Aaaand It's Gone: This Is Why You Always Demand Physical

Tyler Durden's picture

We have said it over and over, we'll say it again. For all those who for one reason or another would like to boycott the broken markets, yet trade gold in paper form, please understand that all the invested capital is at risk of total loss and can and will be lost, commingled and rehypothecated, not necessarily in that order, with little to zero recourse and the residual claim on liquidating assets pushed to the very end of the queue. Because if Lehman, MF Global, Peregrine, and countless other examples were not enough, here comes Amber Gold: a gold-based investment ponzi scheme out of Poland, in which it is likely needless to say that the gullible investors never had actual possession of the gold. And when they tried, it was gone. All gone.

From the WSJ:

This week's collapse of a gold-derivatives business that Polish regulators say was a Ponzi scheme has hit tens of thousands of customers, shaken confidence in the effectiveness of the nation's financial regulation, and is roiling national politics in the European Union's largest emerging economy.


On Monday, the company, Amber Gold, Sp. z o.o., which sold a gold-indexed investment of its own design and offered higher interest rates than banks, said it was halting operations. It pledged eventually to repay about $24 million it said it owed to roughly 50,000 clients in Poland.


Amber Gold's 28-year-old founder, Marcin Plichta, who has publicly acknowledged past convictions for misappropriating funds, couldn't be reached to comment. Amber Gold representatives were also unreachable.


Despite three years of warnings by Poland's financial authorities that the company was operating without a license, it continued expanding and spent heavily on marketing. Among its businesses, the company launched a budget airline this year to compete with state-owned LOT Polish Airlines SA on domestic and European routes.


The airline, OLT Express, ceased flights last month and the gold fund unraveled this month after renewed government warnings prompted commercial banks to close Amber Gold's accounts. The company said "the liquidation process will be spread over time," without specifying when people might get their money back.


On Tuesday, Prime Minister Donald Tusk referred to Amber Gold as "a scheme" and said he ordered his finance minister to convene top financial authorities—including the central bank and consumer protection office—to discuss the company's demise and the effect on customers. "All signs on heaven and earth suggest that people who put their trust in that company have been cheated," Mr. Tusk said. He said it is the duty of the state "to move fast enough to protect people from those schemes."



"I'm shocked at this point and I don't know what to do," said a woman in her 40s, who didn't give her name but said she was an Amber Gold client. "The boss of this company is a very wealthy man and I don't know who will have the authority to block his wealth so he doesn't escape."


Amber Gold has said it has $45 million in assets, including 100 kilograms of gold. For years it hasn't issued required financial statements, a lapse that draws a small penalty.

What can be said here: same sad story, different day. People preying on the "get rich quick" euphoria (we would call it laziness but the word is just slightly off color) of others, throwing in a symbol of stability (gold), and laundering proceeds to "baffle everyone with bullshit" all the while the regulators confirm that regulation is meaningless, by not doing their job (and in America would have likely been part of the ploy - apparently in Poland they are amateurs). Said prey also thought that if things turned sour they would be able to pull all their "gold" which just has to exist, because someone else has certainly checked, right, after all there are tens of thousands (of confused lambs part of this), ahead of everyone else.

Alas, as with every Ponzi, this "strategy" never works. It didn't work for the original Ponzi, it didn't work for Bernie Madoff, and it won't work for the global capital markets, which are increasingly perceived by everyone as merely the largest and most comprehensive thoroughly legitimized by their broke host governments and corrupt regulators Ponzi scheme ever conceived.

And so, as we said in the beginning, anyone who puts any amount of money in the market should expect to lose all of it. The US government and the Fed may believe that have eliminated risk but instead they have merely magnified it to a point when even a 10 point drop in the Dow Jones Industrial average feels like the imminent advent of armageddon.

Want to play in a rigged, broken casino? Go ahead - and but don't expect to recovery anything.

For everyone else for whom preservation of capital is more important than gambling, buy precious metals. And get immediate delivery. Because holding a symbolic representation of a flight to safety "asset" via Cede & Co is simply said, idiotic.

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smlbizman's picture

thats why i own gld...i know i can trust those guys...

Turd Ferguson's picture

Great stuff, Tyler. Well done.

Mr Lennon Hendrix's picture

Hey Turd!

Buy Silver - Crash JPM - Take Back the Money Supply


flacon's picture




South Park vs. Cafe Del Mar - And It's Gone



strannick's picture

Investors in the ETFs GLD and SLV try to escape a corrupt financial system by entrusting banks charged with money laundering for drug dealers and terrorists -HSBC- and LIBOR fixing -JPMorgan- with their wealth, assuming they will use it to buy gold and silver.

HSBC and JPM can then use these same GLD and SLV shares to cover their COMEX shorts as Exchange for Physicals in lieu of the actual metal. Then when gold or silver go up, COMEX smacks them down with massive unbacked shorts, or margin increases. So in essence, GLD and SLV investors are subsidizing the suppression and manipulation of precious metals prices by the biggest bankster shorts.

If you buy want to buy gold and silver, but instead get the paper farces of GLD or SLV you are, how can I put this gently... a dumb shit?

vato poco's picture

Nonsense! Poppycock! Are you somehow suggesting that fine, august, highly-respected firms such as Morgan are nothing but a pack of lying-ass thieves? That a former US Senator would piss all over his legal and fiduciary obligations and _STEAL_ from his clients?? Impossible! There are Laws! Regulations! Expensive, overstaffed governmental regulatory entities whose sole job is to *prevent* these kinds of things from happening!

Welcome to the jungle, my Polish brothers. First the Russians kill your entire government while the entire world stands by and does not one fucking thing, and now this.

MrPalladium's picture

Hey! Many thousands of American soldiers died making the world safe for communism back the 43 and 44.

So who is really the bad guy here?

Those who sent them to their deaths telling them they were fighting for freedom?

nope-1004's picture

I see an announcement on the horizon:  New head of international commodity trading for JPM is none other than, Marcin Plichta, 28, a Polish economics major (grade 9 equivalency in Georgia) with a wealth of experience in international derivatives trading, suckering, siphoning, stealing, and pillaging.  JPM is pleased to announce that Marcin's annual bonus will be capped at 28 million in an effort to show shareholders that the firm does not spend money foolishly.


Popo's picture

 Amber Gold's 28-year-old founder, Marcin Plichta, who has publicly acknowledged past convictions for misappropriating funds.


That might have been a clue...

GetZeeGold's picture



Subtle is good - Jon Corzine


You got that freakin right - Eric Holder


I stand in the presence of brilliance - Bernie Madoff


phyuckyiu's picture

You know, I went looking for the Billions in gold bars under WTC...AAAaaand IT'S G0000000nnnnnn3! I'm sorry this line is for Non Goys only..... AAAaaan It's g0n3! (shakes it like that new tire sealant in Kim Kardashian's azzz)

Al Gorerhythm's picture

An anagram of Marcin Plichta is Criminal Patch or Arch Implicant. There has to be a clue in that too.

Nussi34's picture

Money is better spend on Polish hookers than Polish financial products.

bank guy in Brussels's picture

The old Communist countries of Eastern Europe are generally quite corrupt, even their own citizens think so.

In a recent survey of Europeans, Polish people said the most corrupt country in the EU was ... Poland.

The Polish government ran a torture prison for the CIA, along with other countries in the East ... Everything is for sale in those countries ... 'Need to rent space to torture some people? ... No problem ...'

It is another way the EU is a gigantic mis-match. There are really four sectors of Europe, hugely different

Old Communist East

British Isles


North-West Continent

Our last part is the one where the societies and governments work fairly well and not dysfunctionally

vato poco's picture

Uh.........actually, Homie, I was referring to 2010's "mysterious" "accident" where the Poles were flying into Russia to mark the Katyn Forest Massacre - you know, where the commies murdered 15,000 of the Polish Officer Corps after a vote was taken by the Politburo to do so (really) - and the Russian ATC guys told the Pole pilots they were on a correct glide path when they....uh....weren't. Devastating crash occured; no surviviors. (Although conspiracy buffs place FSB guys at the crash site before rescue crews got there, executing the wounded.) Naturally, Russians being involved, the black boxes have either A)disappeared or B)are in Russian hands and will _not_ be handed over. Ever. Nyet.

Karl von Bahnhof's picture

Not Russkies, different country, different tecmology...

Unsuccessfull attempt to drive anti-russkie elements in poland into turbine spin, possibly even some kind of conflict. See ABM missiles instalation planned in PL. 

Turd Ferguson's picture

You got it, Jimi. I hope you are well.

erg's picture

I remember seeing an original post suggesting you form your own blog.

You started your own forum and I was there the very day of it's launching and I am content with that.

And I am still there.

Please continue.

Deo vindice's picture

I don't buy silver to hurt JPM. I buy it to help me.

stacking12321's picture

putting jpm out of business as soon as possible, does help you, it helps all of us.

TruthInSunshine's picture

Growing up as a young lad in the United States, the phrase "...and it's gone!" was typically preceded with "...and a long drive into right field, back, way back....on the warning track...." was associated with a major league baseball game, and signaled that one team or the other had just smacked one into the bleachers.


How sad that it's far more likely, in these current times, in what are now completely broken, Bernank'd markets, that have sapped the energy out of true market forces, instead substituting a circling-the-drain Crony Kleptocracy & Parasitism, that this phrase has come to to signify yet another implosion of one firm, fund, asset pool or another, where the wealth of many people gets vaporized in an instant, rarely with any serious consequences to people such as The Hon. Jon S. Corzine, who are the new "untouchables" of our times.

Al Capone didn't get away with jack shit compared to these modern, far more reprehensible, and lacking-any-conscience-whatsoever scumbags.

Temporalist's picture

Al Capone had to face his enemies and the people he murdered.  These creatures not so much.  Also Capone was working "against" the government not actually part of it.

drunkenlout's picture

Wait a minute!  Al Capone was one of my state's heroes.  He owned the Republican Governor.  He didn't make money by robbing banks.  He was in the production of goods sector, supplying bootlegged booze to a grateful citizenry.  He was not convicted of murder.  He was convicted of Evading Federal Income Tax.  He didn't die in a hail of bullets.  He died of syphilis, like a gentleman.  

And also, he killed some people.  Apparently, the government did not object to that.  


ziggy59's picture

Al capone robbed banks, now the gun is in the banksters hands, and robbing everyone.

nope-1004's picture

Own a gun, and you can rob a bank.  Own a bank, and you can rob the world.


Son of Loki's picture

In 2008 my friend bought his Cali house for the equivalent of 2,352 oz of gold.

Today, you could buy that same house for only 619 ounces.

House prices are tumbling out there -- gold more then doubled.

My son (a Goldbug in Houston) says he'll buy one out there when 50 ounces will buy a 3,500 sf.

Be patient.  It's coming.

Arnold Ziffel's picture


your post reminds me of one of the greatest 'Downfall' videos where houses in Hitler's area plunged 45%:


It's a classic!

Neethgie's picture

hhaaha "dont worry i can get you a job as a dog groomer"

boogerbently's picture

What is the govt's advantage in keeping gold price low?

ParkAveFlasher's picture

it keeps the dollar viable and without an alternative as the medium of settlement for large balances.

TruthInSunshine's picture

Because if the amount of paper fiat, whether here or anywhere, had to be tied to something- anything- of inherent value, as fiat currency was in prior periods, the jig would be up as even the most oblivious sheeple would realize that something was seriously wrong (as they discovered they didn't bring enough fiat for those groceries, after all).


Repeat this process of Harvest by first inflating the money supply, getting people deeply indebted (many of whom weren't indebted before), and soon enough, with enough cycles of harvest, what belonged to many will be concentrated in the hands of a few, all via the sham that is fractional reserve banking.

It's the biggest scam in the history of mankind.

Once a person grasps this basic concept, they'll understand why events have taken place as they have (Bretton Woods*; Plaza Accord; Federal Reserve Act of 1913; closing of the gold standard in 1971*, etc.), and they'll finally grasp how a select few have rigged the game to be able to harvest assets continually, and concentrate wealth and power, by doing nothing other than maintaining Deep Capture of a nation's legislative and judiciary branches (and executive, in the case of the U.S.) of government.

*On August 15, 1971, the United States unilaterally terminated convertibility of the dollar to gold. As a result, "[t]he Bretton Woods system officially ended and the dollar became fully fiat currency, backed by nothing but the promise of the federal government." This action, referred to as the Nixon shock, created the situation in which the United States dollar became the sole backing of currencies and a reserve currency for the member states. At the same time, many fixed currencies also became free floating.



Al Gorerhythm's picture

Gold measures the purchasing power of currencies. The dollar, as a currency, holds about 1/1600th of the purchasing power of a unit (ounce) of gold, its parallel real money equivalent. The Reserve and Govt can't maintain their power bases if gold was used as money because their power comes from their ability to print to pay their bribes and extortion payments. It is more difficult for them to use gold for the same purposes because there is not a sane person in the world who would exchange their gold for graft. There is one exception.... Gordon Brown ...... but then it wasn't HIS gold.

phyuckyiu's picture

I think Libya, Egypt, and Tunisia are out of gold too, oddly enough.

Bay of Pigs's picture

Hey Turd, how goes the battle?

Turd Ferguson's picture

Hard to believe at this point but the batte is nearly over.

Nice to see you, BoP. I hope you are doing well, too.

Silver Bug's picture

Once again get physical! Nothing else is real!

smlbizman's picture

so 16 of you think i was serious?

A Lunatic's picture

Poland.........'nuff said.

Turd Ferguson's picture

JPMorgan........'nuff said.

Mike7.62's picture

Think GLD, SLV, MFG, PFG, Sentinal...the US financial's...gone!

Keep on stackin'.

Nadaclue's picture

Even stackin has risks. I'm sure you would scream; "You sir, are an idiot", but what if Prez Monarch rules that all forms of PM's are to be turned in to the Government Office of Metals Control, a newly formed entity by EO, at the price of $XXX per ounce?

Now your fucked. R you going to wait 40 years for the Marxist fad to decay? It has happened before and it will happen again. The Ponzi bankers who designed this system are not going to let the little guy get fat with them.

They have a different mindset from the avg Joe. They believe they are superior in knowledge, skills and abilities, just as the legislature and Executive and Judaical branches believe.

Have enough to get out of the country? How you gonna get it out? They've locked down transporting metals out and Fiat out. They want it, you have it and they will take it.

Never underestimate the greed of the financial players. They have no morals, they have no soul, only making money to satisfy shareholders is their utmost concern, whether legally or illegally. Greed has no morals.

I ain't saying don't stack it, what I am saying is; "Have you thought about all the possible scenarios?" If you haven't, start thinking about mitigation to each one.

Jungle Jim's picture

Every single gram of Au and Ag I own is physical. I know right where it is, and nobody else but me knows. If I died it would all probably be lost forever, or until some future archaeologist/grave robber found it.

But that's not making me happy. It's not doing for me what I need done. It's not getting me out of the bad, bad situation -- this world of shit -- I'm in. I need it to be worth more --a LOT more, on the market. Not in thirty or forty years, but in like thirty or forty days.

Dr. No's picture

Your lucky. I know several members here lost their PMs in some tragic boating accidents.

Nadaclue's picture

I couldn't agree with you more JJ BUT, if it goes up, whaddaya gonna do? DO YOU HAVE A PLAN?

See, ya gotta figure out how to maximize the value of the stacks. At which point does one say, "Fuck it, I'm tradin this shit for fiat and then doing X. Y, Z"

Holding stacks isn't the ultimate goal, creating LONG TERM wealth out of those stacks is the ultimate goal. I ain't selling you answers, I'm telling you to ask the questions. WHAT THE FUCK IS THE ULTIMATE GOAL?

Sit tight through the collapse then emerge wealthy when the new system is implemented? Could be a few years, are you ready for that? It is one possibility but only one. Many other darker possibilities also co-exist.

Digital money is one. There has been a big push towards digital money for a long time. Easier for GOV to control laundering and tax evaders and it. is. coming.

Invocation of SPR's will likely bring digital money and all the associated taxes that Gvmt. needs to breed and expand.

All I'm saying is to plan for it all. If you can conceive it, they will try it.

Third world residency will enhance your timelines, if you can figure out where and how to get your money out.

Doña K's picture

You can take all gold accross to Canada legally as long as it is .9999 pure (maples) However, it is best to keep it here in the US.

What to do with your stash and when? when you can buy a nice 65' ocean going sailboat with 1/3 of your stack, you are a made man. That will give you shelter and an open ticket to anywhere there is ocean. A boat has one thousand places to hide gold.

Watch out for boating accidents.




nodhannum's picture

@Doña K "However, it is best to keep it here in the US".   Pray tell, why here in the US?

Jungle Jim's picture

Well, for me, the ultimate goal has always -- or at least for about forty years now -- been some safe, secure, and relatively self-sufficient place to live. "Just live," as Dr. Zhivago put it.

Probably pretty far out in the sticks. Preferably not too easy for just anyone (especially government employees)  to just casually intrude into.

 That is NOT where I find myself now. I have no job, or any other income stream.

 ALL I have on which to fix any faint hopes I might still have are my physical PMs. Which just keep depreciating, for whatever reason.

 Well, I think I know the reason, but it lies far beyond my control. :o(

I've alway hated the statement, "Knowledge is power." I've always known what needed to be done. But I've never had the power. Power,  not knowledge,  is power.