FYI: Gold Vault Practically Empty

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Davos's picture
Davos
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FYI: Gold Vault Practically Empty

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joemanc's picture
joemanc
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Re: FYI: Gold Vault Practically Empty

I sold my GLD to get into the CEF, which I thought was safe, and now I just sold CEF. Is anything safe anymore?!? I guess I can look at the Sprott gold fund, think that one is backed by 97% physical metals.

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Mike Pilat
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Re: FYI: Gold Vault Practically Empty

I guess that would explain some of the movement in the metals today...this whole thing seems to be blowing up pretty quickly at times. I wonder what creative measures Central Goverbankers will take next to try to keep a lid on everything.

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Re: FYI: Gold Vault Practically Empty

Mike Pilat wrote:

I wonder what creative measures Central Goverbankers will take next to try to keep a lid on everything.

I think all Central banks, government and organizations (EU and IMF) are just going to jump on the quantative easing train and play it until the very end. It will be musical chairs with only a few left with a seat.

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Re: FYI: Gold Vault Practically Empty
Mike Pilat wrote:

I guess that would explain some of the movement in the metals today...this whole thing seems to be blowing up pretty quickly at times. I wonder what creative measures Central Goverbankers will take next to try to keep a lid on everything.

Some, likely Greece, since last week corps and wealthy individuals there are pulling the plug --- don't want to use the "run" word ---- just yet.

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Mike Pilat
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Re: FYI: Gold Vault Practically Empty

Yes, they are going to do QE for a while, but I truly don't think they are as stupid as some people believe. There is almost certainly a "plan B" (really maybe "plan A") in the wings that will be thrust forth if and when it all goes bust. Either that or these guys will abandon ship for their estates in South America. While I have confidence in my decisions and assessment, I hesitate to think I'm smarter than all the CB's. If nothing else, they have access to far more privileged information than I do.

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Re: FYI: Gold Vault Practically Empty

Crude at $100, Gold at $1,500 by Year-End: Byron Wien

http://www.cnbc.com/id/36221000

agitating prop's picture
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Re: FYI: Gold Vault Practically Empty
Johnny Oxygen wrote:

Mike Pilat wrote:

I wonder what creative measures Central Goverbankers will take next to try to keep a lid on everything.

I think all Central banks, government and organizations (EU and IMF) are just going to jump on the quantative easing train and play it until the very end. It will be musical chairs with only a few left with a seat.

That won't help in this particular situation. This is fraud on a pretty grand scale, and the victims are the type who are a little more suspicious than average. A significant number of them could easily demand physical delivery, refusing a cash buy out., understanding the long term implications. Wow. When my brother bought physical gold from the bank, about 2 years ago, I told him I thought allocated gold certificates were likely pretty safe, but he opted for bullion, as I did a few years earlier. As crazy suspicious as I am, I really didn't think that the deception could run this deep and encompass the Canadian banking industry. Good freaking lord. The world truly is run by the Sopranos, isn't it?

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Re: FYI: Gold Vault Practically Empty
agitating prop wrote:

The world truly is run by the Sopranos, isn't it?

They're better than this. Honestly. 

We'll find out how bad it all is when folks start melting bullion to make jewelry to avoid confiscation. LOL

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Mike Pilat
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Re: FYI: Gold Vault Practically Empty

There actually already are companies online (sorry, no link just now) that sell bullion jewelry. They are big ugly necklaces and pendants no one would ever wear and they weigh a pound or more. But yes, they are technically jewelry.

In my admittedly inexperience opinion, I think that in our current environment, if the SHTF, then it's really not going to matter much what shape your holdings are in.

Davos's picture
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Re: FYI: Gold Vault Practically Empty
Mike Pilat wrote:

There actually already are companies online (sorry, no link just now) that sell bullion jewelry. They are big ugly necklaces and pendants no one would ever wear and they weigh a pound or more. But yes, they are technically jewelry.

In my admittedly inexperience opinion, I think that in our current environment, if the SHTF, then it's really not going to matter much what shape your holdings are in.

My cousin on FB is going to melt a few into bracelets .... I might open a site to sell them. Think it would make travel safer.

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Re: FYI: Gold Vault Practically Empty

The Scotia Mocatta approved COMEX depository is located in New York.

The downtown Toronto branch reported here is probably as much concerned with selling all those Canadian mint maples and bullion bars. While there was not much gold in this vault there is no historical information to make any kind of judgement.

Looks like gold has been capped off around $1150 today. I guess the next few days will show whether it can break through that level.

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Re: FYI: Gold Vault Practically Empty

The Thais are old hands at making bullion into jewelry in standardized units.  Google Thai gold jewelry and you'll find lots of dealers like this one:

http://www.amuletjewel.com/

Doug

agitating prop's picture
agitating prop
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Re: FYI: Gold Vault Practically Empty
Mike Pilat wrote:

There actually already are companies online (sorry, no link just now) that sell bullion jewelry. They are big ugly necklaces and pendants no one would ever wear and they weigh a pound or more. But yes, they are technically jewelry.

In my admittedly inexperience opinion, I think that in our current environment, if the SHTF, then it's really not going to matter much what shape your holdings are in.

I hear you have to watch the gold used for mouth piercings though. They're made of tongue-sten. Tongue out

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DrKrbyLuv
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Re: FYI: Gold Vault Practically Empty

I don't think the article specified if the gold and silver were "allocated" or paper certificates.  It may be that the fine print allows a money settlement.

Regardless, it looks like PMs are gradually being pulled out of the market and into private holdings. 

Larry

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Re: FYI: Gold Vault Practically Empty

An interesting data point...

A hedge fund manager buddy of mine in NYC decided to go to the COMEX warehouse in person after his fund bought a bunch of bullion (not futures, but delivered thru to warehouse receipts). They were happy to show him his gold, but they also told him that of hundreds of hedge funds who collectively own millions of ounces of Gold, he was the first guy to actually come to see it for himself!

My point is that there are probably lots of well-meaning (but not terribly diligent) financial professionals selling their clients "allocated gold" and charging them storage fees, but who have never personally bothered to go make sure the gold really exists. The opportunity for fraud is certainly ripe.

Erik

 

Davos's picture
Davos
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Re: FYI: Gold Vault Practically Empty
Erik T. wrote:

An interesting data point...

A hedge fund manager buddy of mine in NYC decided to go to the COMEX warehouse in person after his fund bought a bunch of bullion (not futures, but delivered thru to warehouse receipts). They were happy to show him his gold, but they also told him that of hundreds of hedge funds who collectively own millions of ounces of Gold, he was the first guy to actually come to see it for himself!

My point is that there are probably lots of well-meaning (but not terribly diligent) financial professionals selling their clients "allocated gold" and charging them storage fees, but who have never personally bothered to go make sure the gold really exists. The opportunity for fraud is certainly ripe.

Erik

 

Years ago I read that Lucky Luniano toured the stock market and at the end asked, "And you guys call me a crook?" Until the mortgage fraud and the selling of the fraud to pension funds and countries what he said didn't resonate. No, I wouldn't be the least bit surprised by anything these days. 

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Re: FYI: Gold Vault Practically Empty

This gold fraud story could be the blue pill and the rabbit hole together.

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