MwaHaHa: Gold ETF Shares to Vault, 10:1

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MwaHaHa: Gold ETF Shares to Vault, 10:1

This is too funny, gold is going to go lunar. A good idea? (Trusting the morons who blew up the economy with liar loans with ones gold?)

Has The iShares Gold ETF (IAU) Been Covertly Depleted Of 90% Of Its Physical Holdings, With Banks Like JPM And Goldman Pocketing The Actual Gold?

A few days ago we presented an interview of Harvey and Lenny Organ with King World News, in which the Organs recounted their personal visit to Canada's only bullion bank vault - ScotiaMocatta. According to them, the vault contained roughly 89,000 ounces of gold, in the form of "210 400 oz bars, 4,000 maples, 500 eagles, 10 kilo bars, 10 one kilogram pieces of gold nugget form." As GATA's Adrian Douglas confirmed, this was equivalent to about $100 million at today's gold price. Yet what we find perplexing is the disclosed gold holdings of the iShares Gold Trust, also known as IAU. According to the NYMEX Daily Report the Gold Stock data for the IAU is as follows:

 Note that in the above spreadsheet, the iShares total holdings in ScotiaMocatta are presented as 457,173 TOz. In fact, of the total 2.476 million ounces backing the entire IAU ETF, ScotiaMocatta accounts for 18.5%, while Canada in its entirety is responsible for 75.3% of the total underlying "assets." We wonder just how much actual gold is really held in all of Toronto.

 Not very surprisingly, in the IAU Prospectus we read the following:

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Re: MwaHaHa: Gold ETF Shares to Vault, 10:1

Davos and ErikT:  i respect your input and observations (right or wrong!) and it appears that you may be on opposite sides of this CFTC/GATA/KWN/FSN episode that is transpiring.  Am i correct on that?

If so - please debate vigorously!  I appreciate your perspectives and will continue to weigh all the evidence.

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Re: MwaHaHa: Gold ETF Shares to Vault, 10:1

Davos,

Thank you for the link, it was very disconcerting. I have been following the King World News interviews, and just this morning the rebuttal on Financial Sense with Jim Puplava. I know from previous posts that you also listen to Jim Puplava. What do you think? I'm not sure what to believe at this point. I have some money with Steve Leeb, and they do invest in GLD and SLV. I sent them over articles about HSBC and JP Morgan's connection to the ETF's. I also sent them the King World News links. They told me that apart from what I was sending them nobody knew anything about it, and there were no rumors on the street. I found that shocking, considering this is not my job. Steve Leeb has been on the Gold and Oil bandwagon since the tech bubble. Anyway, I wanted to get your take on it. Thank you in advance for your input.

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Re: MwaHaHa: Gold ETF Shares to Vault, 10:1

So I read the perspectus, which includes language about independent auditing, etc, but I guess not closely enough.  Then I diversified part of my 401k into IAU and SLV.  Not willing to even put my gold and silver eggs in one basket, I invested in CEF and GDX as well.  Now these recent revelations put those investments in doubt. 

Trust me, if I could get my hands on my 401k dollars, I would pay whatever tax and penalty, then pay off my house, pocket a little coin and be done with the whole mess.  But unfortunately, there is no escape hatch for 401k funds in my plan unless I quit or get laid off.   The only investments available are US exchange traded instruments (stocks, bonds, ETFs) and mutual funds.

So where is a reputable and verifiable investment that can one turn to anymore (within those limits) to preserve a bit of savings?

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Re: MwaHaHa: Gold ETF Shares to Vault, 10:1

wsippel,

I am in a similar boat. I did read something recently about Eric Sprott having a new bullion fund PHYS. I can't vouch for it personally, but it may be worth looking into. I am still exploring my options, although I probably need to get it done quickly.

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Re: MwaHaHa: Gold ETF Shares to Vault, 10:1
zeroenergy21 wrote:

Davos,

Thank you for the link, it was very disconcerting. I have been following the King World News interviews, and just this morning the rebuttal on Financial Sense with Jim Puplava. I know from previous posts that you also listen to Jim Puplava. What do you think? I'm not sure what to believe at this point. I have some money with Steve Leeb, and they do invest in GLD and SLV. I sent them over articles about HSBC and JP Morgan's connection to the ETF's. I also sent them the King World News links. They told me that apart from what I was sending them nobody knew anything about it, and there were no rumors on the street. I found that shocking, considering this is not my job. Steve Leeb has been on the Gold and Oil bandwagon since the tech bubble. Anyway, I wanted to get your take on it. Thank you in advance for your input.

I'll be listening to FSN during kid's soccer game and while painting. All I can say at this point is this: It is clear that at least one gold vault has clients who are bankers and that the bankers quite obviously believe that anything and everything is subject to fractional reserve banking and used this vault like a FRB branch.

Given what these utter and absolute morons did with the economy (read: blew it up using subrpime & liar loans, sold tranches of stinky sh*t to pension funds and countries by lying that it was AAA rated) I would not trust them to be honest and have a 1:1.

In Eric Sprott's interview on King World News, which I'm sure you heard, Eric mentioned that he expects the Central Banks to admit one day that they don't have much gold on their shelves. Since gold is leased and since I've read that our CB sold a lot of gold and didn't disclose it (it came out in an unrelated  FOIA on 0Hedge) I tend to think Sprott is correct.

I'm reading Leeb's newsletter now. I recently met one of the writers, we only talked briefly, but I was MOST impressed with him, I'm not sure what we'd agree or disagree on since we didn't really get into a long discussion, but the person has a LOT more years of experience than I do and he is a h*ll of a lot smarter than I am.

I have a friend who is worth about 50 million that I convinced to buy gold when it was 700 or 800 an ounce, but his broker put him in GLD so this is something I that is very close to my heart.

This is one reason I hate gold, hold it on hand and your family is at risk, trust a banker and they will likely scr*w you, put it in a safe deposit box and the government could confiscate it. Truly I think the best option is a vault but one you put your PM in (i.e. ship it to).

Take care.

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Re: MwaHaHa: Gold ETF Shares to Vault, 10:1
back40 wrote:

Davos and ErikT:  i respect your input and observations (right or wrong!) and it appears that you may be on opposite sides of this CFTC/GATA/KWN/FSN episode that is transpiring.  Am i correct on that?

If so - please debate vigorously!  I appreciate your perspectives and will continue to weigh all the evidence.

Hello Back40:

I don't know, one thing Erik posted lead me to think he was receptive to this. Right now I'm not saying EVERY ETF or EVERY bank did this...

Right now it certainly appears to me that one bank and one ETF have done this.

My gut take on this, right here, right now: It's beginning to look a lot like the subrpime mess, and I truly expect to be surprised if this isn't more rampant and more pervasive. I think gold is traded like any other "commodity" even though it is really a 5,000 year old currency. Like any commodity there are more contracts traded than what really exists or can be mined or grown or whatever.

I do respect Puplava a lot, a client I've had for years knows my 5G's (G*d, Gold, Guns, Grub & Government will scr*w it up). They have a net worth over 2 m and I sent them to the PFS Group and hope PFS takes them to manage their worth. It'll be interesting to hear his take and of course I look forward to reading ET's and others as this unfolds or unravels which ever the case may be.

One thing I hold certain: Where criminal activity accounts for something to be sold that doesn't exist there will undoubtedly be a very strong demand and a very high price affixed to it.

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Re: MwaHaHa: Gold ETF Shares to Vault, 10:1

This gold fraud could well be the entrance to the main rabbit hole.

 

The fraud, currently getting some first press, could expose the essence of the false money system, and open up exposure to the real owners of this planet.

These 'few at the top' have used their counterfeiting machines to collect the labour of the world, and have bought up most of the world's gold supply for their own interest. Many countries were looted of the bulk of their gold during the bottom of the market prices, on or around the 2001 low.

England is currently under investigation of selling their gold, and Switzerland's gold was stolen at the same time. Their first sales were handled behind the closed doors of the BIS to undisclosed buyers, so the public would not see the real private bankers receiving their country's gold.

Rothschild, has always been the controller of the London Bullion Market. He left a few years ago because he knew the gold fraud would soon become open. Same reasoning for the sale of Master Card and Visa, new IPO's, issued just before the crash, knowing the finance industry would soon collapse.

The great markets of the LBMA and the Comex who currently trades billions of dollars of money in paper gold and silver, are actually trading paper not backed by the any metals. The metals are long gone and a great scam is being played out where the banking system issues, sells, and safekeeps almost all bullion. It is a closed loop. Gold is never transferred from one place to another, it's just paper trades. It is a casino that will return paper money to many investors who trusted they would receive gold and silver instead, and is just another Wall St. scam...

 The way to make it transparent is for us to exchange all of our paper promises for precious metals, in hand. We should buy more metal, as it will soon disappear. We know the paper money is fake, it's not such a large stretch to believe the paper PM markets, are also fake.

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Re: MwaHaHa: Gold ETF Shares to Vault, 10:1
John99 wrote:

This gold fraud could well be the entrance to the main rabbit hole.

 

The fraud, currently getting some first press, could expose the essence of the false money system, and open up exposure to the real owners of this planet.

These 'few at the top' have used their counterfeiting machines to collect the labour of the world, and have bought up most of the world's gold supply for their own interest. Many countries were looted of the bulk of their gold during the bottom of the market prices, on or around the 2001 low.

England is currently under investigation of selling their gold, and Switzerland's gold was stolen at the same time. Their first sales were handled behind the closed doors of the BIS to undisclosed buyers, so the public would not see the real private bankers receiving their country's gold.

Rothschild, has always been the controller of the London Bullion Market. He left a few years ago because he knew the gold fraud would soon become open. Same reasoning for the sale of Master Card and Visa, new IPO's, issued just before the crash, knowing the finance industry would soon collapse.

The great markets of the LBMA and the Comex who currently trades billions of dollars of money in paper gold and silver, are actually trading paper not backed by the any metals. The metals are long gone and a great scam is being played out where the banking system issues, sells, and safekeeps almost all bullion. It is a closed loop. Gold is never transferred from one place to another, it's just paper trades. It is a casino that will return paper money to many investors who trusted they would receive gold and silver instead, and is just another Wall St. scam...

 The way to make it transparent is for us to exchange all of our paper promises for precious metals, in hand. We should buy more metal, as it will soon disappear. We know the paper money is fake, it's not such a large stretch to believe the paper PM markets, are also fake.

+1, well composed & IMO quite plausible. 

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Re: MwaHaHa: Gold ETF Shares to Vault, 10:1

Davos,

          Thank you again for your viewpoint. I have to agree. I listened to the Financial Sense, CFTC interview again, and he did not make me feel as though things are not overleveraged. Maybe nothing "illegal", but the whole system is built on leverage and fraud. Without everyone's confidence, it falls apart. I think I am going to push Steve Leeb to get me out of GLD and SLV. If they don't like it, I will take the money and buy physical with it. I just don't trust anything anymore. The system just has too much motive and opportunity to defraud the gold and silver market. I guess better safe than sorry.

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Re: MwaHaHa: Gold ETF Shares to Vault, 10:1
zeroenergy21 wrote:

Davos,

          Thank you again for your viewpoint. I have to agree. I listened to the Financial Sense, CFTC interview again, and he did not make me feel as though things are not overleveraged. Maybe nothing "illegal", but the whole system is built on leverage and fraud. Without everyone's confidence, it falls apart. I think I am going to push Steve Leeb to get me out of GLD and SLV. If they don't like it, I will take the money and buy physical with it. I just don't trust anything anymore. The system just has too much motive and opportunity to defraud the gold and silver market. I guess better safe than sorry.

Anytime. I'm only 1/3rd of the way through FSN. I have the utmost respect for the Puplava's and usually don't disagree with much if not all of what they come up with. There is by the way, what appears to be an excellent piece on GLD, (Link Below) I'm only a few sentences into it, but it appears to be a diamond in the ruff. Sorry not to be up to speed, painting our house after moving in 3 years ago and I'm about down to the finish line. 

Take care!

Guest Post: Got Gold? Why Owning GLD Can Be Hazardous To Your Wealth

This analysis will show why GLD is nothing more than another form of a derivative security which is loaded with counter-party default risk. Ultimately, the value of the GLD Trust, and the price of its stock, has the potential to experience substantial loss. Under certain circumstances GLD could be worthless.

The Leeb newsletter that one of the authors gave me listed out three key points, number three being

#3, Gold is a necessary hedge agains "whatever".

I suppose the quintessential question would be: What will 'whatever' be? I suspect, and this is just my lay view, that we will have a currency crisis, that the dollar will be devalued. Will the casinos (read: NYSE where SPDR GLD trades) close? I dunno. But I do know I'd want the ability myself to get my paws on it, or at the very least some of it, IF I had to. I'm sure paper GLD will go up, and from a portfolio perspective owning GLD is very wise. But, and it is a big but, if John Williams is right about hyperinflation, and I seriously suspect he is, then paper gold (alone) 'may' not suffice.

Gold is a hedge. Is paper gold a hedge? I myself don't think so. I tend to lean with Jim Puplava on this perspective.

 

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Re: MwaHaHa: Gold ETF Shares to Vault, 10:1
Davos wrote:

I'm reading Leeb's newsletter now. I recently met one of the writers, we only talked briefly, but I was MOST impressed with him, I'm not sure what we'd agree or disagree on since we didn't really get into a long discussion, but the person has a LOT more years of experience than I do and he is a h*ll of a lot smarter than I am.

I would be hesittant about putting too much faith in Steven Leeb or his associates.  My sense is that he's very smart but perhaps not as gifted in street smarts, intuitive instincts, and plain old common sense.  I remember him positively salivating about what a wonderful investment Enron was ... just before it went bang ... not much due diligence there.  He talked a much better track record than he demonstrated.  Needless to say, I don't get his newsletter any more.

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Re: MwaHaHa: Gold ETF Shares to Vault, 10:1
ao wrote:
Davos wrote:

I'm reading Leeb's newsletter now. I recently met one of the writers, we only talked briefly, but I was MOST impressed with him, I'm not sure what we'd agree or disagree on since we didn't really get into a long discussion, but the person has a LOT more years of experience than I do and he is a h*ll of a lot smarter than I am.

I would be hesittant about putting too much faith in Steven Leeb or his associates.  My sense is that he's very smart but perhaps not as gifted in street smarts, intuitive instincts, and plain old common sense.  I remember him positively salivating about what a wonderful investment Enron was ... just before it went bang ... not much due diligence there.  He talked a much better track record than he demonstrated.  Needless to say, I don't get his newsletter any more.

Thanks, LOL, The USA "maybe" (will be) the next Enron!

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