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Are Banks Raiding "Allocated" Gold Accounts?

George Washington's picture




 

In 2007, Morgan Stanley paid out $4.4 million to settle a class-action lawsuit by its clients after Morgan Stanley charged them to buy and "store" precious metals for them,  but neither bought or stored the metals.

(Similarly, a 2011 class-action lawsuit filed in federal court in New York accused UBS Financial Services of misleading silver investors and harging them storage fees for metal that was never actually purchased,  segregated, and stored for them.)

Avery Goodman points out that Morgan Stanley has once again just launched a similar scam, offering "allocated" metals, but gaming the definition so that the holdings are not really allocated.

On May 21st, Matterhorn Asset Management's Egon von Greyerz alleged that Swiss banks are trading physical gold bullion which is being held in special "allocated" accounts for its customers:

We are stressing to investors to take their gold out of the banking system, not only because there are runs on banks that will continue, but the risk of being in the banking system is major. So you should take the additional step of not just owning physical gold, but also owning it outside of the banking system.

 

We (just) had an example of a client moving a substantial amount (of gold) from a Swiss bank to our vaults, and we found out the bank didn’t have the gold. This was supposed to be allocated gold, but the bank didn’t have it. We didn’t understand why there was a delay (in our vaults receiving the gold), but eventually we found out why there was a delay (the bank didn’t have the gold). It’s absolutely amazing, but not surprising.

 

This confirms what I’ve always thought. Not only should you not have gold in banks or even unallocated gold, but even allocated gold. It seems that some banks don’t even possess that. So the risk of having gold in the banking system is major.”

On May 23rd, John Embry - Chief Investment Strategist of Sprott Asset Management, with $10 billion under management - added:

When the customer finally got his gold, it was 2011 minted bars. This made no sense because he had been holding the allocated gold for years. That’s just another example that even the allocated gold in the banking system has probably been loaned out. Many of these customers will wake up one day and realize they entrusted their gold to the wrong people.”

Jim Willie claims that :

Swiss face hundreds of $million lawsuits, for refusal to deliver Allocated gold.

Similar reports have come from Canada and other countries.

Indeed, Jim Willie alleges today:

Allocated Gold accounts across the Western world have been confiscated, sold, and replaced with shabby paper gold certificates illegally.... The account raid practice has been widespread in Europe, London, and United States.

Given the numerous reports of supposedly "allocated" gold not being there, it should not be entirely surprising that wealthy investors are taking matters into their own hands ... literally.

Kirby Analytics notes:

We are hearing anecdotal accounts that beneficial owners of “allocated” gold bullion in London and other European centers have showing up at bullion banks and demanding their physical metal be a] viewed and assayed, and then b] withdrawn from the vaults of banks.

And as we pointed out in 2010:

Omnis’ Jim Rickards, GATA’s Adrian Douglas and others have demonstrated that the big bullion dealers and ETFs don’t have nearly as much as physical bullion as they claim.

 

Should a substantial portion of investors in these vehicles demand physical delivery at the same time, it could cause a panic in the gold market which would cause a huge run up in gold prices.

Does this mean you shouldn't own gold?

No ... It just means that you should only buy physical gold, and store it somewhere you can actually get your hands on it.

 

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Mon, 10/22/2012 - 18:54 | 2911061 rustymason
rustymason's picture

I wanna hear official account(s) of this actually happening. Not that I doubt it is, I just want to see more than anecdotes and rumors.

Sun, 07/08/2012 - 00:16 | 2595874 Socialized Losses
Socialized Losses's picture

Not to worry PM investor you've just been rehypothecate'd. It's all good.

Fri, 07/06/2012 - 13:30 | 2592507 Fix It Again Timmy
Fix It Again Timmy's picture

Ever notice that quite a few banks are named "_______ TRUST Co." - BAH HAHAHAHAHA.......

Fri, 07/06/2012 - 14:30 | 2592775 Goldilocks
Goldilocks's picture

"Get a piece of the rock!"

~//~

1975 Commercial: Prudential, GE, Prudential, Lysol, Tegrin
http://www.youtube.com/watch?v=-WULc7bchSU (4:05)

Fri, 07/06/2012 - 13:15 | 2592445 f16hoser
f16hoser's picture

Stupid Fuckers. If you don't hold it, you don't own it! Trust NO ONE!!!!!

Fri, 07/06/2012 - 12:41 | 2592311 Troy Ounce
Troy Ounce's picture

 

 

Acute shortage of Krugerrands at Rand Refinery in Johannesburg.

Reason: shortage of gold and high demand.

Fri, 07/06/2012 - 12:59 | 2592396 Divided States ...
Divided States of America's picture

Gold price is definitely being manipulated at current levels. Its stuck in this range because the Fed knows that if it breaks 1800, this thing will become a freight train and cant be stopped till 2500+. If it goes below 1400, then everyone will be buying the physicals so they are in effect, taking real cash out of the ponzi financial system, which will cause further deleveraging meaning a crash of a bigger magnitude than 2008 is imminent.

Fri, 07/06/2012 - 13:11 | 2592434 fourchan
fourchan's picture

bingo!

Fri, 07/06/2012 - 12:22 | 2592244 sgt_doom
sgt_doom's picture

Great blog post, GW!

And for my end of the week rant:

Full Spectrum Dominance:  Why transactional data matters

During the Bush administration, at least on several occasions, the entire warrantless eavesdropping or wiretapping and FISA made the national news cycle for several days ---- yet each time, oddly enough, it was knocked off by the news of national immigration marches.

What exactly was really accomplished by those national immigration marches?

Other than occupying the news space on those days?

Next obvious question would be who owned those Spanish-language radio stations responsible for organizing those marches?

At that time, the major financial stake in those stations belonged to the private equity firm, the Blackstone Group, chaired by Peter G. Peterson, protégé of David Rockefeller.

During that time the Blackstone Group also had a financial stake in telecoms in Germany, Denmark, Switzerland, Poland, Italy, Portugal and Malta (Malta being an important nexus point, or physical exchange point, between Europe, North Africa and the Middle East), as well as one of the three major privatized global satellite networks at that period, New Skies Network (officially later sold off, but we never checked to see if Blackstone Group actually owned the company it was sold to?).

So those national marches, which knocked warrantless wiretapping off the news cycle and involved AT&T, were organized by Blackstone Group-owned radio stations, chaired by the fellow whose financial-economic-political mentor was David Rockefeller.

Now AT&T was broken up --- on paper at least --- but can anyone provide definite data to prove it was ever actually financially divested?

Negative! 

Now, traditionally, AT&T was a Rockefeller-Morgan financial entity, which, by the way, happens to have re-conglomerated back to its original form, thanks in part to President Bill Clinton’s Telecommunications Act of 1996.

And who led the charge in congress to grant immunity to AT&T and those telecoms involved in that warrantless wiretapping for the government?

None other than Sen. Jay Rockefeller of West Virginia!

My oh my, how those coincidences pile up?

Recently, some very serious legislation has passed into law --- while other equally dangerous legislation has failed, for now  --- although that failed legislation attacked net neutrality (equality of access to the Internet), it was really only to make into law that which is quickly becoming reality --- the end of net neutrality!

Laws have been passed, in America and Europe and elsewhere, requiring ISPs to retain your data for 1 to 3 years or more.

Why is this important to the ruling elites? 

Transactional data, surrounding information, dot connection, global linkage.

Using existing DPI techniques (Deep Packet Inspection), they can virtually identify and extract information about you, your life, your family, the like of which most people cannot even imagine.

Data mining hit critical mass around 2003 to 2004; and all it then required to identify a person exactly was their age and zip code --- today it probably requires less.

A little while ago, a fellow from the New America Foundation wrote a book on ExxonMobil --- focusing on the personalities of its chief executives, and went on a book tour where not a single person who interviewed him (including NPR’s Terry Gross and Amy Goodman of Democracy Now!) inquired as to the ownership of ExxonMobil?

Now isn’t that freaking amazing? ? ? ?

Of course, New America Foundation is funded by the Peterson Foundation, endowed by Peter G. Peterson, protégé of David Rockefeller.  (ExxonMobil is a re-combining of the original Rockefeller’s Standard Oil Companies --- which were once broken up --- at least on paper --- as no valid data exists to suggest otherwise.)

AT&T?  ExxonMobil?  Are we beginning to note a pattern here?

Now that’s why we must also pay attention to transactional data --- it’s not just for the ruling elite to manipulate and control us --- it exposes the ultimate aims of the plutocracy!

So, to return to MK ULTRA --- which officially they claim was ended --- but is very much in existence today.

Funds were disbursed for that program through the Rockefeller Foundation, and other Rockefeller family foundations under different names  --- referred to as philanthropy, but technically known as the intelligence shadow funds disbursement --- then the MK ULTRA program was moved from the CIA to the Pentagon sometime in the 1970s.

In the 1980s, under Reagan, the NSA was also moved to DoD control, losing its ostensibly civilian independence.

The government, through the Department of Homeland Security, has instituted its own DPI software, called Einstein Intrusion-Prevention System, utilizing NSA tools (Tutelage program) to monitor traffic into and exiting government networks.  (While this may be a preventative measure, it can also be a major boon in its war on whistleblowers.)

Their system, of course, was first tested and implemented on the AT&T network. 

DPI technology is presently sold by the Boeing subsidiary, Narus, to China, Vietnam, Saudi Arabia, Bahrain, Egypt, etc., to track down activists for torture, jailing and to disappear them.

This is what democracy looks like?

And what former and unrepentant chief economist from the IMF, now a professor at MIT, claims that the Rockefeller family gave away the bulk of their fortune in philanthropy after the breakup of their Standard Oil, which itself is another claim?

Simon Johnson, who also happens to be a senior fellow at the Peterson Institute, founded by Peter G. Peterson and David Rockefeller for the multiple purposes of ending Social Security, Medicare and Medicaid, offshoring all American jobs, and promoting universal love and admiration for the WTO’s Financial Services Agreement!

(Those coincidences just won’t stop, now will they?)

So while Johnson spreads the mythology that (1) Standard Oil was broken up, when it was really only broken up on paper, the Rockefeller family retained financial power to control and manipulate; and (2) that the Rockefeller family gave away a fortune through philanthropy, when in actuality they were really disbursing taxpayer funds from the intelligence agencies’ shadow budget!

And Johnson promotes the breaking up of banks --- on paper --- while urging the continuation of the status quo, i.e., keeping all their financial tools for destruction in place, such as naked swaps, etc.

This too, is part of MK ULTRA!

We admit we have no idea as to the DoD’s new name for MK ULTRA, perhaps “Full Spectrum Dominance” --- if anyone knows or can find out we’d appreciate that datum.

By whatever name, the MK ULTRA program is still active, now involved with manufacturing reality, yours and mine, through disseminating the “news” through countless think tanks, institutes, foundations, trusts, etc.

It seeks all transactional data through social intelligence systems (social networking, web tracking services, Facebook, Discus, et al.) while manipulating general opinion through chatbots, site censorship, site-generated comments (non-human, but meant to sound like one), etc.

So let’s break it down:  those national immigration marches acted to alter the national news cycle, only causing people in cars, trucks, buses to burn more gas --- and who profits from that?

The oil companies, and who owns the oil companies?

Truly, we are being played from every angle!

Whatever its name, MK ULTRA was and is about master control.

A young graduate student, a husky White-American male, climbs a tower on a Texas college campus, armed with a rifle and extra ammo, then randomly shoots at the people below.

A precocious Jewish-American youth enters Harvard at a very young age, where he becomes the unwitting test subject in Henry Murray’s behavioral manipulation program, and years later this young prodigy gains publicity as the Unabomber.

A Black-American IBM employee in his late 30s, is approached by people on a train who know everything about his past, and he quickly slips into mental illness, quitting IBM only to return in 1982, crashing into their Bethesda, Maryland, facility, and begins shooting at anyone and everyone!

The concrete link connecting them?  They were all the unwitting subjects of the MK ULTRA program.

We only realize that today due to transactional data, surrounding data and links.

MK ULTRA . . . .it continues.

 

Sat, 07/07/2012 - 14:51 | 2595108 Ranger4564
Ranger4564's picture

great post... glad there are others looking for the big picture.

Fri, 07/06/2012 - 12:19 | 2592228 Zero Govt
Zero Govt's picture

what an f'n scam/fraud these banksters run 

Thanks for the article/info GW

Fri, 07/06/2012 - 12:13 | 2592193 No Euros please...
No Euros please we're British's picture

And on a seperate note: India have been challenged for "illegally" moving 265 tons of gold to the BOE and BIS. This being almost 50% of the gold reserves of the Reserve Bank of India. The case was thrown out on a technicality and RBI have refused to comment. No doubt BIS have put it to good use.

Fri, 07/06/2012 - 11:57 | 2592146 No Euros please...
No Euros please we're British's picture

On a serious note: The Fed holds 2000 tons of gold for the Bundesbank which they are refusing to account for. Politically the Bundesbank, although they did ask for it back, cannot now push the point and force the Fed to outright "confiscate" it. Germany would then have to account for the loss of 60% of its gold reserves.

The fact that this gold has been lent out and leveraged 100:1 might account for it. Just imagine 200000 tons of paper gold disappearing overnight. Imagine what that would do to the gold price. Imagine..................mmmmmm.

Fri, 07/06/2012 - 11:26 | 2592009 DarthVaderMentor
DarthVaderMentor's picture

Buy it and store it at home so Obama or the master con man Romney can get it once he's re-elected.

Fri, 07/06/2012 - 10:53 | 2591852 world_debt_slave
world_debt_slave's picture

make sure to have your silver and gold allocated into your hands.

Fri, 07/06/2012 - 10:29 | 2591762 ian807
ian807's picture

If you don't own the physical gold, you don't own anything. It's just a story, subject to change without notice.

Fri, 07/06/2012 - 11:18 | 2591760 Bansters-in-my-...
Bansters-in-my- feces's picture

red alert.....

Red alert.....

Kitco silver lease rates for one year show minus .4 %

it just was like plus 0.6

something up.

They also are very deceptive and just show the increase on the data not the chart,as the chart is very visually noticeable.

Ps....fuck yous Kitco.Deceptive bastards.....

Fri, 07/06/2012 - 11:16 | 2591759 Bansters-in-my-...
Bansters-in-my- feces's picture

red alert.....

Red alert.....

Kitco silver lease rates for one year show minus .4 %

it just was like plus 0.6

something up.

They also are very deceptive and just show the increase on the data not the chart,as the chart is very visually noticeable.

Ps....fuck yous Kitco.Deceptive bastards.....

Fri, 07/06/2012 - 10:22 | 2591739 tony bonn
tony bonn's picture

and just to pull some more jim willie information, he says that there is a shortage of 20,000 tons of gold due to the wall street banks being unable to make good on gold owner's demands for their gold....6,000 tons of gold were shipped east (orient) i believe in the first quarter....

there is a ravenous shortage of gold.....it is in complete and severe backwardation as i have said on numerous occasions....and i do not give a flying fuck what the paper price is saying....fort knox houses nerve gas which the government is planning to use on civilian populations in the usa....the concentration camps are in place and fully functional...

all of those we buy gold stores are funneling gold into nyc banks who are desperately scrambling to meet obligations which they are are already repudiating - they are the ones sponsoring all of those dancing chickens on street corners to buy gold....gold is such a bargain if you can get the physical....

Fri, 07/06/2012 - 16:44 | 2593244 Vic Vinegar
Vic Vinegar's picture

fort knox houses nerve gas which the government is planning to use on civilian populations in the usa

oh the irony!

Fri, 07/06/2012 - 10:01 | 2591667 Dubious Maximus
Dubious Maximus's picture

I will only entrust my PM to a place where I can see and touch it..

Keep on stackin'....physicals.

 

Fri, 07/06/2012 - 10:38 | 2591796 GeezerGeek
GeezerGeek's picture

This puts Olivia Newton-John's song in a whole new light.

Let's get Physical! http://www.youtube.com/watch?v=vWz9VN40nCA

 

Fri, 07/06/2012 - 10:00 | 2591665 Quinvarius
Quinvarius's picture

Notice that GLD and SLV inventory never drops, it only flatlines.  That right there tells you something weird is going on.  Can't redeem what you don't have.

Fri, 07/06/2012 - 13:02 | 2592404 Sean7k
Sean7k's picture

There are all kinds of inconsistencies in GLD and SLV. The COMEX numbers are bizarre as well. Anyone following them should see the discrepencies between dealer inventories and deliveries every month. 

JPM is allowed to use SLV shares to cover their margin on their short position. Meaning- these shares are rehypothecated- thank goodness they are in London where it is legal.

The number on silver appears to be 27 million ounces. When ever the eligible inventory hits this mark, a large deposit is made- last time in the JPM vault.

If you look at total customer redemptions every month- there shouldn't be any silver anywhere- so something is going on. 

Finally, there are gold and silver players that use these metals to make real money and have forever. They are not bankers. However, it stands to reason that any movements in price can benefit them as well as the bankers- especially if they collude (say it ain't so, joe).

This leaves legitimate businesses and private investors against the largest holders of metals for trade (yes, many in the East keep metals, but they don't play with them). This is a difficult trade to beat, unless someone decides to go for the final move. That someone will not be you or me.

 

Fri, 07/06/2012 - 10:50 | 2591840 unemployed
unemployed's picture

Very nice...  how many tons was that?

Fri, 07/06/2012 - 20:03 | 2593684 Quinvarius
Quinvarius's picture

Here are some charts to put it in perspective.  The author who has a different opinion on what it means.

http://www.gotgoldreport.com/2012/06/bears-cant-convince-gold-and-silver-etf-holders.html

 

 

Fri, 07/06/2012 - 10:01 | 2591664 Blue Horshoe Lo...
Blue Horshoe Loves Annacott Steel's picture

Are Banks Raiding "Allocated" Gold Accounts?

Duh.  The Western banks & governments are broke, insolvent. Of course they're raiding gold accounts.  They're stealing the real money.  They know their paper money is a fraud.

 

Fri, 07/06/2012 - 09:43 | 2591603 silverdragon
silverdragon's picture

Badabing,

I am just a simple guy and will keep buying lots of Physical Silver and a bit of Gold.

Fri, 07/06/2012 - 13:04 | 2592417 Badabing
Badabing's picture

you got your chair buddy

Fri, 07/06/2012 - 09:27 | 2591538 PMakoi
PMakoi's picture

I just picked 5 shopping bags full of vegetables from my garden.  Tools, skills, PM's safely stored, plenty of firepower, family, friends, Community, and God.

Fri, 07/06/2012 - 12:32 | 2592282 FeralSerf
FeralSerf's picture

I'm a preacher, one of G-d's Authorized Representatives (a GAR).  Please send me your PMs ASAP.  G-d needs them.

Fri, 07/06/2012 - 10:22 | 2591737 Peter Pan
Peter Pan's picture

Good preparation but let's hope you have no need of a hospital.

Fri, 07/06/2012 - 15:27 | 2592978 PMakoi
PMakoi's picture

59 today, blood pressure is fine, in pretty good shape, and married to a doctor.  That last wasn't a plan, but it sure is kinda helpful.

Fri, 07/06/2012 - 11:34 | 2592044 DaveyJones
DaveyJones's picture

daily homegrown, organic vegetables will lower his need for that place

Fri, 07/06/2012 - 09:11 | 2591471 Arnold Ziffel
Arnold Ziffel's picture

Why people don't use "The Cloud"

 

We hear several rationales. The first, which bankers are always quick to point out, is that they have a fiduciary responsibility to keep their customers' account data secure and they therefore cannot do anything that would jeopardize client information. This is a strange argument.

For one thing, many of the same bankers who swear they'll never put customer data in the cloud use Salesforce.com for customer relationship management - cloud-based software used to handle personally identifiable information. Banks often let third-party providers host their core applications, which also deal with large quantities of customer information.

 

http://www.americanbanker.com/btn/25_7/bankers-reluctant-to-embrace-clou...

Fri, 07/06/2012 - 08:53 | 2591405 Bicycle Repairman
Bicycle Repairman's picture

Of course the banks are lending out the gold.  They are banks!

Fri, 07/06/2012 - 12:28 | 2592270 FeralSerf
FeralSerf's picture

Absolutely!  That's what banks do.  It's their job.  They've always done this, even when they were called goldsmiths.

I don't know why anyone here would be stupid enough here to junk you unless they're shills.  Thieves steal too -- it's their job and one shouldn't be surprised when it happens.

This is just part of the final battle where the "Chosen People" cash in their (and our) chips and make off with the loot.

Fri, 07/06/2012 - 08:51 | 2591398 CustomersMan
CustomersMan's picture

 

The fractional reserve system started with gold....so to me the idea they are doing this, loaning out the gold (illegally) is not surprising.

 

Just look up "fractional reserve gold history".

Fri, 07/06/2012 - 08:51 | 2591395 silverdragon
silverdragon's picture

Physical Silver!

Fri, 07/06/2012 - 08:48 | 2591371 Hurdy Gurdy Man
Hurdy Gurdy Man's picture

Mini-storage units, bitchez!

 

Fri, 07/06/2012 - 08:42 | 2591337 I Am Not a Copp...
I Am Not a Copper Top's picture

Anyone here use Goldmoney?

Fri, 07/06/2012 - 10:02 | 2591674 CH1
CH1's picture

Gold Money, I trust, not banks and not Kitco.

Fri, 07/06/2012 - 08:43 | 2591349 CPL
CPL's picture

Nope, Kitco and kitco dealers.

 

Goldmoney...the online variety is worse than the ETN markets.

Fri, 07/06/2012 - 09:28 | 2591541 lakecity55
lakecity55's picture

Provident has low shipping rates.

Apmex seems to have more quantity on hand.

Fri, 07/06/2012 - 10:11 | 2591702 ATM
ATM's picture

They all leave a paper trail......

Fri, 07/06/2012 - 12:31 | 2592281 tekhneek
tekhneek's picture

Yeah. Use a debit card/credit card to acquire your metal. No way that'll come back and bite you in the ass.

</sarc>

Fri, 07/06/2012 - 11:56 | 2592128 Paul Atreides
Paul Atreides's picture

Have a boating accident, walk in buy cash, get a UPS mailsuite box, mail to a trusted family member, stick it behind some replaced drywall, shove it in a frozen chicken in the freezer...get creative!

Fri, 07/06/2012 - 11:09 | 2591925 Winston Churchill
Winston Churchill's picture

Be a little creative.

One could send money to a bank in the UK,transfer it to a bank on an island

in the Irish sea,to pay  a Canadian wholesaler  in Canada,which ships from its subsiduary in

the US,to you.

Not that I would ever do such a thing for a 'barbarous  relic".

Fri, 07/06/2012 - 12:20 | 2592237 FeralSerf
FeralSerf's picture

If you had any money left after all those transfers, it would be a miracle.

Do NOT follow this link or you will be banned from the site!