Are Banks Raiding “Allocated” Gold Accounts?
by Washington's Blog
July 6, 2012 Beware: “Allocated” Gold May Not Really Be There
In 2007, Morgan Stanley paid out $4.4 million to settle a class-action lawsuit by its clients alleging that Morgan Stanley took money from them for buying precious metals on their behalf, took money from them for “storage” of these precious metals accounts, but only pretended to purchase the bullion.
Avery Goodman points out that MS has 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.”CONTINUE: [link to globalresearch.ca]