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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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Fri, 07/06/2012 - 10:11 | 2591700 americanspirit
americanspirit's picture

California Numismatic Investments is a very reliable bullion and coin dealer, they buy and sell at honest rates, and they are legitimate business people. They ship registered insured, and nobody in my family has ever had an issue with CNI.

 

Fri, 07/06/2012 - 08:31 | 2591281 Old Poor Richard
Old Poor Richard's picture

Where canya find pirates?  On the isle of Manhattan.  On the isle of Manhattan they got pirates.

Where canya find pirates?  On the banks of the Thames.  On the banks of the Thames thar be pirates--nevermind Switzerland.

Allocated.  Allocated, allocated, allo-cated.  Your allocated gold, it ain't there.  All the vaults, they be bare--bankstas have seized it.

 

Fri, 07/06/2012 - 12:16 | 2592217 FeralSerf
FeralSerf's picture

Newsflash:  Jooze steal everyone's gold.  Details whenever.

Fri, 07/06/2012 - 08:24 | 2591273 Peter Pan
Peter Pan's picture

Allocated gold accounts are fractional at best. They are being run just like banks. Best scam in town for those running them. A run on these accounts would soon flush them out.

Fri, 07/06/2012 - 07:53 | 2591212 Old Poor Richard
Old Poor Richard's picture

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.”

 

They had to scramble to substitute authentic gold to the redeeming customer because they couldn't allow those allocated bars to be assayed--they're tungsten.  Or spraypainted bricks.  Or a projected hologram in the vault a la Mission Impossible.

If people think the LIeBOR scandal is the "biggest" scandal, wow, is all I can say.  Outright stealing, empty vaults--this is going to be a megaton bomb compared to the LIeBOR firecracker.

 

Fri, 07/06/2012 - 11:01 | 2591884 Roger Knights
Roger Knights's picture

"even the allocated gold in the banking system has probably been loaned out"

The sale of this loaned-out gold may be what's been depressing the price of gold.

Fri, 07/06/2012 - 08:08 | 2591237 CPL
CPL's picture

LIEbor is one firecracker in a string of them.

Fri, 07/06/2012 - 07:46 | 2591198 silverdragon
silverdragon's picture

It is amazing that people buy paper Silver and Gold, what's the f*cking point?

They deserve to be raped by the banksters.

 

 

Fri, 07/06/2012 - 10:08 | 2591688 americanspirit
americanspirit's picture

If anyone here on ZH wants to get really really rich all you have to do is to send me your physical silver or gold by insured, registered mail and I will immediately send you in return an IOU stating that I will pay you, on demand, ten times what your physical is worth. ( and if you don't ask me which currency I will be paying in, I'll go double!) How's that for a deal.

Fri, 07/06/2012 - 08:55 | 2591407 Badabing
Badabing's picture

@ silverdragon

Because playing musical chairs with paper gold can make some big bucks, especially with $20 plus movements in an hour, while the fucking banks can front run the moves because they make them.

In the gold world of musical chairs the little guy (you and I) can bungee a chair to your ass by buying physical gold.

 

Fri, 07/06/2012 - 07:18 | 2591170 egoist
egoist's picture

Sevral years back, I had lots (to me, anyway) of a silver stock. I thought Peter Schiff was being a little over-the-top about these paper accounts; I'm glad I listened.

First, trust no one!

Fri, 07/06/2012 - 09:48 | 2591617 Papasmurf
Papasmurf's picture

Schiff was promoting paper accounts through perth mint.

Fri, 07/06/2012 - 08:07 | 2591231 CPL
CPL's picture

For those that saved you captial in real currency, silver and gold.

 

Congratulations.   You are going to see some insane movement starting today until this mess is all cleaned up.

 

Now does everyone understand why the silver and gold price has been kept low.  Every bank has been fucking around with ETN paper swaps...every...last....one.  All that paper silver and gold is now shown for what it really is.

 

An IOU, for a leveraged IOU, for a leverage derivative contract backed by nothing.  Why?  Because the smarter of you actually removed the PM's from the system and took delivery of YOUR asset.  Finance isn't about the common good, it's about your management of captial.

 

The banks can go shit themselves in panic now.

 

Fri, 07/06/2012 - 11:04 | 2591898 CloseToTheEdge
CloseToTheEdge's picture

for too long they've been papering over rusted gold (globablly)

Fri, 07/06/2012 - 07:03 | 2591156 Sudden Debt
Sudden Debt's picture

GIVE ME ONE EXAMPLE THAT YOU CAN'T TRUST BANKS!!! ONE!!!

...

ONE THOUSAND EXAMPLE I MEAN!! And I'll shut up...

....

One thousand examples per bank that is...

...

that only date from the last 12 months!!...

...

make it days... 12 days...

 

 

Sun, 07/08/2012 - 00:22 | 2595877 Socialized Losses
Socialized Losses's picture

My bank told me they were going to start charging me all kinds of miscellaneous fees. Sure enough they did. My bank Honest Injun.

Fri, 07/06/2012 - 07:02 | 2591155 El Gordo
El Gordo's picture

MF Global proved that this is not a crime and is in fact standard industry practice.  Morgan Stanley was ill informed enough to pay out a fine early on but has shurly learned its lesson by now.  If you can't touch it, you don't own it.

Fri, 07/06/2012 - 06:54 | 2591144 No Euros please...
No Euros please we're British's picture

No wait. Surely this story can't be true. That would be fraud and the banks would never do that. Is this why the banks are sponsoring a replica of the Titanic for allocated gold storage?

Fri, 07/06/2012 - 03:29 | 2591051 terryfuckwit
terryfuckwit's picture

Whilst UK use half of all QE money to furtively buy that yellow shiney stuff.. Well  you just couldn't make it up could you..

but I just did LOL

Fri, 07/06/2012 - 07:56 | 2591216 reload
reload's picture

Perhaps Nat West & RBS are buying the shiney with all the money that they have NOT credited to their customers accounts. The story has dropped out of the news, but the problems remain and are NOT getting fixed.

I paid in some cheques 10 days ago to Nat West, they have been cleared according to Nat West branch manager and the money has left the accounts on which they were drawn - 9 days ago. Why has the money not been credited to my account? nobody can tell me, or tell me when it will be. My small local branch, according to the manager has 300 customers in the same possition. Assuming that the problem is of a similar size accross the combined branch network thats a lot of missing money and impacted customers.

Yet the bank websites claim `problems solved` and the story is out of the news.

 

 

Sun, 07/08/2012 - 00:38 | 2595884 Socialized Losses
Socialized Losses's picture

@reload: I wouldn't buy into their claims of "systems failure" or "IT issues" after this long. 4 hours of problems due to systems failure at this level s one thing, but this has been going on way  to long. Time for a new bank or credit union. Something is rotten in Nat West/RBS.

Fri, 07/06/2012 - 05:38 | 2591109 StychoKiller
StychoKiller's picture

Imagine how red yer face will be when you find out what the "truth" is! :>D

Fri, 07/06/2012 - 09:50 | 2591626 El
El's picture

Especially since Nat West and RBS issues have been widely reported and yet you are stiill doing business with them. #FAIL

Fri, 07/06/2012 - 02:50 | 2591026 DavidPierre
DavidPierre's picture

 


ALLOCATED GOLD ACCOUNTS


The revelation of banker criminality has only begun. The culmination in the opinion of my best banker source is come before too many more months. Attention focuses now on the LIBOR price rig scandal. It will extend to the USTBond and Interest Rate Swap artificial props.  

It will extend in a climax event for exposure that Allocated Gold accounts across the Western world have been confiscated, sold, and replaced with shabby paper gold certificates illegally.

Numerous class action lawsuits are in progress in Switzerland, kept out of the news. They total several $billion in combined size. However, the account raid practice has been widespread in Europe, London, and United States. The scope of the seized and raided Allocated gold accounts is enormous.  

This will be the biggest banker scandal in modern history. The scope involves at least 20 thousand tons of missing gold, and possibly as much as 40 thousand tons missing.

The lid will blow off the concealed story before long. The news networks in Switzerland have been dutiful in keeping the story quiet. Not for much longer. It is not the only nation involved, no way. Big important influential wealthy people have been victimized. They will seek justice and demand an open court. All in time. When that happens, the price of gold will double in a matter of months. The big banks that have criminally raided the Allocated accounts will be forced to retrieve and purchase the gold on the open market. Many complicit banks will simply collapse, since already insolvent. Some bank executives will face prosecution. Perhaps a few will go missing, like the gold bars. The story and its publicity of semi-stolen gold will bring much needed attention to gold as real money.


911 BANK HEIST


As the years pass, the evidence mounts. The  www.ae911truth.org/  organization is expert and loud, the architects and engineers who provide expert testimony on the absurd official 911 story at the World be-Trade Tower.

A secretive Russian Bond valued at $240 billion was to mature the very next day, most of which were held in the Cantor Fitzgerald offices atop the tower. Those bonds could not be redeemed at maturity, a theft.

Nothing on the official story makes any sense, nor does it stand up to chemical scrutiny or to scrutiny from phsyics.

Costa Rica has a richly dotted landscape of very well informed people with all kinds of legitimate contacts, such from Secret Service friends, bank executive friends, ex-USMilitary types, slush fund managers, obscure types, and more. My informed sources have been numerous that have shed light on the infamous event. It was a grand bank heist that involved perhaps around $100 billion in stolen bearer bonds, perhaps around $100 billion in stolen gold bullion bars, and perhaps around $100 billion in stolen diamonds.

The 911 event marked  a coup d'etat of the United States Govt.

Their grip on power continues through to today. The true story will come out, all in time, like veracity bubbles working toward the surface. Those holding the lid on the actual events are reducing in number each year. My expectation is that the true story will come out as the inevitability of a USGovt debt default becomes evident and unavoidable, when the JPMorgan machinery fails in full view to uphold the USTBond tower. At that time, the new trade settlement systems, the new barter systems, the bypass to USDollar settlement, they will come into place. Gold will be at the center of every new system. Much like how geophysics leads to iron forming at the core of a stable body, gold will form at the core of the stable financial body. But its price will be closer to $10,000 per ounce than $2000 per ounce.

Gold price charts mean little, when the enter paper system is in the process of imploding, first bonds, then currencies, then sham gold markets.


http://news.goldseek.com/GoldenJackass/1341518400.php


Fri, 07/06/2012 - 13:00 | 2592397 illyia
illyia's picture

Great article, thanks for posting it. Love JW.

i.

Fri, 07/06/2012 - 06:12 | 2591126 JOYFUL
JOYFUL's picture

While my respect for Jimbo is immense, and the CantorFitzgerald bond was certainly a powerful element  of the skullduggery behind that day in September we all remember, there's simply no way to win a prize at that ring toss unless you bring Barrick Gold into the picture....

hard as it might be to believe now, way back then there were still some legacy agents of the federal government who believed that their job was protecting the national security of the USA...for which reason they had assembled a vast body of information documenting the misdeeds of the secret investment vehicle of George Bush Sr., Adnan Khashoggi and Edgar Bronfman in Kom-bination with JP Mor-ga[i]n and Deutschebank...weapons meets cia meets bnaibrith meets crooked banksters in a gold laundering operation only trotskyite uber-Kapiltalism could dream up.

all of which was lost when fires broke out on the 23rd floor of WT7!

Strangely enough all of  Deutschebanks US records were 'lost' the same day...and the vital details of the inner workings of the Barrick Gold scam went missing when Eron's records were grabbed by UBS...

in the end[and surely after it's far too late to put Humpty together again]all roads will lead back to Barrick.

After settling with the New Orleans dealer [files ordered sealed by judge] whose suit forced Barrick to dismember their hedging scam, the latest gold bull market began in earnest...and the wheels began falling offa the scamsters wagon one by one..yes...we'll soon enough see $6000 gold... but I doubt it's gonna make anybody happy, even Jim Willie, who knows that the banksters and their bnaibrith ringleaders intend to take everything and everybody down with them.

911 = prequel to the controlled demolition of Euromerika by messianic maniacs in bespoke suits. Soon enough, losing their gold is gonna be the least of folks worries!


 

Fri, 07/06/2012 - 08:46 | 2591364 idea_hamster
idea_hamster's picture

Let's keep in mind that any claim that "Numerous class action lawsuits are in progress in Switzerland, kept out of the news" isn't accurate.

Switzerland -- and the vast majority of the world, for that matter -- doesn't even have a US-style class action form of lawsuit.  

Wondering why the Japanese haven't filed a shareholder class action against Olympus?  Because there is no class action in Japan.  Nor in CH.

Now, this could be a simple mis-print: the author could mean that there are just lots of lawsuits by individuals for their gold -- that's certainly believable and possible, and could also be better understood as something that wouldn't make the news.

Not hatin' -- just sayin'.

Fri, 07/06/2012 - 12:43 | 2592322 Treason Season
Treason Season's picture

IMHO Jim Wille is one of the good guys but hyperbole is one of his trademarks.

Fri, 07/06/2012 - 12:31 | 2592280 Not Too Important
Not Too Important's picture

Who cares about lawsuits? At the level of the people having their gold ripped off by 'trusted' bankers they've been dealing with for decades, clearly very large sums, I'd be more concerned about 'displays' of hidden power. Lawsuits could take years, but a few bumped off bankers, in a very 'dramatic' and public fashion, would be far more persuasive in getting their gold delivered. Fast.

A drug dealer will kill another dealer, using some of the world's most lethal assassins, over a $50,000 deal gone bad. We're talking about wealthy people losing millions, to tens of millions or more, in lost gold. Hire a 'security company', and many things can get done very, very quick.

And the longer it takes to get their gold, the higher up the ladder they'll go. This isn't a few farmers and ranchers getting ripped off.

Fri, 07/06/2012 - 10:04 | 2591679 ITrustMyGut
ITrustMyGut's picture

thank you for this post... Truth, even if it contradicts something I want to be true.. is always preferable!

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