ways off before this happens....
any thoughts?
There's no FDIC guarantee on gold, and the Fedgod can't just conjure it into existence with a keystroke.
"However, on second thought, why is this not similar to the bank's holdings of cash?"
Because one of the main reasons for holding gold is to insure oneself against the kind of economic events that lead to bank runs.
What is that amount of gold they hold? Why a statistical model tells them how much gold that would be.
We haven't see statistical models be wrong before right? After all our politicians and businessmen all say it's 'science'. ROFL.
The statistical models we put in control of very important aspects of civilization can't be wrong.....AIG, derivatives, climate change, cap and trade, healthcare panel of experts.
You can add the amount of gold that might be needed to be delivered in a worst case gold run scenario. Anyone think this statistical model will fail like all the other ones do?
You bet'cha
It used to be people actually worked for a living, it seems now-a-days TPTB just sit back and let the statistical models run the show, then say they did so much work they need to be paid insanely.
It explains why Brown sold the Britain Gold at the rock bottom price.
Expose the LBMA? Of what exactly? Fractional Reserve Banking?
This article pre-supposes that to sell more of something than one has is "wrong". If that is the case, then the entire basis for modern banking is also "wrong".
And I find it laughable and naive that anyone who has witnessed the "too big to fail" money-fest of the past two years would believe for a second that JPMC, HSBC or any of the big bullion banks will be allowed to crash over something as petty as "insufficient reserves".
Please.
If the big boys aren't going down over the gargantuan clusterf*ck that is CDS, they're not going down over something as petty as gold.
This must be the worst, dumbest story I have yet seen on zero hedge. The writer of that paper has so many facts wrong its scary and he clearly hasnt done even the slightest bit of research.
This is the same as the idiots claiming having billions outstanding in interest rate swaps will cause the end of the world.
The LBMA good delivery bar is about 12kg. Allocated means you put a bar with a specific serial number into a security facility. when you wihtdraw it you get exactly same bar back. Unallocated means you get back a bar of same size but possibly a different serial number.
Paper trading rather than physical is done due to security risks.
What about the buy side of a day trade. I sell 100 tonnes in the morning and buy them back an hour later. This idiot is purely looking at the sell side as being 'evil'. People trade - get over it.
HSBC and JPM are minor players in gold OTC derivatives. The fact he claims they are 95% of the market shows how utterly clueless the writer is - ho doesnt understand and is publishing fantasy stories
Actually JPM and HSBC USA hold over 95% of all gold and precious metals derivatives of all US banks. The question is whether or not the COMEX and the LBMA have enough gold to meet a potential surge in demand. Considering all of the gold swaps that CBs have entered into with other CBs it is unknown as to who owns what and where the actual gold is stored.
As for Interest Rate swaps, at the current size of the IRS market it is not possible for them to be hedged. In other words as long as the music doesn't stop playing and liquidity doesn't tighten to the point where IRS counter-parties cannot meet payment obligations the system will drift along. However the day a liquidity panic like that happens, look out below for the US dollar and the US Treasury bond market. A spike in yields would surely occur, which would kill the consumer economy and the government's ability to finance its debts. This excess of un-collateralized IRS have allowed for interest rates to be lower than they would be according to the conventional market mechanism. This dynamic is similar to the uncollateralized CDS market. Of course once the music stopped there we all know what happened. IRS on the other hand have compromise the majority of OTC derivatives, and have grown exponentially over the past two years while the overall OTC derivatives market has slightly contracted.
Am I the only one having a page not found error when trying to read the linked document ?
The 1 oz. Gold Maple Leaf is the way to go..
The Silver Maple Leaf is very good too.
Quality Real money... >> Monex . com
Glenn Beck on fox news is one of the few TV hosts
who have been warning the general public about
the games being played out ...
Google >> Pallet Tim
how bout a side order of bank run to go with april 15 national strike?
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